Transforming resources to improve performance of technology-based firms: A Taiwanese empirical study

This study analyzes how firms transform resources into performance, and proposes that dynamic capabilities serve as a link for transforming internal and external resources first into firm competitiveness, and then into financial performance. One hundred and ninety-six Taiwanese technology-based firms are adopted as a research sample. The resource-based view of the firm, social capital theory, and dynamic capabilities are integrated to formulate a comprehensive framework for explaining the performance variation of technological-based firms. Analytical results demonstrate that technological-based firms can transform their resources into profit via dynamic capabilities and competitiveness. (C) 2007 Elsevier B.V. All rights reserved.