Argentina: Recent dynamics in the software and it services industry

This article examines the impact of organizational and absorptive capacities and networking on the performance of Argentine software and it services firms, within an evolutionary theoretical framework. The models estimated show that innovation outcomes depend on quality management, the existence of research and development (R&D) staff and on occupying intermediate positions in the network architecture. Firms’ economic performance cannot be assessed using a single set of indicators: whereas productivity is explained by the qualifications of human resources and employment growth by R&D personnel, export probability is associated with obtaining certifications, adopting agile methodologies and occupying intermediate positions in the network architecture. The heterogeneity of business models suggests that it is not possible to establish a single type of relationship between innovation and performance for all firms in the industry.