The Relationship between Technology, Innovation, and Firm Performance: Empirical Evidence on E-Business in Europe
2008-05-26
Research Paper
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This article analyzes the relationship between the usage of Internet-based technologies, different types of innovation, and performance at the firm level. Data for the empirical investigation originates from a sample of 7,302 European enterprises. The empirical results show that Internet-based technologies were an important enabler of innovation in the year 2003. It was found that all studied types of innovation, including Internet-enabled and non-Internet-enabled product or process innovations, are positively associated with turnover and employment growth. Firms that rely on Internet-enabled innovations are at least as likely to grow as firms that rely on non-Internet-enabled innovations. Finally, it was found that innovative activity is not necessarily associated with higher profitability. Possible reasons for this and implications are discussed.
- O32 : Management of Technological Innovation and R&D
- M : Business Administration and Business Economics; Marketing; Accounting
- M13 : New Firms; Startups
- innovation
- technology
- performance
- market
- product
- process
- process innovations
- firm performance
- activity
- study
- employment
- turnover
- e-busines
- effect
- product innovations
- result
- profitability
- research
- service
- information
