Product Market Competitive Threats and Firm Value: The Moderating Role of R&D Capability
Muhammad Rofiqul Islam and
Zahidul Karim
The International Trade Journal, 2025, vol. 39, issue 3, 268-281
Abstract:
Studies on the adverse effects of product market competition (PMC) on firm value often lack mitigation strategies. Our study explores the mechanism of how research and development (R&D) capability works as a tool to reduce the negative impact of PMC on firm value. We argue that PMC helps firms alter the characteristics of R&D capability: value, rarity, inimitableness, organization, and the ability to generate sustainable competitive advantage, ultimately impacting firm value. Results show that R&D capability mitigates the negative impact of PMC and enhances firm value.
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:taf:uitjxx:v:39:y:2025:i:3:p:268-281
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DOI: 10.1080/08853908.2025.2482032
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