Key factors affecting technological capabilities in small and medium-sized Enterprises in Taiwan

Feng-Jyh Lin () and ChihuFeng Lai
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Feng-Jyh Lin: Feng Chia University
ChihuFeng Lai: Mao Chun Industrial Co., Ltd.

International Entrepreneurship and Management Journal, 2021, vol. 17, issue 1, No 7, 143 pages

Abstract: Abstract Technological capability is a core resource and distinctive competency that enables firms to create firm value. With greater technological capability, firms have more unique resources and skills and engage in more strategic activities and thus can gain competitive advantages and increase their profitability while enhancing their organizational performance. However, small and medium-sized enterprises (SMEs) invariably lack resources required to develop technological capabilities. This study explored the determinants of improvements to technological capabilities based on data regarding SMEs in Taiwan. By following this line of literature, we developed a structure with five independent constructs (“Knowledge Sharing,” “Talent Train,” “Cooperative Relationships,” “Innovation,” and “Government Support”) and one dependent construct (“Technological Capabilities”). We conducted multiple correspondence analysis (MCA) to analyze data collected from questionnaires issued to 77 manufacturing SMEs in Taiwan. MCA can map variables and individuals and therefore enables the construction of complex visual maps and the interpretation of their structures. The findings of this study revealed that technological capabilities can improve firm performance.

Keywords: Small and medium-sized enterprise; Technological capability; Multiple correspondence analysis (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s11365-019-00632-2

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