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Technological innovation and strategic financial performance: the case of Jordan

This research aimed at investigating the level of technological innovation in industrial and service companies in Jordan and the impact of technological innovation on corporate financial performance of these companies. It also aimed at exploring whether size, age and structural complexity of the firm have moderating effects on the relationship between technological innovation and financial performance of these firms. The study sampled 113 industrial and service companies out of 125 listed companies on Amman Stock Exchange. The researchers utilised a quantitative approach in examining the relationship using Lev's model to measure technological innovation inputs, and financial ratios to measure strategic financial performance. Inferential analysis was conducted afterward. Results of the study showed low levels of technological innovation in the sampled companies, and a statistically insignificant relationship was found between technological innovation and financial performance. Slight positive moderation effects were found for organisational size, age and structural complexity on the relationship between technological innovation and performance, yet the relationship remained insignificant. An attempt was made to interpret the results and come up with some recommendations in light of the findings.