The Effect of Inter-Firm Synergy on Firm’s Performance in Technological Innovation: The Moderating Roles of Technological Innovation Capability and Innovation Strategy (The Case of Subsidiaries of an Technology-based Organization)

Technological innovation has a positive effect on firm performance and is one of the key factors for success and survival, particularly in technology-based industries. Firms have been focusing on the ways through which they can boost their innovations. This study aimed to investigate the effect of inter-firm synergies on firm’s performance in technological innovation by considering the moderating roles of technological innovation capability and innovation strategy.

This descriptive study is a practice-oriented research using correlational method in data collection phase. The statistical population includes the subsidiaries of an Iranian technology-based organization in energy sector. Data were collected by a 50-item questionnaire with a 5-point Likert scale which its validity and reliability was confirmed. Hypotheses were tested using structural equation modelling (SEM) and partial least squares (PLS) technique, employing the SmartPLS Software.

The results showed that inter-firm synergy significantly has a positive effect on firm’s performance in technological innovation. We also found that both technological innovation capability and innovation strategy positively moderates the relationship between inter-firm synergy and firm’s performance in technological innovation.

As the findings showed, firms can increase their performance in technological innovation by exploiting inter-firm synergies. Building and Enhancing technological innovation capability and innovation strategy formulation and implementation will help them to better exploit of these synergies.