Combining Efficiency and Innovation to Enhance Performance: Evidence from Firms in Emerging Economies

Xiaowen Tian, Vai Io Lo, Xiaoxuan Zhai

Research output: Contribution to journalArticleResearchpeer-review

2 Citations (Scopus)
159 Downloads (Pure)

Abstract

This paper extends the resource-capability-based view in strategic management and discusses the capabilities for the firms to stay competitive in emerging economies. Faced with low levels of efficiency, technology, and skills, firms in emerging economies need to implement best management practices to overcome operational inefficiency while engage in innovation processes to address new opportunities. They have to develop the capabilities to enhance efficiency, the capabilities to undertake innovation, and the synthesis capabilities to combine the two to keep rivals at bay. The paper tests hypotheses against a data set of more than 20,000 firms from 36 emerging economies provided by the World Bank in 2012–2015 and finds strong evidence to support the arguments. The paper finds that the three sets of capabilities are positively related to productivity and, through it, financial performance.
Original languageEnglish
Pages (from-to)295-311
Number of pages17
JournalJournal of Management and Organization
Volume27
Issue number2
Early online date27 Nov 2017
DOIs
Publication statusPublished - Mar 2021

Fingerprint

Dive into the research topics of 'Combining Efficiency and Innovation to Enhance Performance: Evidence from Firms in Emerging Economies'. Together they form a unique fingerprint.

Cite this