The Impact of Technology Selection on Innovation Performance

The purpose of this study is to provide a theoretical model to analyze and understand the impact of technology selection on innovation performance of a company. Any company needs technology capacity to add value to products and processes. And companies also need to promote technology management capacity to improve efficiency and competitiveness. In this paper, a conceptual framework for implementation of technology selection is developed, consisting of four elements: technology selection, technology capacity, technology management capacity and innovation performance. The model is empirically tested using the data of 80 Chinese companies acquired by interviews and surveys. The results show that technology selection has no direct impact on innovation performance but a significant positive impact on technology capacity and technology management capacity, which, in turn, have a significant positive impact on a company´s innovation performance.