scholarly journals The effects of R&D intensity and internationalization on the performance of non-high-tech SMEs

2017 ◽  
Vol 36 (1) ◽  
pp. 81-103 ◽  
Author(s):  
Lucas WA Booltink ◽  
Ayse Saka-Helmhout
Keyword(s):  
Firm Performance ◽  
Research And Development ◽  
Critical Threshold ◽  
High Tech ◽  
High Tech Sector ◽  
And Performance ◽  
The Relationship ◽  
D Investment ◽  
Level Of Risk

Research and Development (R&D) investment is seen as a fundamental driver of high-tech small and medium-sized (SME) firm performance. However, the same driver may be constraining growth among non-high-tech SMEs as it increases the level of risk faced by such firms. We challenge this argument by examining the relationship between R&D intensity and performance among non-high-tech SMEs. While the size of R&D investments is, by definition, limited in the non-high-tech sector, our study shows that such investments are important for non-high-tech firms. There is, however, an inverted U-shaped relationship between R&D intensity and performance among non-high-tech SMEs. Furthermore, increased internationalization leads non-high-tech SMEs to exploit their R&D investment more effectively to enhance firm performance, provided that R&D investment levels exceed a critical threshold.

Innovation and Performance: An Empirical Study of Russian Industrial Companies

2018 ◽  
Vol 15 (03) ◽  
pp. 1850027 ◽  
Author(s):  
Arkady Trachuk ◽  
Natalia Linder
Keyword(s):  
Research And Development ◽  
Critical Mass ◽  
High Tech ◽  
Manufacturing Companies ◽  
Industrial Companies ◽  
Strong Positive Relationship ◽  
And Performance ◽  
Relationship Of ◽  
The Relationship ◽  
D Investment

The paper investigates the relationship between investment in research and development (R&D), innovation expenses, and productivity of manufacturing companies. These empirical results have shown that innovation investments (1) improve the performance of industrial companies with the elasticity of 0.09; (2) innovation investment has an impact on the performance of the company, and the extent of this impact depends on the value of R&D investment and has a range of elasticity ranging from 0.03 (for low volumes of R&D investment) to 0.16 in high volumes of R&D investment; (3) the relationship between innovation investment and the growth of performance is nonlinear in nature and has a strong positive relationship only after a critical mass of innovation investment has been reached; (4) a significant role in the relationship of innovation investment and productivity is played by the features of the industry in which the company operates (the companies that operate in high-tech industries not only invest more in R&D and innovation but also have a better performance due to research and development); (5) companies of low-tech industries have a negative elasticity of innovation investment and productivity, which is due to the influence of unprofitable innovation investments (appropriability effect), i.e. additional profits from the investment are not significant.

scholarly journals Government Support and R&D Investment Effectiveness in Chinese SMEs: A Complex Relationship

2017 ◽  
Vol 16 (1) ◽  
pp. 201-226 ◽  
Author(s):  
Claudio Petti ◽  
Lauretta Rubini ◽  
Silvia Podetti
Keyword(s):  
Government Support ◽  
High Tech ◽  
Moderation Model ◽  
And Performance ◽  
The One ◽  
Internal Balance ◽  
The Relationship ◽  
Innovative Capacity ◽  
D Investment ◽  
Innovation Support

This paper investigates the combined role of innovation support policies and firm's own innovative activities on the performance of Chinese small- and medium-sized enterprises (SMEs) in high-tech sectors. By distinguishing two components of innovative activities—research and development (R&D) investments and embedded innovative capacity—the paper develops and tests an integrative moderated moderation model. The results suggest that in Chinese high-tech SMEs innovation-support policies positively moderate the relationship between R&D investments and performance, but this positive effect diminishes when there are higher levels of embedded innovative capacity. These results highlight that the relationship between government innovation policies and a firm's own R&D investments is not only reciprocal but also more complex than the one so far analyzed in the literature. The results show in particular that the effects of innovation-support policies on R&D investments is not as neat as it seems, because of the internal balance within the firm between investment in R&D and other sources of innovation. Therefore, although innovation support policies have been found to help Chinese SMEs in high-tech sectors benefit from their R&D investments, these policies are particularly effective only when R&D investments are significantly driving firms’ innovative activities. This highlights the relevance of both government support and a firm's own efforts in the competitive modernization of Chinese SMEs.

How does disruptive innovation influence firm performance? A moderated mediation model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chenxiao Wang ◽  
Feng Guo ◽  
Qingpu Zhang
Keyword(s):  
Firm Performance ◽  
Disruptive Innovation ◽  
High Tech ◽  
Senior Managers ◽  
Content Type ◽  
Explanatory Variables ◽  
Moderated Mediation Model ◽  
Innovation Quality ◽  
And Performance ◽  
The Relationship

PurposeBased on the literature on disruptive innovation, this research explores how disruptive innovation directly and indirectly (via innovation speed and innovation quality) influences firm performance in relation to the contingency of market-supporting institutions.Design/methodology/approachA sample of 207 firms was gathered through questionnaires targeting senior managers and R&D managers from high-tech firms in China with two waves including explanatory variables and outcome variables.FindingsThis empirical results indicate that disruptive innovation positively affects firm performance, and that innovation speed and innovation quality mediate the relationship between disruptive innovation and firm performance. Meanwhile, market-supporting institutions positively moderate the relationship between innovation speed and firm performance, but negatively moderate the relationship between innovation quality and firm performance.Research limitations/implicationsThis study suggests that disruptive innovation is important to firm performance, innovation speed and innovation quality play mediating roles, and market-supporting institutions acts as moderating effects. A research limitation is that the data were collected mainly through a questionnaire.Practical implicationsFirms should incorporate disruptive innovation as an important strategy and improve innovation speed and innovation quality to promote firm performance, and policymakers should improve the levels of market-supporting institutions to facilitate innovation and performance.Originality/valueThis study contributes the literature of disruptive innovation by uncovering the positive effect of disruptive innovation and firm performance and the mediating effects of innovation speed and innovation quality on the abovementioned relationship, and revealing their contingency effects of market-supporting institutions.

scholarly journals EXPRESS: Unbundling the Effects of Internationalization on Firm Performance in Emerging Economies: The Moderating Effects of Strategic Resource Decisions

2021 ◽  
pp. 1069031X2110306
Author(s):  
Nilay Bicakcioglu-Peynirci ◽  
Robert E. Morgan
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Emerging Market ◽  
Strategic Marketing ◽  
Slack Resources ◽  
Moderation Effect ◽  
Strategic Resource ◽  
And Performance ◽  
Resource Decisions ◽  
The Relationship

We investigate how strategic resource decisions—concerning slack resources and strategic marketing ambidexterity—influence the relationship between internationalization and firm performance of emerging market firms. Based upon the resource-based view, we synthesize two dominant, yet divergent, perspectives that explain the respective resource slack advantages and liabilities in the internationalization literature: the flexible capacity and the efficient capacity perspectives. We also explore the moderating role of strategic marketing ambidexterity which comprises a bundle of marketing activities covering both exploitation-dominant actions and exploration-dominant actions. We empirically examine our hypothesized relationships with data from a sample of 1,683 firm-year observations for the period between 2005 and 2018 and find that distinct forms of resource slacks have contrasting effects on the relationship between internationalization and performance. Our results provide strong evidence for positive moderation effect of unabsorbed slack resources and a negative moderation effect of absorbed slack resources on the internationalization-performance relationship. We also indicate nonsignificant moderating effect of strategic marketing ambidexterity, demonstrating that internationalization attains higher firm performance regardless of its exploration-dominant or exploitation-dominant strategic emphasis in emerging economies.

scholarly journals Analysis of Information Systems Capabilities and Performance of Firms in Telecommunications Industry, Kenya

2018 ◽  
Vol 6 (04) ◽  
pp. 319-327
Author(s):  
Bett, Alfred Kipyegon ◽  
Dr. Johnmark Obura ◽  
Dr. Moses Oginda
Keyword(s):  
Information Systems ◽  
Firm Performance ◽  
Telecommunications Industry ◽  
Policy Formulation ◽  
Primary Data ◽  
Executive Management ◽  
Economic Role ◽  
And Performance ◽  
Service Businesses ◽  
The Relationship

In the 21st century where economies are driven majorly by knowledge and information-based service businesses, telecommunication industries are playing a critical economic role both regionally and globally. In Kenya, with a combined subscription rate of 37.8 million based on a 2016/17 Communication Authority of Kenya report of 2017, Safaricom Kenya Limited controls about 71.2% of the subscribers, Airtel Kenya Limited is second with 17.6% with Telkom Kenya coming third with 7.4%. Finserve East Africa (Equitel) a new entrant in the market controls 3.8% of subscribers. These figures points to the fact that only Safaricom seems to be the only firm performing well. This reality forms the basis of establishing whether their difference in performance is attributable to their information systems capabilities. The purpose of this study was to analyse the relationship IS capabilities and performance of firms in the telecommunications industry in Kenya. It was anchored on Resource-Based Theory and guided by a conceptual framework with the dependent variable being firm performance while independent variable was IS capabilities. Correlational and survey research designs were used. The population of the study was 408 staff comprising all executive, management and operational level managers from the business and IT sections in each firm. A sample of 202 staff was drawn through proportionate stratified random sampling method. Primary data was collected using structured questionnaire and an interview schedule. Reliability of the research instrument was tested against Cronbach’s alpha coefficient where a reliability score of 0.814 was achieved while validity was gauged through research experts’ opinions. Data was analysed using both descriptive and inferential statistics. The findings established that IS capabilities and firm performance have a weak relationship (r = 0.409, p<0.05) which means that whenever firms in industry invested on market based IS capabilities there was a small improvement on their performance and therefore firms should invest in the development of market based IS capabilities since they have significant influence on their performance. This study may be useful to industry players by gaining better understanding on various information system resources that they can utilize to improve and sustain their performance besides policy formulation. By advancing a model that depicts the relationship between information systems resources and firm performance, this study may make a significant contribution to theory building in the field of information systems.

scholarly journals Intellectual Capital and Firm Performance across Pakistani Industries

2021 ◽  
Vol 11 (4) ◽  
pp. 56
Author(s):  
Muhammad Ahmad ◽  
Rohani Mohd Rus
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Service Industries ◽  
Financial Firms ◽  
Generalized Methods Of Moments ◽  
Capital Efficiency ◽  
And Performance ◽  
Methods Of Moments ◽  
The Relationship

This study sheds light on the differences in intellectual capital (IC) efficiencies across non-financial sectors in Pakistan and determines the relationship between IC and firm performance. The study used sample of 155 non-financial firms from the manufacturing and service industries of Pakistan for the period 2009-2018. This study contributes to IC research by applying modified value-added intellectual capital (MVAIC) model with relationship to firm performance (return on assets and Tobin’s Q) of Pakistani non-financial firms which was overlooked by the previous researchers. In addition, to deal with endogeneity, the dynamic panel generalized methods of moments regression is applied to test the relationship between IC and performance. Findings provide evidence that different sectors in non-financial industries manage IC components differently. IC increases both market-based performance and accounting-based performance of Pakistani firms. Among all IC components, human capital efficiency is an important determinant of firm performance. The implication can provide help managers and investors to understand the IC to increase the firm performance.

scholarly journals Tanggung Jawab Sosial Dan Risiko Sistematis: Efek Moderasi Dari Fleksibilitas Keuangan Dan Investasi Penelitian Dan Pengembangan

2021 ◽  
Vol 4 (2) ◽  
pp. 162-185
Author(s):  
Anita Anita ◽  
Lisa Lim
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Research And Development ◽  
Stock Prices ◽  
Systematic Risk ◽  
Financial Flexibility ◽  
Corporate Social ◽  
The Relationship ◽  
D Investment

The study is conducted with the aim of examining the effect of corporate social responsibility on systematic risk in companies listed on the IDX for the period of 2016-2020. This study adds financial flexibility and research and development investment as moderators which are still remain unexplored in Indonesia. This research is expected to be able to make investors consider social responsibility as a factor in making investment decisions. The data taken are stock prices, annual reports and sustainability reports which are secondary data. Data collection using purposive sampling method with certain criteria so that the number of samples in this study amounted to 43 companies. In testing the hypothesis using panel data regression analysis techniques with eviews. The results of the regression analysis show that the existence of corporate social responsibility has a significant positive effect on systematic risk. The moderating variable of financial flexibility does not affect the relationship between CSR and systematic risk. Then the research and development investment variables weaken the relationship between CSR and systematic risk. Therefore, management is expected to pay attention to R&D investment in making CSR policies. This study explains that R&D investment is one of the important roles in company sustainability.

Aliansi Strategis dan Kinerja Perusahaan: Perspektif Teori Institusional

2020 ◽  
Vol 1 (2) ◽  
pp. 83-90
Author(s):  
Rebi Fara Handika
Keyword(s):  
Firm Performance ◽  
Institutional Theory ◽  
Empirical Research ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Point Of View ◽  
Theory Point ◽  
And Performance ◽  
The Relationship

Abstract   This paper discussed the company's motive to join a strategic alliance from the institutional theory point of view. The theory views that strategic alliances are considered as the medium to acquire legitimation from the environment. Such legitimation then improves the company’s competitive positions and performance. Further, we propose the framework to discuss the relationship between strategic alliances and a company’s performance. The paper proceeds as follows: in the next section, we discuss the institutional theory, the strategic alliance, and firm performance. Afterward, we develop the propositions and discuss the implications for future empirical research.   Abstrak   Artikel ini membahas motif perusahaan untuk bergabung dengan aliansi strategis dari sudut pandang teori institusional. Teori ini memandang bahwa aliansi strategis dianggap sebagai media untuk memperoleh legitimasi dari lingkungan. Legitimasi tersebut kemudian dipercayai akan meningkatkan posisi kompetitif dan kinerja perusahaan. Selanjutnya, kami mengusulkan framework untuk membahas hubungan antara aliansi strategis dan kinerja perusahaan. Artikel ini akan dilanjutkan sebagai berikut: pada bagian berikutnya, kita membahas teori institusional, aliansi strategis, dan kinerja perusahaan. Setelah itu, kami mengembangkan proposisi dan membahas implikasi untuk penelitian empiris di masa depan.

Invest in Innovation or Not? How Managerial Cognition and Attention Allocation Shape Corporate Responses to Performance Shortfalls

2021 ◽  
pp. 1-36
Author(s):  
Lerong He ◽  
Liying Huang ◽  
Guangqing Yang
Keyword(s):  
Performance Feedback ◽  
Attention Allocation ◽  
High Tech ◽  
Moderating Effects ◽  
Managerial Cognition ◽  
Industry Competition ◽  
Aspiration Levels ◽  
The Relationship ◽  
Underperforming Firms ◽  
D Investment

ABSTRACT This study investigates the influence of managerial cognition and attention allocation on firms’ responses to negative performance feedback. We explore how managerial cognition, as shaped by managers’ experiences, connections, positions, and industry environments, affects underperforming firms’ attention allocation and, consequently, their decisions to invest in innovation. Utilizing a longitudinal sample of Chinese high-tech firms from 2009 to 2017, we find that firms increase investment in research and development (R&D) when performance falls below aspiration levels. We also document that underperforming firms are associated with an even larger R&D investment increase when their CEOs have an R&D or engineering background, serve simultaneously as the board chair, or are not politically connected. In addition, we highlight the moderating effects of industry competition and industry norms on the relationship between firm underperformance and R&D intensity. We conclude that managerial cognition affects firms’ allocation of attention to innovation as a solution for closing performance gaps and shapes corporate responses to negative performance feedback.

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