We made simultaneous single-dish and very long baseline interferometer (VLBI) observations of a narrow-line Seyfert 1 galaxy 1H 323+342, showing gamma-ray activity revealed by Fermi/Large Area Telescope observations. We found significant variation of the total flux density at 8 GHz on the timescale of one month by the single-dish monitoring. The total flux density varied by 5.5% in 32 days, which is comparable to the gamma-ray variability timescale, corresponding to the variability brightness temperature of 7.0 x 10(11) K. The source consists of central and southeastern components on the parsec (pc) scale. Only the flux of the central component decreased in the same way as the total flux density, indicating that the short-term radio variability, and probably the gamma-ray-emitting region, is associated with this component. From the VLBI observations, we obtained brightness temperatures of greater than (5.2 +/- 0.3) x 10(10) K and derived an equipartition Doppler factor of greater than 1.7, a variability Doppler factor of 2.2, and an 8 GHz radio power of 10(24.6) W Hz(-1). Combining them, we conclude that acceleration of radio jets and creation of high-energy particles are ongoing in the central engine and that the apparent very radio-loud feature of the source is due to the Doppler boosting effect, resulting in the intrinsic radio loudness being an order of magnitude smaller than the observed values. We also conclude that the pc-scale jet represents recurrent activity from the spectral fitting and the estimated kinematic age of pc- and kpc-scale extended components with different position angles
