Academic journal article International Journal of Business Studies

Performance of High-Tech Firms' Resource and Capability-Based Development: Knowledge Acquisition, Organisational Utilisation and Management Involvement

Academic journal article International Journal of Business Studies

Performance of High-Tech Firms' Resource and Capability-Based Development: Knowledge Acquisition, Organisational Utilisation and Management Involvement

Article excerpt

The paper presents the differences in knowledge acquisition, organizational utilization and management involvement between domestic and foreign high-tech firms in China. The scope of the study is to test explicitly how a high-tech firm's different resources and capabilities contribute to performance. Our study concerns a high-tech firm's resource determinants and consequences of its technological capability employed, as these have significant effects on the development of an holistic context-based typology that offers rich insights into a high-tech firm's performance. Utilization of a high-tech firm's resources and capabilities is identified as the critical conduit for deploying knowledge systems, technologies and innovations. Our research sheds light on the resource determinants of high-tech firms and the performance consequences of employing such resource capabilities.

Keywords: knowledge acquisition, organizational utilization, management involvement, a high-technology firm; performance


The resource-based view [RBV] of the firm focuses on the roles of those firms' resources and capabilities that exercise significant influence on industrial structure, technological transformation, market competition and socio-economic progress (Chowdhury and Geringer 2001). Acquisition of new technological resources and capabilities from existing markets, or utilisation of a firm's resources and capabilities to build its knowledge assets, may contribute to a better corporate performance (Barney, 1991; Wernerfelt, 1995; Bartlett and Ghoshal, 2000). Accelerated development of resources and capabilities has led most firms to pay significant attention to the ways in which their technological capabilities emerge, develop, and change over time (Guerrieri and Tylecote, 1997). Most scholars approach the subject of resource and capability development from the point of view that a firm's new generation of products, replacement products and related or vertical diversification of existing products should be based on global sourcing, learning enhancement and radical technological changes that are developed in homogenous or heterogeneous markets (Elsenthardt and Martin, 2000). Practitioners are increasingly coming to recognize that one of the challenging issues in a firm's developments of resources and capabilities is the identification of those factors that determine the levels of returns and a firm's competitive advantage in the fields of knowledge acquisition, organisational utilization and human resource development (Galunic and Rodan, 1998).

Prior research has sought explanations as to how firms attain effective utilization of those resources and capabilities via knowledge acquisition or stage of R&D collaboration through analysis of the economic consequences (Deng, 1996; White, 2000; Steensma and Corley 2000). In their view, the determinants of a firm's resources and capabilities are conceived as competitive forces and a striving to exploit organizational efforts by combining, interlocking and developing resources and capabilities (Yli-Renko et al., 2002). These scholars have extended RBV to include resource complementarities and purport that those firms with superior products and services available can reinvest or nurture knowledge resources and capabilities to sustain competitive advantage (Galunic and Rodan 1998; Kogut and Zander 1996). However, there have been few systematic examinations of factors that are consequent upon a firm's knowledge acquisition. Acquisition of superior resources and capabilities at organisational level particularly represents the extent to which a firm uses its core proprietary assets and technological capabilities effectively to confer competitive advantages (Shepherd and Ahmed 2000; Teece et al., 1997).

Successful performance allows a high-tech firm to exploit existing resources and capabilities in order to enhance organisational values through attributes that include new technology, the availability of experiential learning, increases in product quality and reductions in transaction costs (Langlois and Robertson 1995; Gupta and Govindarajan 2000). …

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