 Technological diversification, core-technology competence, and firm growthJungho Kim, Chang-Yang Lee () and Yunok Cho Research Policy, 2016, vol. 45, issue 1, 113-124 Abstract: This paper investigates, using a unique panel dataset of Korean manufacturing firms, the relationship between technological diversification and firm growth and the conditioning role of firm-specific core-technology competence in the relationship. First, the relationship is inverted U-shaped regardless of the type of technological diversification, implying that both insufficient and excessive technological diversifications are harmful for firm growth. Second, the level of competence in the field of core technology conditions the relationship by attenuating the harmful effect of excessive technological diversification. Furthermore, in case of unrelated technological diversification, the inverted U-shaped relationship weakens substantially for firms with high core-technology competence. These results suggest that sufficient core-technology competence is needed for firms to effectively manage and utilize technological diversification, particularly unrelated one, for their growth. Keywords: Technological diversification; Core-technology competence; Firm growth; Architectural competence (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:45:y:2016:i:1:p:113-124 DOI: 10.1016/j.respol.2015.07.005 Access Statistics for this article Research Policy is currently edited by M. Bell, B. Martin, W.E. Steinmueller, A. Arora, M. Callon, M. Kenney, S. Kuhlmann, Keun Lee and F. Murray More articles in Research Policy from Elsevier |
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