Situational and institutional determinants of firms' R&D search intensity
Article first published online: 5 FEB 2007
Copyright © 2007 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 28, Issue 4, pages 369–381, April 2007
How to Cite
Chen, W.-R. and Miller, K. D. (2007), Situational and institutional determinants of firms' R&D search intensity. Strat. Mgmt. J., 28: 369–381. doi: 10.1002/smj.594
- Issue published online: 27 FEB 2007
- Article first published online: 5 FEB 2007
- Manuscript Revised: 2 AUG 2006
- Manuscript Received: 7 JUN 2004
- behavioral theory of the firm;
- institutionalized search
Our theory extends the situational considerations explaining firm R&D search intensity beyond the behavioral theory of the firm by including shifts in the focus of attention among bankruptcy, aspirations, and slack. We also allow that search can reflect institutionalized investment patterns within firms and industries. We find stable firm-specific R&D investment patterns (i.e., institutionalized search) and variations in R&D intensity depending on firms' situations—including performance relative to aspirations, proximity to bankruptcy, and slack. Our empirical results evidence shifts in the focus of attention relevant to explaining R&D search intensity for subsamples of firms in different situations. Copyright © 2007 John Wiley & Sons, Ltd.