The relationship between technology, innovation, and firm performance-Empirical evidence from e-business in Europe

Philipp Koellinger*

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

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.

Original languageEnglish
Pages (from-to)1317-1328
Number of pages12
JournalResearch Policy
Volume37
Issue number8
DOIs
Publication statusPublished - 1 Sep 2008
Externally publishedYes

Keywords

  • Firm performance
  • Information technology
  • Innovation

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