Influence of Technological Capabilities on Corporate Performances: The Case of Taiwan

The development of technological capabilities leads to fundamental changes of corporate strategies. Hence, an examination of technological capabilities of corporation is critical. Moreover, if corporations are member of business groups, the corporate strategies will be affected by business groups. Therefore, it must incorporate viewpoints of company and business group to explain clearly the relationship between structural characteristics of technological capabilities and overall competitiveness in the network. This study applied multilevel research to investigate the influence of technological capabilities on corporate performances, as well as the hierarchical moderating effects of technological diversification of business groups on technical/scale characteristics and performances of subsidiaries. This study analyzed 315 subsidiaries embedded in 60 business groups to examine hypotheses. The result supported the influence of technological capabilities over performances and the hierarchical moderating effect of technological diversification on technical/scale characteristics and performances of subsidiaries in business groups. The findings can makes up the insufficiency in existing literature addressing the hierarchical moderating effect in the context of network embeddedness for business groups.