Competing or coordinating: IT R&D investment decision making subject to information time lag

Tao Yao, John Weyant, Baichun Feng

Research output: Contribution to journalArticle

Abstract

In this paper, we apply a dynamic option-game framework to examine the impact of information time lag on Research and Development (R&D) investment in innovative information technology (IT) industry. We focus on incentives of competition and coordination in R&D. Our results show that shorter information time lag may induce firms to coordinate their investments and avoid over-investment. The threshold of information time lag developed in this paper can facilitate managerial decisions on whether to compete or coordinate R&D investments.

Original languageEnglish (US)
Pages (from-to)241-251
Number of pages11
JournalInformation Technology and Management
Volume12
Issue number3
DOIs
StatePublished - Sep 1 2011

Fingerprint

Information technology
Decision making
information technology
decision making
research and development
incentive
firm
time
Investment decision-making
Time lag
industry
Industry
Managerial decisions
Incentives
R&D investment
Overinvestment

All Science Journal Classification (ASJC) codes

  • Information Systems
  • Communication
  • Business, Management and Accounting (miscellaneous)

Cite this

@article{3920504d9ad947628a3e53c08f9a82e7,
title = "Competing or coordinating: IT R&D investment decision making subject to information time lag",
abstract = "In this paper, we apply a dynamic option-game framework to examine the impact of information time lag on Research and Development (R&D) investment in innovative information technology (IT) industry. We focus on incentives of competition and coordination in R&D. Our results show that shorter information time lag may induce firms to coordinate their investments and avoid over-investment. The threshold of information time lag developed in this paper can facilitate managerial decisions on whether to compete or coordinate R&D investments.",
author = "Tao Yao and John Weyant and Baichun Feng",
year = "2011",
month = "9",
day = "1",
doi = "10.1007/s10799-011-0105-6",
language = "English (US)",
volume = "12",
pages = "241--251",
journal = "Information Technology and Management",
issn = "1385-951X",
publisher = "Kluwer Academic Publishers",
number = "3",

}

Competing or coordinating : IT R&D investment decision making subject to information time lag. / Yao, Tao; Weyant, John; Feng, Baichun.

In: Information Technology and Management, Vol. 12, No. 3, 01.09.2011, p. 241-251.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Competing or coordinating

T2 - IT R&D investment decision making subject to information time lag

AU - Yao, Tao

AU - Weyant, John

AU - Feng, Baichun

PY - 2011/9/1

Y1 - 2011/9/1

N2 - In this paper, we apply a dynamic option-game framework to examine the impact of information time lag on Research and Development (R&D) investment in innovative information technology (IT) industry. We focus on incentives of competition and coordination in R&D. Our results show that shorter information time lag may induce firms to coordinate their investments and avoid over-investment. The threshold of information time lag developed in this paper can facilitate managerial decisions on whether to compete or coordinate R&D investments.

AB - In this paper, we apply a dynamic option-game framework to examine the impact of information time lag on Research and Development (R&D) investment in innovative information technology (IT) industry. We focus on incentives of competition and coordination in R&D. Our results show that shorter information time lag may induce firms to coordinate their investments and avoid over-investment. The threshold of information time lag developed in this paper can facilitate managerial decisions on whether to compete or coordinate R&D investments.

UR - http://www.scopus.com/inward/record.url?scp=79961172329&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=79961172329&partnerID=8YFLogxK

U2 - 10.1007/s10799-011-0105-6

DO - 10.1007/s10799-011-0105-6

M3 - Article

AN - SCOPUS:79961172329

VL - 12

SP - 241

EP - 251

JO - Information Technology and Management

JF - Information Technology and Management

SN - 1385-951X

IS - 3

ER -