The Role of R&D Leverage as a Dynamic Capability in Performance Creation: Evidence from SMEs in Taiwan


  • Tung-Shan Liao Yuan Ze University



This study addresses the role of R&D leverage in SMEs’ performance creation. The authors do so by considering SMEs’ high resource dependence due to isomorphism. We propose that R&D leverage, with a presence of dynamic capabilities, plays a moderating role in the relation between resource investments and performance. This study, which focused on Taiwan’s SMEs, conducts a questionnaire survey using the hierarchical sampling technique, across various industries and geographic areas in Taiwan. The empirical findings reveal that R&D leverage as an essential leveler in resource management enhances resource advantages.


Dynamic capabilities view, R&D leverage, Isomorphism, SMEs, Firm performance divergence


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