JIRÁSEK, Michal. Curvilinearity in the performance feedback and R&D relationship. Journal of Strategy and Management. 2020, vol. 13, No 1, p. 1-14. ISSN 1755-425X. Available from: https://dx.doi.org/10.1108/JSMA-09-2018-0098.
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Basic information
Original name Curvilinearity in the performance feedback and R&D relationship
Authors JIRÁSEK, Michal (203 Czech Republic, guarantor, belonging to the institution).
Edition Journal of Strategy and Management, 2020, 1755-425X.
Other information
Original language English
Type of outcome Article in a journal
Field of Study 50204 Business and management
Country of publisher United Kingdom of Great Britain and Northern Ireland
Confidentiality degree is not subject to a state or trade secret
WWW URL
RIV identification code RIV/00216224:14560/20:00115388
Organization unit Faculty of Economics and Administration
Doi http://dx.doi.org/10.1108/JSMA-09-2018-0098
UT WoS 000515447300001
Keywords in English performance feedback; R&D intensity; ROA; Behavioral theory of the firm; German industrial firms
Changed by Changed by: Mgr. Pavlína Kurková, učo 368752. Changed: 14/10/2022 11:01.
Abstract
Purpose The question of how the firm responds to performance feedback forms the backbone of the behavioral theory of the firm. Although the literature works with goals aspirations and additional determinants of a firm’s search activity – proximity to bankruptcy and slack resources – the majority of the empirical research assumes the firm’s response to performance feedback to be linear with a spline at the aspiration level. The purpose of this paper is to study possible curvilinear properties of performance feedback itself that may yield insight on the behavior of firms responding differently from the theory’s predictions. Design/methodology/approach The research uses data from exchange-listed German industrial firms followed from 2001 to 2015. It evaluates hypotheses using historical aspiration models with ROA as a measure of performance and with a spline specification. The fixed-effects panel data models serve as an estimation technique. Findings The research supports an inverted U-shape relationship between performance feedback and research and development (R&D) intensity for firms below their aspiration levels, and a U-shape relationship for firms above their aspiration levels. Originality/value The research is one of the first to directly study curvilinearity in performance feedback relationships. Arguably, there is no such a study directly focusing on a firm’s search as represented by R&D, despite the fact, that R&D forms the backbone of performance feedback research. Also, the population of German industrial firms is new in the literature.
Links
MUNI/A/0920/2017, interní kód MUName: Důsledky zpětné vazby na výkonnost na individuální a podnikové úrovni
Investor: Masaryk University, Category A
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