Size, R&amp;D productivity and Decision Styles

Lejarraga, José; Martínez‐Ros, Ester

doi:10.1007/s11187-013-9495-7

Cited by 24 publications

(26 citation statements)

References 66 publications

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“…Thus, it can be concluded that innovativeness is an important competitive capability in research and practice. The results further contribute to the so-called "sizeinnovation debate" (LEJARRAGA; MARTINEZ-ROS, 2014), showing a positive relationship between innovation and performance in Brazilian SMEs.…”

Section: Resultssupporting

confidence: 59%

<b>Small and Medium Sized Manufacturing Companies in Brazil: Is Innovativeness a Key Competitive Capability to Develop?

Thürer¹,

Filho

Stevenson

et al. 2015

Acta Sci. Technol.

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ABSTRACT. Small and medium sized manufacturing companies are important both to economic growth and to supply chains. Yet only limited research has focused on this type of organization -this includes in the area of manufacturing strategy. Using a large scale survey of 149 firms across three States in Brazil, this paper examines the competitive capabilities of small and medium sized manufacturing companies; and the link between their capabilities and performance. Our results show that the best-performing firms are those that lead on capabilities like quality and innovativeness rather than on cost. Much of the available literature on manufacturing strategy emphasizes only four key competitive priorities: cost, flexibility, quality and delivery. Consequently, our results confirm innovativeness as an important, fifth capability for small and medium sized firms in Brazil to maintain or develop. The findings are of relevance both to small and medium sized manufacturing companies in emerging economies and to international firms looking to relocate or outsource to Brazil.Keywords: small and medium sized manufacturing companies, Brazil, innovativeness, competitive capabilities, survey. Pequenas e Médias Empresas no Brasil: Inovação é um objetivo chave a ser desenvolvido?RESUMO. Apesar da existência de poucos pesquisas na área, o estudo de estratégia de manufactura em pequenas e médias empresas (PME) tem o potencial de contribuir para o crescimento econômico no Brasil. O presente estudo, por meio de um survey em 149 empresas brasileiras, investiga os objetivos de manufatura priorizados pela PME brasileiras e relaciona tal priorização com o desempenho dessas empresas. Os resultados do estudo mostram que as firmas com melhor desempenho são aquelas que focam seus esforços em qualidade e inovação, ao invés de custo. A grande maioria da literature sobre estratégia de produção enfatiza a existência de quatro prioridades competitivas: custo, flexibilidade, qualidade e entrega. O presente estudo aponta que a inovação é uma quinta prioridade competitive que as PME no Brasil devem manter e/ou desenvolver.Palavras-chave: pequenas e médias empresas, Brazil, inovação, objetivos de desempenho da produção, survey.

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Section: Resultssupporting

confidence: 59%

<b>Small and Medium Sized Manufacturing Companies in Brazil: Is Innovativeness a Key Competitive Capability to Develop?

Thürer¹,

Filho

Stevenson

et al. 2015

Acta Sci. Technol.

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“…First, the tracking of information on the same companies over time is necessary to conduct mediation analysis. Since a correctly defined mediation model sets out causal relationships among variables, temporal precedence of causal factors is required (MacKinnon et al, 2007;Ndofor et al, 2011;Lejarraga and Martinez-Ros, 2013). In our sample, information for characterizing 'technology alliance diversity,' 'knowledge combinative capabilities' and 'innovation outcomes' is available at different points in time, so causality can be established.…”

Section: Datamentioning

confidence: 99%

Absorptive Capacity and Ambidexterity in R&D: Linking Technology Alliance Diversity and Firm Innovation

Lucena

Roper

2016

European Management Review

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The aim of this study is to examine how firms realize the benefits associated with a diverse range of technology alliances. We propose and test the hypothesis that firms’ knowledge combinative capabilities mediate the relationship between technology alliance diversity and innovation. Using panel data for Spanish manufacturing companies during the period 2004–2011, we provide evidence that firms’ absorptive capacity and ambidexterity in R&D serve as mediating mechanisms between technology alliance diversity and innovative performance. Our study advances the literature on technology alliances by showing how firms use their portfolios of technology alliances to form their combinative capabilities, and subsequently, to enhance innovation outcomes.

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“…This is a context where ROR may result in higher valuations than NPV, leading executives to be predisposed toward the former (Kellogg and Charnes, 2000;Leslie and Michaels, 1997). Hence, the results of this study may have external validity only for those firms operating in highly uncertain, technologically intensive industries.…”

Section: Generalizability Of Findings Beyond Biotechnology Firmsmentioning

confidence: 88%

Section: Introductionmentioning

confidence: 99%

“…Henceforth, reliance on NPV analysis for planning and capital budgeting is referred to as an NPV orientation. NPV orientation varies in degree and could be held in conjunction with other orientations including those that, by design, flex with emerging opportunities and hurdles (Kogut and Kulatilaka, 2001;Lejarraga and Martinez-Ros, 2013). This latter orientation is more consistent with real options reasoning which has been cast as a mindset or way of viewing projects as "the right, but not the obligation to take an action at a predetermined cost called the exercise price, for a predetermined period of time -the life of the option" (Copeland and Antikarov, 2001, p. 5).…”

Section: Introductionmentioning

confidence: 99%

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Entrepreneurs’ Capital Budgeting Orientations and Innovation Outputs: Evidence From Australian Biotechnology Firms

Hayward¹,

Caldwell²,

Steen³

et al. 2017

Long Range Planning

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How do different kinds of planning orientations affect entrepreneurial firms' innovation outputs? To address this question, we position real options reasoning (ROR) and net present value (NPV) as business planning orientations with distinctive heuristics. We empirically investigate heterogeneity in entrepreneurs' business planning in terms of these ROR and NPV orientations and we relate this heterogeneity to material new venture outcomes. Key decision makers from biotechnology start-ups in Australia were surveyed and results from Generalized Method of Moments estimation models showed that an ROR orientation positively relates to the innovation outputs of new ventures in our sample, whereas a stronger NPV orientation is negatively associated with innovation outputs. We offer implications for the literatures on strategic decision-making and planning.© 2016 Elsevier Ltd. All rights reserved. IntroductionHow does business planning affect innovation outputs of nascent firms? On the one hand, Delmar and Shane (2003) found that planning in general helps entrepreneurs to make abstract and vague attitudes more concrete, to stage speedy future actions and to anticipate and minimize bottle necks. These authors operationalize business planning with a dichotomous variable that captures whether entrepreneurs have completed a formal business plan.1 Using a sample of 223 new Swedish ventures, they find that plans hasten product development, strengthen organizing activity (a measure of the level of development of organizational processes) and reduce the likelihood of venture failure. Each of these outcomes has the propensity to improve innovation outputs. Similarly Zott and Amit (2007) showed that business model design can result in novel initiatives that increase performance of entrepreneurial firms.On the other hand, there is reason to believe that planning may impede innovation outputs. In particular, greater planning may cause planners to commit to the strategic decisions underpinning projected cash that in turn limits their ability to flex with changing market conditions (Ghemawat, 1991). Planning, especially that which is based on cause and effect, may prevent entrepreneurs from resourcefully marshaling their means to find innovative solutions (Sarasvathy, 2001). The planning fallacy emphasizes that decision makers, in general, and entrepreneurs, in particular, are unduly optimistic about their ability to complete projects on time and to budget -factors that can hinder them from unleashing innovative potential (Buehler et al., 1994).Here we seek to contribute to this debate by suggesting that the heuristics embedded in different kinds of planning orientations affect innovation outputs in entrepreneurial firms. At one extreme, capital budgeting and planning involves hard decision rules based on whether a project is expected to generate a positive net present value analysis, a conventional way of considering decision making in corporate finance. Finance scholars note that NPV analysis is a cornerstone of capital budgeting th...

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Size, R&D productivity and Decision Styles

Cited by 24 publications

References 66 publications

<b>Small and Medium Sized Manufacturing Companies in Brazil: Is Innovativeness a Key Competitive Capability to Develop?

<b>Small and Medium Sized Manufacturing Companies in Brazil: Is Innovativeness a Key Competitive Capability to Develop?

Absorptive Capacity and Ambidexterity in R&D: Linking Technology Alliance Diversity and Firm Innovation

Entrepreneurs’ Capital Budgeting Orientations and Innovation Outputs: Evidence From Australian Biotechnology Firms

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