Your browser has javascript turned off or blocked. This will lead to some parts of our website to not work properly or at all. Turn on javascript for best performance.

The browser you are using is not supported by this website. All versions of Internet Explorer are no longer supported, either by us or Microsoft (read more here: https://www.microsoft.com/en-us/microsoft-365/windows/end-of-ie-support).

Please use a modern browser to fully experience our website, such as the newest versions of Edge, Chrome, Firefox or Safari etc.

Default user image.

Markus Grillitsch

Senior Lecturer

Default user image.

Technological competencies and firm performance: Analyzing the importance of internal and external competencies

Author

  • Markus Grillitsch
  • Magnus Nilsson

Summary, in English

In this paper, we analyze the relationship between technological competencies (TC) and firm performance. Theoretically, the importance of TC is well established and widely accepted. Therefore, it is surprising that a number of empirical studies have been unable to confirm a substantial positive relationship between TC and firm performance. We identify two major reasons for this: [i] affected by the availability and choice of indicators existing studies are often biased towards large firms; and [ii] they frequently do not consider both internal and potential access to firm-external TC. This paper discusses conceptually the interplay between firm-internal and firm-external TC as well as the mediating effect of firm size. These relationships are then analyzed empirically using Swedish micro data on 15,682 firms in 290 Swedish municipalities. Novel indicators based on occupational statistics are combined with measures of time-distance accessibility to study internal and external TC. The results provide evidence for a positive relationship between firm growth and TC. In particular, the combination of firm-internal and firm-external competencies seems to be conducive for growth. Lastly, our study suggests that firm size is an important factor to further our understanding about these relationships. Based on this we identify a number of future research questions to be addressed.

Department/s

  • CIRCLE
  • Department of Business Administration

Publishing year

2013

Language

English

Publication/Series

CIRCLE electronic working paper series

Issue

24

Document type

Working paper

Publisher

Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE)

Topic

  • Social Sciences Interdisciplinary
  • Business Administration

Keywords

  • technological competencies
  • firm performance
  • accessibility
  • knowledge
  • innovation
  • geography

Status

Published