Competitive pressure and technological degree of the product portfolio: Implications for firm performance

Abstract

SZ. SZ. SEBREK -B. P. GARRIDOThis paper seeks to illuminate empirically a class of drivers of fi rm performance hitherto neglected in the economic literature. To accomplish this objective, we distinguished three elements: sales volume, participation in technology alliancing, and successful patent issuing. Our fi ndings suggest that competitive pressure posed by larger rivals in an industry affects sales performance negatively, but the possession of absorptive capacity can counter this deleterious effect. Findings regarding the effects caused by a product portfolio with high technological content are mixed. Depending on the performance measure applied, the results show evidence of adverse outcomes for sales, U-shaped effects for participation in technology alliancing and inverted U-shaped results for patenting. We obtained our raw data from the 2006 and 2008 PITEC database, which is the Spanish equivalent of the EU Community Innovation Survey. Our sample embraces more than 3000 fi rms.Keywords: competitive pressure, absorptive capacity, technological degree of the product portfolio, fi rm performance, large sample size JEL classifi cation indices: L25, M10, M19

A nyitott innovációs stratégia megválasztása és az azt befolyásoló tényezők: egy nagymintás elemzés tanulságai

“…Cikkünkben mi a 2012-es bemérés adatait használjuk. Számos korábbi tudományos munka folyamodott ehhez az adatbázishoz (Barge Gil, 2010;Escribano et al, 2009;Sebrek & Perez Garrido, 2015), vagy a brit megfelelőjéhez (Laursen & Salter, 2006és 2014. A korábbi munkamódszernek megfelelően csak azokat a cégeket vontuk be az elemzésbe, amelyek valós K+F tevékenységet végeztek, azaz valós pénzösszeget költöttek vagy erőforrást fordítottak innovációra.…”

Effects of Market Orientation and Breakthrough Innovation on Organizational Performance of International Enterprises

“…In regard to technology, technological innovation generally refers to state-of-the-art advance on technologies (Ngo and O'Cass 2012), while market innovation does not necessarily need state-ofthe-art advance on technologies, but merely uses a simple technology to achieve market innovation (Shi et al 2012). In terms of market, technological innovation stresses on providing new technologies with better value of present products to satisfy current market demands (Wu et al 2012); market innovation, on the other hand, focuses on designing a new product for the required new value in a new market (Sebrek and Garrido 2015). In other words, a new value is introduced to destroy present customer preference structure (Leiponen and Helfat 2010).…”