The moderating effects of the external environment on the relationship between technology strategy and organizational performance

• Main Author: Suriani, Sukri
• Format: Thesis
• Language: English; English
• Published: 2022
• Subjects: HD28-70 Management. Industrial Management
• Online Access: https://etd.uum.edu.my/9886/1/depositpermission_s901257.pdf; https://etd.uum.edu.my/9886/2/s901257_01.pdf; https://etd.uum.edu.my/9886/

Technology strategy has been considered as a robust mechanism for improving business growth and achieving competitive advantage, yet there are limited empirical and confirmatory researches in this area. Therefore, this study investigates technology strategy and its relationship to organizational performance. Technology strategies consist of pioneer-follower posture, technical investments: internal R&D, the intensity of product upgrades, external technology sources, and product and process technology. This study also examines the role of external environments in moderating the relationship between technology strategies and organizational performance in the Malaysian manufacturing companies’ context. This study employed a survey strategy to examine the hypothesized research model and used a probability sampling design based on the sampling frame obtained. 96 responses were collected via a standard structured questionnaire from chief executive officers and managers of Malaysian manufacturing companies. PLS-SEM technique was used for the analysis of data. The findings of the study indicated that there are five dimensions of external environments. These are dysfunctional competition, institutional support, environmental turbulence, strategic alliance for product development, and political networking strategy. The findings also revealed that technology strategies influence the organizational performance of Malaysian manufacturing companies. In particular, the findings found a significant positive impact of technology strategies on organizational performance. In terms of the moderating effect, external environments moderate the relationship between technological investments and organizational performance and the relationship between product and process technology and organizational performance. These findings suggest that technology strategy is considered a nerve system and a backboned in determining organizational performance and success. The implications of this study fold into theoretical and managerial. It further explains the construct of technology strategy and its relationships with external environments and organizational performance in manufacturing companies. Practically, the findings provide information that benefits the Ministry of International Trade and Industry, the Federation of Malaysian Manufacturers, and a broad range of relevant stakeholders in developing more industry and government agency strategic collaboration such as technology transformation programs to enhance organizational performance potentially. Understanding external environments that strengthen the relationship of technology strategy and organizational performance also enrich the technology strategy literature.