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Business Unit Strategy and Changes in the Product R&D Budget

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Author Info

  • Donald C. Hambrick

    (Columbia University)

  • Ian C. MacMillan

    (Columbia University)

  • Ricardo R. Barbosa

    (Columbia University)

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    Abstract

    This study of changes in Product R&D intensity in business units supplements past studies by including two major classes of independent variables which have not been examined previously: the competitive strategy of the business and role of the business in the overall corporate portfolio. Multiple regression analysis is used on a sample drawn from the PIMS data base. The results suggest that R&D decisions in growth businesses are responsive to competition, evolving strategies, and intra-firm resource flows. In mature businesses, a pattern of stability and R&D equilibrium is evident, even in the face of changes by competitors. Managerial implications are noted.

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    File URL: http://dx.doi.org/10.1287/mnsc.29.7.757
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    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 29 (1983)
    Issue (Month): 7 (July)
    Pages: 757-769

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    Handle: RePEc:inm:ormnsc:v:29:y:1983:i:7:p:757-769

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    Related research

    Keywords: research and development; economics; statistics: regression;

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    Cited by:
    1. Supachart Iamratanakul, 2013. "The Selection of Project in Rapid Environment’s Industry Using Zero Based Budget," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management, ToKnowPress.

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