| This study examined the relationship between the adoption of technological innovations and firm financial performance using Barney's (1991) framework of firm resource-based theory. It was hypothesized that there would be a significant and positive relationship between the adoption of technological innovations and firm financial performance. It was further hypothesized that this relationship would be moderated by the extent to which the technological innovations were simultaneously valuable, imperfectly imitable, and rare. The hypotheses were tested in the hospital industry. A sample of 189 Florida hospitals was used in the study. The results supported the hypotheses. A positive and significant relationship was found between the adoption of medical technological innovations and hospital financial performance, and the relationship was found to be strongest when the hospital's medical technologies were simultaneously valuable, imperfectly imitable, and rare. |
