The purpose of this study is first to understand whether technology innovation capability, which is considered an important factor in the Root companies, directly affects the business performance of the company. Second, it was attempted to determine whether internal resources deemed necessary for a company's continuous competitive advantage and excellent business performance play a mediating role in the technological innovation capability of the Root companies and the business performance. The implications of this study derived from the research results are as follows: Among the elements of technology innovation capability, R&D capability, positively affects both financial and non-financial performance. It was confirmed that the investment ratio could positively affect financial performance such as sales, market share, and yield, and non-financial performance such as corporate image, employee satisfaction, and productivity. Among the factors of technology innovation capability, the technology innovation system positively affects both financial and non-financial performance. Therefore, it can be said that securing rights to owned technology, establishing technology and funding, efficient use of resources, etc., affects financial performance such as sales or market share of a company, and affect the company's production capacity, image, and employee satisfaction. It has been verified that internal resources, including financial, physical, and human resources, can mediate between the three elements of technology innovation capability and corporate financial and non-financial performance.

Over the past 40 years, Korea's defense industry has been deepening into a low-efficiency industrial structure as the government directly controls prices, quantities, and costs. By implementing the Defense Industry Building Act in 2021, the government is creating a healthy ecosystem for the defense industry and strengthening its global competitiveness. In this study, based on KPC's Productivity Management System (PMS), a diagnostic model of defense companies implemented since 2013, the on-site diagnosis was performed from 4 to 28 days depending on the size of the company data was collected based on the results. The causal relationship was analyzed through structural equation model path analysis for the effect of innovation capability on productivity performance. As a result, it suggests that defense materials suppliers should focus on which core processes to innovate and strengthen and improve their innovation capabilities.

Korea's defense industry has been fostered as a protection industry in which the government directly controls prices, quantities, and costs for the past 40 years, and it is deepening into a low-efficiency industrial structure. By implementing the Defense Industry Building Act in 2021, the government is creating a healthy ecosystem for the defense industry and strengthening its global competitiveness. In this study, based on KPC's Productivity Management System (PMS), a diagnostic model of defense companies that has been implemented since 2013, on-site diagnosis was performed from 4 to 28 days depending on the size of the company, and data was collected based on the results. For the effect of innovation capability on productivity performance, the causal relationship was analyzed through structural equation model path analysis. As a result, it suggests that defense materials suppliers should focus on which core processes to innovate and strengthen and improve their innovation capabilities.

“우버화”라는 용어는 비단 우버(Uber) 뿐만 아니라 에어비앤비(Airbnb) 등 과 같은 공유경제 산업이 활성화됨에 따라 운수업계, 숙박업계 등 기존 산업계와의 충돌로부터 빚어지는 현상을 의미한다. 혁신을 주도하는 새로운 기술 또는 비즈니스 모델(또는 둘 다)은 기존 산업을 지배하는 규제 구조와 관련된 문제를 제기하며, 기술혁신은 기존 규제 체계와 잘 맞지 않거나 긴장관계에 놓이게 된다. 이러한 갈등의 조정을 위해 각국이 “전통적인 규제방식”을 어떻게 변경시킬 것인지 관심이 모아지고 있다. 비즈니스 혁신에 의해 촉발되는 정책 교란에는 네 종류가 있다. 교묘한 회피, 면제 및 공백, 해결책이 그것이다. 예를 들어 에어비앤비는, 법적으로 차별을 두는 호스트에 의한 ‘면제’ 와 구역제, 호텔세 및 기타 규제 제도와 관련된 일련의 ‘교묘한 회피’ 정책 교란을 야기했다. 이와 같은 정책 교란에 대한 규제 기관의 정책 대응 방법에는 차단, 프리패스, 구체제, 신체제 및 신뢰이익의 보상이 있다. 에어비앤비와 우버택시의 국내 도입에 따른 법적 공백이 발생한 것과 관련해, 규제 대응 방법으로써 ‘구체제’ 또는 ‘신체제’ 이론을 적용하여 관련 국내법의 개정과 새로운 법률의 도입을 고려해 볼 수 있다.

Domestic SMEs play a key role in production and employment, accounting for 98.9% of total enterprises, 74.4% of employment, 50.8% of production, and 49.0% of value added (as of 2016). However, they are faced with difficulties of survival because of continuous decrease in profitability, shortage of funds and manpower, insufficient accumulation of technology, minimum wage increase, and 52-hour workweek. In order for SMEs to continue to develop in such a difficult environment, we must constantly innovate our organization by making full use of our knowledge, information, experience and ability. To do this, CEO (management) leadership is very important to ensure that the best people are focused on the organizational innovation and management performance without moving the company. In this study, we wanted to establish empirically how the newly emerging compassionate rationalism leadership of SMEs business managers affected the innovation activities and management performance of companies. Research has shown that management’s compassionate rationalism leadership has a positive and significant causal relationship with the innovation activities and management performance of the enterprise. Therefore, SMEs managers need to learn the bottom eight strategic factors of compassionate rationalism leadership and use them strategically to make efforts to create positive emotions for the organization so that members can be immersed in innovative activities and management performance creation.

The global luxury travel market is in a constant state of flux, and traditional players have to adapt to the rising challenges in various areas of their business model. As new players emerge, using technology and the global reach of the Internet and social media to reach out to a discerning group of travelers, they speak to the changing expectations and behavior of international consumers. Our study will shed light on these consumption and travel patterns, on ways new disruptors in the field of luxury hospitality successfully differentiate themselves from their more traditional competitors and on the implications this will have on the business models of five-star hotels in Switzerland. While limited in scope, this study will provide insight relevant to academics and professionals in the field of luxury hospitality.

Introduction Business model (BM) research currently represents rapidly developing area of knowledge that helps businesses in finding new sources of competitive advantage and growth drivers. Multiple studies demonstrate that BM studies are multidisciplinary by their nature as this helps better understanding complex processes happening in real life that are described by BM research (Zott, Amit, Massa, 2011; Tikkanen et al, 2005). This means that BM research is built on a basis of strategic management, marketing, sociology, psychology, logistics, institutional economics and other disciplines. Regardless the growing amount of publications in this area (more than 6 times growth for the last 15 years reaching 2100 publications per year according to Scopus) the amount of successful BM in practice remains low. BM studies are primarily linked to the notion of value that is jointly created for the final consumer by multiple participants of the value chain (suppliers, manufacturers, distribution channels). Within the interaction of BM participants the key role is played by their orientation towards the interests of the final consumer who makes the decision on whether to acknowledge or not the created value. As value chain generally consists of multiple commercial organizations, their major interest is in making profits as a result of joint value creation activities. Therefore the key role in BM analysis is played by marketing that helps searching and offering such values for the customer that enable satisfying his needs. Multiple research in marketing confirms that long term customer orientation, cooperation of value chain actors offer companies better development opportunities and lead to better financial results as well as help increasing value generated for the final consumer. However, the current level of marketing involvement into the BM research remains low. This, in turn, significantly limits the opportunities of creating successful and sustainable BM that bring profits to the commercial units of the value chain and satisfy the needs of the final consumer. To address the existing gap the current paper explores the links between BM research and marketing which are then used to develop a new approach to BM innovation. The approach is based on value chains and interfirm relationships. Literature review Regardless large and steadily growing amount of BM publications the questions related to building a unified theoretical basis for BM research are still under discussion (Teece, 2010; Zott, Amit, Massa, 2011; DaSilva, Trkman, 2014; Baden- Fuller, Mangematin, 2015). There is a lack of alignment between the researchers on a broad spectrum of questions (such as BM definition, BM components, the relation between BM and company strategy, BM boundaries, the impact of various BM types on company performance etc). At the same time some consolidation of researchers’ positions can be observed in relation to the domination of a value component within BM definition. The questions related to BM analysis that enable to evaluate the current state of a BM, understand its key components (Hamel, 2000; Johnson, Christensen, Kagermann, 2008; Teece, 2010) and find better opportunities for BM improvement (Osterwalder, Pigneur, 2010; Girotra, Netessine, 2014) are actively researched. Many authors come to a conclusion that a BM spans the boundaries of a single firm and includes a whole complex of interaction participants – suppliers, distribution channels, final consumers. This is because cooperation of various market participants enables to significantly increase jointly created value for the customer (Nenonen, Storbacka, 2010; Zott, Amit, Massa, 2011). This understanding of a BM also leads to the need of thorough analysis of mismatches and inconsistencies between value chain participants that regularly appear in the business (Gassmann, Frankenberger, Csik, 2013; Girotra, Netessine, 2014). Regardless the existing variety of BM studies, most of the papers draw the attention to the process of value creation for the final consumer, which is a zone of marketing interests, as marketing studies the directions of identifying and satisfying customer’s needs. Therefore it is hard to imagine building successful BM oriented on the final consumer and bringing stable income to the companies participating in the BM without organic inclusion of the customer into the value chain by using methods and tools from marketing. These questions are studied within multiple relationship marketing papers (Parvatyar, Sheth, 1995; Gumesson, 1999; Juttner, Christopher, Baker, 2007; Tretyak, 2013). However, nowadays the involvement of marketing researchers in BM studies is low (only 5% of BM studies are published in marketing journals (Coombes, Nicholson, 2013)) which is also confirmed by the current study. Despite the very broad spectrum of studied questions, the importance of value acknowledgement by the customer is neglected by BM researchers. At the same time in case the value is not acknowledged, the BM loses its commercial value for the other participants as it stops bringing them profits. Therefore there is a growing need to incorporating the final consumer into the value chain, understanding its interests. This is possible in case of using the results of marketing research which is demonstrated in the current study. Research design To explore the link between marketing and BM research we review the literature on relationship marketing that is specialized on the value creation process for the customer, inclusion of the customer into the value chain, cooperation and coordination of value chain participants (Parvatyar, Sheth, 1995; Gumesson, 1999; Juttner, Christopher, Baker, 2007; Tretyak, 2013). The similarities between BM research and marketing were examined from two sides. The first examination analyzes the publications statistics of BM papers. We particularly look at the amount of BM publications in marketing journals. The classification of journals by different categories is conducted according to Scientific Journal Rankings (SJR) list. For the purpose of this analysis we use Scopus publications database and all the available articles with “business model” in title published before 2018. The relative “typicality” of these papers and journals is evaluated using citation index (number of citations per article/journal divided by total number of citations). Along with this we analyze not only journals which publish BM articles, but also the journals referring to them. The second examination looks into the actual similar attributes of marketing and BM research. The BM literature is studied through the prism of seven schools of thought that are recently proposed by (Gassmann, Frankenberger, Sauer, 2016): Activity system school (Zott, Amit), Process school (Demil, Lecocq), Cognitive school (Baden Fuller, Morgan), Technology-driven school (Chesbrough, Teece), Strategic choice school (Casadeus-Masanell, Ricart), Recombination school (Gassmann, Frankenberger, Csik), Duality school (Markides, Charitou). These seven schools provide a comprehensive outlook on major BM research tendencies that help in understanding of BM essence, structure, components, goals and objectives, BM performance evaluation, and the directions of future BM studies. Additionally to better understand BM key research trends we analyzed top 25 most cited publications according to Scopus and Ebsco publication databases (the publications with “business model” notion in title were selected). For the purpose of theoretical analysis we applied the methods of comparison, generalization, methods of grouping and classification. The basis of the current research is formed by value chains studying methods that are used in both BM and marketing studies. Results and conclusions The analysis of BM research demonstrated that BM spans the boundaries of a single firm and includes the whole complex of interaction participants that jointly create and deliver value to the final consumer - suppliers, manufacturers, distribution channels. Because of that multiple BM research papers focus on the analysis of the value chains and intercompany networks. Understanding of these specifics formed the basis of a new approach to BM innovation. It is demonstrated that the existing approaches to BM analysis and improvement don’t include the final consumer as a specific BM component, and don’t focus the attention on fulfilling his needs as well as building the mechanism of BM actors’ interaction in accordance with customer’s needs. At the same time the acknowledgement of the value by the customer defines the financial wellbeing of BM actors. Addressing these questions can significantly improve BM performance and can be done through building a link between BM research and marketing. The analysis demonstrated that only 6% of BM papers are published in marketing journals, and only 8% of studies that are citing BM research are published in marketing journals which confirms limited involvement of marketing scholars in BM research. The following similarities between BM and marketing studies were identified and explored: value chains and interfirm networks (examples of marketing studies: Tretyak, 2013; example of BM studies: Nenonen, Storbacka, 2010; Zott, Amit, Massa, 2011), cooperation and partnerships between value chain participants (examples of marketing studies: Parvatyar, Sheth, 1995; example of BM studies: Zott, Amit, 2008), coordination of value chain participants (examples of marketing studies: Juttner, Christopher, Baker, 2007; example of BM studies: Girotra, Netessine, 2014), customer orientation and customer involvement (examples of marketing studies: Gumesson, 1999; example of BM studies: Johnson, Christensen, Kagermann, 2008; Teece, 2010), long term orientation of relationship marketing and sustainable BM (examples of marketing studies: Parvatyar, Sheth, 1995; example of BM studies: Girotra, Netessine, 2014). To close the existing gap a three-level conceptual model (1st level – structure of the BM, 2nd level – mechanism of BM participants’ interactions, 3rd level – results of their interactions) and new approach to BM innovation are offered within the current study. The approach demonstrates a step-by-step sequence of actions within three previously highlighted levels and is targeted on increasing the jointly created value for the customer by the BM by eliminating mismatches and inconsistencies between BM participants. Comparing to other approaches, the new approach allows orienting BM participants towards the interests of the final consumer, acknowledges different abilities of BM actors to influence the value creation process and proposes analyzing the ways of coordination of other BM actors by the dominating actor in order to improve the results of the BM. The practical implementation of the approach demonstrated that it’s key provisions could be successfully applied within different market conditions and lead to improved BM performance (Klimanov, Tretyak, 2016; Lyashchuk, Sterligova, 2016). The following sequence of actions is proposed within the approach: 1st level - structure of the BM (a. Visualization of intercompany network with its key actors and description of their roles; b. Defining and highlighting the dominating actor (hypothesis); c. Analysis of BM variety, their classification), 2nd level - interaction mechanism (a. Defining the mechanism (concrete forms) and coordination directions that are applied by the dominating actor and other BM actors; b. Definition and analysis of mismatches and inconsistencies that appear between various BM actors, and also the ways to overcome them; c. Identifying the most critical inconsistencies, their ranking (where there is the biggest gap between the value created for the customer and the value captured by other BM actors)), 3rd level - results of BM actors’ interaction (a. Analysis of the indicators that characterize BM on various levels; b. Analysis of the impact of mismatches and inconsistencies between the BM actors on the flows’ characteristics: material, financial, customer flow). The new approach to BM innovation has multiple similarities with Activity system school that is based on the approach offered in (Zott, Amit, 2010), which views BM as a system of interdependent activities conducted by the focal firm and other value chain participants in order to create value for the customer and generate profits. The approach assumes that it is possible to analyze or develop a BM by considering the components, structure and control mechanism of the activity system. However, the approach offered in the current study is different from the Activity system perspective at the level at which the activity system is analyzed - these are components of a whole value creation system, rather than a single focal firm. Thus, the proposed approach develops the Activity system perspective by proposing the use of a marketing scheme that integrates certain aspects of BM analysis into an organic whole and offers a threelevel analysis of a BM. Considerable attention in the Activity system perspective focuses on the activities of BM participants and their interaction. The activity system design element related to transaction management also reflects one of the key elements of the new approach proposed in the current study - BM participants occupy different positions in the value chain and have different opportunities to influence the value creation process for the consumer. The highlighted similarities demonstrate that the new approach to BM innovation developed in the study is organically linked to the Activity system perspective proposed by Zott and Amit and elaborates on it.

More people travel oversea as the economic size of Korea is getting larger and more new jobs are requested to be created by the society. To respond to these trend and request, Incheon International Airport Corporation (IIAC) is about to expand its processing capability with a new terminal; 54 million passengers to 72 million. IIAC is also introducing new strategies such as open innovation (OI) and creating shared value (CSV). With these changes, IIAC faces new challenges of restructuring its business and organization with new ideas. Most organizations including IIAC are becoming more dependent on external resources to keep their competitive advantages under the turbulence of global business environmental changes. Therefore, they focus on the OI paradigm which is reported as a convincing strategy to improve competitiveness in terms of budget and time-to-market. OI is to quickly react to the rapidly changing business environment and is adopted to support startup incubation. In the previous research with IIAC, three major tasks were defined; utilizing the IIAC brand power for external vendors, building a technology road-map, and introducing a collaboration support system. This paper deals with the collaboration system as proposed in the previous research. We focused on the collaboration process for startup incubation. Cases were studied; the K-startup model by the government, a university model to explore youth startups, and a R&D institute model to study professional startups. Based on the case studies, we defined an IIAC model and proposed issues to take care of. The model is distinguished from the other studied models since IIAC is a prospective customer of new technology.

The purpose of this study is to review the relationship between managerial system and incremental innovation, and the mediating effect of knowledge transfer in small business. In order to verify and achieve the purposes mentioned above, questionnaire data were gathered and analysed from 255 enterprise managers in western Kangwon-do province. Empirical survey's findings are as follows; First, CEO's support and education/training appeared to be positively related with knowledge transfer. Second, managerial system and knowledge transfer appeared to be positively related with incremental innovation. Third, knowledge transfer had mediating effect on the relationships of CEO's support-incremental innovation and education/training-incremental innovation.

With the rapid development of science and technology, big data has been applied in many fields and has brought commercial revolution[1]. The scientific community generally regards big data as "massive data + complex types of data". Commercial applications are more concerned about big data as an analytical (prediction) method and focus on the potential commercialization of analysis results. All walks of life will produce large amounts of data every day. The transition of data-scale brings huge commercial value, which will certainly bring the innovation of business model[2]. Particularly in the internet and other emerging industries, because they get data more convenient and fast. Like Amason, Facebook, Google etc, they use analysis of big data to innovate their business model for maximizing their profits[3], actually business model refers to "an enterprise’s profitable operation mode plus ways to make money"[4]. So the effectiveness of business model innovation of big data on emerging industries has been remarkable. But the impact of big data on traditional industries is still in the exploratory stage. Traditional industry mainly refers to the labor intensive, manufacturing oriented industries, including the traditional commerce and service industry[5]. Learning from the experience of big data on business model innovation of emerging industries, traditional industries can use big data to subvert the business model and accelerate the transformation and upgrading.

The CEO leadership and employee’s concerning and participation to quality management innovation activity is critical factor for improving the business performance. This empirical study is aims to find that whether the quality management activity is significant or not in the automotive parts suppliers. To perform this research, we distributed 250 sheets totally, and withdraw 194 sheets. We analysed 169 sheets that we could use for this research using SPSS 18.0 and AMOS 18.0. We had the results that CEO leadership is significantly positive effects on the employees’s participation to quality management. And the result of process improvement have positively effective and significant effects on the product improvement result and business performance of firms.

Over the years, luxury has built-up a reputation as recession proof industry. Even though the industry growth has slowed down in the mid 2000s, luxury firms have managed to cope with economic contingencies and shortening traditional demand by widening their clientele base to prestige mass consumption ― the “masstige clientele”. Doing so, luxury firms have been pursuing a dual strategy by wooing aspirational consumers as well as their traditional elite customers, thus managing the challenge of handling both a differentiation strategy based on scarcity and uniqueness, and increased volumes of sales. This has been a trend in mature markets such as Europe, the United States and Japan, but was significantly fostered by expanding into emerging markets. Sector specialists thus expect China to remain a major structural growth area in the medium term, where the number of both high-end clients as well as new aspirational consumers will substantially increase and influence firms strategy.

최근 치열해지는 시장경쟁과 함께 가속화⋅다양화되는 기술혁신의 환경 변화 로 인해 기업들은 기존의 제품혁신이나 한정된 서비스의 제공만으로는 고객들의 요구와 기 대를 충족시킬 수 없게 되었으며, 비즈니스모델(BM) 혁신을 통해 그 해법을 찾고자 하고 있 다. 본 연구에서는 BM혁신과 관련된 이론적 논의를 검토하여 연구개발서비스업 내 BM혁신 의 필요성과 성공 요건에 관한 명제들을 도출하고, 자동차 R&D서비스업에서 선도적 글로벌 기업인 AVL과 ETAS의 BM혁신에 대한 사례를 연구함으로써 명제들을 검증하고 시사점을 도출하고자 하였다. 특히, BM이 혁신을 통한 가치 창출의 과정에서 중요한 역할을 하는 점을 감안하여, 본 연구는 연구개발서비스업 분야에서 기술적 역량을 갖춘 기업이 BM혁신을 통해 어떻게 성과를 도출할 수 있는가에 대해 살펴보았다. 본 연구의 결과에 따르면, 사례기 업들은 고객을 위한 가치 제안과 기업의 이윤 창출을 극대화하기 위해 제품(기술)-서비스 융 합에 기반한 BM을 수립하고 자사에 적합한 보완적 자산을 차별적으로 활용함으로써 BM혁 신을 효과적으로 수행하였다. 본 연구는 국내 기술혁신경영분야에서 BM혁신에 대한 논의를 활성화하며, 국내 연구개발서비스업과 연구개발전문기업들이 향후에 혁신적 BM에 기반해 효과적으로 발전하기 위한 시사점을 제공하는데 기여하고자 한다.

본 연구의 목적은 다국적기업의 글로벌 친환경혁신전략에 영향을 미치는 요인과 해당 결정요인들을 바탕으로 실행된 글로벌 친환경혁신전략이 다국적기업의 경영성과에 직접적인 영향을 미치는지 고찰해보기 위함이다. 제도적 이론을 활용하여 연구의 이론적 모형을 제시했으며 이를 바탕으로 글로벌 규제적 압력과 글로벌 경쟁자 압력이 다국적기업의 글로벌 친환경혁신전략에 긍정적인 영향을 미칠 것이라는 가설을 제시하였다. 이와 함께 다국적기업의 친환경혁신전략과 경영성과 간 직접적인 관계가 있음을 나타내는 가설도 함께 제시함으로써 기업의 의사결정에 직접적인 영향을 미치는 모든 주체들의 특성을 고려하여 다국적기업의 글로벌 친환경혁신전략 프로세스를 설명하는 통합적인 모형을 나타내보고자 하였다. 본 연구의 연구모형은 PLS를 이용한 경로분석을 바탕으로 검증 되었으며 자료는 한국증권거래소에 상장된 다국적기업의 본사 중 식품가공 및 처리를 제외한 제조업만을 한정하여 실시한 설문조사를 통해 수집되었다. 또한 경로분석에 앞서 수집된 자료의 편의를 없애기 위해 무응답편의 및 동일방법편의 진단을 위한 분석을 실시하였다. 이를 바탕으로 자료를 분석한 결과 모든 제도적 압력 요인들이 다국적기업의 친환경혁신전략에 긍정적인 영향을 미치는 것으로 나타났다. 그와 더불어, 본 연구결과는 다국적기업 의 친환경혁신전략이 기업의 경영성과 개선에도 직접적인 영향을 미친다는 것을 보여준다.

The objective of the present study is to analyze the relationship of suppliers and customer participation in product development process and effects of such participation on product innovation since it is getting more and more weight in manufacturing companies. It is also aimed in this study to explore if business performance of manufacturing companies might be affected by the suppliers participation as well as product innovation that is realizable by such participation. From the analysis, following conclusions could be drawn: First, suppliers participation in manufacturing companies turned out to have influence upon product innovation (standardized coefficient=0.193, C.R=3.510), implying that nothing is more important than the role of suppliers who have intention to realize innovation through participation in manufacturing companies. Second, the analysis showed that customer participation exercised impact upon product innovation of manufacturing companies (standardized coefficient=0.686, C.R=6.433), suggesting that the more customer participate in product development process of manufacturing companies, the more manufacturing companies could sharpen their competitiveness. Third, it was made known from the analysis that the product innovation thanks to suppliers and customer participation in manufacturing companies could have influence upon their business performance (standardized coefficient=0.762, C.R=7.666), signifying that the product innovation of manufacturing companies might depend on the participation of suppliers and manufacturers and, in turn, could affect their own business performance.

This paper reviewed the mediating effects of knowledge sharing between social capital(interaction, trust, shared vision) and innovation(radical innovation, incremental innovation) in small businesses. Based on the responses from 337 responses, the results of mediating effect analysis and path analysis showed that interaction and shared vision effect positively on radical innovation and incremental innovation via knowledge sharing or directly, but trust effects positively only on incremental innovation. Social capital and knowledge sharing have more effects on incremental innovation than on radical innovation.

This paper reviewed the relationship between social capital(interaction, trust, shared vision) and innovation(product innovation, process innovation), and the moderating effect of CEO's entrepreneurship in small businesses of Convergence Federation. Based on the responses from 252 responses, the results of multiple regression analysis showed that interaction and shared vision effect positively on product innovation and process innovation, but trust effects positively only on process innovation. The results of moderating analysis showed that entrepreneurship effects positively on the relationship between trust and product innovation, and the relationship between shared vision and process innovation.

This paper reviewed the two proposed hypotheses. The first hypothesis is to test the relationship between knowledge management and incremental innovation, and the second hypothesis is to test the moderating effect of firm-size on that relationship. Data w

This paper reviewed the relationship between internal marketing and incremental innovation, and the moderating effect of firm size. The results of hierarchical multiple regression analysis, based on the responses from 322 employees in small business, showed that almost internal marketing factors effects positively on incremental innovation. All internal marketing factors(CEO support, compensation system, education & training, internal communication, authority delegation) appeared to be related positively with process innovation and service innovation. And all other factors(compensation system, education & training, internal communication, authority delegation) except CEO support showed to have positive relationship with operation innovation. In the moderating effects, internal communication effects more positively on incremental innovation in large firm-size than in small firm-size. But delegation effects more positively on incremental innovation in small firm-size than in large firm-size.