The Effects of Technology Management Capability versus Technological Capability on Product Innovation

Product innovation has become critical for firms to sustain their competitive advantages, and prior studies have indicated that firms successful product innovation is intimately linked with technology management capability and technological capability. Based on the resource based view, this paper examines the effects of technology management capability and technological capability on product innovation performance, and further compares their effects by establishing the DEA model integrating effective technology management capability and effective technological capability. The results show that, firstly, both technology management capability and technological capability have impact on product innovation performance, and thus two direct routines to product innovation performance are identified. Secondly, comparing with technological capability, technology management capability exerts more impacts on product innovation performance significantly, and this result indicates that technology management capability plays a more imporant role than technological capability in product innovation. The research conclusions provide the beneficial suggestions for firms to improve their product innovation performance.