Is technological learning a firm core competence, when, how and why? A longitudinal, multi-industry study of firm technological learning and market performance

This paper proposes the conceptual outline for a general theory of higher order technological learning within and across firms and attempts to empirically test the power of correlation between technological learning and market performance in select multi-industry firm clusters over multi-year periods. After reviewing relevant extant literature, this paper constructs an integrated, multidimensional framework for the analysis of technological learning activities and their associated impact on firm market performance. Using a subset of the concepts in this framework, a pilot study was conducted to test the relationship between technological learning effort and firm market performance. The analysis combines traditional quantitative indicators of learning with a qualitative index constructed through inductive examination of corporate annual reports. The empirical analysis shows some strength in the relationship between technological learning and market performance, but this relationship is dependent upon temporal, non-linear, firm-specific factors. The results of the study are discussed in the context of expanding research to integrate all aspects and levels of technological learning, especially differentiating between higher order (strategic and tactical) and basic (operational) learning. (C) 2002 Elsevier Science Ltd. All rights reserved.