This paper examines the implications of technological capability accumulation for inter-firm differences in terms of techno-economic performance improvement. Such issues are examined on the basis of a comparative case study of two firms of the furniture industry in the state of Rio Grande do Sul (Southern Brazil): D'Itália Moveis Industriais Ltda (19902000) e Pozza SA Industrial Moveleira (1963-2000). The framework to examine technological capability identifies types and levels of capability for three functions: (i) process and production organization; (ii) products; (iii) equipment related activities. Techno-economic performance is examined here on the basis of 16 different indicators. This article draws on first-hand empirical framework collected through multiple data-gathering techniques during an extensive fieldwork. Although the two case-study firms have been born and grown under the same industrial sector and, during a great part of their existence they operated under identical sectoral and macro-economic conditions, the study found significant differences between these two firms in terms of the manner and speed of technological capability accumulation. The evidence suggests that a large part of such differences were reflected in the differences between the two firms in terms of techno-economic performance.
technological capability; techno-economic performance; furniture industry
