Technological capabilities and firm performance

The case of small manufacturing firms in Japan

Takehiko Isobe, Shige Makino, David B. Montgomery

Research output: Contribution to journalArticle

27 Citations (Scopus)

Abstract

The purpose of this study is to investigate the relationship between technological capabilities and firm performance. We divide technological capabilities into two types-refinement capability, which involves the improvement of the existing asset portfolio, and reconfiguration capability, which involves the restructuring of the asset portfolio through the integration of new assets. The results of an analysis of a sample of 302 small and medium-sized manufacturing firms in Japan suggest that refinement capability relates more positively to operational efficiency than does reconfiguration capability, and that reconfiguration capability relates more positively to strategic performance than does refinement capability. The results also suggest that firms with superior refinement capability tend to possess superior reconfiguration capability. Our findings show that both external and internal factors, such as technological volatility, inter-firm collaboration, and firm age and size, are significantly associated with the level of refinement and reconfiguration capabilities possessed by a firm.

Original languageEnglish
Pages (from-to)413-428
Number of pages16
JournalAsia Pacific Journal of Management
Volume25
Issue number3
DOIs
Publication statusPublished - 2008 Sep

Fingerprint

Manufacturing firms
Technological capability
Firm performance
Japan
Reconfiguration
Assets
Firm size
Firm age
Internal factors
Operational efficiency
Inter-firm collaboration
External factors

Keywords

  • Competitive advantage
  • Dynamic capability
  • Resource-based view
  • Technological capabilities

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Economics, Econometrics and Finance (miscellaneous)
  • Business and International Management

Cite this

Technological capabilities and firm performance : The case of small manufacturing firms in Japan. / Isobe, Takehiko; Makino, Shige; Montgomery, David B.

In: Asia Pacific Journal of Management, Vol. 25, No. 3, 09.2008, p. 413-428.

Research output: Contribution to journalArticle

@article{5c629e51fe764d3493972f6b88c9fe58,
title = "Technological capabilities and firm performance: The case of small manufacturing firms in Japan",
abstract = "The purpose of this study is to investigate the relationship between technological capabilities and firm performance. We divide technological capabilities into two types-refinement capability, which involves the improvement of the existing asset portfolio, and reconfiguration capability, which involves the restructuring of the asset portfolio through the integration of new assets. The results of an analysis of a sample of 302 small and medium-sized manufacturing firms in Japan suggest that refinement capability relates more positively to operational efficiency than does reconfiguration capability, and that reconfiguration capability relates more positively to strategic performance than does refinement capability. The results also suggest that firms with superior refinement capability tend to possess superior reconfiguration capability. Our findings show that both external and internal factors, such as technological volatility, inter-firm collaboration, and firm age and size, are significantly associated with the level of refinement and reconfiguration capabilities possessed by a firm.",
keywords = "Competitive advantage, Dynamic capability, Resource-based view, Technological capabilities",
author = "Takehiko Isobe and Shige Makino and Montgomery, {David B.}",
year = "2008",
month = "9",
doi = "10.1007/s10490-008-9098-z",
language = "English",
volume = "25",
pages = "413--428",
journal = "Asia Pacific Journal of Management",
issn = "0217-4561",
publisher = "Springer New York",
number = "3",

}

TY - JOUR

T1 - Technological capabilities and firm performance

T2 - The case of small manufacturing firms in Japan

AU - Isobe, Takehiko

AU - Makino, Shige

AU - Montgomery, David B.

PY - 2008/9

Y1 - 2008/9

N2 - The purpose of this study is to investigate the relationship between technological capabilities and firm performance. We divide technological capabilities into two types-refinement capability, which involves the improvement of the existing asset portfolio, and reconfiguration capability, which involves the restructuring of the asset portfolio through the integration of new assets. The results of an analysis of a sample of 302 small and medium-sized manufacturing firms in Japan suggest that refinement capability relates more positively to operational efficiency than does reconfiguration capability, and that reconfiguration capability relates more positively to strategic performance than does refinement capability. The results also suggest that firms with superior refinement capability tend to possess superior reconfiguration capability. Our findings show that both external and internal factors, such as technological volatility, inter-firm collaboration, and firm age and size, are significantly associated with the level of refinement and reconfiguration capabilities possessed by a firm.

AB - The purpose of this study is to investigate the relationship between technological capabilities and firm performance. We divide technological capabilities into two types-refinement capability, which involves the improvement of the existing asset portfolio, and reconfiguration capability, which involves the restructuring of the asset portfolio through the integration of new assets. The results of an analysis of a sample of 302 small and medium-sized manufacturing firms in Japan suggest that refinement capability relates more positively to operational efficiency than does reconfiguration capability, and that reconfiguration capability relates more positively to strategic performance than does refinement capability. The results also suggest that firms with superior refinement capability tend to possess superior reconfiguration capability. Our findings show that both external and internal factors, such as technological volatility, inter-firm collaboration, and firm age and size, are significantly associated with the level of refinement and reconfiguration capabilities possessed by a firm.

KW - Competitive advantage

KW - Dynamic capability

KW - Resource-based view

KW - Technological capabilities

UR - http://www.scopus.com/inward/record.url?scp=49249115797&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=49249115797&partnerID=8YFLogxK

U2 - 10.1007/s10490-008-9098-z

DO - 10.1007/s10490-008-9098-z

M3 - Article

VL - 25

SP - 413

EP - 428

JO - Asia Pacific Journal of Management

JF - Asia Pacific Journal of Management

SN - 0217-4561

IS - 3

ER -