The purpose of this study is to investigate the relationship among product/market segments, strategies, network form and performance of the fashion apparel business in Korea.
Interfirm network is considered as one of the resources and capabilities of the firm. Network form refers to structure of partners in the value chain and the extent of transaction. Product/market segment is divided by the extent of product change and price. The strategy consists of cost efficiency, product differentiation, quality differentiation, marketing differentiation, focus, asset parsimony and quick response.
Those relationships among the variables are theoretically constructed and empirically tested in the 55 Korean fashion apparel business.
The major findings are as follows; (1) Product/market segment has an influence on network form; that is the characteristics of product/market segment of the division has an influence on network form. (2) Strategy has an influence on the network form. (3) As the network form of a business fits the characteristics of product/market segment, the network form has a positive relationship with performance.
