IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v29y1983i7p757-769.html
   My bibliography  Save this article

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

Author

Listed:
  • Donald C. Hambrick

    (Columbia University)

  • Ian C. MacMillan

    (Columbia University)

  • Ricardo R. Barbosa

    (Columbia University)

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.

Suggested Citation

  • Donald C. Hambrick & Ian C. MacMillan & Ricardo R. Barbosa, 1983. "Business Unit Strategy and Changes in the Product R&D Budget," Management Science, INFORMS, vol. 29(7), pages 757-769, July.
    • Handle: RePEc:inm:ormnsc:v:29:y:1983:i:7:p:757-769
    DOI: 10.1287/mnsc.29.7.757
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.29.7.757
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.29.7.757?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mariadoss, Babu John & Johnson, Jean L. & Martin, Kelly D., 2014. "Strategic intent and performance: The role of resource allocation decisions," Journal of Business Research, Elsevier, vol. 67(11), pages 2393-2402.
    2. Ponta, Linda & Puliga, Gloria & Lazzarotti, Valentina & Manzini, Raffaella & Cincotti, Silvano, 2023. "To copatent or not to copatent: An agent-based model for firms facing this dilemma," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1349-1363.
    3. David Aboody & Shai Levi & Dan Weiss, 2018. "Managerial incentives, options, and cost-structure choices," Review of Accounting Studies, Springer, vol. 23(2), pages 422-451, June.
    4. Kim, Hyung-Tae & Lee, Seungwon & Park, Sung-Jin & Lee, Brandon, 2019. "Audit fees and corporate innovation: Auditors' response to corporate innovation," MPRA Paper 101081, University Library of Munich, Germany.
    5. Shaker A. Zahra, 1994. "New Product Innovation in Established Companies: Associations with Industry and Strategy Variables," Entrepreneurship Theory and Practice, , vol. 18(2), pages 47-69, January.
    6. Kim, Bongsun & Kim, Eonsoo & Miller, Douglas J. & Mahoney, Joseph T., 2016. "The impact of the timing of patents on innovation performance," Research Policy, Elsevier, vol. 45(4), pages 914-928.
    7. Dirk Engel & Verena Eckl & Michael Rothgang, 2019. "R&D funding and private R&D: empirical evidence on the impact of the leading-edge cluster competition," The Journal of Technology Transfer, Springer, vol. 44(6), pages 1720-1743, December.
    8. Guoli Chen & Craig Crossland & Shuqing Luo, 2015. "Making the same mistake all over again: CEO overconfidence and corporate resistance to corrective feedback," Strategic Management Journal, Wiley Blackwell, vol. 36(10), pages 1513-1535, October.
    9. Scott A. Shane & Karl T. Ulrich, 2004. "50th Anniversary Article: Technological Innovation, Product Development, and Entrepreneurship in Management Science," Management Science, INFORMS, vol. 50(2), pages 133-144, February.
    10. Xiang, Erwei & Gasbarro, Dominic & Cullen, Grant & Ruan, Wenjuan, 2020. "Does R&D expenditure volatility affect stock return?," Journal of Contemporary Accounting and Economics, Elsevier, vol. 16(3).
    11. Cho, Sam Yul & Kim, Sang Kyun, 2017. "Horizon problem and firm innovation: The influence of CEO career horizon, exploitation and exploration on breakthrough innovations," Research Policy, Elsevier, vol. 46(10), pages 1801-1809.
    12. Sergio Sánchez Ramírez & Fátima Guadamillas Gómez & Mª Isabel González Ramos & Olga Grieva, 2022. "The Effect of Digitalization on Innovation Capabilities through the Lenses of the Knowledge Management Strategy," Administrative Sciences, MDPI, vol. 12(4), pages 1-18, October.
    13. 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.
    14. Saura, M. D. & Gómez-Mejía, Luis R., 1996. "The linkages between business strategies and compensation policies using miles and snow's framework," DEE - Working Papers. Business Economics. WB 7055, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:29:y:1983:i:7:p:757-769. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.