The Impact of R&D Resources and Capability on Company Performance

Authors

  • Saudah Sofian Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Johor, Malaysia
  • Mastora Mustafar Universiti Utara Malaysia, 06010 UUM Sintok, Kedah Darul Aman, Malaysia
  • Mohd Effandi Yusoff Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Johor, Malaysia
  • Low Hock Heng Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Johor, Malaysia

DOI:

https://doi.org/10.11113/jt.v69.3247

Keywords:

R&D resources and capability, technology-based companies, company performance

Abstract

R&D resources and capability is expected to affect company performance, especially those of high technology. Highlights of the work shows companies with high R&D expenditure and manpower resources typically influence company performance. Therefore, in order to improve the company's performance it is important to take into account the elements of R&D resources and capability. Given the fact that these elements are important to the technology-based companies, this study was conducted to examine whether R&D resources and capability influence business performance. A set of questionnaire was distributed among 138 technology-based companies and statistical analyses were employed to analyze gathered data from the survey. Findings indicate that the elements do influence the business performance of the companies.  

References

Economic Planning Unit. 2010. Rancangan Malaysia ke-10; 2011–2015, Kuala Lumpur: Percetakan Nasional Malaysia Berhad.

http://www.1malaysia.com.my/blog/dasar-transformasi-negara-berjaya/.

Hu, A. G. Z., Jefferson, G. H. dan Jinchang, Q. 2003. R&D and Technology Transfer : Firm-Level Evidence from Chinese Industry. William Davidson Institute Working Paper Number 582. http://people.brandeis.edu/~jefferso/REStat%20RD%20technologytransfer.pdf.

Economic Planning Unit. 1986. Rancangan Malaysia ke-5: 1986-1990. Kuala Lumpur: Percetakan Nasional Malaysia Berhad.

Economic Planning Unit. 1991. Rancangan Malaysia ke-6: 1991-1995. Kuala Lumpur: Percetakan Nasional Malaysia Berhad.

Economic Planning Unit. 1996. Rancangan Malaysia ke-7: 1996-2000. Kuala Lumpur: Percetakan Nasional Malaysia Berhad.

Economic Planning Unit. 2001. Rancangan Malaysia ke-8: 2001-2005. Kuala Lumpur: Percetakan Nasional Malaysia Berhad.

Economic Planning Unit. 2006. Rancangan Malaysia ke-9: 2006-2010. Kuala Lumpur: Percetakan Nasional Malaysia Berhad.

Abdullah, O. Y., Ariffin, N., Mohd Sohod, M. A., Hashim, K., dan Mohammad Noor, N. 1995. Evaluation of R&D Programs in Malaysia: A Study on IRPA Funded Programs. Malaysia: Universiti Utara Malaysia.

MASTIC. 2008. Malaysian Science & Technology Indicators 2008 Report. Malaysia: Ministry of Science, Technology and Innovation.

Hii, H. H. dan Nordin, A. 2003. National survey of public research commercialization. Malaysia: Ministry of Science, Technology and the Environment.

MASTIC. 2002. 2000- Malaysian Science and Technology Indicators Report. Malaysia: Ministry of Science, Technology and Innovation.

Lai, M. dan Yap, S. 2004. Technology Development in Malaysia and The Newly Industrializing Economies: A Comparative Analysis. Asia-Pacific Development Journal. 11(2): 53–80.

MASTIC. 2004. National Survey of Research and Development 2004 Report. Malaysia: Ministry of Science, Technology and Innovation.

Karia, N., Wong, C. Y. dan Asaari, M. H. A. H. 2012. Typology of Resources and Capabilities for Firms’ Performance. Procedia-Social and Behavioral Sciences. 65: 711–716.

Penrose, E. T. 1959. The Theory of Growth of The Firm. New York: John Wiley.

Barney, J. 1991. Firm Resources and Sustained Competitive Advantage. Journal of Management. 17(1): 99–120.

Kaleka, A. 2002. Resources and Capabilities Driving Competitive Advantage in Export Markets : Guidelines for Industrial Exporters. Industrial Marketing Management. 31: 273–283.

Gghunasekaran, A. dan Ngai, E. W. 2003. The Successful Management of a Small Logistics Company. International Journal of Physical Distribution & Logistics Management. 33(9): 825–842.

Brah, S. A. dan Lim, H. Y. 2006. The Effect of Technology and TQM on the Performance of Logistics Companies. International Journal of Physical Distribution & Logistics Management. 36(3): 192–209.

Wong, C. Y. dan Karia, N. 2010. Explaining the Competitve Advantage of Logistics Providers: A Resource-based View Approach. International Journal of Production Economics. 128: 51–67.

Conner, K. R. 1991. A Historical Comparison of Resource-based Theory and Five Schools of Thought Within Industrial Organization Economics: Do We Have a New Theory of the Firm? Journal of Management. 17: 121–154.

Hitt, M. A., Hoskisson, R. E. dan Ireland, R. D. 1994. A Mid-range Theory of the Interactive Effects of International and Product Diversification on Innovation and Performance. Journal of Management. 20: 297–326.

Zahra, S. A., Ireland, R. D. dan Hitt, M. A. 2000. International Expansion by New Venture Firms: International Diversity, Mode of Market Entry, Technology Learning, and Performance. Academy of Management Journal. 43(5): 925–950.

Wöhrl, R., Hüsig, S. dan Dowling, M. 2009. The Interaction of R&D Intensity and Firm Age : Empirical Evidence from Technology-based Growth Companies in the German “Neuer Marktâ€. Journal of High Technology Management Research. 20(1): 19–30.

Wang, C. H., Chin, Y. C. dan Tzeng, G. H. 2010. Mining the R&D Innovation Performance Processes for High-tech Firms Based on Rough Set Theory. Technovation. 30(7–8): 447–458.

Morbey, G. K. and Reithner, R. M. 1990. How R&D Affects Sales Growth, Productivity and Profitability. Research Technology Management. 33(3): 11–14.

Franko, L.G. (1989). Global corporate competition: who’s winning, who’s losing, and the R&D factor as one reason why. Strategic Management Journal. 10 (1), 449–474.

Ettlie, J. E. 1998. R&D and Global Manufacturing Performance. Management Science. 44: 1−11.

Ramli, M. S., Boer, S. J. and Bruijin, E. J. 2004. Factors for analysing and Improving Performance of R&D in Malaysia Universities. E-Proceedings of: R&D Management Conference. 735–745.

Chumaidiyah, E. 2012. The Technology, Technical Skill, and R&D Capability in Increasing Profitability on Indonesia Telecommunication Services Companies. Procedia Economics and Finance. 4: 110–119.

Sher, P. J. and Yang, P. Y. 2004. The Effects of Innovative Capabilities and R & D Clustering on Firm Performance : The Evidence of Taiwan’s Semiconductor Industry. Technovation. doi:10.1016/S0166-4972(03)00068-3.

Hall, L. A. and Bagchi-Sen, S. 2002. A study of R&D, Innovation, and Business Performance in the Canadian Biotechnology Industry. Technovation. 22(4): 231–244.

Kirner, E., Kinkel, S. dan Jaeger, A. 2009. Innovation Paths and the Innovation Performance of Low-technology Firms: An Empirical Analysis of German Industry. Research Policy. 38(3): 447–458.

Soriano, D. 2010. Management Factors Affecting the Performance of Technology Firms. Journal of Business Research. 63: 463–470.

Abdullah, O. Y. 1984. Demand Stimulus and Technology Opportunity: An Analysis of the Innovation Process in the Agriculture Sector in Malaysia. Michigan: University Microfilm International (UMI).

Blake, S. P. 1978. Managing for Responsive Research and Development. USA: W.H. Freeman and Company.

MIMOS. 1989. Penyelidikan and Pembangunan Bersepadu di MIMO: Ke Arah Memajukan Industri Elektronik Negara. Kuala Lumpur: Institut Sistem Mikroelektronik Malaysia.

Lee, M., Son, B. dan Lee, H. 1996. Measuring R&D Effectiveness in Korean Companies. Research Technology Management. 39(6): 28.

MASTIC. 2003. National Survey of Innovation 2000-2001. Malaysia: Ministry of Science, Technology and Innovation.

Hsu, C. W. and Chiang, H. C. 2001. The Government Strategy for the Upgrading of Industrial Technology in Taiwan. Technovation. 21: 123–132.

Cooper, R. G. 1988. Winning at New Products. London: Kogan Page.

Large, D., Belinko, K. and Kalligatsi, K. 2000. Building Successful Technology Commercialization Teams: Pilot Empirical Support for the Theory of Cascading Commitment. Journal of Technology Transfer. 25: 169–180.

Szakonyi, R. 1994. Measuring P&P eEffectiveness-II. Research Technology Management. 37(3): 44.

Valentin, E. M. M., Sanchez, A. M. dan Martin, L. A. G. 2004. Determining Factors in the Success of R&D Cooperative Agreements Between Firms and Research Organizations. Research Policy. 33: 17–40.

Balachandra, R. 1989. Early Warning Signals for P&P Projects How to Pick the Winners and Make Your Investments pay off. Lexingto, Mass. Lexington Books.

Cooper, R. G. and Kleinschmidt, E. J. 1996. Winning Business in Product Development: The Critical Success Factors. Research Technology Management. 39(4)L: 18.

Barnes, T., Pashby, I., and Gibbons, A. 2002. Effective University-industry Interaction: A Multi-case Evaluation of Collaborative R&D projects. European Management Journal. 20(3): 272–285.

Logar, C. M., Ponzurick, T.G., Spears, J. R. and France, K. R. 2001. Commercializing Intellectual Property: A University-Industry Alliance for New Product Development. The Journal of Product and Brand Management. 10(4): 206–217.

Ngo, L.V. and O’Cass, A. 2012. Innovation and Business Success: The Mediating Role of Customer Participation. Journal of Business Research. doi:10.1016/j.jbusres.2012.03.009.

Feng, M., Terziovski, M. and Samson, D. 2008. Relationship of ISO 9001:2000 Quality System Certification with Operational and Business Performance: A Survey in Australia and New Zealand-Based Manufacturing and Service Companies. Journal of Manufacturing Technology Management. 19(1): 22–37.

Chiesa, V. and Masella, C. 1996. Searching for an Effective Measure of P&P Performance. Management Decision. 34(7): 49–57.

Germeraad, P. 2003. Measuring P&P in 2003. Research Technology Management. 46(6): 47.

Molina-Castillo, F. J. and Munuera-Aleman, J. L. 2009. The Joint Impact of Quality and Innovativeness on Short-term New Product Performance. Industrial Marketing Management. 38(8): 984–993.

Sohn, S. Y. and Moon, T. H. 2003. Structural Equation Model for Predicting Technology Commercialization Success Index (TCSI). Technological Forecasting and Social Change. 70: 885–899.

Hirons, E. and Simon, A. 1998. External Customer Satisfaction as a Performance Measure of the Management of a Research and Development Department. International Journal of Quality and Reliability Management. 15(8/9): 969–987.

Curkovic, S., Vickery, S. K. and Droge, C. 2005. An Empirical Analysis of the Competitive Dimensions of Quality Performance in the Automotive Supply Industry. International Journal of Operations & Production Management. 20(3): 386–403.

Lee, Yeonhee, Kim, S. and Lee, H. 2011. The Impact of Service R&D on the Performance of Korean Information Communication Technology Small and Medium Enterprises. Journal of Engineering and Technology Management. 28(1–2): 77–92.

Allen, R. S., dan Kilmann. 2001. The Role of the Reward System for a Total Quality Management Based Strategy. Journal of Organizational Change Management. 14(2): 110–131.

Downloads

Published

2014-07-08

How to Cite

The Impact of R&D Resources and Capability on Company Performance. (2014). Jurnal Teknologi (Sciences & Engineering), 69(6). https://doi.org/10.11113/jt.v69.3247