The Relationship between Technology, Innovation, and Firm Performance: Empirical Evidence on E-Business in Europe
AbstractThis article analyzes the relationship between the usage of Internet-based technologies, different types of innovation, and performance at the firm level. Data for the empirical investigation originates from a sample of 7,302 European enterprises. The empirical results show that Internet-based technologies were an important enabler of innovation in the year 2003. It was found that all studied types of innovation, including Internet-enabled and non-Internet-enabled product or process innovations, are positively associated with turnover and employment growth. Firms that rely on Internet-enabled innovations are at least as likely to grow as firms that rely on non-Internet-enabled innovations. Finally, it was found that innovative activity is not necessarily associated with higher profitability. Possible reasons for this and implications are discussed.
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Bibliographic InfoPaper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2008-031-ORG.
Date of creation: 26 May 2008
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Web page: http://www.erim.eur.nl/
firm performance; innovation; information technology; profitability; e-business;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-21 (All new papers)
- NEP-BEC-2008-06-21 (Business Economics)
- NEP-ICT-2008-06-21 (Information & Communication Technologies)
- NEP-INO-2008-06-21 (Innovation)
- NEP-IPR-2008-06-21 (Intellectual Property Rights)
- NEP-TID-2008-06-21 (Technology & Industrial Dynamics)
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- Waheed, Abdul, 2011. "Innovation and firm-level productivity: econometric evidence from Bangladesh and Pakistan," UNU-MERIT Working Paper Series 061, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Waheed, Abdul, 2012. "Employment effect of innovation: microdata evidence from Bangladesh and Pakistan," UNU-MERIT Working Paper Series 024, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
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