This study developed and tested a model that attempts to describe the influence of internationalization on firm performance. Degree of internationalization was measured by foreign revenues/total revenues. Results based on data from a cross-sectional set of U.S. multinational firms find evidence of a
The Effect of Innovative Activity on Firm Performance: The Experience of Taiwan
โ Scribed by Asokan Anandarajan; Chen-Lung Chin; Hsin-Yi Chi; Picheng Lee
- Publisher
- Elsevier Science
- Year
- 2007
- Tongue
- English
- Weight
- 225 KB
- Volume
- 23
- Category
- Article
- ISSN
- 0882-6110
No coin nor oath required. For personal study only.
โฆ Synopsis
Firm performance is, among other factors, a function of tangible and intangible assets that the firm possesses and utilizes to maximize value. While research has examined the impact of advertising and R&D on firm performance, in this chapter we, in addition, examine the extent of innovation as measured by patents granted on firm performance. Our findings indicate that overall, innovative activity as measured by number of patents granted, significantly influences firm performance as measured by Tobin's q. Hence patenting activity is value relevant to investors. Further, this relationship is more pronounced when the patents are granted in the United States. We conclude that markets tend to give greater credence to innovative activity when patents are granted to foreign firms by the U.S. Patenting Office. Finally, the stage of the product in the industry chain moderates the influence of patenting activity on firm performance. When patents are granted in the design stage the impact on firm performance is stronger relative to when patents are granted in the
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