Technology management in Indian companies

Since 1966, the Indian Government has progressively restricted imports of technology. Together with constraints on the growth of big business houses and of foreign firms, the next consequence of the Government's policies has been that it takes 3–5 years for a large firm to get a sanction for the import of technology and its utilization; this entails advance planning of technology imports, and advance action for the generation of alternatives within the country, should the imports not be allowed.

The restrictions on technology imports accentuated the need for internal research and development; at the same time, the recession that began in 1966, and whose effects still continue to be felt in some sectors, squeezed industrial profits and limited the resources that could be allocated to R & D. Hence large Indian firms have felt the need for methods of rational allocation of R & D resources among competing projects, and a number of them have been feeling their way towards general criteria of allocation. Some of their efforts are described here. They are essentially exploratory; but since R & D management is still a problematic area even in industrial countries, an analysis of Indian practices is perhaps of more general interest.     

Planning for research and development— the impact on society

This work upon which this article is based has been designed to identify only the most significant facets of future research and development (R & D) and planning in terms of their potential impact on the economic aspect of society. In order to see the impact in the United States, some contrasts have been drawn against the current and future R & D activities of other countries.

In looking for overt directions in environmental developments, it is impossible to escape the realization that no other activity has the potential to affect the lives of all men to the extent of science and technology. Hopefully, by dealing briefly with many facets of R & D, the great scope of this activity may become more evident.

The first part of this article provides the background against which future trends in R & D are examined. Next, separate considerations of the impact that R & D has on the economic elements of the environment are examined. These discussions form the basis for the hypothesis that R & D planning and decision making must not only consider the organizational viewpoint, but also must consider the environment. In this light, a hypothetical R & D planning model is presented in the last section which attempts to direct the selection of the ends in R & D planning toward some socially responsible goal.     

R & D and corporate planning in government

David Peretz is in charge of the Economics Section of the Inter-Bank Research Organization, London. Before that he served as an administrative civil servant in the Ministry of Technology, being for some of that time attached to the Programmes Analysis Unit (PAU) at Harwell, and concerned with studies of the organization of government industrial R & D establishments.

This article is based on a paper submitted—in their personal capacities—by the author and James Robertson (Director of IBRO) to the Government in February 1972. This paper was in turn inspired by the Government's publication of Lord Rothschild's report on ‘The Organization and Management of Government R & D’.

Like other large organizations, governments are having to come to grips with the interaction between long range planning and R & D activities. Changes are called for both in the methods of choosing priorities for R & D projects and in the organization of the Government's own research resources. The implications of ‘corporate’ planning for Government science have yet to be fully recognized.     

Corporate raiders don't cut investment in R & D

A focal point of the public debate over the effects of corporate mergers and acquisitions is their impact on the level of spending on long term projects. This study examines the pre-and post-merger levels of spending on R & D and the more general category of capital expenditures. Analysis of expenditures for a sample of firms drawn from the largest corporate mergers in the US during the late 1970s indicate that long term spending rises significantly in the post-merger environment. This supports the view that acquiring firms. whether hostile or friendly, recognize the relationship between such spending and firm value.     

基于差异产品的政府最优R&D补贴策略研究

本文建立考虑产品差异的三阶段双寡头博弈模型:第一阶段政府选择R&D(Research and Development)补贴率,第二阶段企业确定自己的R&D水平,第三阶段企业确定产品价格进行伯川德竞争。根据双寡头在第二和第三阶段是否合作,给出了R&D竞争、R&D卡特尔、共同实验、技术共享联盟和研究共同体等五种R&D策略,得到了相应的政府最优R&D补贴率。研究表明,当技术溢出程度较低且产品水平差异不大时,政府给予采用R&D竞争策略企业的补贴率不高于采用R&D卡特尔策略的企业;当技术溢出程度较高且产品水平差异较大时,结果则相反。在政府进行最优补贴后,从促进技术进步、扩大企业规模以及社会福利最大化的角度来看,五种R&D策略中,共同实验最差,技术共享联盟和研究共同体则最优。     

Work systems in heavy engineering: the role of national culture and national institutions in multinational corporations

This paper is based on an Anglo-German research project of two research groups in both countries. It is based on data collected by qualitative research in the three largest multinational corporations (MNCs) in the lift and escalator industry. The headquarters (HQs) of the three corporations are based in the United States, Finland and Germany, respectively, and all three MNCs each have subsidiaries in Germany and Britain. Our main objects of analysis were change processes in the work systems of these three MNCs.We chose the lift and escalator industry as an example because it has been characterized by strong concentration processes during the last 10 years. Most of these corporations have grown by acquisition and there are strong tendencies in the market towards standardized, globally uniform products.National cultures and institutions, first of all play a role on the HQ level. Important areas were the standardization of products and production technology, the design of management systems and location and relocation decisions for R&D and manufacturing. Second, MNCs take differences in national cultures into account and deliberately “use” them in allocating resources and investment within the multinational group. National cultures and institutions massively shape the very formulation of manufacturing strategies within the multinational groups, as well as the R&D strategies—a particular important field in an industry still relying heavily on small-batch and unit production. National cultures also play a significant role in implementing the global strategies of MNCs in different host countries. Our data reveal striking differences on this level.     

An empirical analysis of innovation strategies of biotechnology firms in the U.S.

The paper explores the strategies of biotechnology firms in the U.S. through a mail questionnaire study. Based on the responses of 89 companies we have developed strategy archetypes of these firms in R&D, marketing, and technology acquisition. In R&D, we found the firms to follow either incremental or radical strategy. In marketing, the firms use either a defender or an innovator strategy. In technology acquisition, firms differ in terms of their emphasis on licensing or developing new technology. The interrelationship among the strategy groups is weak. The R&D and technology acquisition strategies are related in the sense that aggressive technology strategy dictates radical R&D behavior with emphasis on development of new technology. We have found that firms following aggressive technology strategy tend to follow conservative marketing strategy. This is consistent with an earlier study by of German firms where it was found that firms tend to balance their technical and marketing risks. The paper also provides additional information about the factors considered to be important in product decisions for various strategies.     

Tax attractiveness and the location of German-controlled subsidiaries

This paper analyzes whether taxation has an influence on the location decisions of multinational enterprises. We employ a novel set of 22 tax variables, such as the taxation of dividends and capital gains, withholding taxes, the existence of a group taxation regime, and thin capitalization rules. Furthermore, we use the Tax Attractiveness Index, a new aggregate measure containing the 22 tax variables. Our count data regression analysis is based on a novel hand-collected dataset consisting of the subsidiaries of German DAX30 companies in 97 countries. Controlling for non-tax effects, we find that a country’s tax environment has a significantly positive effect on the number of German-controlled subsidiaries and, therefore, on the location decisions of German multinational enterprises. Specifically, our analysis reveals that German multinational firms place affiliates in countries that offer favorable statutory tax rates, withholding taxes, double tax treaty networks, and holding incentives. Additionally, we find that the Tax Attractiveness Index has explanatory power in subsidiary location decisions and, therefore, it can be used as alternative composite measure, for example, when 22 single tax variables are not at disposal.     

不同阶段研发投资对企业绩效的动态效应研究:基于中国上市公司的面板数据分析

研发投资是提高企业绩效的重要途径,不同阶段的的研发投资对于企业绩效的改善存在着差异化作用。本文构建了不同阶段研发投资对企业绩效影响效应的理论模型,并以我国103家上市公司2010-2016年的相关数据为样本,从动态效应的实证分析阶段和开发阶段两个阶段的投资强度对企业绩效影响的异同,结果发现:研究阶段和开发阶段的投资对企业绩效影响均具有正向的积极影响作用,开发阶段的投资在当期对企业绩效的影响较强但不可持续,研究阶段的投资具有滞后效应并且对企业绩效的提升有比较长远的影响。因此过多关注开发阶段的投资并不能有效提高企业绩效,企业应加大研究阶段的投资,以更好地实现其在提高企业绩效中的长效作用。     

Towards a re-conceptualization of firm internationalization: Heterogeneous process,subsidiary roles and knowledge flow

This paper proposes a re-conceptualization of firm internationalization to understand and predict the rapid global expansion of firms since the 1990s, especially those from emerging markets. First, based on a review of existing literature, we re-conceptualize firm internationalization as a heterogeneous process of strategic development of subsidiaries in overseas countries or regions. This re-conceptualization captures the pluralistic character of the process of firm internationalization.Second, we delineate peculiar roles played by subsidiaries in pursuit of multinational enterprise (MNE) headquarters' internationalization strategies. We argue that the HQ's heterogeneous strategies toward overseas subsidiary development define the corresponding roles of subsidiaries, which in turn shape the knowledge-flow patterns within the MNEs. Finally, we link firms' internationalization strategies with different subsidiary roles to generate hypotheses concerning the effect of such links on subsidiary performance. We argue that the proper alignment of HQ's internationalization strategies with subsidiary roles will lead to success of the overseas subsidiaries; by contrast, a mismatch will lead to subsidiary failure. The paper thus contributes to the field of firm internationalization by linking its new conceptualization with the literature on subsidiary roles and knowledge flows in MNEs.     

Technology acquisition strategy in an internationally competitive environment

This research empirically examines the technology strategies of multinational firms operating in the US market. The findings suggest that external reliance on product and process technologies has a negative impact on firm success. Furthermore, geographic distance between key activities moderates the role of technology strategy on international firm success. Also, the complementary assets, dominance of the product design, and the degree of appropriability have a direct impact on firm performance.     

Capital investment evaluation for the multinational firm

In their profit-seeking activities, multinational corporations have global opportunities to evaluate as well as increased risks and complexities to contend with. Hence, there is a significant need for the development of robust models to handle the new dimensions faced by firms functioning in an international environment. Particularly, in capital budgeting where decisions are made regarding the long-run livelihood and performance of the firm, it is essential to analyze carefully and to reflect adequately all of the critical variables. The great number of relevant variables, their significant interrelationships, and the high degree of uncertainty render mathematical optimization models extremely complex or infeasible to solve within reasonable computer memory or time limitations. To overcome these shortcomings and to arrive at an economically rational treatment of the capital budgeting problem, a “Hertz-type” simulation model is formulated for the multinational firm. The important international variables—foreign exchange rates, foreign tax methodology, host government controls, and other social, economic and political factors—are reflected in the model. A two stage approach is utilized: first, investment projects are analyzed by the subsidiary and if they pass this first screening they are proposed for the parent's consideration; second, the parent evaluates the attractiveness of projects from its point of view and ranks proposals for acceptance considering all global opportunities. The model is designed so that sensitivity analysis can be easily performed.     

Innovation,the multinational corporation: Some implications for national science policy

In recent years the role of research and development has been examined with great interest to determine its causal relation to economic growth. Emerging from a number of studies is a realization that the process of innovation is the key variable. Innovation refers to that complex chain of events and processes which stretches from the conception of a new idea (often in an R & D lab) through to the acceptance in the market place of a new or improved good or service. This article sets out to examine the impact on the innovative potential of the corporate structure of a country when multinational corporations are active in such a country. In particular, the emphasis is on high technology manufacturing industries. The host country most often referred to will be Canada.     

R&D,productivity, and market value: An empirical study from high-technology firms

Although prior research has addressed the influence of production activity and research and development (R&D) on productivity, it is not clear whether production and R&D affect the market value of a firm. This study proposes and verifies an R&D value chain framework to explore the relationship among productivity, R&D, and firm market values, as measured by Tobin's q theory. By doing so, we attempt to link new theoretical insights and empirical evidence on the effects of R&D efforts and basic production activities to the market valuations of high-technology firms. The value chain data envelopment analysis approach was proposed to estimate parallel-serial processes of basic operations and R&D efforts. This approach can be used to simultaneously estimate the profitability efficiency and marketability efficiency of high-technology firms. This area has rarely been studied, but it is particularly important for high-technology R&D policies and for further industrial development. Using the R&D value chain perspectives of model innovations and extensions proposed in several previous studies, we examined the appropriate levels of intermediate outputs. Production efficiency and R&D were combined to estimate the appropriate levels of intermediate outputs for high-technology firms. Based on the intermediate output analyses, we developed an R&D efforts decision matrix to explore and identify operational and R&D efficiency for high-technology firms. Our sample firms are displayed on a four-quadrant action grid that provides visual information on current short-term operational efficiency and decision making on long-term R&D strategic positions. The empirical findings from the R&D value chain model can provide information for policymakers and managers and suggest the adoption of various policies that place more emphasis on profitability and marketability strategies.     

How NASA moved from R & D to operations

This paper investigates the initial planning process for the transition of an organization from a R & D environment to an Operations environment. Using a developed transition life cycle model, the paper demonstrates a four step analysis of the management of the transition. Further, the paper suggests the utilization of existing methods for achieving a smooth transformation under various levels of technical, political, cultural, managerial, and economic uncertainties. Finally, the paper lists possible courses of action and considerations for the transition once the initial planning stage is completed. The concepts herein were used to begin planning the change, from R & D to Operations, of the Space Shuttle Program at NASA.     

Understanding technological substitution: Generic types, substitution dynamics, and influence strategies

This article develops a framework for analyzing substitution threats posed by young industries to firms competing in more established industries. The discussion delineates three generic types of technological substitution—functional, product, and asset—and explores how long-term substitution patterns may be shaped by (1) the dominant design that emerges for the new product and, (2) improvements that occur in the traditional product. Asset substitution threats are especially serious for an incumbent firm since they can erode the value of the company's existing R&D/ manufacturing capabilities for competition in its principal markets. Possible strategies for influencing the type of substitution that ultimately occurs are considered. The strategies entail entering the young industry and attempting to shape the dominant design that emerges for the new product, or attempting to improve the traditional product along specific price-performance dimensions. The propositions suggested by the framework and the implications discussed should help to provide direction for future research.     

Knowledge transfer in MNCs: Examining how intrinsic motivations and knowledge sourcing impact individual centrality and performance

Studies investigating individual performance in knowledge-intensive work are finding that individual performance is a result, to some degree, of obtaining the right information to solve novel, challenging problems. Yet we know little about the role that the individual plays in the knowledge processes in multinationals and the relationship between individual knowledge sourcing activities and performance. Our expectation is that successful knowledge transfer will be based on an individual's intrinsic motivation, access to knowledge from explicit or tacit knowledge sources within and across firm boundaries, and position in the overall advice network of the multinational corporation. Using survey and social network data collected in one multinational consulting firm, we investigated the knowledge sourcing activities and informal advice networks for 1439 of the entire 1698 individuals in one multinational spread across 28 offices (84.7% response rate). Through hierarchical regression analysis we find that 1) intrinsic motivations are strongly related to creativity and efficiency and 2) MNCs should support individual level activities that include not only the use of internal knowledge sources but also the use of external knowledge sources. Research results also suggest that 3) there are different patterns of knowledge sourcing activities based on whether efficient or creative performance is the goal and 4) these differ significantly depending upon the functional group to which the individual belongs. Implications for theories of the knowledge-based view of the multinational corporation and practical implications for managers are discussed.     

两级再制造的S-M闭环供应链的决策与绩效分析

供应商是再制造战略研究中不可忽视的决策主体之一,因为制造商的产品回收再制造战略会对供应商的零部件供应决策产生影响,而且处于强势背景的供应商也有选择是否参与零部件的回收再制造的权利。为了探讨产品和零部件的两级再制造战略对供应商和零售商的定价决策及收益的影响,本文运用Stackelberg博弈,对供应商强势背景下供应商选择参与和选择不参与零部件的回收再制造的两种Supplier-Manufacturer闭环供应链模型进行了研究,并对两种情形下的定价决策与收益进行了对比分析。最后得出以下结论:再制造战略对批发价决策的影响与产品的市场需求状况有关,对零售价决策的影响与回收风险状况有关;供应商应积极参与两级再制造战略,因为供应商选择供应可再制造的零部件使自身受益,并且参与零部件的回收再制造可以在降低批发价和零售价的基础上使双方受益。最后,运用数值算例验证了本文的研究结论,丰富了再制造战略对定价决策及收益影响的研究成果。     

Digital platforms’ boundaries: The interplay of firm scope,platform sides,and digital interfaces

This article explores what factors drive digital platform firms to set or modify their boundaries. Building on economics, strategic management, and information systems research, I suggest that digital platforms make strategic decisions over three distinct types of interrelated boundaries: (1) the scope of the platform firm (what assets are owned, what labor is employed, and what activities are performed by the firm), (2) the configuration and composition of the platform's sides (which distinct groups of customers have access to the platform), and (3) the digital interfaces (that specify the 2-way exchange of data between the platform firm and each of its sides). In this article, I explore the interdependence between these seemingly separate decisions and the role of some important moderating variables. These moderators include whether the platform is a transaction or an innovation platform, and the extent to which the platform has developed from its initial formation stage. My work explains why we see so much variation in boundaries across platforms and over time.     

The moderating effects of home region orientation on R&D investment and international SME performance: Lessons from Korea

Drawing from the resource-based view, we investigate how firm and country combinations affect international SME performance. Using a sample of 2676 international Korean SMEs, we explore the relationships among SME R&D investment, home region orientation and financial performance. Results show that R&D investment has a horizontally inverted S-shaped relationship with performance reflecting cost leadership, stuck in the middle, and differentiation strategies. We also find that a home region orientation moderates the relationship between R&D investment and performance. Home region orientation positively moderates the relationship when R&D investment reflects cost leadership or differentiation but negatively moderates a stuck in the middle strategy.