Technological Capability: Unveiling its Dual Nature in Fostering Technological Innovation within Firms

Abstract

Technological capability stands as a cornerstone for firms aiming to innovate in today's dynamic business environment. This paper delves into the intricate role of technological capability, unraveling its dual nature as both an enabler and a constraint in the realm of technological innovation within firms. Drawing upon a synthesis of theoretical frameworks and empirical evidence, this study elucidates how technological capability acts as a double-edged sword, influencing the innovation trajectory of firms. On one hand, a robust technological capability empowers firms to harness their internal resources, knowledge, and competencies to drive innovation initiatives effectively. On the other hand, an overly rigid or outdated technological capability may impede firms' agility and adaptability, hindering their ability to respond to evolving market demands and technological advancements. Through a nuanced analysis of the mechanisms underlying the relationship between technological capability and technological innovation, this paper offers insights into strategic approaches for firms to optimize their technological capability, mitigate its potential pitfalls, and leverage it as a catalyst for sustained innovation performance. By shedding light on the complex interplay between technological capability and technological innovation, this study contributes to advancing theoretical understanding and guiding managerial practice in the domain of innovation management within firms.