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Technological competencies and firm performance : analyzing the importance of internal and external competencies

Nilsson, Magnus LU and Grillitsch, Markus LU (2014) In Proceedings in food system dynamics 2010-. p.26-41
Abstract
In this paper, we analyze the relationship between technological competencies (TC) and firm performance. Theoretically, the importance of TC is well established and widely accepted. Therefore, it is surprising that a number of empirical studies have been unable to confirm a substantial positive relationship between TC and firm performance. We identify two major reasons for this: [i] affected by the availability and choice of indicators existing studies are often biased towards large firms; and [ii] they frequently do not consider both internal and potential access to firm-external TC. This paper discusses conceptually the interplay between firm-internal and firm-external TC as well as the mediating effect of firm size. These relationships... (More)
In this paper, we analyze the relationship between technological competencies (TC) and firm performance. Theoretically, the importance of TC is well established and widely accepted. Therefore, it is surprising that a number of empirical studies have been unable to confirm a substantial positive relationship between TC and firm performance. We identify two major reasons for this: [i] affected by the availability and choice of indicators existing studies are often biased towards large firms; and [ii] they frequently do not consider both internal and potential access to firm-external TC. This paper discusses conceptually the interplay between firm-internal and firm-external TC as well as the mediating effect of firm size. These relationships are then analyzed empirically using Swedish micro data on 15,682 firms in 290 Swedish municipalities. Novel indicators based on occupational statistics are combined with measures of time-distance accessibility to study internal and external TC. The results provide evidence for a positive relationship between firm growth and TC. In particular, the combination of firm-internal and firm-external competencies seems to be conducive for growth. Lastly, our study suggests that firm size is an important factor to further our understanding about these relationships. Based on this we identify a number of future research questions to be addressed. (Less)
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organization
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Chapter in Book/Report/Conference proceeding
publication status
published
subject
host publication
Proceedings in system dynamics and innovation in food networks
series title
Proceedings in food system dynamics
volume
2010-
pages
16 pages
ISSN
2194-511X
language
English
LU publication?
yes
id
0a3e2a38-6273-453f-918e-c1c6e1617c58
alternative location
http://centmapress.ilb.uni-bonn.de/ojs/index.php/proceedings/article/view/1404/374
date added to LUP
2025-03-30 13:52:56
date last changed
2025-04-08 13:43:12
@inproceedings{0a3e2a38-6273-453f-918e-c1c6e1617c58,
  abstract     = {{In this paper, we analyze the relationship between technological competencies (TC) and firm performance. Theoretically, the importance of TC is well established and widely accepted. Therefore, it is surprising that a number of empirical studies have been unable to confirm a substantial positive relationship between TC and firm performance. We identify two major reasons for this: [i] affected by the availability and choice of indicators existing studies are often biased towards large firms; and [ii] they frequently do not consider both internal and potential access to firm-external TC. This paper discusses conceptually the interplay between firm-internal and firm-external TC as well as the mediating effect of firm size. These relationships are then analyzed empirically using Swedish micro data on 15,682 firms in 290 Swedish municipalities. Novel indicators based on occupational statistics are combined with measures of time-distance accessibility to study internal and external TC. The results provide evidence for a positive relationship between firm growth and TC. In particular, the combination of firm-internal and firm-external competencies seems to be conducive for growth. Lastly, our study suggests that firm size is an important factor to further our understanding about these relationships. Based on this we identify a number of future research questions to be addressed.}},
  author       = {{Nilsson, Magnus and Grillitsch, Markus}},
  booktitle    = {{Proceedings in system dynamics and innovation in food networks}},
  issn         = {{2194-511X}},
  language     = {{eng}},
  pages        = {{26--41}},
  series       = {{Proceedings in food system dynamics}},
  title        = {{Technological competencies and firm performance : analyzing the importance of internal and external competencies}},
  url          = {{http://centmapress.ilb.uni-bonn.de/ojs/index.php/proceedings/article/view/1404/374}},
  volume       = {{2010-}},
  year         = {{2014}},
}