Technological innovation capabilities' effect on innovation performance: Agriculture firms in Laos

Abstract

This study investigates how technological innovation capabilities (TIC) impact the innovation performance of agricultural firms in Laos. Using a TIC framework that encompasses Resource Allocation, Learning Capability, Manufacturing Capability, R&D Capability, Marketing Capability, Organizing Capability, and Strategic Planning Capability. The research examines the contribution of these components to innovation within the agricultural sector. Data were collected from 123 agricultural firms, regression and correlation analyses were applied to assess the impact of each capability. The results demonstrate that Resource Allocation, Learning, Marketing, R&D, and Organizing capabilities have a significant positive impact on innovation performance, highlighting the importance of skills development, research investments, efficient resource management, customer-centered marketing, and cohesive organizational practices in driving innovation. In contrast, Manufacturing and Strategic Planning capabilities did not exhibit substantial effects, possibly due to challenges in infrastructure and strategic misalignment. These findings underscore the need for targeted support in TIC development, including training, resource management, and infrastructure improvements, to enhance innovation capabilities and foster sustainable growth in the agricultural sector in Laos.