Curvilinear Relationship between Technological Diversification and Firm Innovation Performance – An Empirical Analysis for US Pharmaceutical Industry

• Main Authors: Ke-Chiun Chang, 張克群
• Other Authors: Yun Ken
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/31064107237636655413

博士 === 雲林科技大學 === 企業管理博士班 === 98 === Technological diversification helps companies to have their competitive advantages in the market. Technology diversification will invest many resources in research and development activities to expand the scope of technology. Through related and non related technology, the company can have synergy or reduce the risk. Thus, a cross-fertilize synergy has create economy of scale and economy of scope to the company which helps the company has more flexibility to cope with the environment strategically. On contrary, company extended its technology activities to heterogeneous fields; it may lead the company to increase the cost due to management in different fields. Company dedicates itself into non-related technological diversification, it is facing the higher learning cost, and it does not meet the advantages in economy of scale. In the meanwhile, the transaction cost increasing gradually. The central question is whether technological diversification and technological competence is rewarding for firms’ innovation performance, and whether related technological diversification or unrelated technological diversification is most rewarding for corporate innovation performance. This study showed the result of technological diversification and has an inverted U-shaped relationship with corporate innovation performance. Besides, the inverse U-shaped relationship between unrelated technological diversification and corporate innovation performance. The results indicated that technological competence had a positive effect on corporate innovation performance.