Technological Diversification, Organizational Slack and Firm Performance: the case of smart phone industry in Taiwan

• Main Authors: De-hsin Yang, 楊德馨
• Other Authors: Yi-min Chen
• Format: Others
• Language: en_US
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/17906428464221161736

碩士 === 國立高雄大學 === 亞太工商管理學系碩士班 === 99 === The first decade of the twenty-first century witnessed a significant increase in technology strategy research relating to innovation capacity and technological diversity recognized as the critical sources of competitive advantages among the firms. Owing to the increasing importance of innovations to the competitive advantages of the firms, scholars recently have paid attention to the relationship between corporate technological diversification and performance. However, many previous studies have been made on innovation performance rather than firm performance. Acknowledging the increasingly important role of Taiwanese smart phone sectors, this study follow the contingency approach to explore the impact of a strategic orientation toward corporate technological diversity on Taiwanese smart phone firms’ performance under the context of different organizational slack conditions, absorbed and unabsorbed slack resources. The results of hypothesis testing confirm the existence of a significant and negative relationship between technological diversification and firm performance in terms of Tobin’s q and MVA, but not of ROA and EVA. In addition, organizational slack of a company moderates the relationship between technological diversification and firm performance in terms of EVA and MVA, but not of ROA and Tobin’s q. The current findings indicate that Taiwanese smart phone firms with different technological diversity approach could utilize different slack resources to improve their firm performance. Based on different types of slack resources, the current results of different moderating role of organizational slacks in affecting firm performance support the predictions of organizational theory and agency theory.