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This paper empirically examined the impact of firm capabilities and the interaction effect of R&D on the export performance of service firms in comparison with manufacturing firms. To this end, a total of 1,968 Korean firms were analyzed: 243 from service and 1,725 from manufacturing, and two-stage analysis was performed using multiple regression and hierarchical regression analysis. This research confirmed that network and customer capabilities played critical roles in the internationalization of service firms and R&D positively interacted with entrepreneurship and customer capabilities for export performance. These findings suggest valuable policy considerations for government trade policy and academic motivation for further research on the capabilities and R&D of service firms.


Manufacturing Firms, Service Firms, Export Performance, Firm Capabilities, R&D, Interaction Effect, Innovation.
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