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Technology-driven strategy and firm performance: Are strategic capabilities missing links?

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  • Hao, Shengbin
  • Song, Michael

Abstract

This empirical study of 146 U.S. new ventures examines how strategic capabilities mediate the effect of technology-driven strategy on firm performance. The results reveal that technology-driven strategy is positively related to technology capabilities and information technology capabilities, but negatively related to marketing capabilities and market-linking capabilities. Furthermore, all types of strategic capabilities are positively related to firm performance. The findings provide evidence that strategic capabilities play a mediating role between technology-driven strategy and firm performance and show that, like market-driven strategy, technology-driven strategy is also an important and successful founding strategy because it can exert great impact on firm performance through strategic capabilities.

Suggested Citation

  • Hao, Shengbin & Song, Michael, 2016. "Technology-driven strategy and firm performance: Are strategic capabilities missing links?," Journal of Business Research, Elsevier, vol. 69(2), pages 751-759.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:2:p:751-759
    DOI: 10.1016/j.jbusres.2015.07.043
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    2. Haili Zhang & Michael Song & Huanhuan He, 2020. "Achieving the Success of Sustainability Development Projects through Big Data Analytics and Artificial Intelligence Capability," Sustainability, MDPI, vol. 12(3), pages 1-23, January.
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    7. Maurice J. Lyver & Ta-Jung Lu, 2018. "Sustaining Innovation Performance in SMEs: Exploring the Roles of Strategic Entrepreneurship and IT Capabilities," Sustainability, MDPI, vol. 10(2), pages 1-27, February.
    8. Falahat, Mohammad & Ramayah, T. & Soto-Acosta, Pedro & Lee, Yan-Yin, 2020. "SMEs internationalization: The role of product innovation, market intelligence, pricing and marketing communication capabilities as drivers of SMEs’ international performance," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    9. Mohammad Falahat & Yan-Yin Lee & Pedro Soto-Acosta & T. Ramayah, 2021. "Entrepreneurial, market, learning and networking orientations as determinants of business capability and international performance: the contingent role of government support," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1759-1780, December.
    10. Haili Zhang & Yufan Wang & Michael Song, 2019. "Does Competitive Intensity Moderate the Relationships between Sustainable Capabilities and Sustainable Organizational Performance in New Ventures?," Sustainability, MDPI, vol. 12(1), pages 1-18, December.
    11. Ibrahim M. Menshawy & Rohaida Basiruddin & Raihana Mohdali & Nazahan Qahatan, 2022. "Board Information Technology Governance Mechanisms and Firm Performance among Iraqi Medium-Sized Enterprises: Do IT Capabilities Matter?," JRFM, MDPI, vol. 15(2), pages 1-21, February.
    12. Yang, Zhenbing & Shao, Shuai & Yang, Lili, 2021. "Unintended consequences of carbon regulation on the performance of SOEs in China: The role of technical efficiency," Energy Economics, Elsevier, vol. 94(C).
    13. Mario Benassi & Elena Grinza & Francesco Rentocchini & Laura Rondi, 2022. "Patenting in 4IR technologies and firm performance [Robots and jobs: evidence from US labor markets]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(1), pages 112-136.
    14. Jee Yong Chung & Woojin Yoon, 2020. "Technological capabilities and internationalization of high‐tech ventures: The moderating role of strategic orientations," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(8), pages 1462-1472, December.
    15. Noh, Heeyong & Kim, Kyuwoong & Song, Young-Keun & Lee, Sungjoo, 2021. "Opportunity-driven technology roadmapping: The case of 5G mobile services," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    16. Kumar, V. & Ramachandran, Divya & Kumar, Binay, 2021. "Influence of new-age technologies on marketing: A research agenda," Journal of Business Research, Elsevier, vol. 125(C), pages 864-877.
    17. Albert Czerny & Peter Letmathe, 2017. "Eco‐efficiency: GHG reduction related environmental and economic performance. The case of the companies participating in the EU Emissions Trading Scheme," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 791-806, September.
    18. Honglei Lu & Xin Cao & Yen Hsu, 2022. "Product Innovation and Design Strategies for 5G Technology in China’s Home Appliance Companies," Sustainability, MDPI, vol. 14(22), pages 1-17, November.
    19. Zhang, Haili & Song, Michael & Wang, Yufan, 2023. "Does AI-infused operations capability enhance or impede the relationship between information technology capability and firm performance?," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    20. Samppa Suoniemi & Lars Meyer-Waarden & Andreas Munzel & Alex Ricardo Zablah & Detmar Straub, 2020. "Big data and firm performance: The roles of market-directed capabilities and business strategy," Post-Print hal-02957479, HAL.
    21. Fawad Ahmed & Yuan Jian Qin & Luis Martínez, 2019. "Sustainable Change Management through Employee Readiness: Decision Support System Adoption in Technology-Intensive British E-Businesses," Sustainability, MDPI, vol. 11(11), pages 1-28, May.
    22. Espeche, José Francisco Tragant & Sacristán-Navarro, María & Zúñiga-Vicente, José Ángel & Crespo, Nuno Fernandes, 2023. "Innovation and internationalisation during times of economic growth, crisis, and recovery prior to Covid-19: A configurational approach comparing Spanish manufacturing family and non-family firms," Journal of Family Business Strategy, Elsevier, vol. 14(1).
    23. Zacharias, Nicolas A. & Daldere, Dace & Winter, Christian G.H., 2020. "Variety is the spice of life: How much partner alignment is preferable in open innovation activities to enhance firms’ adaptiveness and innovation success?," Journal of Business Research, Elsevier, vol. 117(C), pages 290-301.

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