Title: The roles of innovation and internationalisation in explaining dynamic business performance

Authors: Wei-Kang Wang; Imen Tebourbi; Qian Long Kweh; Cheng-Che Li

Addresses: Department of Accounting, Yuan Ze University, 135 Yuan-Tung Road, Chung-Li, Taiwan ' Faculty of Management, Canadian University Dubai, P.O. Box 117781, 1st Interchange, Sheikh Zayed Road, Dubai, United Arab Emirates ' Faculty of Management, Canadian University Dubai, P.O. Box 117781, 1st Interchange, Sheikh Zayed Road, Dubai, United Arab Emirates ' Department of Accounting, Yuan Ze University, 135 Yuan-Tung Road, Chung-Li, Taiwan

Abstract: This study examines the effects of innovation (patent-related proxies), internationalisation (proxies measuring overseas business), and the interaction terms of the two variables on dynamic business performance (technical efficiency). A dynamic production model has been developed and assessed using a directional distance function (DDF) model under the Luenberger benefit function to measure technical efficiency of 467 firm-year observations of Taiwanese listed semiconductor companies during the sample period 2009-2015. The DDF efficiency analysis shows that technical efficiency fluctuated but remained relatively stable, with an overall mean value of 0.828. Regression results indicate that innovation and internationalisation contribute positively to dynamic business performance; although, the interaction between the two variables is not related to dynamic business performance. While innovation and internationalisation are important factors driving the dynamic business performance of the semiconductor companies in Taiwan, the vital economic assets of the industry have to be continuously protected.

Keywords: innovation; internationalisation; business performance; dynamic data envelopment analysis; DEA; the Taiwanese semiconductor industry.

DOI: 10.1504/IJBEX.2023.129106

International Journal of Business Excellence, 2023 Vol.29 No.3, pp.437 - 454

Received: 06 Jun 2020
Accepted: 09 Jul 2020
Published online: 20 Feb 2023 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article