Abstract

This paper develops a conceptual framework and discusses the interrelationships among innovative culture, social networks, innovation strategy, and technological capability. Based on resource-based theory, this research employs the internal (innovative culture) and external (social networks) resources to examine their influences on technological capability. The role of innovation strategy is discussed as a mediator, and the Information and Communication Technology (ICT) Industry in Taiwan is examined. The results show that social networks as well as innovation strategy have a positive relationship with technological capability; innovative culture and social networks have a positive relationship with innovation strategy; innovation strategy acts as a mediator of social networks and innovative culture has a positive relationship with technological capability. However, the relationship between innovative culture and technological capability is not significant. All of the findings completely or partially support our research hypotheses. We conclude with a discussion of the managerial implications of our findings and directions for future research.

Key words: Social networks, innovative culture, innovation strategy, technological capability.