The potential link between corporate innovations and corporate competitiveness: Evidence from IT firms in the UK

Arun P. C Sukumar, Vahid Jafari-Sadeghi, Alexeis Garcia-Perez, Dev K. Dutta

Research output: Contribution to journalArticlepeer-review

37 Citations (Scopus)
136 Downloads (Pure)

Abstract

Purpose: The purpose of this paper is to provide a thorough empirical investigation of the potential link between corporate innovations and corporate competitiveness in the context of the UK IT industry. Design/methodology/approach: This research uses a panel of 216 UK IT firms for the period from 2000 to 2016. The sample data for this study were extracted from the Worldscope, extracted from the Datastream database from Thomson Reuters. For the analysis of the data, the generalised method of moments model is applied. Findings: The results of this study provide empirical evidence that there exists a strong, positive link between corporate innovations and corporate competitiveness. Such evidence further reinforces the common view in the current literature of strategic management that because of the nature of their business, firms in the IT industry need to enhance their innovative capacities on a continual basis because of their critical role on these firms’ success and survival. Also, it is found that when the proxies for corporate innovations are lagged by two periods, their impact on corporate competitiveness becomes relatively more significant. However, when they are further lagged, i.e. by three periods, such an impact turns out to be relatively less pronounced. Research limitations/implications: The data gathered for this paper was restricted to IT-oriented firms in the UK. Using a secondary database (Datastream), the paper considered the period of 2000-2016. Originality/value: The research makes a significant contribution to the current debate on the relationship between information technology, innovation and performance, referred to in the literature as the productivity paradox, by studying the problem in the IT industry. It supports organisations from the sector in their efforts to deal with the dynamic nature of technological innovations and of the context where they operate. Methodologically, the way the study has measured the concepts of innovation and performance and the lessons learned from their analysis has also brought value to the research.

Original languageEnglish
Pages (from-to)965-983
Number of pages19
JournalJournal of Knowledge Management
Volume24
Issue number5
Early online date11 May 2020
DOIs
Publication statusPublished - 17 Jun 2020

Bibliographical note

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

Funding Information:
Corrigendum : It has come to the attention of the publisher that the article Sukumar, A., Jafari-Sadeghi, V., Garcia-Perez, A. and Dutta, D.K. (2020), ?The potential link between corporate innovations and corporate competitiveness: evidence from IT firms in the UK?, Journal of Knowledge Management, contained errors in the author name for Dev Kamal Dutta, affiliations for Vahid Jafari-Sadeghi and Alexeis Garcia-Perez and references. These errors have now been updated to the online version. The authors sincerely apologise for this.

Publisher Copyright:
© 2020, Emerald Publishing Limited.

Keywords

  • Corporate competitiveness
  • Corporate innovations
  • IT firms
  • R&D activities
  • UK

ASJC Scopus subject areas

  • Strategy and Management
  • Management of Technology and Innovation

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