A Significant Structured Review of Technological Innovation Capability and Firm Performance

Abstract

This systematic review explores the complex relationship between technological innovation capability and firm performance in the context of modern business dynamics. Organizations struggle to leverage innovation to preserve competitive advantage as technology continues to advance at an unparalleled rate. This review endeavours to provide a holistic understanding of the subject by employing a comprehensive methodology that includes a systematic literature review, meta-analysis (PRISMA), and synthesis of empirical findings. The advanced searching employed two powerful databases which are Scopus and Web of Science (WoS). Based on the advanced searching, the final quantitative main data (n=30) were analysed. Three main themes were developed; (1) effect of technological innovation capability on firm performance, (2) factors influencing technological innovation capability, and (3) evaluation of technological innovation capability. The review suggests that understanding the interplay between technical innovation capability and firm performance is essential for businesses aiming to thrive in the ever-changing technological landscape. In summary, this review contributes to the evolving discourse on innovation management by offering a structured synthesis of current knowledge, potentially guiding strategic decisions for firms navigating the complexities of technological innovation in the modern era.