Title

Endogeneity and dynamics of innovation and firm performance

Source of Publication

International Journal of Productivity and Quality Management

Abstract

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.

Document Type

Article

First Page

329

Last Page

348

Publication Date

1-1-2014

DOI

10.1504/IJPQM.2014.060421

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