Technological Capabilities Of Firms Research Articles

WHAT DRIVES FARMERS TO ADOPT PRO-ENVIRONMENTAL BEHAVIOR? EVIDENCE FROM DATE FARMS IN SAUDI ARABIA

Despite widespread knowledge of agriculture’s sustainability challenges, more needs to be known about the factors influencing farmers’ adoption of sustainable practices. This study examines the specific drivers of pro-environmental behavior among date farmers. A variable model was developed, and a questionnaire was used to gather farmers’ perceptions of the factors influencing pro-environmental behavior on date farms. A hierarchical structure of the identified factors was developed using MICMAC analysis on 81 farmers in the kingdom of Saudi Arabia. Our results show that farm size, supply chain pressure, and firm technological capabilities are the most relevant determinants of pro-environmental behavior on date farms. Also, farmers’ experiences, learning from other firms in the sustainability domain, and farm image improvement are critical variables in the system of pro-environmental behavior adoption. Finally, we argue that pressure from environmental regulation and the farmers’ age are excluded variables. It is crucial to consider that relying solely on encouragement and laws to protect the environment cannot achieve sustainability in agriculture. More attention should be devoted to educating farmers about the importance of pro-environmental behavior and how it can improve their image in front of stakeholders. It is also necessary to organize periodic forums to support mimetic pressure and push farmers to learn from each other. Because farmers’ environments in developing countries tend to be similar, it is possible to generalize these results to some extent. This model unveils a fresh perspective on promoting sustainability in agriculture by using novel analytical techniques to map relationships between pro-environmental actions and their influencing factors.

Impact of global value chains on total factor productivity: The case of Indian manufacturing

AbstractWith production increasingly fragmented across borders, global value chains (GVCs) form a key feature of the world economy. A rising body of literature has documented productivity gains from linking into GVCs for developed‐country firms, but studies on the same for developing countries are scant. In this paper, we empirically examine whether GVCs can increase total factor productivity (TFP) in developing countries, using an unbalanced panel of Indian manufacturing firms in the period 2000/2001–2014/2015 from the Prowess data set. To address econometric issues of self‐selection and endogeneity, we use a two‐stage empirical strategy of propensity score matching and system generalized method of moments. The results indicate that linking into GVCs has a positive and significant impact on firm TFP, even after accounting for self‐selection of more productive firms into GVCs. Once linked, increasing GVC embeddedness, captured through firm‐level vertical specialization, also has a positive and significant impact on firm productivity. But productivity gains are not homogenous; GVC firms that link into relational governance chains, captured through the share of skilled workers and infrastructure and communication index relative to industry, have 20% higher productivity growth than firms in other chains. Older and more liquid GVC firms are also more productive. Designing policies to facilitate GVC linkages and firm technological capabilities can thus foster productivity gains in developing countries.

Heterogeneity of optimal balance between exploration and exploitation:the moderating roles of firm technological capability and industry alliance network position

ABSTRACT Although existing ambidexterity literature suggests that firms need to find the optimal balance between exploration and exploitation for superior performance, few studies have empirically examined the heterogeneity of this balance according to firm-specific conditions. Building upon the capability and social network literature, we contend that firms’ technological capability and network position within industry alliances determine the optimal balance between exploration and exploitation. Analysing 7-year panel data in the worldwide semiconductor industry from 1994 to 2000, we find support for the following hypotheses: 1) the proportion of exploration has an inverted U-shaped relationship with innovation performance; 2) as firm technological capability increases, the optimal point between exploration and exploitation moves towards the exploration side; 3) as network centrality within industry alliances increases, the optimal point moves towards the exploitation side. The results offer theoretical insights into the ambidexterity literature as well as managerial implications for firms making resource allocation decisions.

The Fit between Technology Management and Technological Capability and Its Impact on New Product Development Performance

In recent years, the impact of technology management and technological capability on new product development performance has aroused widespread concern. As a result, research models based on the notion of fit between technology management and technological capability seems to show promise. This paper aims to whether there exists a fit between technology management and technological capability and the effect of this fit on new product development performance. Research results show that the fit between technology management and technological capability has a positive effect on new product development performance. Moreover, the fit between technology management and technological capability in firms with high new product development performance is dominated by technological capability, while that in firms with low new product development performance is dominated by technology management.

Roles of Customers in Upgrading Manufacturing Firm Technological Capabilities Toward Industry 4.0

This paper empirically examines the effects of customers who invested in Information and Communication Technologies (ICTs) on the technological capabilities of a firm for upgrading toward Industry 4.0. This paper focuses on three groups of firm technological capabilities such as production planning, inventory management, and data analysis. Each group consists of four levels of technological capabilities ranging from the fundamental to the most complex levels of technology usage. A hierarchical multiple linear regression method is used to analyze 141 respondents collected from the Thai manufacturing firms during March–April 2019. The results indicate that customers who invested in ICTs significantly and positively affect the technological capability upgrading of a firm in the groups of production planning, inventory management, and data analysis. However, there is no evidence to support that customers who invested in ICTs have positively affected firms to achieve the most complex levels of technology usage in these three groups. For the engineering implications, managers are encouraged to work closely with customers, especially customers with high technological capability. This could help a firm’s engineering teams to upgrade and catch up with customer technologies.

Eurace@unibi-eco: A Model of Technology Transitions

Purpose of this paper is the self-contained description of the green technology extension of the macroeconomic agent-based model Eurace@unibi. The original model is extended in mainly five dimensions: (1) There are two types of production technology, i.e. a green and a conventional. Technology is embodied in capital goods and in the technological capabilities of firms. (2) Employes are endowed with two types of evolving technology-specific skills that are needed to work effectively with specific capital goods. (3) Based on their technological capabilities and the market environment, consumption goods (CG) firms decide whether to invest in green or conventional capital. (4) An environmental accounting keeps track of the environmental impact of CG sector. (5) A policy module allows to investigate the impact of different diffusion policies. Main research areas covered by the model extension are directed technological change, innovation diffusion and technology substitution processes. A key feature of the model is endogenous, technology-specific absorptive capacity of heterogeneous technology adopters that evolves through learning. It is a comprehensive, macroeconomic model that allows to study the macroeconomic and distributional consequences of transition processes. The technical description of the model is complemented by a short summary and discussion of technology transition dynamics in a baseline simulation.

A schema to describe mechanisms of the co-evolution of global value chains and systems of innovation

Global value chains (GVC) and systems of innovation (SI) are concepts developed based on distinct theoretical frameworks. However, recent researches suggest that they co-evolve and that the quality of the SI influences upgrading in GVC. In spite of evidences of this co-evolution, the mechanisms by which it happens are not yet fully understood nor described. Building on a framework outlining the interactions of SI, GVC and technological capabilities of firms, this article proposes a schema by which the functional approach of SI is used to describe the mechanisms of these interactions. The proposed schema is applied to the Brazilian oil and gas sector to illustrate some conceptual aspects of the co-evolution of GVC and SI and how it can contribute to firms' strategy formulation and innovation policy making.

Developing technological capability through human resource management: case study from the Philippines

ABSTRACTThis paper examines firms’ human resource management strategies for innovation and technological upgrading. Using the information collected from three manufacturing firms in the Philippines, this paper describes how human resource (HR) management practices stimulate innovation processes and contribute to technological capabilities of firms. The findings reveal that HR practices, in particular recruitment, and training and development functions influence skills and capacity upgrading to some extent. For firms to sustain and step up their technological capabilities, a more formal and systematic innovation and technological upgrading strategy must be pursued.

Post-Catch-Up Strategy for Medium-Sized South Korean Firms: Improving Technological Capabilities by Balancing R&D Intensity and Open Innovation

This study examines how R&D intensity and open innovation affect the technological capabilities of firms in newly-developed countries, such as South Korea. East Asian latecomers are transitioning from a catch-up phase toward becoming leaders, and they are engaging in open innovation activities to drive this transition. This research quantitatively analyzes three kinds of open innovation activities—outside-in, inside-out, and coupled—to investigate their influence upon technological capabilities, while also considering the effect of R&D intensity. Data from 75 South Korean medium-sized firms were analyzed, and two major findings are reported. First, technological capabilities are enhanced by some open innovation activities and by R&D intensity. Second, R&D intensity negatively moderates the impact of open innovation activities on technological capabilities. Therefore, it may be concluded that firms with relatively low R&D intensity will gain the most benefit from increasing their open innovation activities.

An Introduction to Group Based Trajectory Modeling in Strategic Management Research

We introduce Group Based Trajectory (GBT) models as a tool for empirical analysis for analyzing problems in Strategic Management research. Based on finite mixture models, GBT models enable approximation of an unknown distribution of a phenomenon into a discrete distribution with a finite number of support points. Such approximation offers significant potential for richer empirical analysis of issues in strategic management. We illustrate GBT models and their advantages over regression and strategic group analyses by applying it to study how technological capabilities of firms influences its performance. We conclude with a discussion of its potential uses in strategic management research.

Technological capabilities and firm resources as determinants of export competitiveness: Evidence from Indian pharmaceutical industry using quantile regression approach

Technological capabilities of firms and other firm resources have been researched by many researchers to assess their impact on export competitiveness of Indian industries. This study reports the findings of the influence of technological capabilities and firm resources on the export performance of Indian pharmaceutical industry. The study employs a panel data of 251 Indian pharmaceutical firms as documented by the Prowess database by Centre for Monitoring Indian Economy. The time period considered for the study was the period 2005-2013 to capture the export performance of Indian pharmaceutical industry post World Trade Organisation (WTO) era starting from 1st January 2005. Of the 11 independent variables considered for the study, 5 variables (size of the firm, import of capital goods, import of raw materials, royalty payments, and choice of technology) were found to have a significant impact on the export competitiveness of Indian pharmaceutical firms using ordinary least squares regression analysis. The study also presents a comparative analysis of the results obtained using ordinary least squares regression method and Quantile regression method.The results indicate that except selling and distribution expenses, all the 11 variables exhibited a significant impact using quantile regression method.

Production Networks, Profits, and Innovative Activity: Evidence from Malaysia and Thailand

Cross-border production networks have been playing an increasingly important role in the Association of Southeast Asian Nations (ASEAN) countries’ trade in recent years, but micro-level studies are rare. This paper uses firm-level data from the two most active ASEAN countries in production networks (Thailand and Malaysia) and examines the effect of participating in production networks on profits and technological capabilities of firms. The empirical results show that participating in production networks raises profits. The evidence further suggests that participation in production networks is also positively correlated with technology upgrading, measured by a technological capabilities index.

Industrial cluster and technological dynamism: study of Bangalore machine tool cluster

Industrial clusters are believed to provide an environment which is conducive for the flow of technological and market information and know how. The flow of such information can take place primarily across three channels; horizontal channel, in the form of cooperation among peer firms; vertical channel, across the supply chain; and, external linkages to the suppliers, technology providers and others outside the cluster. This paper explores the influence of these three channels on the acquisition of technological capability of firms in the Bangalore machine tool cluster in south India. Development of technological capability index and suitable proxies to measure learning variables provide the methodological rigor. The information extracted from the survey and subsequent analysis reveals that vertical collaboration and external linkages significantly influence technological capability, whereas the horizontal collaboration is rather weak. This result offers interesting insights into the dynamics of this cluster, which has important implications for policy maker.

The Dynamism between Technological and Product Innovation Capabilities in Low-R&D Industries: A Comparative Analysis of Mauritius Textile Firms

It is common knowledge that the nature of products is a crucial determinant of firms’ innovative activities. Thus products which are fairly unchanging in nature and embody low levels of innovations are viewed as being largely the result of process innovation as opposed to product innovation activities. This view is founded on the suggestion that their competitiveness is principally dependent upon shortened production cycles and cost reduction processes both forming the bases for standardization and mass-production. Hence, there seems to be a general consensus that the technological capabilities of firms which manufacture low-RD (2) domestic enterprises and subsidiaries of multinational enterprises. The study shows that, contrary to what is generally accepted, product innovation capabilities are as crucial as process innovation capabilities in the overall development of low-R&D firms’ technological base.

Firm Technological Capabilities and Interfirm Knowledge Transfer within Alliance: An Analytical Model Based on Dual Hypercycle

Firm Technological Capabilities and Interfirm Knowledge Transfer within Alliance: An Analytical Model Based on Dual Hypercycle

Management and evaluation of technological capability in ICT firms: an information system approach

Technological capability (TC) is the key assets and resources that enable a country and its enterprises to generate innovations, compete internationally and attain reasonable level of economic progress. While the accumulation of TC is central to organisations, its management and evaluation is less apparent. This study deployed the use of a time series information system to capture and evaluate TC in ICT firms using the visual basic programming language. Structured questionnaires and personal interviews were used to obtain primary data from purposively sampled 185 ICT firms involved in production, engineering, maintenance of ICT hardware and software with 85% response rate. The computer software developed generated information system that served as decision support for the management of TC in the firms. Evaluation of the software report reveal that successful conduct of feasibility studies, supplier linkage, networking with government laboratories and research institutes have implication for the generation of technology innovations in the firms. TC's like licensing, copying of imports and hardware manufacturing skills promotes the generation of innovations in the firm. Policy instrument can be used to boost technological learning and development in the areas identified.

Does clustering of enterprises foster technological learning? Insights from the Bangalore machine tool cluster in South India

Close proximity of large number of firms is believed to provide an environment which is conducive for improving technological capability resulting in higher productivity and competitiveness. The technological learning processes which contribute to building and strengthening technological capability of firms are seen as playing important roles in the long-term dynamism and growth of firms. This paper investigates the influence of learning variables, which have been identified through rigorous review of literature, on the acquisition of technological capability of firms in the Bangalore machine tool cluster in south India. The study reveals many similarities in the way firms, whether large or small are benefited by such collaborative arrangements. While vertical and external collaborations significantly influence technological capability, horizontal collaboration among peer firms is rather weak. This result offers interesting insights into the dynamics of this cluster, which has important implications for policy makers.

Complex technological capabilities in emerging economy firms: The role of organizational relationships

Abstract Formal organizational relationships are important sources for capability building in emerging economy firms eager to move up the value chain. We examine how access to valuable knowledge available to firms via organizational relationships creates learning opportunities necessary for the development of complex technological capabilities. Using a sample of 852 observations of emerging economy firms from the Indian software industry between 1992 and 2000, we find that developing strong domestic intra-organizational relationships, through affiliation with a moderately diversified business group or operating in a related industry, promote more complex technological capabilities. In the case of foreign inter-organizational relationships, we find that greater foreign client contact enhances the complexity of firm technological capabilities. However, accessing knowledge from domestic inter-organizational relationships appears to hinder the development of firm complex technological capabilities. An interesting result from our research was that having greater access to knowledge from foreign intra-organizational relationships, embedded within foreign subsidiaries, did not lead to the development of complex firm technological capabilities. The results of our study highlight that for emerging economy firms wanting to improve their complex technological capabilities, there may be diminishing benefits to learning from and acquiring knowledge available within specific types of formal organizational relationships.

Technological capabilities and firm performance: empirical results from Finnish ICT SMEs

In a high-velocity industry such as ICT (information and communication technology), the technological capabilities of the firm constitute its most critical assets. The purpose of this study is to empirically explore and classify the technological capabilities of small high-tech firms. The study uses data from 124 Finnish companies operating in the ICT industry. On the basis of technological capabilities of the firm, we identified four clusters. The clusters were labelled innovators, technology-oriented defenders, generators and imitators. Our findings imply that the nature of knowledge in the clusters differs. The technological capabilities of the firm give firms clearly different technological postures and also have different performance implications

Innovative technological capability in firms of the tourism sector: a study of the hotels in the city of Rio de Janeiro during the 1990-2008 period

This article presents the preliminary report of the research project entitled "Innovative technological capability in firms of the tourism sector: a study of the hotels in the city of Rio de Janeiro during the 1990-2008 period". The objective of this project is to apply and evaluate an analytical model of technological capability and underlying learning processes and examine the accumulation trajectory of innovative technological capability in the firms of tourism service industry, and the impact of learning processes undertaken by these firms on the technological capability levels achieved during the 1990-2008 period.