Title: The effects of innovative capacity and capital expenditures on financial performance

Authors: Shaio-Yan Huang, Yu-Chung Hung, Chi-Chen Lin, Ing-Jung Tang

Addresses: Department of Accounting and Information Technology, National Chung Cheng University, No. 168 University Road, Min-Hsiung, Chia-Yi, Taiwan. ' Department of Accounting and Information Technology, National Chung Cheng University, No. 168 University Road, Min-Hsiung, Chia-Yi, Taiwan. ' Department of Accounting and Information Technology, National Chung Cheng University, No. 168 University Road, Min-Hsiung, Chia-Yi, Taiwan. ' Department of Accounting and Information Technology, National Chung Cheng University, No. 168 University Road, Min-Hsiung, Chia-Yi, Taiwan

Abstract: The firms in the IT industry rely on innovation to create competitive advantages. As such, the efficiency of Research and Development (R&D) resources has become a key part in Taiwan|s Information Technology (IT) industry. This research intends to explore the effects of innovative capabilities and capital expenditures on the business performance of IT manufacturers in Taiwan. This study examined 535 samples from the IT industry in Taiwan to seek the factors that affect innovation and competitive advantages. The results reveal that if capital expenditures are kept at the most appropriate scale, the boost of innovative capabilities may lead to a greater level of performance.

Keywords: broadening productivity; capital expenditures; innovation; innovative capabilities; research and development; R&D; financial performance; Taiwan; information technology; IT industry.

DOI: 10.1504/IJIL.2009.023294

International Journal of Innovation and Learning, 2009 Vol.6 No.3, pp.323 - 341

Available online: 17 Feb 2009

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