Abstract
Abstract This study identifies the important organizational capabilities for innovation performance in the hybrid electric vehicle technology sector. Specifically, we focus on small and medium-sized technology-based firms in Sweden. The empirical data, collected by using a questionnaire, cover 40 technology-based firms from eight industrial branches. We use eighteen variables to identify the important organizational capabilities related to markets and business competition by including indicators for each of these capabilities in two regression models. The results offer empirical evidence that these organizational capabilities are important for mainly radical innovation in the hybrid electric vehicle technology industry. This study thus contributes by exploring how businesses can link organizational capabilities in a competitive business environment. Both patent (radical innovation) and product development require firm development and R&D; however, patent development also requires internationalization. These results offer useful implications for policy-makers and firm managers, who can manage firms based on R&D and business dimensions to support their development in this sector.
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