The relationship between strategic technology innovation orientation and organizational performance: Mediating effects of core competency

Abstract

This paper suggests a structural model that explains the relationship between strategic technology innovation orientation and organizational performance. The model was built on the synthesis of strategic orientation and resource-based theory. The key mediating variable is organizational core competency. The empirical test proved that the technology innovation orientation did not affect performance directly, but through the core competency indirectly. The test results suggest that if an innovative firm would like to enhance business performance, first of all, the firm has strategic innovative orientation view and concentrates on core competency. The more a firm has core competency, the more it will increase their productivity, and finally will get higher financial performance. ? 2015, ICIC International.