Abstract
The modern semiconductor industry is going through rapid changes as new markets and technologies appear. In this paper, such technology-intensive firms’ relationship between technological capability and financial performance is analyzed with regression analysis. Revenue and market capitalization are used as dependent variables. For the independent variables, the technological intensity, technological diversity, technological asset, and technological efficiency are used. The analysis results revealed different effects of technological capability on financial performance. Also, regression analysis is conducted by dividing firms into high and low groups based on technological asset and technological efficiency, and the analysis result revealed different effects of technological intensity and technological diversity on financial performance. For technological asset, the financial performance in the high group is affected more by technological intensity, and the financial performance in the low group is affected more by technological diversity. For technological efficiency, only the financial performance in the high group is affected by technological intensity. Although both groups’ financial performance is somewhat affected by technological diversity, there was no statistically significant differences between the groups. By separating the effect of technological capability on financial performance, this research can provide more detailed analysis results compared to previous literature and the methods of managing technological capability for semiconductor firms.
Highlights
Since the advent of the 21st century, business boundaries around the world have become blurred, and the global business environment has become highly competitive [1]. the boundaries among electronic, computer, automotive, bio, telecommunication, aviation, and internet industries are becoming unclear, these vague boundaries have accelerated technology innovation, which is led by technology innovation from the semiconductor industry.Through technological innovation and new product development, firms try to acquire advantages and growth in financial performance
Financial performance is measured with revenue, technological intensity is measured with patent h-index, technological diversity is measured with patent family, the technological asset is measured with the rate of research and development (R&D) investment, and technological efficiency is measured with the ratio of granted patents
The results showed that technological intensity and technological diversity has a positive effect on financial performance, but the technological asset has a negative effect on financial performance
Summary
Since the advent of the 21st century, business boundaries around the world have become blurred, and the global business environment has become highly competitive [1]. Since the technological capability is viewed as a firm’s internal resource, only a few researches were conducted to analyze the impact of technological capability on financial performance. Technological capability’s effect on financial performance can be efficiently searched by investigating semiconductor firms [11]. This research analyzes technological capability, which is important for semiconductor firms’ financial performance. The research question of this paper is about the factors and effects of the technological capability of semiconductor firms on financial performance. To analyze the effects of technological capability on financial performance, we used financial data of 92 semiconductor firms from 2012 to 2016 and 87,627 patents from 2005 to. We suggest the strategic operation direction of technological capability
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