The effects of innovative capabilities and R&amp;D clustering on firm performance: the evidence of Taiwan's semiconductor industry

Sher, Peter J.; Yang, Pei‐Chi

doi:10.1016/s0166-4972(03)00068-3

Cited by 222 publications

(137 citation statements)

References 25 publications

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“…Several studies have examined the attainment of innovative capabilities near or at the international innovation frontier in latecomer firms from different industries, including producers of automobiles and semiconductors in South Korea and Taiwan (e.g., Kim, 1997;Sher and Yang, 2005); glass in Mexico (e.g., Dutrénit, 2000); consumer electronics, telecom and telecomequipment in South Korea, Taiwan, Malaysia and China (e.g., Lee and Lim, 2001;Amsden and Tschang, 2003;Hobday et al, 2004;Choung et al, 2006;Fan, 2006;Ariffin, 2010); thin-film transistor liquid crystal display (TFT-LCD) panels in Taiwan (Zhang et al, 2008); electronics in Mexico (Iammarino et al, 2008); pharmaceuticals in India (Kale and Little, 2007); ships in South Korea and Taiwan (Sohn et al, 2009); oil and gas in Brazil (Dantas and Bell, 2009;Silvestre and Dalcol, 2009); pulp and paper in Brazil (Figueiredo, 2010), metals, ceramics, composites and polymers in Turkey (Yoruk, 2011), and firms located in clusters (e.g., Giuliani and Bell, 2005). Conversely, latecomer firms may accumulate capabilities at the level of the international production frontier but not at the international innovation frontier -e.g., the pulp and paper industry in Indonesia (van Dijk and Bell, 2007).…”

Section: Study Background and Research Questionmentioning

confidence: 99%

Beyond technological catch-up: An empirical investigation of further innovative capability accumulation outcomes in latecomer firms with evidence from Brazil

Figueiredo

2014

Journal of Engineering and Technology Management

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ABSTRACT. This article examines outcomes that are achieved by latecomer firms from the accumulation of innovative capabilities. Drawing on fieldwork evidence from pulp and paper firms in Brazil (1950Brazil ( -2010, it was found that: (1) the firms accumulated innovative capabilities that turned them into world leaders in the segment of the global pulp and paper industry based on eucalyptus forestry; (2) besides this technological catch-up, the accumulation of these innovative capabilities resulted in outcomes that generated benefits within these firms such as (i) implemented inventive and innovative activities; (ii) consistent improvement of several parameters of operational and environment-related performance; (iii) varied patterns of corporate growth; (3) these outcomes were achieved not only by research-based and patent-related capabilities but mainly by a mix of innovative capability levels, with differing degrees of novelty and complexity for diverse technological functions. Therefore, the accumulation of a wide range of types and levels of innovative capabilities does pay off for the innovative firms, their industries and, ultimately, their economies. By combining a novel approach to examining firm capabilities with findings from an inductive fieldwork, this article provides new empirical and methodological insights for the longstanding debate on innovative capabilities as the fundamental source of firm competitive performance. The article draws managers' attention to the importance of a multiplicity of types and levels of capabilities to achieve relevant outcomes, and policy makers in developing economies to adopt a comprehensive view on innovative activities and place firm-centred innovation capability accumulation at the centre of industrial innovation policies.

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Section: Study Background and Research Questionmentioning

confidence: 99%

Beyond technological catch-up: An empirical investigation of further innovative capability accumulation outcomes in latecomer firms with evidence from Brazil

Figueiredo

2014

Journal of Engineering and Technology Management

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“…Liquidity is measured as the sum of cash on hand and shortterm investments, divided by total assets. The uncertainty in the R&D process is sensitive to financial performance (Sher and Yang, 2005). Therefore, we include the return on assets (ROA) ratio, financial distress (LOSS), and sales growth (GROWTH) in the regression model.…”

Section: Randd Investment Following Hirschey Andmentioning

confidence: 99%

Does R&D investment under corporate social responsibility increase firm performance?

Lin

2017

Investment Management and Financial Innovations

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Research and development (R&D) investment affects firms' growth and reflects their investment energy. However, it is recorded as an expense in financial statements, according to generally accepted accounting principles (e.g., International Financial Statements Standards). This study examines whether firms' R&D investment has a positive effect on their performance, when they engage in corporate social responsibility. The author focuses on firms that have earned corporate social responsibility awards from Global Views Magazine, Common Wealth Magazine, and the Taiwan Institute for Sustainable Energy in order to measure firms' levels of corporate social responsibility engagement. Tobin's Q is used as a proxy for firm performance. Because corporate social responsibility engagement is not mandatory in Taiwan, the Heckman two-stage process is used to control for an endogeneity bias. In the first stage, logit regression is employed, using a dummy variable as a proxy for a firm's social responsibility engagement. In the second stage, the impact of corporate social responsibility on firm value is estimated by regressing Tobin's Q on various governance and firm characteristics and on a dummy variable for social responsibility engagement. Based on all public traded companies in Taiwan for the period 2005 -2014, and after controlling for an endogeneity bias, it is found that R&D investment is positively associated with Tobin's Q, but only when firms engage in corporate social responsibility. Therefore, an investment strategy that meets corporate social responsibility objectives benefits firm performance. The empirical results provide policy implications for firm R&D investment and corporate social responsibility implementation.

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“…Studies have used different indicators to represent firm capabilities. Indicators such as R&D investment or purchase of specialised machinery used in previous studies are less applicable as measures of firm capability in the informal sector (Sher and Yang 2005;Yang and Huang 2005). A key source of information on technology and marketing for owners of informal firms are other firms, often in the formal sector, with whom they have subcontracting arrangements (Berry et al 2002).…”

Section: Related Literaturementioning

confidence: 99%

Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector

Raj

Sen

2016

IZA J Labor Develop

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The predominant type of firms in developing countries is small family firms and the self-employed in the informal sector. Very few family firms make the transition to larger firms employing non-family labour. In this paper, we examine the reasons for the low presence of firms employing non-family labour in the informal sector, using a firm-level data set drawn from nationally representative repeated cross-sectional surveys of the Indian informal manufacturing sector. We find that the key constraint to firm transition is firm capabilities, followed by the level of urbanisation, access to electricity and roads, and human capital, with financial constraints playing a lesser role. JEL codes: O17, L25, D22

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The effects of innovative capabilities and R&D clustering on firm performance: the evidence of Taiwan's semiconductor industry

Cited by 222 publications

References 25 publications

Beyond technological catch-up: An empirical investigation of further innovative capability accumulation outcomes in latecomer firms with evidence from Brazil

Beyond technological catch-up: An empirical investigation of further innovative capability accumulation outcomes in latecomer firms with evidence from Brazil

Does R&D investment under corporate social responsibility increase firm performance?

Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector

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The effects of innovative capabilities and R&D clustering on firm performance: the evidence of Taiwan's semiconductor industry

Cited by 222 publications

References 25 publications

Beyond technological catch-up: An empirical investigation of further innovative capability accumulation outcomes in latecomer firms with evidence from Brazil

Beyond technological catch-up: An empirical investigation of further innovative capability accumulation outcomes in latecomer firms with evidence from Brazil

Does R&amp;D investment under corporate social responsibility increase firm performance?

Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector

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Does R&D investment under corporate social responsibility increase firm performance?