A survey of Hong Kong software industry : in search of a competitive strategy for the small & medium size software firms

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A survey of Hong Kong software industry : in search of a competitive strategy for the small & medium size software firms

 

Author: Law, Ka-hung Rudy
Title: A survey of Hong Kong software industry : in search of a competitive strategy for the small & medium size software firms
Degree: D.B.A.
Year: 2001
Subject: Computer software industry -- China -- Hong Kong
Small business -- China -- Hong Kong
Hong Kong Polytechnic University -- Dissertations
Department: Dept. of Management
Pages: ix, 174 leaves : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1604155
URI: http://theses.lib.polyu.edu.hk/handle/200/1295
Abstract: This research tests the impact of product differentiation, product innovation, national innovation policy, and interfirm linkages on organizational performance. It is hypothesized that the first two constructs differentiation and innovation are positively related to performance. On the other hand, national innovation policy and interfirm linkages are considered as moderating the impact of the differentiation-performance and innovation-performance relationships. Competitive strategy research, particularly the generic strategy of Porter (1985) and Mintzberg's distinction of generic strategy (1988) underpin this research study. This model's framework was tested using a sample of Hong Kong software firms. Data collected from this cross-sectional survey sample (n=51) were subjected to factor and regression analyses and all of the six hypotheses tested. The strategy-performance results reinforce Mintzberg's claim that differentiation against their competitors does have a significant impact on a firm's performance. There is empirical support of a positive association between differentiation by image and support, and the software firm's return on equity. However, differentiation by price has a negative effect on return on equity. Contrary to expectations, differentiation by design and quality, along with undifferentiation do not show significant influences. The moderating impact of interfirm linkages on strategy-performance is partially supported by the factor of image differentiation which has a significant effect on the firm's return on equity, though with opposite hypothesized direction. The importance of a second moderator, national government policy, is also confirmed in terms of differentiation by quality and image. These variables show positive impacts through their moderating effects on the strategy-performance relationship. For the innovation-performance results, both the level of innovation and the firm size (i.e., control variable) demonstrate a direct effect on sales growth. Contrary to literature claims, it does not offer significant empirical support between internal skills and capabilities, firm characteristics, and extra-organizational factors on the firm's performance. The moderating effect of interfirm linkages and the national innovation policy also do not have a significant impact on the innovation-performance relationship.

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