 Managerial perception on competition and strategic R&D decisions1Jie Cheng, Dan Huang and Yanling Wu Economic Modelling, 2023, vol. 123, issue C Abstract: The literature contends that managerial perception shapes firms' strategic decisions. Using a sample of high-tech firms in China, we examine the impact of managerial perception on competition (MPC), a learned response stemming from past market environment and measured by the textual analysis technique, on firms' strategic R&D decisions (R&D investments and R&D activities disclosure). We find that managers who perceived fierce competition from past market environment have strong incentive to enhance/sustain firms' competitive strength. Such incentive drives managers to calm on the surface (i.e., withholding R&D activities information) but strive underneath (i.e., making more R&D investments). Current product market competition, firms' market share leadership and CEO educational level moderate the effects of MPC on strategic R&D decisions due to their influence on managers' incentive or ability to compete. Finally, we find that firms with a high MPC obtain higher market valuations through engaging in strategic R&D decisions. Keywords: Managerial perception on competition; Strategic R&D decisions; R&D investments; R&D activities disclosure; Firm value (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:123:y:2023:i:c:s0264999323000937 DOI: 10.1016/j.econmod.2023.106281 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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