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Situational and institutional determinants of firms' RandD search intensity

Author: Chen, W. R. ; Miller, K. D.INSEAD Area: StrategyIn: Strategic Management Journal, vol. 28, no. 4, April 2007 Language: EnglishDescription: p. 369-382.Type of document: INSEAD ArticleNote: Please ask us for this itemAbstract: Our theory extends the situational considerations explaining firm RandD search intensity beyond the behavioral theory of the firm by including shifts in the focus of attention among bankruptcy, aspirations, and slack. We also concede that search can reflect institutionalized investment patterns within firms and industries. We find stable firm-specific RandD investment patterns (i.e., institutionalized search) and variations in RandD intensity depending on firms' situations - including performance relative to aspirations, proximity to bankruptcy, and slack. Our empirical results evidence shifts in the focus of attention relevant to explaining RandD search intensity for subsamples of firms in different situations.
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Our theory extends the situational considerations explaining firm RandD search intensity beyond the behavioral theory of the firm by including shifts in the focus of attention among bankruptcy, aspirations, and slack. We also concede that search can reflect institutionalized investment patterns within firms and industries. We find stable firm-specific RandD investment patterns (i.e., institutionalized search) and variations in RandD intensity depending on firms' situations - including performance relative to aspirations, proximity to bankruptcy, and slack. Our empirical results evidence shifts in the focus of attention relevant to explaining RandD search intensity for subsamples of firms in different situations.

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