Research and development intensity, inventory leanness, and firm performance
| dc.contributor.author | Haque, Md Reiazul | |
| dc.contributor.author | Siddique, Md Abubakar | |
| dc.contributor.author | Kumar, Amit | |
| dc.date.accessioned | 2024-08-29T04:30:04Z | |
| dc.date.available | 2024-08-29T04:30:04Z | |
| dc.date.issued | 2024-06 | |
| dc.description | A firm’s engagement in research and development (R&D) activities is often critical to long-term success. This is because they result in outcomes, such as patents and new products/services, which lead to high productivity (Aw and Song, 2013), positive sales growth (García-Manjón and Romero-Merino, 2012), and high market value (Ahmed and Falk, 2006, Chan et al., 1990, Chauvin and Hirschey, 1993). However, the R&D activities are also associated with a risk of failure. For instance, in 2006, Pfizer’s project to develop a new drug was abandoned in the last phase of clinical trials when it had already invested around US$800 million (Herper, 2006). | |
| dc.description.abstract | This study investigates whether a firm’s research and development (R&D) intensity influences its choice of an inventory leanness strategy and how R&D intensity and inventory leanness collectively impact its performance. This study documents two findings in a dataset comprising 43,634 observations within the U.S. manufacturing sector from 1992 to 2019. Firstly, higher R&D intensity is associated with an increased likelihood of implementing an inventory leanness strategy. Secondly, adopting such a strategy helps firms mitigate the adverse effects of R&D spending on financial performance and generate additional market value. The results imply that managers in firms with high R&D spending strategically adopt inventory leanness to navigate uncertainties associated with realizing returns from their innovation activities. Keywords Cost savings, Efficiency, Financial performance, Innovation, Lean strategy, Market performance, R&D | |
| dc.identifier.citation | Haque, M. R., Siddique, M. A., & Kumar, A. (2024). Research and development intensity, inventory leanness, and firm performance. Journal of Open Innovation: Technology, Market, and Complexity, 10(2), 100263. | |
| dc.identifier.doi | https://doi.org/10.1016/j.joitmc.2024.100263 | |
| dc.identifier.uri | https://repository.adu.ac.ae/handle/1/6343 | |
| dc.language.iso | en | |
| dc.publisher | Elsevier | |
| dc.title | Research and development intensity, inventory leanness, and firm performance | |
| dc.type | Article |