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The Unexplored Effect of Skills and Technology on Firms' Performance

Listed author(s):
  • Silvia Rita Sedita

The aim of this paper is to add new findings to the knowledge based view of the firm, where the cross-learning ability of individuals and organizations plays a fundamental role in the determination of firms' superior performances. Collective, non formal - informal, formal types of learning (learning drivers) contribute to shape the competitiveness of firms, especially in the present knowledge-based economy, where the necessity to respond effectively to frequent external shock (demand, technology, competitive environment driven) emphasizes the importance of being flexible and quickly adaptive. Nevertheless, focusing on learning capacities, and particularly on human skills, often leads to forget or ignore industry effects, such as innovative intensity, which increase the explanatory power of the learning drivers. This work explores the conjoint effect of learning drivers and innovative intensity on firms' performance by showing some evidence from statistical data analysis on the Danish IDA (Integrated Database for Labour Market Research). A sample of firms belonging to the manufacturing industry is studied using data related to the year 1999. The paper proceeds as follows: firstly, the role and relevance of human resources in the determination of firm's performance is presented. Secondly, a missing ring in the knowledge based view of the firm is detected: the R&D investments intensity. Thirdly, the data analysis process and the methodology adopted are illustrated. Finally, the results are presented and discussed.

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Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 04-06.

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Date of creation: 2004
Handle: RePEc:aal:abbswp:04-06
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