Capabilities, Strategy, and Performance: The Case of ICT Firms in New Zealand

Abstract

Smaller technology-based firms are critical for many economies. This study investigates the determinants of performance in a sample of 110 firms from the information and communication technology (ICT) industry in New Zealand. It is a single industry study, reflecting the industry-specificity of resource-based capabilities. Partial Least Squares methods are used to investigate relationships between capabilities, strategy and performance. A product innovation strategy maximised performance, mediating both innovation and human capital capabilities. Pursuing a market expansion strategy ahead of one of product innovation led to inferior performance outcomes. Financial and organisational capabilities had direct positive effects on performance irrespective of strategy.

Network Competence and Firm Performance: The Mediating Role of Entrepreneurial Innovativeness Among Malaysian Chinese Entrepreneurs of Wholesale Businesses

“…For instance, Headd (2003) has viewed success as survival through profitability, sales growth, and improved market share. According to Ng and Hamilton (2015), the previous researchers have linked five types of capabilities with the performance of firms: human, innovation, marketing, financial, and organisational. There is a wide evidence regarding the positive impact of innovation capability on firms' performance (Ng & Hamilton, 2015).…”

“…According to Ng and Hamilton (2015), the previous researchers have linked five types of capabilities with the performance of firms: human, innovation, marketing, financial, and organisational. There is a wide evidence regarding the positive impact of innovation capability on firms' performance (Ng & Hamilton, 2015). Although SMEs engage into less innovative practices as compared to large firms because of their scarce resources, however, they are considered as the most accurate platform for innovations due to their very close association with employees, suppliers, and customers (Yasin, Nawab, Bhatti, & Nazir, 2014).…”

“…Although SMEs engage into less innovative practices as compared to large firms because of their scarce resources, however, they are considered as the most accurate platform for innovations due to their very close association with employees, suppliers, and customers (Yasin, Nawab, Bhatti, & Nazir, 2014). Many scholars have emphasised on innovative practices and innovation-led strategies for SMEs for their survival, growth, and long-term success in the market (Ng & Hamilton, 2015). A number of studies have widely recognised the importance of innovation in achieving success, growth, and competitive advantage for SMEs, both in developed and developing countries (Yasin et al, 2014).…”

Human Capital and the Internationalisation of SMEs: A Systemic Literature Review

“…Meanwhile, only few articles focused on services: IT, administrative and technical work. Ng & Hamilton (2015) investigated the information and communication technology industry in New Zealand. Reuber & Fischer (1997) investigated Canadian software product firms.…”

“…The studies disclosed that internationally experienced management teams were a resource leading to a higher degree of internationalisation (Reuber & Fischer, 1997). Furthermore, a set of advantageous skills of managers in the internationalisation process was emphasized (Ng & Hamilton, 2015). However, the investigations demonstrate that micro enterprises and other small and medium-sized firms differ in the importance of human capital even in knowledge intensive sectors (Falk & Hagsten, 2015;Xiao, Larson, & North, 2013;Pena-Vinces, Cepeda-Carrion, & Chin, 2012).…”