Technological Innovation Capability and Interaction Effects in a Scandinavian Industry Cluster

Abstract

How do innovation ecosystems affect the technological innovation capabilities (TICs), as defined by Yam et al. (2004), and company performance? Empirical data was acquired through a survey of 75 maritime equipment suppliers in an industry cluster in Norway. Regression analysis was supplemented with partial least square methods in order to compensate for the low number of respondents. Significant effects were found for manufacturing and marketing capabilities on company performance. The results for organisational capability were method dependent. Learning, R&D, resource allocation and strategic capabilities were identified as insignificant. These results conflict with other studies that identified manufacturing capabilities as the only insignificant TIC construct. However, the findings are partially in line with studies that have questioned learning, organising, and resource capabilities as drivers for competitive advantages. The moderating effect of cluster interaction and manufacturing capability on performance is coherent with prior research, but further research is needed for a deeper understanding of these interaction effects.