R&D goal seeking and risk taking in biotechnology R&D investments
In: International Food and Agribusiness Management ReviewSearch for other papers by Desmond Ng in
Current site
Google Scholar
Rapid advances in biotechnology have made R&D (research & development) investments an important strategic goal. Yet, despite the increasing growth in R&D investments, an understanding of the decision-making processes surrounding the attainment of a firm’s R&D goal remains underdeveloped. This study addresses this gap where a firm’s R&D goal seeking process is offered. Specifically, unlike prior studies that focus on the firm’s financial goals (i.e. return on assets (ROA)), this R&D goal seeking process draws on a concept of R&D performance aspiration deviations (PAD) where it introduces risk-taking behaviors that impact a firm’s R&D investments. This study argues that a market’s technological progress or market dynamism also influences this R&D goal seeking process. In using fixed effects (FE) linear regressions, hypotheses were developed to examine these arguments in the biotechnology industry.
-
Ahuja, G. and C.M. Lampert. 2001. Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions. Strategic Management Journal 22(6-7): 521-543.
'Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions ' () 22 Strategic Management Journal : 521 -543.
-
Barberis, N.C. 2013. Thirty years of prospect theory in economics: a review and assessment. Journal of Economic Perspectives 27(1): 173-196.
'Thirty years of prospect theory in economics: a review and assessment ' () 27 Journal of Economic Perspectives : 173 -196.
-
BDO. 2021. Revenue, R&D, and biotech’s future. BDO Biotech Brief Summer 2021. Available at: https://www.bdo.com/insights/industries/life-sciences/bdo-biotech-brief-summer-2021.
-
Ben-Oz, C. and H.R. Greve. 2012. Short- and long-term performance feedback and absorptive capacity. Journal of Management 41(7): 1827-1853. https://doi.org/10.1177/0149206312466148
-
Bromiley, P. and J.D. Harris. 2014. A comparison of alternative measures of organizational aspirations. Strategic Management Journal 35(3): 338-357. https://doi.org/10.1002/smj.2191
-
Brown, S. 2017. CRISPR bacon: genetically modified low-fat pigs. Farm Journal’s Pork. Available at: https://www.porkbusiness.com/news/hog-production/crispr-bacon-genetically-modified-low-fat-pigs
-
Chen, W.-R. and K.D. Miller. 2007. Situational and institutional determinants of firms’ R&D search intensity. Strategic Management Journal 28(4): 369-381. https://doi.org/10.1002/smj.594
-
Cohen, W.M. 2010. Fifty years of empirical studies of innovative activity and performance. Handbook of the Economics of Innovation 1: 129-213.
'Fifty years of empirical studies of innovative activity and performance ' () 1 Handbook of the Economics of Innovation : 129 -213.
-
Cohen, W.M. and D.A. Levinthal. 1990. Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly 35(1): 128-152.
'Absorptive capacity: a new perspective on learning and innovation ' () 35 Administrative Science Quarterly : 128 -152.
-
Cyert, R.M. and J.G. March. 1963. A behavioral theory of the firm. Prentice-Hall, Englewood Cliffs, NJ, USA.
'A behavioral theory of the firm', ().
-
Eş, I., M. Gavahian, F.J. Marti-Quijal, J.M. Lorenzo, A.M. Khaneghah, C. Tsatsanis, S.C. Kampranis and F.J. Barba. 2019. The application of the CRISPR-Cas9 genome editing machinery in food and agricultural science: Current status, future perspectives, and associated challenges. Biotechnology Advances 37(3): 410-421. doi: 10.1016/j.biotechadv.2019.02.006
'The application of the CRISPR-Cas9 genome editing machinery in food and agricultural science: Current status, future perspectives, and associated challenges ' () 37 Biotechnology Advances : 410 -421.
-
Fourné, S.P., N. Rosenbusch, M.L. Heyden and J.J. Jansen. 2019. Structural and contextual approaches to ambidexterity: a meta-analysis of organizational and environmental contingencies. European Management Journal 37(5): 564-576.
'Structural and contextual approaches to ambidexterity: a meta-analysis of organizational and environmental contingencies ' () 37 European Management Journal : 564 -576.
-
Fulton, M. and K. Giannakas. 2001. Agricultural biotechnology and industry structure. AgBioForum 4(2): 137-151.
'Agricultural biotechnology and industry structure ' () 4 AgBioForum : 137 -151.
-
Gaba, V. and S. Bhattacharya. 2012. Aspirations, innovation, and corporate venture capital: a behavioral perspective. Strategic Entrepreneurship Journal 6(2): 178-199. https://doi.org/10.1002/sej.1133
-
Gavetti, G., H.R. Greve, D.A. Levinthal and W. Ocasio. 2012. The behavioral theory of the firm: assessments and prospects. Academy of Management Annals 6 (1): 1-40.
'The behavioral theory of the firm: assessments and prospects ' () 6 Academy of Management Annals : 1 -40.
-
Greve, H.R. 2003. A behavioral theory of R&D expenditures and innovations: Evidence from shipbuilding. Academy of Management Journal 46(6): 685-702.
'A behavioral theory of R&D expenditures and innovations: Evidence from shipbuilding ' () 46 Academy of Management Journal : 685 -702.
-
Greve, H.R. 2007. Exploration and exploitation in product innovation. Industrial and Corporate Change 16(5): 945-975. https://doi.org/10.1093/icc/dtm013
-
Greve, H.R. and V. Gaba. 2020. Performance feedback in organizations and groups: common themes. In: L. Argote and J.M. Levine (eds.) The handbook of group and organizational learning. Oxford University Press, New York, NY, USA, pp. 315-336.
'Performance feedback in organizations and groups: common themes ', () 315 -336.
-
Grigoriou, K. and F.T. Rothaermel. 2017. Organizing for knowledge generation: internal knowledge networks and the contingent effect of external knowledge sourcing. Strategic Management Journal 38(2): 395-414.
'Organizing for knowledge generation: internal knowledge networks and the contingent effect of external knowledge sourcing ' () 38 Strategic Management Journal : 395 -414.
-
Hoskisson, R.E., F. Chirico, J. Zyung and E. Gambeta. 2017. Managerial risk taking: a multitheoretical review and future research agenda. Journal of Management 43(1): 137-169.
'Managerial risk taking: a multitheoretical review and future research agenda ' () 43 Journal of Management : 137 -169.
-
Hillman, A.J., M.C. Withers and B.J. Collins. 2009. Resource dependence theory: a review. Journal of Management 35 (6): 1404-1427.
'Resource dependence theory: a review ' () 35 Journal of Management : 1404 -1427.
-
Jo, G.S., G. Park, and J. Kang. 2016. Unravelling the link between technological M&A and innovation performance using the concept of relative absorptive capacity. Asian Journal of Technology Innovation 24(1): 55-76.
'Unravelling the link between technological M&A and innovation performance using the concept of relative absorptive capacity ' () 24 Asian Journal of Technology Innovation : 55 -76.
-
Kavusan, K. and H.T.W. Frankort. 2019. A behavioral theory of alliance portfolio reconfiguration: evidence from pharmaceutical biotechnology. Strategic Management Journal 40(10): 1668-1702. https://doi.org/10.1002/smj.3041
-
Kahneman, D. and Tversky, A. 1979. Prospect theory: an analysis of decision under risk. Econometrica 47: 263-291.
'Prospect theory: an analysis of decision under risk ' () 47 Econometrica : 263 -291.
-
Kim, T. and M. Rhee. 2016. Structural and behavioral antecedents of change. Journal of Management 43(3): 716-741. https://doi.org/10.1177/0149206314541150
-
Kotiloglu, S., Y. Chen, and T. Lechler. 2021. Organizational response to performance feedback: a metaanalytic review. Strategic Organization 19(2): 285-311.
'Organizational response to performance feedback: a metaanalytic review ' () 19 Strategic Organization : 285 -311.
-
Kuusela, P., T. Keil, and M. Maula. 2017. Driven by aspirations, but in what direction? Performance shortfalls, slack resources, and resource-consuming vs. resource-freeing organizational change. Strategic Management Journal 38(5): 1101-1120. https://doi.org/10.1002/smj.2544
-
Lane, P.J. and M. Lubatkin. 1998. Relative AC and interorganizational learning. Strategic Management Journal 19(5): 461-477.
'Relative AC and interorganizational learning ' () 19 Strategic Management Journal : 461 -477.
-
Laursen, K. and A. Salter. 2006. Open for innovation: the role of openness in explaining innovation performance among U.K. manufacturing firms. Strategic Management Journal 27 (2): 131-150.
'Open for innovation: the role of openness in explaining innovation performance among U.K. manufacturing firms ' () 27 Strategic Management Journal : 131 -150.
-
Levinthal, D.A. and J.G. March. 1993. The myopia of learning. Strategic Management Journal 14(S2): 95-112.
'The myopia of learning ' () 14 Strategic Management Journal : 95 -112.
-
Lu, L. and S. Fang. 2014. Problematic search, slack search and institutional logic in corporate R&D strategy: An empirical analysis of Taiwanese electronics firms. Journal of Management and Organization 19(6): 659-678. https://doi.org/10.1017/jmo.2014.11
-
March, J.G. 1991. Exploration and exploitation in organizational learning. Organization Science 2(1): 71-87.
'Exploration and exploitation in organizational learning ' () 2 Organization Science : 71 -87.
-
Martínez-Noya, A. and E. García-Canal. 2021. Innovation performance feedback and technological alliance portfolio diversity: The moderating role of firms’ R&D intensity. Research Policy 50(9): 104321. https://doi.org/10.1016/j.respol.2021.104321
-
Nauck, F, L. Pancaldi, T. Poppensieker and O. White. 2021. The resilience imperative: succeeding in uncertain times. McKinsey Global Publishing.
'The resilience imperative: succeeding in uncertain times', ().
-
Nerkar, A. and P.W. Roberts. 2004. Technological and product-market experience and the success of new product introductions in the pharmaceutical industry. Strategic Management Journal 25(89): 779-799.
'Technological and product-market experience and the success of new product introductions in the pharmaceutical industry ' () 25 Strategic Management Journal : 779 -799.
-
Ng, D. 2020. Looking forward instead of backward: overconfidence, forward-looking aspirations and exploitive/explorative search. Journal of Strategy and Management 13(3): 377-391.
'Looking forward instead of backward: overconfidence, forward-looking aspirations and exploitive/explorative search ' () 13 Journal of Strategy and Management : 377 -391.
-
Ng, D. and H. James. 2018. New technology, cognitive bias and ethical tensions in entrepreneurial commercialization: the case of CRISPR. In: H.S James (ed.) Ethical tensions from new technology: the case of agricultural biotechnology. CABI, Boston, MA, USA, pp.151-160.
'New technology, cognitive bias and ethical tensions in entrepreneurial commercialization: the case of CRISPR ', () 151 -160.
-
Ng, D., L. Sánchez-Aragón and S. Huseynov. 2019. Seek and you shall find: the role of exploitive and explorative search in a biotechnology firm’s patent claims. International Food and Agribusiness Management Review 22(3): 321-337. https://doi.org/10.22434/ifamr2018.0097
-
Ng, D., & L.F. Sanchez-Aragon. 2022. Putting the cart (antecedents) before the horse (absorptive capacity): the role of competitive antecedents to the absorptive capacity innovation process. Journal of Knowledge Management 26(9): 2306-2332.
'Putting the cart (antecedents) before the horse (absorptive capacity): the role of competitive antecedents to the absorptive capacity innovation process ' () 26 Journal of Knowledge Management : 2306 -2332.
-
O’Brien, J.P. and P. David. 2014. Reciprocity and R&D search: applying the behavioral theory of the firm to a communitarian context. Strategic Management Journal 35(4): 550-565. https://doi.org/10.1002/smj.2105
-
Pisano, G.P. 2015. You need an innovation strategy. Harvard Business Review 93(6): 44-54.
'You need an innovation strategy ' () 93 Harvard Business Review : 44 -54.
-
Pfeffer, J. and G.R. Salancik. 1978. The external control of organizations: a resource dependence perspective. Stanford University Press, Stanford, CA, USA.
'The external control of organizations: a resource dependence perspective', ().
-
Ref, O. and Z. Shapira, Z. 2017. Entering new markets: The effect of performance feedback near aspiration and well below and above it. Strategic Management Journal 38(7): 1416-1434. https://doi.org/10.1002/smj.2561
-
Requena, G., M.J. Ruiz-Ortega and J. Rodrigo-Alarcón. in press. The role of absorptive capacity and market dynamism in shaping the firm’s entrepreneurial orientation. Innovation. https://doi.org/10.1080/14479338.2021.1999247
-
Revilla, A. and Z. Fernández. 2013. Environmental dynamism, firm size and the economic productivity of R&D. Industry and Innovation 20(6): 503-522. https://doi.org/10.1080/13662716.2013.833374
-
Roberts, N. 2015. Absorptive capacity, organizational antecedents, and environmental dynamism. Journal of Business Research 68(11): 2426-2433. https://doi.org/10.1016/j.jbusres.2015.02.019
-
Rosenkopf, L. and A. Nerkar. 2001. Beyond local search: boundary-spanning, exploration, and impact in the optical disk industry. Strategic Management Journal 22(4): 287-306.
'Beyond local search: boundary-spanning, exploration, and impact in the optical disk industry ' () 22 Strategic Management Journal : 287 -306.
-
Shinkle, G.A. 2012. Organizational aspirations, reference points, and goals: building on the past and aiming for the future. Journal of Management 38(1): 415-455.
'Organizational aspirations, reference points, and goals: building on the past and aiming for the future ' () 38 Journal of Management : 415 -455.
-
Song, Y., D.R. Gnyawali, M.K. Srivastava, and E. Asgari. 2018. In search of precision in absorptive capacity research: A synthesis of the literature and consolidation of findings. Journal of Management 44(6): 2343-2374. https://doi.org/10.1177/0149206318773861
-
Staw, B.M., L.E. Sandelands, and J.E. Dutton. 1981. Threat rigidity effects in organizational behavior: a multilevel analysis. Administrative Science Quarterly 26: 501-524.
'Threat rigidity effects in organizational behavior: a multilevel analysis ' () 26 Administrative Science Quarterly : 501 -524.
-
Teirlinck, P. 2020. Engaging in new and more research-oriented R&D projects: interplay between level of new slack, business strategy and slack absorption. Journal of Business Research 120: 181-194. https://doi.org/10.1016/j.jbusres.2020.08.005
-
Thornhill, S. 2006. Knowledge, innovation and firm performance in high-and low technology regimes. Journal of Business Venturing 21: 687-703.
'Knowledge, innovation and firm performance in high-and low technology regimes ' () 21 Journal of Business Venturing : 687 -703.
-
Tyler, B.B. and T. Caner. 2016. New product introductions below aspirations, slack and R&D alliances: a behavioral perspective. Strategic Management Journal 37(5): 896-910. https://doi.org/10.1002/smj.2367
-
Wibbens, P.D. and N. Siggelkow. 2019. Introducing LIVA to measure long-term firm performance. Strategic Management Journal 41(5): 867-890. https://doi.org/10.1002/smj.3114
-
Wieczorek, A. and M. Wright. 2012. History of agricultural biotechnology: how crop development has evolved. Nature Education Knowledge 3(10): 9.
'History of agricultural biotechnology: how crop development has evolved ' () 3 Nature Education Knowledge : 9 .
-
Xu, D., K.Z. Zhou, and F. Du. 2019. Deviant versus aspirational risk-taking: the effects of performance feedback on bribery expenditure and R&D intensity. Academy of Management Journal 62(4): 1226-1251. https://doi.org/10.5465/amj.2016.0749
Supplementary Materials
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 0 | 0 | 0 |
| Full Text Views | 231 | 118 | 6 |
| PDF Views & Downloads | 230 | 129 | 3 |
R&D goal seeking and risk taking in biotechnology R&D investments
In: International Food and Agribusiness Management ReviewSearch for other papers by Desmond Ng in
Current site
Google Scholar
PubMed
Rapid advances in biotechnology have made R&D (research & development) investments an important strategic goal. Yet, despite the increasing growth in R&D investments, an understanding of the decision-making processes surrounding the attainment of a firm’s R&D goal remains underdeveloped. This study addresses this gap where a firm’s R&D goal seeking process is offered. Specifically, unlike prior studies that focus on the firm’s financial goals (i.e. return on assets (ROA)), this R&D goal seeking process draws on a concept of R&D performance aspiration deviations (PAD) where it introduces risk-taking behaviors that impact a firm’s R&D investments. This study argues that a market’s technological progress or market dynamism also influences this R&D goal seeking process. In using fixed effects (FE) linear regressions, hypotheses were developed to examine these arguments in the biotechnology industry.
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 0 | 0 | 0 |
| Full Text Views | 231 | 118 | 6 |
| PDF Views & Downloads | 230 | 129 | 3 |
