Moderator effect of RDI on firm finance performance: Taiwan textile industry

Abstract

Purpose-Is the textile industry only pursuing high labor intensity, low value added products and moving factories to reduce production costs? Just only high tech industries alone emphasize research and development investment(R&D) and pursue high value added products? Methodolog -This study examined the impact of R&D investment on the finance performance of the Taiwanese textile industry, for the period 2006-2016. A panel data model was used to empirically analyses the impact of R&D intensity (RDI), firm size on finance performance. Finding -RDI of the textile industry has a positive impact on financial performance and lag periods. In regard to the resource based view, the resources owned by an enterprise are positively correlated with performance. However, this study also finds that RDI as moderator effect for firm's size on finance performance. Conclusion-The effect of R&D on finance performance is not only limited to the high tech industry. This indicates that RDI affect firms' sustainable management.