Abstract

Technology strategy was found by many researchers as a way to improve competitiveness. Failure to develop and integrate technology strategy and business strategy is a major contributing factor to the decline of firm’s competitiveness. Many literatures also indicated that technology strategy played an important role in determining firm performance in technology-driven industries such as industrial automation company. However, most of the previous studies have generally focused on the structure-conduct-performance theory which emphasized greatly on external factors (i.e market condition and competitors) to link strategies to firm performance. Very few studies were found to link strategies with the internal factors. Thus, the present study was undertaken to relate strategic view and resource-base view theory to the firm performance of industrial automation company looking at technology selection, technology competence, technology posture and the moderating effect of the resource deployment. The empirical result based on 61 Malaysian industrial automation company found that, technology selection has positive impact towards revenue growth (measuring firm’s performance). However, technology posture was found to be a negative predictor towards revenue growth and technology competence has no significant impact on revenue growth. Resource deployment on the other hand was identified to only moderate technology selection and technology posture but not technology competence.

Highlights

  • Since the Industrial Revolution, many production technologies had been introduced and evolved to improve the production efficiency and reducing the production costs

  • In testing Hypotheses 4, the results show that financial resources deployment has a pure moderating effect on technology strategy-revenue growth relationship

  • The result shows that technology selection was perceived as high to medium level, meaning that most of the industrial automation firms understand the importance of providing value-added technology to customers

Read more

Summary

Introduction

Since the Industrial Revolution, many production technologies had been introduced and evolved to improve the production efficiency and reducing the production costs. Industrial automation is one of the widely used strategies by the manufacturers to improve their competitiveness, in terms of quality and operating cost. Countries like USA, Europe and Japan adopted automation strategy to improve their competitiveness, in terms of cost, quality, flexibility, and delivery (Hayes & Jaykumar, 1988; Goldhar & Jelinek, 1985; Parthasarthy & Sethi, 1992). The introduction of the third Industrial Master Plan (IMP3) for the periods of 2005-2020, will accelerate the pace of development and linkages between manufacturing-related services and enhance the development of industrial clusters. It will help enhancing the competitiveness of the manufacturing sectors and the industry clusters.

Results
Discussion
Conclusion

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.