Internal Technological Capabilities Research Articles

Subnational institutions, firm capabilities and eco-innovation

Abstract We examine the role institutional pressures, at the subnational level, play in the generation of eco-innovations and explicitly consider how they interact with firms’ heterogeneous capabilities and ownership characteristics. Theoretically, we combine elements from institutional theory with the resource-based view of the firm to develop our hypotheses. Empirically, we use a novel dataset over the period 2003–2013 compiled from several sources: (I) environmental regulations (city-level) from the China Environmental Statistical Yearbooks and City Statistical Yearbooks; (II) green patents (firm-level) from the China National Intellectual Property Administration; and (III) ownership (firm-level) from the National Bureau of Statistics. Our econometric analysis employs an instrumental variable (IV) approach that controls for endogeneity and a negative binomial multilevel methodology for robustness. The results show that institutional pressures associated with environmental regulations, implemented at city level, lead to more green patents produced by firms in these jurisdictions. Crucially, the effectiveness of environmental regulation is enhanced when firms invest more in their internal technological capabilities. Finally, we find that a firm’s affiliation with a business group enhances the positive effects of regulations in terms of the production of eco-innovations.

The role of knowledge creation, absorption and acquisition in determining national competitive advantage

Knowledge has been considered a key factor in countries’ catch-up of competitive advantage. However, few studies have deeply analyzed the complex interaction effect of internal technological capabilities and external knowledge acquisition, and the influence of the institutional environment is often ignored. In this paper, we integrate the knowledge-based view with both the new growth theory and the institution-based view, empirically test the validity of our competitive theoretical framework using the panel data of 29 developing countries and 32 developed countries from 1995 to 2018. The results show that, in countries at different stages of development, internal technological capabilities (knowledge creation capability and knowledge absorption capability) and external knowledge acquisition (external technological knowledge and market information knowledge) have different mechanisms of action, constraints and interaction effects. The findings suggest that countries need to make different catch-up strategies according to their stage of national development.

Imported intermediates, technological capabilities and exports: Evidence from Brazilian firm-level data

This paper explores how internal technological capabilities influence the relationship between imported inputs and the export performance of firms. We apply threshold regression techniques to a representative dataset of Brazilian firms and find a strong positive influence of innovation skills on the relationship between imported intermediates and export revenues. Complementarities between capabilities and importing are found only for high-quality imports and are stronger for exports of products with a higher scope for quality differentiation. We also observe that technological capabilities are directly correlated with export performance, confirming the view that innovation positively influences firms’ international competitiveness. However, this relationship is not found to be significant for firms that export products with a low scope for quality differentiation. Overall, our results suggest that technological capabilities and the quality of imported inputs not only benefit firms directly but also complement each other in enhancing export competitiveness.

A validation of a cloud migration readiness assessment instrument: case studies

Higher education institutions could introduce enormous cloud-based educational services that satisfy their stakeholders’ IT needs. Migration to these pools of cloud services is multiple decision-making processes that are impacted by different organizational and technological obstacles and drivers. Investigating the preparedness of the internal technological and organizational capabilities of a university still lacks investigation particularly in Saudi Arabia. In this study, the practicality of a research instrument called Cloud Migration Readiness Assessment (CMRA) is assessed by using three case studies. The development of the instrument was published earlier. In this study, the validation of the instrument outputs is investigated by assessing the readiness of the three cases that already have planned to adopt the cloud computing services. Subsequently, the practicality and usefulness of the CMRA were assessed using a questionnaire and interviews with IT specialists in the three selected cases. The main contribution of this study is the validation and evaluation of the CMRA tool in real-world context using three different case studies in Saudi Universities.

Technological capability, eco-innovation performance, and cooperative R&D strategy in new energy vehicle industry: Evidence from listed companies in China

To promote low-carbon economy and sustainable energy consumption, new energy vehicles (NEVs), a typical eco-innovation, are drawing intensive attention from manufacturers, administrators and academics. Despite extensive literature investigates factors that affect research and development (R&D) of NEVs, yet little is known about the role of technological capability as well as the interaction between internal technological capability and external resources (e.g., ownership, government subsidy and external cooperation). This might lead to the overlook of technological capabilities and the misallocation of external resources. In present study, we investigate how firm-level technological capability (measured by R&D expenditure) affects its eco-innovation performance (measured by eco-innovation patents), as well as the moderating impacts of ownership and governmental support (i.e., subsidy). Further, we explore the correlation between firm’s technological capability and its R&D strategy (i.e., internal R&D or cooperative R&D). Our investigation is based on a unique set of panel data from 127 listed companies in the Chinese automotive industry, spanning from 2009 to 2018. The empirical findings demonstrate that firm-level technological capability is positively related to eco-innovation performance, and state ownership intensifies this positive relationship. Surprisingly, increasing government subsidy tends to weaken this correlation. The results also show that firms with higher technological capabilities prefer cooperative R&D, while those with lower technological capabilities tend to choose internal R&D. These findings promote the understanding on the cost-effectiveness of R&D investment in the NEV industry, and also shed light on the interactions of internal and external resources. The study offers managerial implications to promote the prosperity of the NEV industry.

Who are the most effective R&D partners for different types of product innovation? Evidence from South Korean manufacturing firms

ABSTRACTR&D cooperation is a key to combining firms’ internal and external technological capabilities. This article empirically investigates the effect of R&D cooperation partners on different types of product innovation. This study considers four types of partners in R&D cooperation: suppliers, customers, competitors, and universities. Three purposes of product innovation are considered: diversification of products, pioneering a new market, and standardization of technology. The main findings are: (1) R&D cooperation with suppliers and competitors has a positive effect on standardization of technology, (2) R&D cooperation with customers has a positive effect on diversification of products and pioneering a new market, and (3) R&D cooperation with universities has a positive effect on pioneering a new market and standardization of technology.

The opportunity-driven innovation catching-up from China in engineering and technical services industry: does technology gap generate opportunity gap in innovation

In the multi-case study, 14 latecomer firms from China in the engineering and technical services industry, which successfully accomplished the innovation catching-up, have been investigated. The key influencing factors of innovation catching-up have been identified and the relationships among these influencing factors have been detected. An 'Opportunity-Action' Model of innovation catching-up are build up. The research finding shows that the innovation catching-up of these latecomer firms are driven by opportunity, which is mainly shaped by the external forces but not decided by the internal technological (capability) factor. The empirical evidence and finding implies that the larger technology gap between the latecomer and the leading firms does not signify that the latecomer firms have fewer innovation opportunities in such context. In the innovation diffusion, at least as shown in this study of the engineering and technical industry in China, the technology gap does not directly generate the opportunity gap in innovation.

Technology transfer and technological capability: the regulator's role in the adoption of solar photovoltaics in Brazil

The adoption of a new technology is highly associated with human capital, support infrastructure and research and development activities. This paper aims to analyse the technology transfer process and the internal technological capabilities building of power companies in the solar photovoltaics (PV) sector. The research subjects were the electric power companies (proponents); research institutions (executors) and service and equipment suppliers that submit projects to the call of ANEEL for R&D Strategic Projects No. 013/2011. Analysing the development of these projects, it is possible to affirm that there was a need for a learning process to understand, use and replicate the technology, including the ability to choose and adapt to local conditions and integrate it with national technologies. In general, efforts have been identified to implement engineering projects, but this could not be characterised as a construction of a national technological capability in the Brazilian PV energy sector.

Technology transfer and technological capability: the regulator's role in the adoption of solar photovoltaics in Brazil

The adoption of a new technology is highly associated with human capital, support infrastructure and research and development activities. This paper aims to analyse the technology transfer process and the internal technological capabilities building of power companies in the solar photovoltaics (PV) sector. The research subjects were the electric power companies (proponents); research institutions (executors) and service and equipment suppliers that submit projects to the call of ANEEL for R&D Strategic Projects No. 013/2011. Analysing the development of these projects, it is possible to affirm that there was a need for a learning process to understand, use and replicate the technology, including the ability to choose and adapt to local conditions and integrate it with national technologies. In general, efforts have been identified to implement engineering projects, but this could not be characterised as a construction of a national technological capability in the Brazilian PV energy sector.

Technology assessment model for sustainable development of LNG terminals

The liquefied natural gas (LNG) industry is one of the highest value-added industries, and strategic technology development not only contributes to its growth, but also to the one of national economies. For sustainable technology development, the first step is to accurately diagnose the technological capabilities a firm possesses, based on which the development strategy is established. However, few efforts have been made to identify technology management issues in LNG terminals. Therefore, this study aims to develop a technology assessment system, named K-TOL that assigns a grade according to the level of technologies, using a set of indexes customized to LNG terminals. The K-TOL was applied to a Korean company and its feasibility and utility verified. Academically, this is one of the first attempt to develop a technology assessment system especially for sustainable technology management in LNG terminals. Practically, the K-TOL will be useful for strategic technology planning to improve internal technological capabilities, and can be further developed to a global standard to appraise, evaluate, and certify technology excellence of LNG terminals, contributing to the advances of the LNG industry worldwide.

Does Patent Performance Promote Relative Technological Performance in Countries Bordering the Mediterranean?

In the present paper, we explore the relationship between patent performance and relative technological performance. A review of the theoretical and empirical literature shows that patenting is one of the major drivers for enhancing countries’ relative technological performance. Focusing on PCT patent applications for a sample of 16 Mediterranean countries over the period 1995 to 2010, we develop a dynamic model in which countries’ relative technological performance is depending on the capacity of innovative actors and ‟knowledge infrastructure” to exploit internal technological capabilities and to explore external sources of technological knowledge by patents (ambidexterity). The results of our estimations show that Mediterranean countries’ patent performances significantly explain their relative technological performances. Estimations provide also evidence that for this group of countries, relative technological performance depends on technological knowledge absorption capacities.

Technological Capabilities, Technological Dynamism and Innovation Offshoring

In this paper we analyze the conditions under which firms decide to offshore innovation. We consider the role of internal technological capabilities and technological dynamism in the firm environment, distinguishing speed and uncertainty of technological change. Using unique data from the German Innovation Survey we find that while high speed of technological change tends to drive innovation offshoring, high uncertainty about future technology developments results in more innovation offshoring only for firms with low internal technological capabilities. Firms with high technological capabilities instead are less likely to offshore innovation when uncertainty is high. We argue that these differences in offshoring behaviour reflect differing strategic objectives. We show that for firms with low technological capabilities asset augmentation is more important while for firms with high technological capabilities asset exploitation is more important. When faced by high technological uncertainty firms with low technological capabilities offshore innovation strategically in order to reduce uncertainty by augmenting their asset base. For firms with high technological capabilities asset augmentation is less important. When faced by high technological uncertainty they prefer to innovate onshore in order to keep stronger control of their key assets.

Evaluating Internal Technological Capabilities in Energy Companies

As global competition increases, technological capability must be evaluated objectively as one of the most important factors for predominance in technological competition and to ensure sustainable business excellence. Most existing capability evaluation models utilize either quantitative methods, such as patent analysis, or qualitative methods, such as expert panels. Accordingly, they may be in danger of reflecting only fragmentary aspects of technological capabilities, and produce inconsistent results when different models are used. To solve these problems, this paper proposes a comprehensive framework for evaluating technological capabilities in energy companies by considering the complex properties of technological knowledge. For this purpose, we first explored various factors affecting technological capabilities and divided the factors into three categories: individual, organizational, and technology competitiveness. Second, we identified appropriate evaluation items for each category to measure the technological capability. Finally, by using a hybrid approach of qualitative and quantitative methods, we developed an evaluation method for each item and suggested a method to combine the results. The proposed framework was then verified with an energy generation and supply company to investigate its practicality. As one of the earliest attempts to evaluate multi-faceted technological capabilities, the suggested model can support technology and strategic planning.

Overseas R&D and Taiwan-Based Firm?s Productivity - Does Internal Technological Capability Matter?

The purpose of this study is to examine the influence of overseas R&D on firm productivity. In particular, we further consider the moderating effect of internal technological capability. To provide more empirical evidence, this analysis takes advantage of a longitudinal dataset covering the 2009-2013 period and the system-GMM approach is employed in the empirical analysis to control for the problem of endogeneity. The empirical results show that overseas R&D has a significant influence on their firm productivity. Moreover, internal technological capability is found to play a significant moderating role in strengthening the influence of overseas R&D on firm productivity.

Technological Capabilities, Technological Dynamism and Innovation Offshoring

In this paper we analyze the conditions under which firms decide to offshore innovation. We consider the role of internal technological capabilities and technological dynamism in the firm environment, distinguishing speed and uncertainty of technological change. Using unique data from the German Innovation Survey we find that while high speed of technological change tends to drive innovation offshoring, high uncertainty about future technology developments results in more innovation offshoring only for firms with low internal technological capabilities. Firms with high technological capabilities instead are less likely to offshore innovation when uncertainty is high. We argue that these differences in offshoring behaviour reflect differing strategic objectives. We show that for firms with low technological capabilities asset augmentation is more important while for firms with high technological capabilities asset exploitation is more important. When faced by high technological uncertainty firms with low technological capabilities offshore innovation strategically in order to reduce uncertainty by augmenting their asset base. For firms with high technological capabilities asset augmentation is less important. When faced by high technological uncertainty they prefer to innovate onshore in order to keep stronger control of their key assets.

Capability Building in the Indian Automobile Industry: A Study of Maruti Suzuki India Limited

In the era of global competition, firms, in general, should develop innovative capabilities for their survival and growth. Firms rely either on their internal technological capabilities or their external linkages as the sources of innovation. With the pace of technology development, access to knowledge and resources from outside the firm is becoming increasingly important .The study analyses the capability building as seen in expenditure on ‘Research and Development’ in the leading auto manufacturer in India, Maruti Suzuki-a joint venture between the Indian government and Suzuki Motors Corporation, Japan. The analysis shows that the Maruti Suzuki has integrated and built internal and external competences to address the rapidly changing environment and has consolidated its position as the top automobile manufacturer with the right blend of capacity building activities.

Exploring the Upgrading of Chinese Automotive Manufacturing Industry in the Global Value Chain: An Empirical Study Based on Panel Data

In the age of globalization, the upgrading of China’s manufacturing industries has attracted great attention from both academicians and practitioners, as it certainly has great implications for the development of China and, even further, for the development of the whole world. To address this issue, the study clarifies the effects of the internal technological innovation capability (ITIC) and external linkages (ELs) on upgrading the Chinese automotive manufacturing industry (CAMI) in the global value chain, in order to indicate the appropriate way for the CAMI to be further upgraded and provide references for the formulation of regional automotive industrial policies. Based on Chinese panel data, the results confirm that both ITIC and EL are important for the upgrading of the CAMI, with ITIC being the more important. Improvement of ITIC facilitates the industry’s cooperation with the EL, resulting in better knowledge access. Furthermore, the results of cluster analysis reveal that regions with relatively developed automotive industries place emphasis on both the ITIC and EL. However, in some regions (e.g., Shanghai and Chongqing), the utility of EL seems insufficient. Therefore, the results of this paper, on the one hand, suggest policies should be directed towards increasing the ITIC of CAMI. On the other hand, in some regions, managers and policymakers need to explore further the advantage of clustering.

Key Sub-Disciplines and Methods of Technology Planning in Dynamic Environments

The dynamic development in all areas of business brings shorter life cycles of products, technologies, as well as organisational structures and enterprises. The critical factor of many technological changes is not the technology innovation process, but finding a new application for an existing technology (Rycroft, 2006).The form of technology planning depends on the capabilities and requirements of a specifi c enterprise, but also on external determinants that affect its internal technological capabilities. Within the formulation of a technology strategy (TS), it is necessary that managers adequately incorporate different dimensions and needs of own technology in TS, but also that technology elements are appropriately designed and substitutable. This article has two main goals. The fi rst is to describe methodically the main specifi c features and forms of technology planning/TS through a comprehensive study of available professional literature. The second goal is to analyse the development of technology planning methods based on a bibliometrical analysis of ScienceDirect database (1823-2013).

Cognición de la Innovación Industrial en América Latina: Avances y Desafíos

This paper makes a comparative study and relational levels and technological advances that lead society to a more efficient use of productive resources and transform new ideas into viable solutions through products and services, paradigms and processes with development of the new technological revolution, innovation understood in this work as a new idea or approach applied in new ways to create value for the organization and other stakeholders in the good of humanity. The value of innovation requires organizations to develop internal technological capabilities and knowledge capacity. This article describes the process of how you can´t always see the results of empirical studies are consistent and in fact the lack of significance of innovation to productivity is not exclusive to Latin American economies. Discussion of how it can be due to different circumstances surrounding innovation and its effects in the long run , the fact that companies are far from the technological frontier and weak or no incentives to invest in innovation arises .

How Performance and Technological Strength Impact Knowledge Utilization: A Behavioral Explanation

This paper examines how the focal firm's innovation performance relative to historical and social aspirations influence the firm's utilization of alliance knowledge and to what extent firms with similar internal knowledge capabilities differ in their leveraging of such knowledge. Results based on a longitudinal sample of firms in the U.S. semiconductor industry show that while poor innovation performance relative to historical aspiration increases the utilization of alliance knowledge, the effect of poor innovation performance relative to social aspiration is not significant. Moreover, we found that the focal firm's internal technological capability plays an important role in the aspiration-knowledge utilization relationship. While technological capability and poor performance relative to historical aspiration have a positive interaction effect on knowledge utilization, the effect of the interaction between technological capability and poor innovation performance relative to social aspiration on knowledge utilization is negative.