IDEAS home Printed from https://ideas.repec.org/p/bbe/wpaper/1006.html
   My bibliography  Save this paper

Revisiting the Size-R&D Productivity Relation: Introducing the Mediating Role of Decision-Making Style on the Scale and Quality of Innovative Output

Author

Listed:
  • José Lejarraga
  • Ester Martínez-Ros

    (Department of Business Administration Universidad Carlos III de Madrid)

Abstract

We develop a mediation model in which firm size is proposed to affect the scale and quality of innovative output through the adoption of different decision styles during the R&D process. The aim of this study is to understand how the internal changes that firms undergo as they evolve from small to larger organizations affect R&D productivity. In so doing, we illuminate the underlying theoretical mechanism affecting two different dimensions of R&D productivity, namely the scale and quality of innovative output which have not received much attention in previous literature. Using longitudinal data of Spanish manufacturing firms we explore the validity of this mediation model. Our results show that as firms evolve in size, they increasingly emphasize analytical decision making, and consequently, large-sized firms aim for higher-quality innovations while small firms aim for a larger scale of innovative output.

Suggested Citation

  • José Lejarraga & Ester Martínez-Ros, 2010. "Revisiting the Size-R&D Productivity Relation: Introducing the Mediating Role of Decision-Making Style on the Scale and Quality of Innovative Output," Working Papers 1006, Departament Empresa, Universitat Autònoma de Barcelona, revised Mar 2010.
  • Handle: RePEc:bbe:wpaper:1006
    as

    Download full text from publisher

    File URL: http://www.uab.cat/servlet/BlobServer?blobtable=Document&blobcol=urldocument&blobheader=application/pdf&blobkey=id&blobwhere=1345650667548&blobnocache=true
    File Function: Revised version, 2010
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Santarelli, Enrico & Piergiovanni, Roberta, 1996. "Analyzing literature-based innovation output indicators: the Italian experience," Research Policy, Elsevier, vol. 25(5), pages 689-711, August.
    2. Arora, Ashish & Fosfuri, Andrea, 2003. "Licensing the market for technology," Journal of Economic Behavior & Organization, Elsevier, vol. 52(2), pages 277-295, October.
    3. Schunk, Daniel & Betsch, Cornelia, 2006. "Explaining heterogeneity in utility functions by individual differences in decision modes," Journal of Economic Psychology, Elsevier, vol. 27(3), pages 386-401, June.
    4. Siegel, Robin & Siegel, Eric & Macmillan, Ian C., 1993. "Characteristics distinguishing high-growth ventures," Journal of Business Venturing, Elsevier, vol. 8(2), pages 169-180, March.
    5. Tether, B. S., 1998. "Small and large firms: sources of unequal innovations?," Research Policy, Elsevier, vol. 27(7), pages 725-745, November.
    6. Gallini, Nancy T, 1984. "Deterrence by Market Sharing: A Strategic Incentive for Licensing," American Economic Review, American Economic Association, vol. 74(5), pages 931-941, December.
    7. Cohen, Wesley M & Klepper, Steven, 1996. "Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 232-243, May.
    8. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    9. Audretsch, David B & Vivarelli, Marco, 1996. "Firms Size and R&D Spillovers: Evidence from Italy," Small Business Economics, Springer, vol. 8(3), pages 249-258, June.
    10. Blundell, Richard & Griffith, Rachel & Van Reenen, John, 1995. "Dynamic Count Data Models of Technological Innovation," Economic Journal, Royal Economic Society, vol. 105(429), pages 333-344, March.
    11. Garnsey, Elizabeth, 1998. "A Theory of the Early Growth of the Firm," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 7(3), pages 523-556, September.
    12. Forbes, Daniel P., 2005. "Are some entrepreneurs more overconfident than others?," Journal of Business Venturing, Elsevier, vol. 20(5), pages 623-640, September.
    13. Katharine E. Rockett, 1990. "Choosing the Competition and Patent Licensing," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 161-171, Spring.
    14. Gautam Ahuja & Curba Morris Lampert, 2001. "Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 521-543, June.
    15. Gautam Ahuja & Riitta Katila, 2001. "Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 197-220, March.
    16. Coombs, R. & Narandren, P. & Richards, A., 1996. "A literature-based innovation output indicator," Research Policy, Elsevier, vol. 25(3), pages 403-413, May.
    17. Andrea Vaona & Mario Pianta, 2008. "Firm Size and Innovation in European Manufacturing," Small Business Economics, Springer, vol. 30(3), pages 283-299, March.
    18. Joseph Dimasi & Henry Grabowski & John Vernon, 1995. "R&D Costs, Innovative Output and Firm Size in the Pharmaceutical Industry," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 2(2), pages 201-219.
    19. Daniel Kahneman, 2003. "Maps of Bounded Rationality: Psychology for Behavioral Economics," American Economic Review, American Economic Association, vol. 93(5), pages 1449-1475, December.
    20. Busenitz, Lowell W. & Barney, Jay B., 1997. "Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making," Journal of Business Venturing, Elsevier, vol. 12(1), pages 9-30, January.
    21. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, April.
    22. Olav Sorenson, 2003. "Interdependence and Adaptability: Organizational Learning and the Long--Term Effect of Integration," Management Science, INFORMS, vol. 49(4), pages 446-463, April.
    23. Achilladelis, Basil & Schwarzkopf, Albert & Cines, Martin, 1987. "A study of innovation in the pesticide industry: Analysis of the innovation record of an industrial sector," Research Policy, Elsevier, vol. 16(2-4), pages 175-212, August.
    24. Narin, Francis & Noma, Elliot & Perry, Ross, 1987. "Patents as indicators of corporate technological strength," Research Policy, Elsevier, vol. 16(2-4), pages 143-155, August.
    25. Christopher W. Allinson & John Hayes, 1996. "The Cognitive Style Index: A Measure of Intuition‐Analysis For Organizational Research," Journal of Management Studies, Wiley Blackwell, vol. 33(1), pages 119-135, January.
    26. Shapiro, Stewart & Spence, Mark T., 1997. "Managerial intuition: A conceptual and operational framework," Business Horizons, Elsevier, vol. 40(1), pages 63-68.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José Lejarraga & Ester Martinez-Ros, 2014. "Size, R&D productivity and Decision Styles," Small Business Economics, Springer, vol. 42(3), pages 643-662, March.
    2. Wilfred Dolfsma & Gerben Velde, 2014. "Industry innovativeness, firm size, and entrepreneurship: Schumpeter Mark III?," Journal of Evolutionary Economics, Springer, vol. 24(4), pages 713-736, September.
    3. Nooteboom, Bart & Van Haverbeke, Wim & Duysters, Geert & Gilsing, Victor & van den Oord, Ad, 2007. "Optimal cognitive distance and absorptive capacity," Research Policy, Elsevier, vol. 36(7), pages 1016-1034, September.
    4. Zhang, Feng & Jiang, Guohua & Cantwell, John A., 2019. "Geographically Dispersed Technological Capability Building and MNC Innovative Performance: The Role of Intra-firm Flows of Newly Absorbed Knowledge," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
    5. Marco Corsino & Giuseppe Espa & Rocco Micciolo, 2008. "R&D, firm size, and product innovation dynamics," DISA Working Papers 0803, Department of Computer and Management Sciences, University of Trento, Italy, revised 18 Jun 2008.
    6. Nils Grashof & Alexander Kopka, 2023. "Artificial intelligence and radical innovation: an opportunity for all companies?," Small Business Economics, Springer, vol. 61(2), pages 771-797, August.
    7. Zhang, Feng & Jiang, Guohua & Cantwell, John A., 2015. "Subsidiary exploration and the innovative performance of large multinational corporations," International Business Review, Elsevier, vol. 24(2), pages 224-234.
    8. Tether, B. S., 1998. "Small and large firms: sources of unequal innovations?," Research Policy, Elsevier, vol. 27(7), pages 725-745, November.
    9. Tim R. Holcomb & R. Duane Ireland & R. Michael Holmes Jr. & Michael A. Hitt, 2009. "Architecture of Entrepreneurial Learning: Exploring the Link among Heuristics, Knowledge, and Action," Entrepreneurship Theory and Practice, , vol. 33(1), pages 167-192, January.
    10. Hyunbae Chun & Sung-Bae Mun, 2012. "Determinants of R&D cooperation in small and medium-sized enterprises," Small Business Economics, Springer, vol. 39(2), pages 419-436, September.
    11. Gerard P. Hodgkinson & Barbara Burkhard & Nicolai J. Foss & Dietmar Grichnik & Riikka M. Sarala & Yi Tang & Marc Van Essen, 2023. "The Heuristics and Biases of Top Managers: Past, Present, and Future," Journal of Management Studies, Wiley Blackwell, vol. 60(5), pages 1033-1063, July.
    12. Gambardella, Alfonso & Giuri, Paola & Luzzi, Alessandra, 2007. "The market for patents in Europe," Research Policy, Elsevier, vol. 36(8), pages 1163-1183, October.
    13. Bart Leten & Rene Belderbos & Bart Van Looy, 2016. "Entry and Technological Performance in New Technology Domains: Technological Opportunities, Technology Competition and Technological Relatedness," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1257-1291, December.
    14. Emeric Henry & Carlos J. Ponce, 2008. "Waiting to Copy: On the Dynamics of the Market for Technology," Working Papers hal-01066192, HAL.
    15. Olof Ejermo & Karin Bergman, 2014. "Services vs. Manufacturing – How Does Foreign and Domestic Sales Impact on Their R&D?," Journal of Industry, Competition and Trade, Springer, vol. 14(3), pages 367-391, September.
    16. Zhou, Lianxi & Wu, Aiqi, 2014. "Earliness of internationalization and performance outcomes: Exploring the moderating effects of venture age and international commitment," Journal of World Business, Elsevier, vol. 49(1), pages 132-142.
    17. Louise Lindbjerg & Theodor Vladasel, 2021. "Hiring Entrepreneurs for Innovation," Working Papers 1309, Barcelona School of Economics.
    18. Nisvan Erkal, 2005. "Optimal Licensing Policy in Differentiated Industries," The Economic Record, The Economic Society of Australia, vol. 81(252), pages 51-60, March.
    19. Dubard Barbosa, Saulo & Fayolle, Alain & Smith, Brett R., 2019. "Biased and overconfident, unbiased but going for it: How framing and anchoring affect the decision to start a new venture," Journal of Business Venturing, Elsevier, vol. 34(3), pages 528-557.
    20. Seh-Hyun Yoo & Chang-Yang Lee, 2023. "Technological diversification, technology portfolio properties, and R&D productivity," The Journal of Technology Transfer, Springer, vol. 48(6), pages 2074-2105, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bbe:wpaper:1006. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Departament Empresa (email available below). General contact details of provider: http://158.109.224.4/webeco/plaes/RePEc/bbe/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.