Revenue Growth
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Based on Herman (1998), growth rate is an essential performance indicator that demonstrates the effect of technological decisions. Many researchers like Maidique & Patch, Burgelman & Rosenbloom have study the factors that influence the successful of a firms in the industrial automation sector, they found that one significant factor is technology strategy, which include the decision patterns, competitor position and the management decision perspectives on technology activities. Researcher stated that firms technology strategy like technology selection, technology competence and technology posture can influence the company revenue growth.
Technology selection is the specialization and value of the core technologies that a firm adapts. In term of technology selection, the higher the value of selected technology, the higher its revenue growth. This is because high value technology can help company create products in minimum cost but higher value, therefore its help in enhancing the competitive advantages of the automation company. Besides, if these high-value technologies are hard to imitate then the automation company can continuously outperform its competitor and enjoy the high revenue growth in long term.
Technology competence is the precise of technology that used by the firm and measures the degree of specialization of a firms technologies. The higher degree of technologically competent automation, the higher degree of revenue growth can obtain by Automation Company. This is due to the forms of know-what, know-how, and care-why in technology competence can assist in underline the critical capabilities to build blocks in technical competencies. Know-what is the cognitive knowledge or basic mastery of the automation discipline. Know why is the understanding of automation system and the cause-and-effect relationship. Care why is the motivation and adaptability needed for success.
Based on Zahra & Covin (1993), technology posture refers to a firms tendency to proactively use technology as key factor to position itself in the market and gain competitive advantages. In term of technology posture, there are 3 types of technology posture which is leader, follower and laggard. Technology leaders tend to invest high costs in R&D, therefore they often run into losses in early phases but they obtain first mover benefit against its competitor because it can obtain larger market share and prevent late entrant come into industry by having patent on the technology that they have. For the followers, they tend to learn the mistake that leader make and improve the leaders idea with lower investment cost in R&D, therefore they often gain higher chance of successful with higher profit margin. On the other sides, Technology laggards which do not have technology advantages have