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

All Science Journal Classification (ASJC) codes

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

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