Abstract
Smaller technology-based firms are critical for many economies. This study investigates the determinants of performance in a sample of 110 firms from the information and communication technology industry in New Zealand. It is a single industry study, reflecting the industry specificity of resource-based capabilities. Partial least squares methods are used to investigate relationships between capabilities, strategy, and performance. A product-innovation strategy maximized performance, mediating innovation and human capital capabilities. Pursuing a market-expansion strategy ahead of one of product innovation led to inferior performance outcomes. Financial and organizational capabilities had direct positive effects on performance irrespective of strategy.
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