The Impact of Technology Selection on Innovation Success and Organizational Performance

Abstract

This paper is to analyze the impact of a company’s technology selection on its innovation success and organizational performance. Technological capability enables a company to add value to products and processes, and its impact on innovation success has been examined. Apart from technological capability, a company also needs technology man- agement capability to manage technological resources effectively and efficiently. In this paper, we develop a theoretical model for implementation of technology selection, consisting of five elements: technology selection, technological ca- pability, technology management capability, innovation success and organizational performance. The model is empiri- cally tested using the data of 120 Chinese companies acquired by interviews and surveys. The results indicate that a company’s technology selection has no direct impact on innovation success; technology selection has a significant posi- tive impact on technological capability and technology management capability, which, in turn, have a significant posi- tive impact on innovation success; innovation success has a significant positive impact on organizational perform- ance.