The R&amp;D Effectiveness Index

McGrath, Michael E.; Romeri, Michael N.

doi:10.1108/09642369210063063

Cited by 16 publications

(2 citation statements)

References 3 publications

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“…The first is to impose a different measure that could facilitate process as well as product innovations. For example, McGrath and Romeri (1994) propose “the R&D effectiveness index” as an alternative. The effectiveness index computes the ratio of increased profits from new products divided by the investments in product development.…”

Section: Discussion Of the Similarities And Differences Between The Cmentioning

confidence: 99%

How Elephants Learn the New Dance When Headquarters Changes the Music: Three Case Studies on Innovation Strategy Change

Durmuşoğlu

McNally

Calantone

et al. 2008

J of Product Innov Manag

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Does a product innovation strategy change at company headquarters resonate the same way at different strategic business units (SBUs)? What factors play a role in differing implementation of new innovation strategies? A collective case study was conducted at three SBUs of an international conglomerate to investigate why the SBUs implement the same corporate innovation charter in vastly different manners, both in strategic processes and in organizing for new product development (NPD). This study's contribution to the literature is twofold. First, it develops initial insights into how three SBUs implement diverse SBU-level innovation strategies in response to the same product innovation charter. Second, it extends the findings of previous studies on NPD strategy by presenting how three SBUs reshape their structure and resource allocation, changing various dimensions of their innovation strategy while also fitting the competitive structure in their individual, non-high-tech, traditional manufacturing industries as they respond to the corporate mandate. In this study, several factors were observed to influence a firm when formulating a new product innovation strategy. First, past performance and strategic typology constrain the innovation paths available. Poor past performance limits available resources whereas the strategic typology managers use limits their ability to recognize other opportunities. Next, capacity constraints provide a catalyst in moving toward process improvements. Third, management involvement in the day-to-day implementation of change is necessary to ensure that the new processes are implemented. Finally, corporate performance metrics are quite influential in how SBUs adapt to change. This study identifies that even with the immense power corporate has over these SBUs, some still dance to their own tune, ignorant of their deviation from the corporate mandate because the metric is not sufficient to detect these deviations. This study suggests the use of multiple types of metrics to minimize the likelihood of nearsighted responses to innovation charter changes.

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Section: Discussion Of the Similarities And Differences Between The Cmentioning

confidence: 99%

How Elephants Learn the New Dance When Headquarters Changes the Music: Three Case Studies on Innovation Strategy Change

Durmuşoğlu

McNally

Calantone

et al. 2008

J of Product Innov Manag

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“…(1) Financial performance measurements, where performance is defined as maximising quantitatively measured return on R&NPD investment (Boag and Rinholm, 1989;McGrath and Romery, 1994;Schainblatt, 1982). The crucial objective is then to maximise the results from each cent spent on R&NPD thanks to appropriate resource allocation, selection of new financially promising projects or, conversely, cancellation of projects that do not show a satisfactory financial potential (McGrath and Romery, 1994;Moser, 1985;Schainblatt, 1982). Further, financial ratios that compare budgeted and actual expenditures, and costs and investments relative to every R&NPD project are essential in order to maintain projects on the right financial track (Avlonitis et al, 2000;Werner and Souder, 1997a).…”

Section: Areas Of Performance Measurementmentioning

confidence: 99%

Use and impact of performance measurement results in R&D and NPD: an exploratory study

2004

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Performance measurement of R&D and new product development (NPD) activities is gaining increased importance because the effectiveness and efficiency of these activities not only determine a firm's competitive advantage, but its very survival. The literature is rich on descriptions of measurement techniques and methods, but pays less attention to the actual use of the performance results in operations and decision‐making. In this paper, reporting results from interviews conducted in three large companies in the electronics industry, we validate and further specify key areas of use and impact of R&D and NPD performance measurement results including ensuring better coherence and relevance of product portfolios, reorienting projects before failure, deciding on corrective actions, supporting the launching decision, enhancing staff motivation, and facilitating well‐balanced decision‐making. We identify implications for practice and research and propose a framework for future empirical work focusing on the interplay between the operation of the performance measurement system, the use and the impacts of measurement results.

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The Role of Product Development to Drive Product Success: An Updated Review and Meta-Analysis

Suharyanti

Subagyo

Masruroh

et al. 2015

Lecture Notes in Electrical Engineering

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The R&D Effectiveness Index

Cited by 16 publications

References 3 publications

How Elephants Learn the New Dance When Headquarters Changes the Music: Three Case Studies on Innovation Strategy Change

How Elephants Learn the New Dance When Headquarters Changes the Music: Three Case Studies on Innovation Strategy Change

Use and impact of performance measurement results in R&D and NPD: an exploratory study

The Role of Product Development to Drive Product Success: An Updated Review and Meta-Analysis

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