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This study uses data on 582 electronics and information technology firms in Taiwan for the period 1997-2005 to investigate the hypothesis that technological diversification increases the extent of organizational divisionalization under firm growth. This study applies competence-based theory to argue that firms spread the technological competence base to achieve firm growth. However, in the face of firm growth, managers of multi-technology firms often utilize a multi-division structure to manage their various technologies based on their operating characteristics or needs. Furthermore, the findings of this study indicate that complementary assets moderate the negative relationship between technological diversification and organizational divisionalization. For firms with specialized complementary assets, multi-technology firms may be observed to consolidate related-technology activities into fewer divisions, facilitating the utilization of these complementary assets in conjunction with other divisions

The aim of this paper is twofold: first, to explore the effects of industrial cluster on innovation capacity, and second, to study the impact of external resources on firms' innovation capacity especially under Chinese regional economic policy. This is a critical subject that lacks sufficient analysis. Through years of investment and effort, several IT industrial clusters have developed in China with Shanghai, Kunshan, Shenzhen and Dongguan the better-known examples. These IT industrial clusters were chosen for an empirical study on the disparities in China's innovation capacity. All of the innovation capacity determinants at these four IT industrial clusters were different. It was confirmed that the regional dimension of Chinese economic policy affects firms' innovation capacity in the industrial cluster. The results also show whether the regional policy differences will moderate the cluster effect on innovation

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