Economic perspectives on firms' technological capability enhancement and performance

Competitive pressures and demanding business environments are augmenting the importance of a firm's technological capabilities as a source of sustainable competitive advantage. Firms are increasingly looking at ways of better managing their technological resources over the long-term via the enhancement of their technological capabilities. This paper proposes an implicit logic between technological capability enhancement and the growth of economic performance, and describes how a firm's technological capabilities might be accumulated by using four components: humanware, organware, technoware and inforware. Then, an economic cybernetic model is adopted to explore the interactive function between capability accumulation and economic performance.