Product innovation, firm performance and moderating role of technology capabilities

Dian Agustia, Sendy Dwi Haryanto, Yani Permatasari and Putu Nidia Midiantari

Asian Journal of Accounting Research, 2022, vol. 7, issue 3, 252-265

Abstract: Purpose - This research aims to provide evidence that firms that create product innovations (PROINVs) can improve the performance of firms in Indonesia. And then this research also provides evidence that firms with high technological capabilities can moderate the impact of PROINV on firm performance in Indonesia. Design/methodology/approach - Based on the firm that disclosure research and development expenditures, the number of samples in this study is 261 annual reports for the period 2015–2020. Researchers used an estimate of Moderation Regression Analysis (MRA) with STATA 14.0. Findings - The results showed that PROINV significantly affected firm performance, while technology capabilities (TECHCAP) did not. Then TECHCAP can moderate the impact of PROINV on the performance firm. This research showed that TECHCAP are pure moderation, whereas TECHCAP can weaken the impact of PROINV on firm performance. Research limitations/implications - This research can provide empirical results that firms in Indonesia must adapt to meet the needs of society in creating PROINVs and technological innovations to maintain a sustainable national economy. And then, this research provides the understanding that high TECHCAP can create sustainable PROINVs that can affect firm performance. Originality/value - The novelty in this study researchers added variable moderation of technological capabilities to the model of the effect of PROINV on firm performance. A firm with high technological capabilities will be balanced with good research and development activities to create a long-term and sustainable firm orientation.

Keywords: Firm performance; Product innovation; Technology capabilities; High-low capabilities (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ajarpp:ajar-12-2021-0266

DOI: 10.1108/AJAR-12-2021-0266

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