The relationship between technology, innovation, and firm performance—Empirical evidence from e-business in Europe |
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Authors: | Philipp Koellinger |
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Institution: | a German Institute for Economic Research (DIW Berlin), 10108 Berlin, Germany b Erasmus Research Institute of Management, Rotterdam, The Netherlands c Tinbergen Institute, Rotterdam, The Netherlands d EIM Business Policy Research, Zoetermeer, The Netherlands |
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Abstract: | This article analyzes the relationship between the usage of Internet-based technologies, different types of innovation, and performance at the firm level. Data for the empirical investigation originates from a sample of 7302 European enterprises. The empirical results show that Internet-based technologies were an important enabler of innovation in the year 2003. It was found that all studied types of innovation, including Internet-enabled and non-Internet-enabled product or process innovations, are positively associated with turnover and employment growth. Firms that rely on Internet-enabled innovations are at least as likely to grow as firms that rely on non-Internet-enabled innovations. Finally, it was found that innovative activity is not necessarily associated with higher profitability. Possible reasons for this and implications are discussed. |
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Keywords: | Information technology Innovation Firm performance |
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