Innovation strategies and performance distribution of ICT-industry’s companies

• Main Author: Feshchuk, Maksym
• Format: Others
• Language: English
• Published: Stockholms universitet, Företagsekonomiska institutionen 2017
• Subjects: ICT companies; innovation; companies’ internal resources; companies’ experience on the market; investments in R&D; patents; business environment; performance measurement; DEA; Balanced scorecard; Business Administration; Företagsekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:su:diva-146750

In ICT industry, firms’ financial prosperity and growth are highly depended on innovation. The innovation provides competitive advantage and high performance for the ICT companies. The purpose of the paper is to study effect that the companies’ internal resources, experience on the market, investments in innovation and business environment have on their performance. The sample includes 22 ICT companies from North America, EU and Asia region. The examined data cover period from 2011 to 2015. The companies’ annual reports and USPTO were used as the sources of the data. The mixed research method is chosen to reach the study’s objectives. The study is analysed with help of DEA and Balanced scorecard performance measurement methods. Organizational learning theory and Resource based theory are applied to answer the research questions in the study. The outputs of performance are categories such as assets and competencies, innovative activities, suppliers and customer relations, and employees and management. These categories are presented by a variety of indicators such as assets turnover, labour productivity ratio, debt ratio, SG&A costs ratio and number of published patents. The factors such as companies’ size, age, investments in R&D and business environment have significant impact on the performance of innovative activities. The results suggest that the large established ICT companies are less efficient in studied categories than the smaller and younger ICT firms. Moreover, the younger smaller companies show higher efficiency even in terms of such outcomes as R&D intensity and number of published patents. The results are consistent with the findings attained in previous studies from the same scientific field.