Impact of Technological Innovation Capabilitieson the Market Value of Firms

摘要

In the era of globalisation and with the advent ofknowledge economies, organisational innovation has assumed acritical role in enhancing economic performance of firms. Pro-ponents of the Resource Based View of the firm and its morerecent extensions such as the Knowledge Based View andDynamic Capabilities Theory have suggested that generation,diffusion and application of organisational knowledge could bethe source of sustained competitive advantage and superiorperformance of firms. While there is near unanimity in acceptingthe vital role of innovation in a firm's performance, consensus onwhat constitutes organisational innovation and how to measureit has proven to be elusive so far. Most previous research in thisarea has conceptualised innovation through one or moredimensions of a firm's innovative capability using R&D of a firmonly. The measurement of the construct has thus reflected thisnarrow conceptualisation with a single measure of R&D expen-diture being the most often used proxy. This study utilises abroader definition of organisational innovation capabilities thatincludes the generation, dissemination and strength of innova-tive activity in a firm. The unique features of this study is that ituses multiple indicators of a firm's innovation profile along withlagged measures of market value using fixed effects panel dataanalysis.