Economic perspectives on firm´s technological capability accumulation and improvement: case study of a Chinese firm

A firm´s technological capability enhancement in today´s highly competitive and demanding business environment has been focused as strategic planning. The technological capability, which refers to the firm´s knowledge and capacity embedded into the individual and organizational resources, is one of the most important potentials for firms to gain the sustainable competitive advantage and high benefit return. With the enhancement of technological capability, the firms gain sustainable economic return in the long term. First, this paper proposes the implicit logic between the technological capability enhancement and the growth of benefit return. Second, the paper discusses the accumulative rule of the firm´s technological capability from four dimensions: humanware, organware, technoware and inforware. It adopts the economic cybernetic model to explore the interactive functions between the technological accumulation and economic return. Third, it uses the case of Hangzhou Machine Tool Company to analyze the economic perspective of technological capability improvement