Title: Relationship between firm total factor productivity and performance: the case of the Czech high-tech industry

Authors: Ondřej Dvouletý; Ivana Blažková

Addresses: Faculty of Business Administration, Department of Entrepreneurship, Prague University of Economics and Business, W. Churchill Sq. 4, 130 67 Prague 3, the Czech Republic ' Faculty of Regional Development and International Studies, Department of Regional and Business Economics, Mendel University in Brno Zemědělská 1, 613 00 Brno, the Czech Republic

Abstract: The study aimed to empirically assess the relationship between total factor productivity and financial performance to enrich the ongoing discussion on the determinants of high-tech enterprises' success. We studied the financial performance of 267 Czech high-tech companies over the years 2002-2018. Our analysis is also controlled for other firm characteristics such as company age, size, legal form, capital structure, sectoral and regional affiliation. We found that firm performance is significantly dependent on total factor productivity. The obtained results also show that large firms seem to achieve significantly higher performance both in terms of sales and in terms of EBIT when compared with small- and medium-sized enterprises (SMEs). The study points out the need to expand knowledge on the factors influencing success in the high-tech industries and provides several future research directions. Scholars may investigate, for instance, how prevailing market orientation or firm management quality influence the performance of high-tech enterprises.

Keywords: TFP; total factor productivity; firm size; enterprise performance; high-tech industry; Czech Republic.

DOI: 10.1504/IJEV.2022.127437

International Journal of Entrepreneurial Venturing, 2022 Vol.14 No.4/5, pp.391 - 412

Accepted: 07 Feb 2022
Published online: 05 Dec 2022 *

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