Technological intensity and innovation capability: evidence from an emerging country

Purpose-In general, it is believed thatfirms belonging to the high technological intensity stratum have a moreinnovation capability. However, evidence has begun to appear in the literature demonstrating thatfirms in the low-techstratum also have the innovation capability. This paper seeks to solve this dilemma. Through an analysis of industrialfirms in an emerging country, this study aims to identify the existence of innovation capability in all strata oftechnological intensity. Design/methodology/approach-The authors empirically assessed the impact of innovation capability on theperformance offirms in all strata of technological intensity. The authors studied a sample of 910firms from differentindustries and technology intensities operating in Peru, by applying a partial least squares structural equation model(PLS-SEM). Findings-This study obtained three importantfindings. First, the authors show that innovation capability ispresent in all strata of technological intensity. Second, innovation capability differs according to the technologicalstratum. Third,firms in the lowest technological stratum can use more capabilities than those in the other strata. Originality/value-This study pioneers the empirical analysis of innovation capability and technologicalintensity simultaneously to verify that innovation capability exists in the four strata of technological intensity.K