Impact of Technological Innovation Capabilities on the Market Value of Firms

In the era of globalisation and with the advent of knowledge economies, organisational innovation has assumed a critical role in enhancing economic performance of firms. Proponents of the Resource Based View of the firm and its more recent extensions such as the Knowledge Based View and Dynamic Capabilities Theory have suggested that generation, diffusion and application of organisational knowledge could be the source of sustained competitive advantage and superior performance of firms. While there is near unanimity in accepting the vital role of innovation in a firm\u27s performance, consensus on what constitutes organisational innovation and how to measure it has proven to be elusive so far. Most previous research in this area has conceptualised innovation through one or more dimensions of a firm\u27s innovative capability using R&D of a firm only. The measurement of the construct has thus reflected this narrow conceptualisation with a single measure of R&D expenditure being the most often used proxy. This study utilises a broader de¯nition of organisational innovation capabilities that includes the generation, dissemination and strength of innovative activity in a firm. The unique features of this study is that it uses multiple indicators of a firm\u27s innovation pro¯le along with lagged measures of market value using fixed effects panel data analysis

Multinationality-Performance Relationship: A Review and Reconceptualization

Numerous empirical investigations have attempted to study the relationship between multinationality and firm performance. Results from these studies have produced conflicting findings about this relationship. It is argued that one of the causes of the conflicting findings may be an imprecise conceptualization of multinationality. A multidimensional conceptualization is proposed based on a methodological review of previous research

Endogeneity and dynamics of innovation and firm performance

Technological and innovation capabilities play an important role in determining the performance of firms, especially in knowledge intensive industries. Despite the plethora of studies testing the relationship between innovation capabilities and firm performance, little consensus has been achieved on the veracity of the theoretical claims. In this paper, we argue that the lack of consensus could be on account of the failure to take into account the endogeneity that arises from the decision process that underlies the relationship between development of technological capabilities and its impact on firm performance. We address both these issues and demonstrate that alternative empirical designs can help provide greater external validity. © 2014 Inderscience Enterprises Ltd

Innovation capabilities and international performance of firms: A quantile regression approach

This study examines the relationship between various dimensions of a firm\u27s technological innovation capabilities and its international performance. We use panel data with multiple indicators of firm level technological capabilities including generation, dissemination, strength and speed of innovation. We employ a quantile regression analysis which allowed us to test the impact of innovation capability on international performance of high, average and poor performers. Our empirical findings indicate significant disparity between the ordinary least square and quantile regression results. Copyright © 2012 Inderscience Enterprises Ltd

The effect of heteroskedasticity on factors affecting stock repurchases

We demonstrate the effect of ignoring the role of heteroskedasticity modelling in applied corporate finance studies and show that it may have important consequences in corporate financial decisions. In this paper, we specifically focus on the effect of heteroskedasticity on the factors affecting the open market operations of the firm. We show that in the absence of modelling heteroskedasticy results from prior research are consistent. By explicit modelling of heteroskedasticity some results are reversed. In particular, we find that the effect of key variables such as dividends, leverage and the likelihood of takeover on the probability of repurchase differs after controlling for heteroskedasticity. © 2014 Inderscience Enterprises Ltd

Marketing Management Cases For Creative Problem Solving

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Marketing Management: Cases for Creative Problem Solving

This collection of over 25 case studies exposes students to a variety of current business scenarios related to marketing and management

Community Connections to Enhance Undergraduate International Business Education: An Example of Business Consulting Projects

Practical project experience as a means of augmenting traditional classroom learning has long been viewed as a value adding curricular exercise. While students participating in the projects gain valuable skills that will enhance their personal marketability, successful projects also benefit the client companies involved and help enhance the image of the university. Substantial effort goes into planning and implementing such an experience and involves extensive coordination with multiple constituents. This article details how a project-based capstone experience was developed in partnership with the local business community and the College\u27s Center for International Business as part of the degree requirements for a relatively new Bachelor of Science in International Business program. (Contains 2 tables and 2 footnotes.

Impact of Technological Innovation Capabilities on the Market Value of Firms

In the era of globalisation and with the advent of knowledge economies, organisational innovation has assumed a critical role in enhancing economic performance of firms. Proponents of the Resource Based View of the firm and its more recent extensions such as the Knowledge Based View and Dynamic Capabilities Theory have suggested that generation, diffusion and application of organisational knowledge could be the source of sustained competitive advantage and superior performance of firms. While there is near unanimity in accepting the vital role of innovation in a firm's performance, consensus on what constitutes organisational innovation and how to measure it has proven to be elusive so far. Most previous research in this area has conceptualised innovation through one or more dimensions of a firm's innovative capability using R&D of a firm only. The measurement of the construct has thus reflected this narrow conceptualisation with a single measure of R&D expenditure being the most often used proxy. This study utilises a broader definition of organisational innovation capabilities that includes the generation, dissemination and strength of innovative activity in a firm. The unique features of this study is that it uses multiple indicators of a firm's innovation profile along with lagged measures of market value using fixed effects panel data analysis.Innovation, R&D, firm value, panel data

Associate Editor

From the “Practitioner’s Corner” Seeking God (in the details