Technological Capability Growth and Performance Outcome: Foreign versus Local Firms in China

Ju, Min; Zhou, Kevin Zheng; Gao, Gerald Yong; Liu, Jiangyong

doi:10.1509/jim.12.0171

Cited by 38 publications

(23 citation statements)

References 76 publications

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“…This helps the firm develop new technology, generate product and process innovation, create differentiation advantage and achieve superior performance (Ju, et al, 2013;Zhou & Wu, 2010).…”

Section: Theory and Hypothesesmentioning

confidence: 99%

“…Just as TC has numerous dimensions, their sources or determinants are diverse (James & Romijn, 1997). Ju, et al (2013) employ the data envelopment analysis (DEA) approach to uncover the input/output conversion ability which is then used to measure TC. However, in the catch-up literature, R&D or knowledge stock is often emphasized.…”

Section: Technological Capability (Tc)mentioning

confidence: 99%

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Cultural Proximity and Local Firms’ catch up with Multinational Enterprises

et al. 2014

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Abramovitz (1986) and Maddison (1979), among others, suggests that a firm or country behind the world innovation frontier can grow faster by imitating technologies already developed in technologically more advanced economies. The larger the technology gap between the firm or country and the world innovation frontier, the faster the catch up. In this sense, CPH is also known as the technology gap hypothesis (TGH) (Hussler, 2004).The traditional catch-up literature is descriptive, focusing on historical analysis of cross-country income convergence (Fagerberg, 1995). Recent literature contains econometric analysis of convergence or catch-up mainly at the macro level (e.g. Archibugi & Filippetti, 2011;Cameron, et al., 2005;Griffith, et al., 2009;Parente & Prescott, 1999), though there are a small number of micro level studies (e.g. Aiello, et al., 2011;Baily, et al., 1992;Bartelsman & Doms, 2000;Disney, et al., 2003;Lee, et al., 2012). Knowledge diffusion and imitation are essential for catch-up, but they are by no means automatic (Fagerberg, 1995). Following Ohkawa and Rosovsky (1973), Abramovitz (1994) adopts the concept of 'social capability' to explain catch-up, and a key element is technology.However, TGH is at its early stage, lacks a sound theoretical foundation for the determinants of social capability.More recent economic literature attempts to apply new growth theory (NGT) to explain convergence or catch-up between countries by emphasizing the role of externalities from not only international trade and foreign direct investment (FDI), but also a country's own technological capability (TC) (Archibugi & Filippetti, 2011;Balasubramanyam, et al., 1996). The business or management literature 3 also emphasizes TC. As argued by Dyker and Radošević (2001), whether the follower can catch-up depends on its ability to assimilate technology and brings its own knowledge stock up. China provides an ideal context for addressing these questions. Since its economic reform and opening up in 1978, Chinese foreign trade has grown by approximately 15% per year, and FDI into China is now more than US$ 80 billion a year (Lau & Bruton, 2008). China has already become a major destination for FDI in the world and a trading nation of global rank (OECD, 2008). There are two

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“…This helps the firm develop new technology, generate product and process innovation, create differentiation advantage and achieve superior performance (Ju, et al, 2013;Zhou & Wu, 2010).…”

Section: Theory and Hypothesesmentioning

confidence: 99%

Section: Technological Capability (Tc)mentioning

confidence: 99%

Cultural Proximity and Local Firms’ catch up with Multinational Enterprises

et al. 2014

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“…Several studies confirm that the intense use of IT is one of the main components of performance (Chan, Huff, Barclay, & Copeland, 1997;A. L. Albertin & R. M. Albertin, 2012;Ju, Zhou, Gaoo, & Lu, 2013).…”

Section: Introductionmentioning

confidence: 96%

“…Given that IS use influences strategic organizational aspects (Porter & Miller, 1985;Kaplan & Norton, 2004), firm performance (Melville et al, 2004;Ju et al, 2013), and system quality, service quality and information quality (Delone & Mclean, 2003), this article therefore aims to examine the influence of SOK and IS use on firm performance from the shareholder, customer, internal process, and learning and growth perspectives (Kaplan & Norton, 1996) for companies in Brazil. The strategic value of IS use is not simply in the adoption of IT but in adding value as the organization makes use of it (Chan & Huff, 1993).…”

Section: Introductionmentioning

confidence: 99%

Model Analysis of the Relationship Between Strategic Organization Knowledge and the Use of Information Systems in Firm Performance in Brazil

2014

CBR

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Information Technology (IT) consolidates as an essential element to support the business strategies to survive and rapidly adapts to changes in the competitive environment. This paper examines the impact of the use of information systems (IS) and strategic organization knowledge (SOK) on firm performance in 150 Brazilian companies. The study uses partial least squares structural equation modeling (PLS-SEM) and establishes models to express the relationship among the constructs examined. The study identifies that the direct influence of IS use on performance is moderately significant. However, when mediated by orientation strategy, the total effect of IS use on firm performance is demonstrated to be highly significant. The model explains 54% of the variability of firm performance and confirms IS use as a fundamental resource to support strategic business processes.

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“…In emerging markets, consumers have become more conscious to product quality and variety of choice with more market knowledge and market supply; the growth of middle class especially shows the challenging appetite of consumers (Kravets and Sandikci, 2014;Sheth, 2011 to survive the tough competition brought by foreign companies (Ju et al, 2013).…”

mentioning

confidence: 99%