Business Unit Strategy and Changes in the Product R&D Budget

Donald C. Hambrick, Ian C. MacMillan and Ricardo R. Barbosa
Additional contact information
Donald C. Hambrick: Columbia University
Ian C. MacMillan: Columbia University
Ricardo R. Barbosa: Columbia University

Management Science, 1983, vol. 29, issue 7, 757-769

Abstract: This study of changes in Product R&D intensity in business units supplements past studies by including two major classes of independent variables which have not been examined previously: the competitive strategy of the business and role of the business in the overall corporate portfolio. Multiple regression analysis is used on a sample drawn from the PIMS data base. The results suggest that R&D decisions in growth businesses are responsive to competition, evolving strategies, and intra-firm resource flows. In mature businesses, a pattern of stability and R&D equilibrium is evident, even in the face of changes by competitors. Managerial implications are noted.

Keywords: research and development; economics; statistics: regression (search for similar items in EconPapers)
Date: 1983
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.29.7.757 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:29:y:1983:i:7:p:757-769

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().