Business type, industry value chain, and R&D performance: Evidence from high-tech firms in an emerging market

Technological Forecasting and Social Change

Volumn 79, Issue 2, 2012, Pages 326-340

  Wang, Hsiao Wen ^a   Wu, Ming Cheng ^b  

^a NATIONAL CENTRAL UNIVERSITY   (Taiwan)

^b NATIONAL CHANGHUA UNIVERSITY OF EDUCATION   (Taiwan)

Author keywords

Core competence; Industry value chain; OBM; ODM OEM; R D performance; Technological learning

Indexed keywords

CONTRACT MANUFACTURERS; CONTRACT MANUFACTURING; CORE COMPETENCE; EMERGING MARKETS; FIRM PERFORMANCE; HIGH-TECH FIRMS; NEGATIVE IMPACTS; OBM; ODM/OEM; OPERATING PERFORMANCE; TECHNOLOGICAL LEARNING; VALUE CHAINS;

ENGINEERING EDUCATION; INVESTMENTS; MANUFACTURE;

INDUSTRY;

BUSINESS DEVELOPMENT; HIGH TECHNOLOGY INDUSTRY; INDUSTRIAL INVESTMENT; INDUSTRIAL PERFORMANCE; RESEARCH AND DEVELOPMENT; TECHNOLOGICAL DEVELOPMENT; TECHNOLOGY ADOPTION;

EID: 84855808071     PISSN: 00401625     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.techfore.2011.05.008     Document Type: Article

References (66)

1. Koh A.T. Organizational learning in successful East Asian firms: principles, practices, and prospects. Technol. Forecast. Soc. Change 1998, 58:285-295.
2. Hobday M. Innovation in East Asia: The Challenge to Japan 1995, Edward Elgar.
3. Hobday M. East versus Southeast Asia innovation systems: comparing OEM- and TNC-led growth in electronics. Technology, Learning, and Innovation-Experiences of Newly Industrializing Economies 2000, Cambridge University Press. L. Kim, R.R. Nelson (Eds.).
4. Liu F.H., Liu H.Y., Lin T.L. The competence and constraints of brand building for contract manufacturers. Brand Manage. 2008, 15(6):412-432.
5. Stokey N.L. R&D and economic growth. Rev. Econ. Stud. 1995, 62(3):469-489.
6. Chan L.K.C., Lakonishok L., Sougiannis T. The stock market valuation of research and development expenditures. J. Financ. 2001, 56(6):2431-2456.
7. Ettlie J. R&D and global manufacturing performance. Manage. Sci. 1998, 44(1):1-11.
8. Porter M. Competitive Advantage: Creating and Sustaining Superior Performance 1985, Free Press, New York.
9. Short J.C., Ketchen D.J., Palmer T.B., Hult G.T.M. Firm, strategic group, and industry influences on performance. Strateg. Manage. J. 2007, 28(2):147-167.
10. Schmalensee R. Do markets different much?. Am. Econ. Rev. 1985, 75(3):341-351.
11. Bain J.S. Barriers to New Competition 1956, Harvard University Press, Cambridge, MA.
12. Breznitz D. Development, flexibility and R&D performance in the Taiwanese IT industry: capability creation and the effects of state-industry coevolution. Ind. Corp. Change 2005, 14(1):153-187.
13. Wong P.K., Mathews J. Competitive strategies of Asian high-tech firms: the challenge of late-industrialisation. Int. J. Technol. Manage. 2005, 29(1-2):1-5.
14. Joyce W.B. Accounting, purchasing and supply chain management. Supply Chain Manage. 2006, 11(3):202-207.
15. Stevenson M., Spring M. Supply chain flexibility: an inter-firm empirical study. Int. J. Oper. Prod. Manage. 2009, 29(9):946-971.
16. Quinn J.B., Hilmer F.G. Strategic outsourcing. Sloan Manage. Rev. 1994, 35(4):43-55.
17. Parmigiani A. Why do firms both make and buy? An investigation of concurrent sourcing. Strateg. Manage. J. 2007, 28(3):285-311.
18. Sturgeon T.J. Modular production networks: a new American model of industrial organization. Ind. Corp. Change 2002, 11(3):451-496.
19. Eng T.Y. Manufacture upgrade and interfirm relationship development: the case of electronics firms in the Pearl River Delta. Asia Pac. Bus. Rev. 2009, 15(4):507-525.
20. Hsu C.W., Chen H., Jen L. Resource linkages and capability development. Ind. Mark. Manage. 2008, 37(6):677-685.
21. Berger M., Diez J.R. Do firms require an efficient innovation system to develop innovative technological capabilities? Empirical evidence from Singapore, Malaysia and Thailand. Int. J. Technol. Manage. 2006, 36(1-3):267-285.
22. Lin B.W. Original equipment manufacturers (OEM) manufacturing strategy for network innovation agility: the case of Taiwanese manufacturing networks. Int. J. Prod. Res. 2004, 42(5):943-957.
23. Huang C.W., Lo C.P. Using postponed manufacturing to reconfigure the supply chain in the desktop personal company industry: the case of Taiwan. Int. J. Manage. 2003, 20(2):241-256.
24. Gatignon H., Weitz A.B., Bansal P. Brand introduction strategies and competitive environments. J. Mark. Res. 1990, 27(4):390-401.
25. Griliches Z. Market value, R&D, and patents. Econ. Lett. 1981, 7(2):183-187.
26. Wernerfelt B. A resource-based view of the firm. Strateg. Manage. J. 1984, 5(2):171-180.
27. Barney J. Firm resources and sustained competitive advantage. J. Manage. 1991, 17(1):99-119.
28. Peteraf M.A. The cornerstones of competitive advantage: a resource-based view. Strateg. Manage. J. 1993, 14(3):179-191.
29. Grant R.M. Prospering in dynamically competitive environments. Organ. Sci. 1996, 7(4):375-387.
30. Teece D.J., Pisano G., Shuen A. Dynamic capabilities and strategic management. Strateg. Manage. J. 1997, 18(7):509-533.
31. Teece D.J. Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strateg. Manage. J. 2007, 28(13):1319-1350.
32. Dutta S., Narasimhan O., Rajiv S. Success in high-technology market: is marketing capability critical?. Mark. Sci. 1999, 18(4):547-568.
33. Lin B.W., Lee Y., Hung S.C. R&D intensity and commercialization orientation effects on financial performance. J. Bus. Res. 2006, 59(6):679-685.
34. Lev B., Sougiannis T. The capitalization, amortization, and value-relevance of R&D. J. Account. Econ. 1996, 21(1):107-138.
35. Lin B.W., Chen J.S. Corporate technology portfolios and R&D performance measures: a study of technology intensive firms. R. D. Manage. 2005, 35(2):157-170.
36. Guan J.C., Mok C.K., Yam R.C.M., Chin K.S., Pun K.F. Technology transfer and innovation performance: evidence from Chinese firms. Technol. Forecast. Soc. Change 2006, 73(6):666-678.
37. Chiu Y.C., Lai H.C., Lee T.Y., Liaw Y.C. Technological diversification, complementary assets, and performance. Technol. Forecast. Soc. Change 2008, 75(6):875-892.
38. Coccia M. What is the optimal rate of R&D investment to maximize productivity growth?. Technol. Forecast. Soc. Change 2009, 76(3):433-446.
39. Yasuda T. Firm growth, size, age and behavior in Japanese manufacturing. Small Bus. Econ. 2005, 24(1):1-15.
40. Chan H.W.H., Faff R.W., Gharghori P., Ho Y.K. The relation between R&D intensity and future market return: does expensing versus capitalization. Rev. Quant. Financ. Account. 2007, 29(1):25-51.
41. Tsai K.H., Wang J.C. Inward technology licensing and firm performance: a longitudinal study. R. D. Manage. 2007, 37(2):151-160.
42. Benito A., Xose H.V. When your contract manufacturer becomes your competitor. Harv. Bus. Rev. 2006, 84(9):135-145.
43. Wuyts S., Stremersch S., Dutta S. Portfolios of interfirm agreements in technology-intensive markets: consequences for innovation and profitability. J. Mark. 2004, 68(2):88-100.
44. Cooper R.G. New products: the factors that drive success. Int. Mark. Rev. 1994, 11(1):60-76.
45. Cheng Q. The role of analysts' forecasts in accounting-based valuation: a critical evaluation. Rev. Account. Stud. 2005, 10(1):5-31.
46. Woolridge J.R., Snow C.C. Stock market reaction to strategic investment decisions. Strateg. Manage. J. 1990, 11(5):353-363.
47. Reynolds P.D., Miller B.A. Race, gender and entrepreneurship: participation in new firm startups. Entrepreneurship Division, Acad. Manage. Annual Meetings, San Francisco, Calif 1990.
48. Carter N.M., Stearns T.M., Reynolds P.D., Miller B.A. New venture strategies: theory development with an empirical base. Strateg. Manage. J. 1994, 15(1):21-41.
49. Lou C.C., Lee T.P., Gong S.C., Lin S.L. Effects of technical innovation on market value of the U.S. semiconductor industry. Technol. Forecast. Soc. Change 2010, 77(8):1322-1338.
50. Stearns T.M., Carter N.M., Reynolds P.D., Williams M.L. New firm survival: industry, strategy, and location. J. Bus. Ventur. 1995, 10(1):23-42.
51. Liker J.K., Collins P.D., Hull F.M. Flexibility and standardization: test of a contingency model of product design-manufacturing integration. J. Prod. Innov. Manage. 1999, 16(3):248-267.
52. Liang C.J., Yao M.L. The value-relevance of financial and nonfinancial information: evidence from Taiwan's information electronics Industry. Rev. Quant. Financ. Account. 2005, 24(2):135-157.
53. Sher P.J., Yang P.Y. The effects of innovative capabilities and R&D clustering on firm performance: the evidence of Taiwan's semiconductor industry. Technovation 2005, 25(1):33-43.
54. Chin C.L., Lee P., Chi H.Y., Anandarajan A. Patent citation, R&D spillover, and Tobin's Q: evidence from Taiwan semiconductor industry. Rev. Quant. Financ. Account. 2006, 26(1):67-84.
55. MacKay P., Phillips G.M. How does industry affect firm financial structure?. Rev. Financ. Stud. 2005, 18(4):1433-1466.
56. McDougall P., Robinson R. New venture strategies: an empirical identification of eight archetypes of competitive strategies of entry. Strateg. Manage. J. 1990, 11(6):447-467.
57. Market Intelligence Center (MIC) The State of Play and Trend Analysis of Digital 3C Products in Panel Display Industries. ITIS Research Report 2004.
58. Sougiannis T. The accounting based valuation of corporate R&D. Account. Rev. 1994, 69(1):44-68.
59. Lev B., Sougiannis T. Penetrating the book-to-market black box: the R&D effect. J. Bus. Financ. Account. 1999, 26(3&4):419-449.
60. Almon A. The distributed lag between capital appropriations and expenditures. Econometrica 1965, 33(1):178-196.
61. Maksimovic V., Zechner J. Debt, agency costs, and industry equilibrium. J. Financ. 1991, 46(5):1619-1643.
62. Saunders K.T. The interest rate swap: theory and evidence. J. Corp. Financ. 1999, 5(1):55-78.
63. Molina C.A. Are firms underleveraged? An examination of the effect of leverage on default probabilities. J. Financ. 2005, 60(3):1427-1459.
64. Miller K.D., Leiblein M.J. Corporate risk-return relations: returns variability versus downside risk. Acad. Manage. J. 1996, 39(1):91-122.
65. Brambor T., Clark W.R., Golder M. Understanding interaction model: improving empirical analyses. Pol. Anal. 2006, 14(1):63-82.
66. White H. A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica 1980, 48(4):817-838.