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How technological capability influences business performance: An integrated framework based on the contingency approach

Yonggui Wang (Department of Marketing, Business School, Nanjing University, Nanjing, China)
Hing‐Po Lo (Department of Management Sciences, Faculty of Business, City University of Hong Kong, Hong Kong, People's Rebulic of China)
Quan Zhang (Shen Yang Polytechnic University, Shenyang, China)
Youzhi Xue (Business School, Nankai University, Tianjin, China)

Journal of Technology Management in China

ISSN: 1746-8779

Article publication date: 1 January 2006

Abstract

Purpose

This study seeks to address three research questions: how technology capability impact business performance? Does the linkage between technology capability and business performance depend on specific contexts? Why do some high‐tech firms of strong technological capability fail?

Design/methodology/approach

The paper draws on various theoretical perspectives to develop hypotheses that propose a direct relationship between technological capability and business performance (both new product development and overall business performance), the mediating role of customer value, the possible moderating effects of business environment and other important contingent factors such as learning orientation. A conceptual framework is devised and tested that examines these relationships in general and in various contexts, which is believed more important and useful for firms to manage their technological capability more effectively.

Findings

Findings from high‐tech firms in China confirm the validity of the framework and afford various insights on the role of various contingent factors in the proposed relationships.

Originality/value

The paper provides a framework that examines companies' technological capability relationships.

Keywords

Citation

Wang, Y., Lo, H., Zhang, Q. and Xue, Y. (2006), "How technological capability influences business performance: An integrated framework based on the contingency approach", Journal of Technology Management in China, Vol. 1 No. 1, pp. 27-52. https://doi.org/10.1108/17468770610642740

Publisher

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Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited