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This study is concerned with the factors that influence the radicalness of new product development by firms. The innovativeness of firms’ new product development differs in their frequency and radicalness. Based on previous research on product innovations, this study provides a hypothetical model that links firms’ internal variables and external relations variables to the radicalness of product innovation, which in turn is linked to marketing performance. For an empirical analysis, the data were collected from South Korean firms.The result of this study provides evidence that the stronger is firms’ management attitude toward risktaking, marketing competency, and technical competency, the higher is the possibility of radical product innovation. It also shows that, contrarily to the hypothesis, firms with collective reward system rather than individual reward system are more likely to develop radically new products. This study also shows that the better are firms’ R&D collaboration with suppliers and interfaces with customers, the higher is the possibility of radical product innovation.

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