R&D investments in response to performance ...
Type de document :
Compte-rendu et recension critique d'ouvrage
Titre :
R&D investments in response to performance feedback: moderating effects of firm risk profile and business strategy
Auteur(s) :
Madadian, Oveis [Auteur]
Lille économie management - UMR 9221 [LEM]
Van Den Broeke, Maud [Auteur]
Lille économie management - UMR 9221 [LEM]
Lille économie management - UMR 9221 [LEM]
Van Den Broeke, Maud [Auteur]
Lille économie management - UMR 9221 [LEM]
Titre de la revue :
Applied Economics
Pagination :
802-822
Éditeur :
Taylor & Francis (Routledge)
Date de publication :
2023-02-07
ISSN :
0003-6846
Mot(s)-clé(s) en anglais :
Behavioral theory of the firm
performance feedback
R&D
risk profile
business strategy
performance feedback
R&D
risk profile
business strategy
Discipline(s) HAL :
Sciences de l'Homme et Société/Gestion et management
Résumé en anglais : [en]
R&D investments in response to performance feedback have been extensively studied. We show that both firm risk profile (i.e. low vs high risk) and business strategy (i.e. Prospector vs Defender), two aspects understudied ...
Lire la suite >R&D investments in response to performance feedback have been extensively studied. We show that both firm risk profile (i.e. low vs high risk) and business strategy (i.e. Prospector vs Defender), two aspects understudied in this context, have incremental moderating effects (both separate and joint) on this R&D-performance feedback relationship. Using a sample of US listed firms from 2000 to 2019, we observe that, when performance relative to aspiration level decreases (increases), without controlling for moderating effects of risk and strategy, firms tend to increase (decrease) R&D investments. However, as risk profile changes from low to high risk, responses to performance feedback tend to change from decreasing R&D or maintaining status quo to increasing R&D investments. We also find that, in response to performance deviation from aspiration level (regardless of the direction), Defenders tend to decrease R&D investments, regardless of risk profile, whereas Prospectors tend to increase R&D investments (maintain status quo) when their performance relative to aspiration level decreases (increases).Lire moins >
Lire la suite >R&D investments in response to performance feedback have been extensively studied. We show that both firm risk profile (i.e. low vs high risk) and business strategy (i.e. Prospector vs Defender), two aspects understudied in this context, have incremental moderating effects (both separate and joint) on this R&D-performance feedback relationship. Using a sample of US listed firms from 2000 to 2019, we observe that, when performance relative to aspiration level decreases (increases), without controlling for moderating effects of risk and strategy, firms tend to increase (decrease) R&D investments. However, as risk profile changes from low to high risk, responses to performance feedback tend to change from decreasing R&D or maintaining status quo to increasing R&D investments. We also find that, in response to performance deviation from aspiration level (regardless of the direction), Defenders tend to decrease R&D investments, regardless of risk profile, whereas Prospectors tend to increase R&D investments (maintain status quo) when their performance relative to aspiration level decreases (increases).Lire moins >
Langue :
Anglais
Vulgarisation :
Non
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