What are good R&amp;D investment strategies for leaders and followers?

Lian, Zhang; Park, Kyung Min

doi:10.1080/09537325.2014.918257

Cited by 4 publications

(5 citation statements)

References 58 publications

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“…The focus of our research is that a significant incremental performance benefit will be conferred on firms pursuing the combination innovation strategy over those pursuing pure creative innovation and imitative innovation strategies. This is because the combination innovation strategy benefits from creative innovation strategy in the form of first-mover advantage and technological leadership (Wang et al, 2019) and imitative innovation strategy, which includes spending less on R&D and gaining from postimitative experiential learning (Salomon and Jin, 2010;Zhang and Park, 2014). The results reveal that there exists a significant performance benefit to firms pursuing the combination innovation strategy over the imitative innovation strategy but not over those pursuing the creative innovation strategy.…”

Section: Discussionmentioning

confidence: 94%

“…Adopting an imitative innovation strategy by firms implementing a creative innovation strategy will enable those firms to minimize or reduce risk and R&D costs which they may incur by focusing on first-mover advantages and pioneering profits from creative innovation. Imitative innovation strategy may also provide post-imitation learning benefits which may be different from the knowledge from their creative innovative activities (Salomon and Jin, 2010;Wang et al, 2019;Zhang and Park, 2014). On the other hand, pursuing a creative innovation strategy by firms implementing an imitative innovation strategy may help them obtain technological leadership and pioneering market positions which they normally lack in the process of seeking risk reduction and cost economization.…”

Section: Combination Innovation Strategymentioning

confidence: 99%

“…We posit that the implementation of a combination innovation strategy would result in multiple sources of competitive advantage (e.g. as first-mover benefits from creative innovation and spillover effects from imitative innovation due to learning and knowledge transfer) (Salamon and Jin, 2010;Zhang and Park, 2014) as compared to advantages gained from the pursuit of singular innovative strategies.…”

Section: Introductionmentioning

confidence: 99%

“…While some previous research examined the performance effects of innovation versus imitation strategies (e.g. Zhou, 2006) or technological leadership versus followership (Salomon and Jin, 2010;Zhang and Park, 2014), prior research has failed to empirically examine the performance implications of both imitative and creative innovation strategies. This is especially true when empirically examining the performance impact of simultaneously pursuing creative and imitative innovation strategies.…”

Section: Introductionmentioning

confidence: 99%

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Performance implications of combining creative and imitative innovation strategies

Moon

Acquaah

2020

EJIM

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PurposeThe purpose of this study is to investigate the performance effects of pure innovation strategies (creative and imitative) versus the combination of the two innovation strategies (combination innovation strategy) and to determine whether implementing the combination innovation strategy produces an incremental performance benefit over the pure innovation strategies.Design/methodology/approachWe used archival data from the Korea Innovation Survey (KIS) completed by a large sample of South Korea manufacturing firms and some financial data provided by the South Korea Science and Technology Policy Institute (STEPI). We used hierarchical multiple regression analysis to analyze the data from 486 firms.FindingsThe findings indicated that firms implementing any of the three innovation strategies of creative innovation, imitative innovation and combination innovation outperforms noninnovators. Results also show that while firms implementing the combination innovation strategy perform better than those implementing imitative innovation strategies, they do not significantly differ in performance from firms implementing the creative innovation strategy. Moreover, we find no performance difference between creative innovation and imitative innovation strategies.Practical implicationsThe study highlights the importance of combination innovation strategies for manufacturing firms that rely on imitative innovation strategies to gain competitive advantage in the market. However, it demonstrates that firms that are successful in using creative innovation strategies must use their resources in exploiting that advantage.Originality/valueAlthough extant studies have demonstrated the importance of both creative innovation and imitative innovation strategies in enhancing performance, it is not clear whether implementing both strategies at the same time has incremental value for firms. This study focusses on empirically examining the performance implications of creative innovation and imitative innovation strategies, and whether the pursuit of a combination innovation strategy (simultaneous pursuit of both innovation strategies) provides any incremental benefit is unique.

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Section: Discussionmentioning

confidence: 94%

Section: Combination Innovation Strategymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Performance implications of combining creative and imitative innovation strategies

Moon

Acquaah

2020

EJIM

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“…Although asymmetric dependence on resource providers would place a firm in a vulnerable situation, not all firms might be under the same level of vulnerability. Prior research finds that a firm's market or technological position is an important strategy foundation (Porter, , ; Salomon and Jin, ; Zhang and Park, ). While leader firms frequently become targets to be imitated (Lieberman and Asaba, ; Park, ), they enjoy significant advantages originating from their market power such as reputational advantage, cost advantage via scale economies, preempting opportunities, and preferred suppliers or customers (Scherer and Ross, ).…”

Section: Theory and Hypothesesmentioning

confidence: 99%

When is dependence on other organizations burdensome? The effect of asymmetric dependence on internet firm failure

2014

Self Cite

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Although critical resource providers offer ample access benefits to deficient firms, dependence on these resource providers is burdensome because dependency places deficient firms into a vulnerable position, especially when the dependency is asymmetric. Thus, we ask: Is it better to balance dependence among critical resource providers or asymmetrically depend on one if there is more than one resource provider? We use a unique context of the internet industry where satellite internet firms depend on portals that provide Web traffic and find that asymmetric dependence on portals increases the likelihood of failure, but market leaders suffer less from asymmetric dependence, while satellite internet firms with higher dependence on portals suffer more from asymmetric dependence. Copyright © 2014 John Wiley & Sons, Ltd.

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Laggards imitate, leaders innovate: the heterogeneous productivity effect of imitation versus innovation

Liao

2019

Industrial and Corporate Change

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This study finds that imitation increases the productivity of laggards more than that of leaders, while innovation has the opposite effect. As firms approach the productivity frontier, the effect of imitation on productivity decreases, while that of innovation increases. The empirical evidence suggests that search costs are the mechanism underlying this effect. Firms increase their productivity by imitating productive firms. When they become more productive, search costs increase, because they have fewer opportunities to imitate.

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What are good R&D investment strategies for leaders and followers?

Cited by 4 publications

References 58 publications

Performance implications of combining creative and imitative innovation strategies

Performance implications of combining creative and imitative innovation strategies

When is dependence on other organizations burdensome? The effect of asymmetric dependence on internet firm failure

Laggards imitate, leaders innovate: the heterogeneous productivity effect of imitation versus innovation

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