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Key factors affecting technological capabilities in small and medium-sized Enterprises in Taiwan

Author

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  • Feng-Jyh Lin

    (Feng Chia University)

  • ChihuFeng Lai

    (Mao Chun Industrial Co., Ltd.)

Abstract

Technological capability is a core resource and distinctive competency that enables firms to create firm value. With greater technological capability, firms have more unique resources and skills and engage in more strategic activities and thus can gain competitive advantages and increase their profitability while enhancing their organizational performance. However, small and medium-sized enterprises (SMEs) invariably lack resources required to develop technological capabilities. This study explored the determinants of improvements to technological capabilities based on data regarding SMEs in Taiwan. By following this line of literature, we developed a structure with five independent constructs (“Knowledge Sharing,” “Talent Train,” “Cooperative Relationships,” “Innovation,” and “Government Support”) and one dependent construct (“Technological Capabilities”). We conducted multiple correspondence analysis (MCA) to analyze data collected from questionnaires issued to 77 manufacturing SMEs in Taiwan. MCA can map variables and individuals and therefore enables the construction of complex visual maps and the interpretation of their structures. The findings of this study revealed that technological capabilities can improve firm performance.

Suggested Citation

  • Feng-Jyh Lin & ChihuFeng Lai, 2021. "Key factors affecting technological capabilities in small and medium-sized Enterprises in Taiwan," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 131-143, March.
    • Handle: RePEc:spr:intemj:v:17:y:2021:i:1:d:10.1007_s11365-019-00632-2
    DOI: 10.1007/s11365-019-00632-2
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