This study tries to analyze the relationship between theinternal competence and the competitive strategy of Koreancorporations in China. And it also tries to find out the effects ofsuitability of the factors on their business performances. For thispurpose, it surveyed 270 Korean corporations in China, and theresults of the survey are as follows:
First, when the effects of the internal competence oncompetitive strategy are investigated, it is proved that thetechnical competence and the marketing competence have ameaningful effect on differentiation strategy of Koreancorporations in China. And the manufacturing competence has ameaningful effect on their cost leadership strategy. Secondly, inorder to accomplish a high management performance, it isimportant for them to have suitable internal competence andmanagement strategy. When they have high suitability, it has thebiggest influence on their business performances.
This results show that it is the most important for Koreancorporations to establish a suitable competitive strategy forimproving their performances, considering their internalcompetence.