The relationships between productivity, operational risk, and firm performance

Chou C.H., Lee J.M., Teng Y.M., Lee H.L. (2022): The relationships between productivity, operational risk, and firm performance. Agric. Econ. – Czech, 68: 97–106.

download PDF

The aim of this study was to revisit the relationship between productivity and performance by using the panel data model on Taiwanese food listed firms during 2008–2020. The result found that there is a U-shaped relationship between productivity and performance. On the contrary, research and development (R&D) innovation and performance have an inverse U-shaped relationship, reminding that when the food listed firms have a specific R&D innovation base, they should invest more powerful resources, professional productivity, and innovate the food listed firms.

Acemoglu D., Restrepo P. (2018): The race between man and machine: Implications of technology for growth, factor shares, and employment. American Economic Review, 108: 1488–1542.
Arkolakis C., Ramondo N., Rodríguez-Clare A., Yeaple S. (2018): Innovation and production in the global economy. American Economic Review, 108: 2128–73.
Bendickson J., Gur F.A., Taylor E.C. (2018): Reducing environmental uncertainty: How high performance work systems moderate the resource dependence-firm performance relationship. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 35: 252–264.
Bettis R.A., Mahajan V. (1985): Risk/return performance of diversified firms. Management Science, 31: 785–799.
Bloom M., Milkovich G.T. (1998): Relationships among risk, incentive pay, and organizational performance. Academy of Management Journal, 41: 283–297.
Chen J., Heng C.S., Tan B.C., Lin Z. (2018): The distinct signaling effects of R&D subsidy and non-R&D subsidy on IPO performance of IT entrepreneurial firms in China. Research Policy, 47: 108–120.
Dai X., Cheng L. (2018): The impact of product innovation on firm-level markup and productivity: Evidence from China. Applied Economics, 50: 4570–4581.
Duncan R.B. (1972): Characteristics of perceived environment and perceived environmental uncertainty. Administrative Science Quarterly, 17: 313–327.
Esteve-Pérez S., Pieri F., Rodriguez D. (2018): Age and productivity as determinants of firm survival over the industry life cycle. Industry and Innovation, 25: 167–198.
Liu Y. (2018): The upward trend in the volatility of firm productivity shocks. Economics Letters, 163: 68–71.
Glaeser S., Michels J., Verrecchia R.E. (2020): Discretionary disclosure and manager horizon: Evidence from patenting. Review of Accounting Studies, 25: 597–635.
Golec J.H., Vernon J.A. (2007): Financial Risk in the Biotechnology Industry. Working Paper No. 13604. Cambridge, US, National Bureau of Economic Research: 1–27.
Gonzalez A., Teräsvirta T., van Dijk D.V. (2005): Panel Smooth Transition Regression Models. SSE/EFI Working Paper Series in Economics and Finance, No. 604. Stockholm School of Economics (SSE)/The Economic Research Institute (EFI): 165.
Kren L., Kerr J.L. (1993). The effect of behaviour monitoring and uncertainty on the use of performance-contingent compensation. Accounting and Business Research, 23: 159–167.
Montani F., Vandenberghe C., Khedhaouria A., Courcy F. (2019): Examining the inverted U-shaped relationship between workload and innovative work behavior: The role of work engagement and mindfulness. Human Relations, 73: 59–93.
Patel P., Pavitt K. (1995): Technological Competencies in the World's Largest Firms: Characteristics, Constraints and Scope for Managerial Choice. Laxenburg, Austria, International Institute for Applied Systems Analysis (IIASA): 32.
Pedersen E.R.G., Gwozdz W., Hvass K.K. (2018): Exploring the relationship between business model innovation, corporate sustainability, and organisational values within the fashion industry. Journal of Business Ethics, 149: 267–284.
Priem R.L., Rasheed A.M., Kotulic A.G. (1995): Rationality in strategic decision processes, environmental dynamism and firm performance. Journal of Management, 21: 913–929.
TEJ (2020): Listed Company Financial Database. [Dataset]. Taiwan Economic Journal Co., Ltd. Available at (accessed Apr 20, 2021).
download PDF

© 2022 Czech Academy of Agricultural Sciences | Prohlášení o přístupnosti