Competitiveness through technology management: an empirical study of the Indian software industry

Abstract

Technology is one of the critical factors in deciding whether technology intensive firms are able to succeed in gaining sustainable economic growth in a highly competitive market. In order to realise sustainable development, it is very important to achieve technological competitiveness. This study is an attempt to examine the role of technology in an APP (Assets, Processes, Performance) framework with 100 firm-level data from the software industry. Using the results from the questionnaire survey, this study develops valid and reliable measures for finding out the role of technology and its significant contribution to the business outcome. Factor analysis results show that for the same level of business outcome, technological processes are a better predictor than technological assets. Further, the relationship among the technological variables (both processes and assets) and performance variables is found to be statistically significant and positive. The study concludes that the technological processes, which are very much internal to the firm, are also eternal to the firm and free from imitation by competitors. The process of economic liberalisation and increased entry of MNCs will lead to the consistent enhancement of the technological competitiveness of Indian software firms in global markets.

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