Technological intensity and innovation capability: Evidence from an emerging country

Purpose: In general, it is believed that firms belonging to the high technological intensity stratum have a more innovation capability. However, evidence has begun to appear in the literature demonstrating that firms in the low-tech stratum also have the innovation capability. This paper seeks to solve this dilemma. Through an analysis of industrial firms in an emerging country, this study aims to identify the existence of innovation capability in all strata of technological intensity. Design/methodology/approach: The authors empirically assessed the impact of innovation capability on the performance of firms in all strata of technological intensity. The authors studied a sample of 910 firms from different industries and technology intensities operating in Peru, by applying a partial least squares structural equation model (PLS-SEM). Findings: This study obtained three important findings. First, the authors show that innovation capability is present in all strata of technological intensity. Second, innovation capability differs according to the technological stratum. 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 technological intensity simultaneously to verify that innovation capability exists in the four strata of technological intensity.