The impact of technological innovation capabilities on innovation performance

Purpose Recent studies have advocated the impact of technological innovation capabilities (TIC) on firms' competitive performances. This paper adopts a study framework of innovation audit to examine the relevance of TIC on the innovation performance of the electronics industry in Hong Kong (HK)/Pearl River Delta region. Design/methodology/approach Empirical data were acquired through a recent survey of electronics firms in the region. Pearson correlation and regression analysis were employed to examine the relationship between TIC and innovation performance. Findings The results verify that R&D, resource allocation, learning, and strategy planning capabilities can significantly improve the innovation sales. R&D and resource allocation capabilities can also significantly improve new product introduction. Research limitations/implications The paper contributes to existing literature by studying the impact of TIC on innovation performance in HK. It also explores two out of seven TIC – R&D and resource allocation capabilities – to improve firms' innovation performance in the region. Originality/value This paper is one of very few that provide empirical evidence of the TIC and innovation performance in HK. It also revisits the audit framework proposed by recent innovation studies, which helps theoretical development.