BUSINESS UNIT STRATEGY AND CHANGES IN THE PRODUCT R&D BUDGET.

Donald C. Hambrick, Ian C. MacMillan, Ricardo R. Barbosa

Research output: Contribution to journalArticlepeer-review

50 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)757-769
Number of pages13
JournalManagement Science
Volume29
Issue number7
DOIs
StatePublished - Jan 1 1983

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research

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