Does corporate governance matter to technical, commercial and economic success?

This study examines how corporate governance influences the technical, commercial, and economic success of a firmʹs R&D activity. We use a sample of Taiwanese electronics firms which made investments in R&D in the study period. We find that in the presence of innovation, corporate governance does not equally influence the technical, commercial and economic success of firmsʹ R&D investments. We affirm that higher levels of corporate governance are positively associated with technical success, but in the presence of technical success innovative activity, higher levels of corporate governance do not impact sales growth that represents commercial success. Overall, our study demonstrates that corporate governance essentially plays a contributory role in enhancing the value for an innovative firm.