Do marketing and government R&D subsidy support technological innovation?

The Resource-Based View (RBV) posits that a firm can leverage the effect of existing resources on firm performance via resources configuration and integration. In the process of technological innovation, internal marketing resource and external government R&D support are resources which may, respectively, cause an interaction effect with the internal technological innovation. Drawing upon a sample of 666 Chinese listed manufacturing companies, the study formulates hypotheses concerning the main effect of technological innovation and the interaction effects between technological innovation, marketing and government R&D support on firm performance. Hierarchical regression is conducted. The results prove the positive interaction effect between technological innovation and marketing on a firm's performance. The lagging effect in the impact on firm performance of technological innovation and government R&D support is confirmed. However, the main effect of technological innovation is not significant. The findings especially provide more evidence about the role of government R&D support.