IDEAS home Printed from https://ideas.repec.org/a/spr/scient/v92y2012i1d10.1007_s11192-012-0720-y.html
   My bibliography  Save this article

The effects of related and unrelated technological diversification on innovation performance and corporate growth in the Taiwan’s semiconductor industry

Author

Listed:
  • Yu-Shan Chen

    (National Taipei University)

  • Chun-Yu Shih

    (National Yunlin University of Science & Technology)

  • Ching-Hsun Chang

    (Tamkang University)

Abstract

This study uses the entropy-based patent measure to discuss the effects of related technological diversification (RTD) and unrelated technological diversification (UTD) on innovation performance and corporate growth. The results indicate that RTD has a monotonically positive influence on both of innovation performance and corporate growth and UTD has an inverse U-shaped influence on both of them. Furthermore, the results show that the extent of the positive effect of RTD on innovation performance and corporate growth is better than that of UTD on both of them. If Taiwan’s semiconductor companies would like to undertake technological diversification, this study suggests that they should adopt RTD, rather than UTD. Besides, this study points out that innovation performance mediates the relationship between corporate growth and both of RTD and UTD. It demonstrates that RTD and UTD can directly affect corporate growth or indirectly influence it via innovation performance.

Suggested Citation

  • Yu-Shan Chen & Chun-Yu Shih & Ching-Hsun Chang, 2012. "The effects of related and unrelated technological diversification on innovation performance and corporate growth in the Taiwan’s semiconductor industry," Scientometrics, Springer;Akadémiai Kiadó, vol. 92(1), pages 117-134, July.
    • Handle: RePEc:spr:scient:v:92:y:2012:i:1:d:10.1007_s11192-012-0720-y
    DOI: 10.1007/s11192-012-0720-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11192-012-0720-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11192-012-0720-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pao-Long Chang & Chien-Tzu Tsai, 2000. "Evolution Of Technology Development Strategies For Taiwan'S Semiconductor Industry: Formation Of Research Consortia," Industry and Innovation, Taylor & Francis Journals, vol. 7(2), pages 185-197.
    2. Breschi, Stefano & Lissoni, Francesco & Malerba, Franco, 2003. "Knowledge-relatedness in firm technological diversification," Research Policy, Elsevier, vol. 32(1), pages 69-87, January.
    3. Suzuki, Jun & Kodama, Fumio, 2004. "Technological diversity of persistent innovators in Japan: Two case studies of large Japanese firms," Research Policy, Elsevier, vol. 33(3), pages 531-549, April.
    4. Yu-Shan Chen & Ke-Chiun Chang, 2009. "Using neural network to analyze the influence of the patent performance upon the market value of the US pharmaceutical companies," Scientometrics, Springer;Akadémiai Kiadó, vol. 80(3), pages 637-655, September.
    5. Zvi Griliches, 1984. "R&D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1.
    6. Jacquemin, Alexis P & Berry, Charles H, 1979. "Entropy Measure of Diversification and Corporate Growth," Journal of Industrial Economics, Wiley Blackwell, vol. 27(4), pages 359-369, June.
    7. Quintana-Garci­a, Cristina & Benavides-Velasco, Carlos A., 2008. "Innovative competence, exploration and exploitation: The influence of technological diversification," Research Policy, Elsevier, vol. 37(3), pages 492-507, April.
    8. Cesaroni, Fabrizio, 2004. "Technological outsourcing and product diversification: do markets for technology affect firms' strategies?," Research Policy, Elsevier, vol. 33(10), pages 1547-1564, December.
    9. Garcia-Vega, Maria, 2006. "Does technological diversification promote innovation?: An empirical analysis for European firms," Research Policy, Elsevier, vol. 35(2), pages 230-246, March.
    10. J H Chen & T S Jan, 2005. "A system dynamics model of the semiconductor industry development in Taiwan," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(10), pages 1141-1150, October.
    11. Yong-Gil Lee & Jeong-Dong Lee & Yong-Il Song & Se-Jun Lee, 2007. "An in-depth empirical analysis of patent citation counts using zero-inflated count data model: The case of KIST," Scientometrics, Springer;Akadémiai Kiadó, vol. 70(1), pages 27-39, January.
    12. Patel, Pari & Pavitt, Keith, 1997. "The technological competencies of the world's largest firms: Complex and path-dependent, but not much variety," Research Policy, Elsevier, vol. 26(2), pages 141-156, May.
    13. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    14. Jay B. Barney & Edward J. Zajac, 1994. "Competitive Organizational Behavior: Toward an Organizationally‐Based Theory of Competitive Advantage," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 5-9, December.
    15. Stefano Valvano & Davide Vannoni, 2003. "Diversification Strategies and Corporate Coherence Evidence from Italian Leading Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(1), pages 25-41, August.
    16. Richard Blundell & Rachel Griffith & John van Reenen, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(3), pages 529-554.
    17. Richard Reed & George A. Luffman, 1986. "Diversification: The growing confusion," Strategic Management Journal, Wiley Blackwell, vol. 7(1), pages 29-35, January.
    18. Cantwell, John & Piscitello, Lucia, 2000. "Accumulating Technological Competence: Its Changing Impact on Corporate Diversification and Internationalization," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(1), pages 21-51, March.
    19. Brian S. Silverman, 1999. "Technological Resources and the Direction of Corporate Diversification: Toward an Integration of the Resource-Based View and Transaction Cost Economics," Management Science, INFORMS, vol. 45(8), pages 1109-1124, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Yuandi & Ning, Lutao & Prevezer, Martha, 2015. "Technological diversification in China from 1986 to 2011: Evidence from patent data," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 54-66.
    2. Toshiyuki Sueyoshi & Youngbok Ryu, 2020. "Performance Assessment of the Semiconductor Industry: Measured by DEA Environmental Assessment," Energies, MDPI, vol. 13(22), pages 1-24, November.
    3. Xiaojun Hu & Ronald Rousseau, 2015. "A simple approach to describe a company’s innovative activities and their technological breadth," Scientometrics, Springer;Akadémiai Kiadó, vol. 102(2), pages 1401-1411, February.
    4. Biggiero, Lucio & Angelini, Pier Paolo, 2015. "Hunting scale-free properties in R&D collaboration networks: Self-organization, power-law and policy issues in the European aerospace research area," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 21-43.
    5. Pizzo, Anthony D. & Kunkel, Thilo & Jones, Gareth J. & Baker, Bradley J. & Funk, Daniel C., 2022. "The strategic advantage of mature-stage firms: Digitalization and the diversification of professional sport into esports," Journal of Business Research, Elsevier, vol. 139(C), pages 257-266.
    6. Wen, Jinyan & Li, Jian & Zhou, Qing & Zeng, Deming & Harms, Rainer, 2023. "How firms support formal standardization: The role of alliance portfolio and internal technological diversity," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    7. Aksoy, Arman Y. & Pulizzotto, Davide & Beaudry, Catherine, 2022. "University-Industry partnerships in the smart specialisation era," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    8. Yu-Shan Chen & Yu-Hsien Lin & Tai-Hsi Wu & Shu-Tzu Hung & Pei-Ju Lucy Ting & Chen-Han Hsieh, 2019. "Re-examine the determinants of market value from the perspectives of patent analysis and patent litigation," Scientometrics, Springer;Akadémiai Kiadó, vol. 120(1), pages 1-17, July.
    9. Chunjuan Luan & Haiyan Hou & Yongtao Wang & Xianwen Wang, 2014. "Are significant inventions more diversified?," Scientometrics, Springer;Akadémiai Kiadó, vol. 100(2), pages 459-470, August.
    10. Doohee Chung & Marco Jinhwan Kim & Jina Kang, 2019. "Influence of alliance portfolio diversity on innovation performance: the role of internal capabilities of value creation," Review of Managerial Science, Springer, vol. 13(5), pages 1093-1120, November.
    11. Zabala-Iturriagagoitia, Jon Mikel & Porto Gómez, Igone & Aguirre Larracoechea, Urko, 2020. "Technological diversification: a matter of related or unrelated varieties?," Technological Forecasting and Social Change, Elsevier, vol. 155(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yu-Shan Chen & Ke-Chiun Chang, 2012. "Using the entropy-based patent measure to explore the influences of related and unrelated technological diversification upon technological competences and firm performance," Scientometrics, Springer;Akadémiai Kiadó, vol. 90(3), pages 825-841, March.
    2. Lichtenthaler, Ulrich, 2010. "Determinants of proactive and reactive technology licensing: A contingency perspective," Research Policy, Elsevier, vol. 39(1), pages 55-66, February.
    3. René Belderbos & Leo Sleuwaegen & Reinhilde Veugelers, 2010. "Market Integration and Technological Leadership in Europe," European Economy - Economic Papers 2008 - 2015 403, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Krammer, Sorin M.S., 2016. "The role of diversification profiles and dyadic characteristics in the formation of technological alliances: Differences between exploitation and exploration in a low-tech industry," Research Policy, Elsevier, vol. 45(2), pages 517-532.
    5. Quintana-Garci­a, Cristina & Benavides-Velasco, Carlos A., 2008. "Innovative competence, exploration and exploitation: The influence of technological diversification," Research Policy, Elsevier, vol. 37(3), pages 492-507, April.
    6. Maria Chiara Di Guardo & Kathryn Rudie Harrigan & Elona Marku, 2019. "M&A and diversification strategies: what effect on quality of inventive activity?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 669-692, September.
    7. Rakesh B. Sambharya & Jooh Lee, 2014. "Renewing Dynamic Capabilities Globally: An Empirical Study of the World’s Largest MNCs," Management International Review, Springer, vol. 54(2), pages 137-169, April.
    8. Kim, Hyunwoo & Hong, Suckwon & Kwon, Ohjin & Lee, Changyong, 2017. "Concentric diversification based on technological capabilities: Link analysis of products and technologies," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 246-257.
    9. Lorenz, Steffi, 2015. "Diversität und Verbundenheit der unternehmerischen Wissensbasis: Ein neuartiger Messansatz mit Indikatoren aus Innovationsprojekten," Discussion Papers on Strategy and Innovation 15-01, Philipps-University Marburg, Department of Technology and Innovation Management (TIM).
    10. Choi, Mincheol & Lee, Chang-Yang, 2021. "Technological diversification and R&D productivity: The moderating effects of knowledge spillovers and core-technology competence," Technovation, Elsevier, vol. 104(C).
    11. Feng Zhang & Guohua Jiang, 2019. "Combination of Complementary Technological Knowledge to Generate “Hard to Imitate” Technologies," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 18(02), pages 1-24, June.
    12. Dibiaggio, Ludovic & Nasiriyar, Maryam & Nesta, Lionel, 2014. "Substitutability and complementarity of technological knowledge and the inventive performance of semiconductor companies," Research Policy, Elsevier, vol. 43(9), pages 1582-1593.
    13. Lichtenthaler, Ulrich, 2009. "Product business, foreign direct investment, and licensing: Examining their relationships in international technology exploitation," Journal of World Business, Elsevier, vol. 44(4), pages 407-420, October.
    14. Jason Li-Ying & Yuandi Wang & Lutao Ning, 2016. "How do dynamic capabilities transform external technologies into firms’ renewed technological resources? – A mediation model," Asia Pacific Journal of Management, Springer, vol. 33(4), pages 1009-1036, December.
    15. Kim, Jungho & Lee, Chang-Yang & Cho, Yunok, 2016. "Technological diversification, core-technology competence, and firm growth," Research Policy, Elsevier, vol. 45(1), pages 113-124.
    16. Carlo Corradini & Pelin Demirel & Giuliana Battisti, 2016. "Technological diversification within UK’s small serial innovators," Small Business Economics, Springer, vol. 47(1), pages 163-177, June.
    17. Lee, Hyunmin, 2023. "Converging technology to improve firm innovation competencies and business performance: Evidence from smart manufacturing technologies," Technovation, Elsevier, vol. 123(C).
    18. Choi, Jin-Uk & Lee, Chang-Yang, 2022. "The differential effects of basic research on firm R&D productivity: The conditioning role of technological diversification," Technovation, Elsevier, vol. 118(C).
    19. Seh-Hyun Yoo & Chang-Yang Lee, 2023. "Technological diversification, technology portfolio properties, and R&D productivity," The Journal of Technology Transfer, Springer, vol. 48(6), pages 2074-2105, December.
    20. Burak Dindaroğlu, 2018. "Determinants of patent quality in U.S. manufacturing: technological diversity, appropriability, and firm size," The Journal of Technology Transfer, Springer, vol. 43(4), pages 1083-1106, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:scient:v:92:y:2012:i:1:d:10.1007_s11192-012-0720-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.