Managing uncertainty and ambiguity in frontier R&D projects: A Korean case study

One of the important tasks in planning large, frontier R&D projects is to minimize innate uncertainties and ambiguities in the early stages of the project. This case study is an attempt to provide a framework to handle such problems in R&D planning. In it we analyze various elements that define planning conditions, classify them into basic constructs, and suggest tools and methods to deal with uncertainty and ambiguity. We utilize two case studies to approach the research questions. Our findings suggest that both initial planning conditions and the effectiveness of front-end planning management affect the performance of R&D planning and the later R&D process.     

A fuzzy set approach for R&D portfolio selection using a real options valuation model

Making R&D portfolio decision is difficult, because long lead times of R&D and market and technology dynamics lead to unavailable and unreliable collected data for portfolio management. The objective of this research is to develop a fuzzy R&D portfolio selection model to hedge against the R&D uncertainty. Fuzzy set theory is applied to model uncertain and flexible project information. Since traditional project valuation methods often underestimate the risky project, a fuzzy compound-options model is used to evaluate the value of each R&D project. The R&D portfolio selection problem is formulated as a fuzzy zero–one integer programming model that can handle both uncertain and flexible parameters to determine the optimal project portfolio. A new transformation method based on qualitative possibility theory is developed to convert the fuzzy portfolio selection model into a crisp mathematical model from the risk-averse perspective. The transformed model can be solved by an optimization technique. An example is used to illustrate the proposed approach. We conclude that the proposed approach can assist decision makers in selecting suitable R&D portfolios, while there is a lack of reliable project information.     

Linking R&D with the strategic management process of the firm

An examination of the problems associated with integrating R&D activities with the overall strategic planning process of the firm is presented. A model which links R&D to other functional activities as well as to strategic planning by a technical planning committee is proposed. The implementation of this integrative process requires organizational structural and communications adjustments.     

Internal and External Integration for Product Development: The Contingency Effects of Uncertainty,Equivocality, and Platform Strategy

Effective product development requires firms to unify internal and external participants. As companies attempt to create this integrated environment, two important questions emerge. Does a high level of internal integration lead to a higher level of external integration? In the context of product development, this study considers whether internal integration in the form of concurrent engineering practices affects the level of external integration as manifested by customer integration, supplier product integration, and supplier process integration. External integration, in turn, may influence competitive capabilities, namely product innovation performance and quality performance. Second, using contingency theory, do certain contextual variables moderate the linkages between integration strategy (external and internal) and performance? Specifically, this study considers whether uncertainty, equivocality, and platform development strategy change the relationships among internal integration, external integration, and competitive capabilities. Data collected from 244 manufacturing firms across several industries were used to test these research questions. The results indicate that both internal and external integration positively influence product innovation and quality and ultimately, profitability. With respect to contingency effects, the results indicate that equivocality moderates the relationships between integration and performance.     

Effect of Formal Contracts,Relational Norms and Trust on Performance of Joint Research and Development Projects

This paper examines the effect of governance mechanisms – formal contracts, relational norms and trust – on the performance of exploration and exploitation joint research and development (R&D) projects. While the authors acknowledge the need for a twofold approach, transactional and relational, to understand the interfirm exchange governance, the joint action of formal contracts and relational governance has been caught between the complementary or substitutive forces involved in interorganizational relationships. Using survey data on joint exploration and exploitation R&D projects developed by the European biotechnology companies, the synergies of both mechanisms and their effects in improving project performance are investigated. The analysis suggests that contracts and relational norms and trust act as complementary mechanisms, but while contracts are more effective in exploitation projects, relational norms and trust are more powerful in improving the performance of exploration projects.     

Selection system orientations as an explanation for the differences between dual leaders of the same organization in their perception of organizational performance

We investigate to what extent individual managers operating in a dual leadership structure have different perceptions of how well his/her organization is performing. Using selection system theory we develop hypotheses on the relationships between a leader’s selection system orientation and his/her perception of performance along multiple dimensions: market performance, expert performance and peer performance. The hypotheses are tested using dyadic data from 59 organizations in the performing arts led by two—hierarchically equivalent—managers. Our results show that dual leaders’ differences in terms of market orientation and expert orientation relate positively to perceived performance differences along the same dimensions. This relationship is not found with respect to peer selection orientation. Generally, the relationship between orientation differences and perceived performance differences is stronger if the process of interpreting signals to construct a perception of organizational performance leaves more room for equivocality and uncertainty.     

Leveraging Supply Chain Integration through Planning Comprehensiveness: An Organizational Information Processing Theory Perspective

This study extends prior research on supply chain planning and integration by examining the underlying capabilities by which firms exploit the information they gain from integration activities. We use organizational information processing theory (OIPT) to develop hypotheses that identify the comprehensiveness of an organization's supply chain planning capabilities as an important mediator in the relationship between its supply chain integration activities and its operational performance. Further, our interpretation of OIPT suggests that an organization's usage of technology‐enabled supply chain management systems (SCMS) moderates these effects. Using survey data from 445 global firms, we estimate the corresponding moderated‐mediation structural model. The results indicate that usage of SCMS enables organizations to better utilize the information they gain from external integration efforts (relationships with customers and suppliers), thus improving the comprehensiveness of their supply chain planning capabilities. In contrast, the use of SCMS appears to be a partial substitute for internal integration as a driver of planning comprehensiveness. Most importantly, the results suggest that planning comprehensiveness is a significant generative means by which integration and technology investments produce superior operational performance. These findings provide a richer and more theoretically grounded explanation of relationships between supply chain integration, supply chain planning, and operational performance.     

The role of political ties and political uncertainty in corporate innovation

We examine the relationship between firms' political connections and corporate innovation in a European context. We also consider the moderating effect of political connections on the relationship between political uncertainty and firms' innovation. We use two different metrics of innovation: R&D (an input measure), and patent counts (an output measure). We find that firms with former politicians on their board of directors invest less in R&D than their counterpart firms. However, the presence of this type of director on the board is positively associated with the number of a firm's patent applications. It seems that, although political ties reduce the amount of resources devoted to R&D activities, they increase the effectiveness of intellectual rights protection. Results also show that political uncertainty decreases R&D investment but exacerbates the need for legal protection of innovation through patents. According to our results, political connections attenuate the effect of political uncertainty on firm innovation such that the negative (positive) effect of uncertainty on R&D intensity (patents) weakens when the firm is politically connected.     

Crafting effective environmental strategies: A “model of learning” from the chemical and pharmaceutical industries

While creating and implementing effective environmental strategies, firms collect and process information from many interconnected “learning environmental.”These “models of learning” serve to develop environmental knowledge and cultural beliefs that guide, coordinate and synchronize actions at the corporate and subsidiary levels. In this way, best environmental practice becomes institutionalized within the organization.This article examines both the formal and informal processes that firms use to identify and transform environmental strategies into accepted organizational practices. Environmental, health and safety (EH & S) managers, in particular, should embrace the notion that systematically gathering and sharing such information across the organization can have profound implications for a firm's environmental performance. Firms that capture and disseminate the critical environmental knowledge of their members can be well positioned to attain environmental leadership roles in their industries.     

‘Let's share!’ The mediating role of employees' self-determination in the relationship between transformational and shared leadership and perceived knowledge sharing among peers

Building on social-exchange and self-determination theory, this study aimed to contribute to the scholarly literature on leadership and knowledge sharing by simultaneously testing how shared and transformational leadership and their interrelatedness may foster employees' perceptions of knowledge sharing behaviour among peers. Additionally, we investigated the mediating role of employees' basic psychological needs satisfaction (in terms of autonomy, competence and relatedness, respectively) as an additional explanatory mechanism to reveal how shared and transformational leadership may foster individuals' perceptions of knowledge sharing behaviour among peers. We employed PLS structural equation modelling to analyse survey data obtained from professionals in an R&D unit of a knowledge-intensive firm. We found shared leadership to be the most important factor enhancing employees' perceptions of knowledge sharing among peers, both directly and indirectly through employees' satisfaction of the need for autonomy. Transformational leadership was found to foster employees' knowledge sharing ultimately, through shared leadership and the need for autonomy satisfaction. We concluded that shared forms of leadership supplemented with transformational leadership on the part of formal leaders are important in contemporary work environments as they can foster employees' perceptions of knowledge sharing among peers and contribute towards employees' self-determination, which ultimately enhances perceptions of knowledge sharing among peers.     

Managing the Performance Trade‐Offs from Partner Integration: Implications of Contract Choice in R&D Projects

Formal contracts represent an important governance instrument with which firms exercise control of and compensate partners in R&D projects. The specific type of contract used, however, can vary significantly across projects. In some, firms' govern partnering relationships through fixed‐price contracts, whereas in others, firms' use more flexible time and materials or performance‐based contracts. How do these choices affect the costs and benefits that arise from greater levels of partner integration? Furthermore, how are these relationships affected when the choice of contract is misaligned with the scope and objectives of the partnering relationship? Our study addresses these questions using data from 172 R&D projects that involve partners. We find that, (i) greater partner integration is associated with higher project costs for all contract types; (ii) greater partner integration is associated with higher product quality only in projects that adopt more flexible time and materials or performance‐based contracts; and (iii) in projects where the choice of contract is misaligned with the scope and objectives of the partnering relationship, greater partner integration is associated with higher project costs, but not with higher product quality. Our results shed light on the subtle interplay between formal and relational contracting. They have important implications for practice, with respect to designing optimal governance structures in partnered R&D projects.     

风险环境下企业信息系统项目控制对绩效的影响机制研究:基于项目经理和用户代表的双重视角

虽然当前项目管理水平不断提高,但是企业信息系统项目实施的成功率仍然不容乐观。项目干系人缺乏准确的相互认知和角色定位,以及风险与控制的关系无法有效处理是导致项目绩效偏低的重要原因。为了从不同视角探索风险和控制对企业信息系统项目绩效的共同作用,通过对65位项目经理和63位用户代表所经历的128个项目的调查,利用结构方程模型进行实证分析,并采用层次回归分析技术进行检验。实证结果表明,正式控制和非正式控制对信息系统项目绩效都具有积极的影响,但是项目经理认为正式控制具有更加重要的作用,而用户代表认为非正式控制的作用更为显著。此外,项目经理和用户代表均认为组织风险和技术风险会减弱正式和非正式控制对绩效的有效作用。因此在控制方式的选择和组合上不仅要基于项目自身的特点,而且要基于干系人的角色。同时,信息系统项目绩效并非单纯由成功或失败因素所决定,而是取决于两类因素的均衡程度。研究结论为信息系统项目的风险控制提供了全新的理论依据和决策支持。     

研发团队共享领导力行为的产生和对创新绩效的作用：基于垂直领导力的影响

 共享领导力是提高多元性、知识型的组织绩效的有效方式，但已有对研发组织领导力理论的研究大都侧重于垂直领导力对创新的影响，对共享领导力关注不足，而共享领导力作为一种随着团队发展而动态形成的领导力类型，已被证明是提高多元性、知识型组织绩效的有效方式；目前将共享领导力作为整体概念的研究思路能从宏观视角把握其作用机制，但不足以从微观层面揭示共享领导力的动态性的产生和作用。        基于领导力行为理论，从7个行为维度对共享领导力和垂直领导力进行解构，考虑垂直领导力的影响，从微观层面研究共享领导力的产生及对创新绩效的作用。运用访谈和参与性观察对4个研发团队进行全生命周期数据收集，通过多案例研究方法和规范的质性分析技术探究共享领导力行为在团队不同发展阶段的形成过程，以及垂直领导力行为对该形成过程的影响。区分创新绩效中的过程绩效、产品绩效和学习绩效，进一步揭示共享领导力和垂直领导力在促进不同创新绩效过程中发挥的不同作用。        研究结果表明，共享领导力不同行为的产生既直接依赖于垂直领导力，又通过依存环境间接依赖于垂直领导力；共享领导力的不同行为并非一次性形成，而是分别产生于团队生命周期的不同阶段，即在团队构建期首先形成跨边界领导行为，在成员磨合期形成激励行为和关怀行为，在规范执行期形成授权行为和变革领导行为；共享领导力行为的这种动态性决定了其直接作用于团队创新的学习绩效和产品绩效，对过程绩效没有直接作用，而垂直领导力行为则对过程绩效具有直接促进作用，并通过共享领导力间接作用于学习绩效。        在理论层面，从共享领导力行为角度分析其产生和作用，从微观层面挖掘其动态特性，解释了共享领导力和垂直领导力在促进创新绩效过程中的替代和互补关系，从而完善共享领导力的动态概念理论，也为后续的动态研究提供新思路。在实践层面，为研发团队管理中依据团队不同阶段和不同类型的创新绩效需求发展不同的共享领导力行为提供理论支持。     

Structural Constraints,Strategic Interactions and Innovative Processes: Measuring Network Effects in New Product Development Projects

In this paper I approach the analysis of innovation activities as relational processes first deriving the econometric specification of an endogenous model of network effect on individual outcome, and then using data on innovation projects to empirically test the impact on actors' performance of relational activities in new product development. A complete relational set of inter-unit relationships in 173 new product development projects among 24 R&D units of a profit oriented R&D organization is analyzed using mixed regressive-autoregressive models. Results show the importance of a network effects on unit's performance, after controlling for unit's attributional characteristics. The magnitude and directionality of these effects are sensitive to project characteristics, but not to the directionality of the ties. Implications for theory and research in innovation management are discussed by elaborating on the importance of the content of the ties to assess the impact of relational activities, and to examine client (i.e. ties sent) and server (i.e. ties received) relational options as complementary aspects of interaction strategies.     

The impact of service R&D on the performance of Korean information communication technology small and medium enterprises

In recent years, research and development (R&D) in the service industry has attracted a great deal of attention from both academia and industrial firms. However, compared to the manufacturing sector, little research exists on the implications of R&D for the financial and/or non-financial performance of firms in the service industry. The purpose of this study is to examine the impact of service R&D on the performance of information communication technology (ICT) firms. We identify five categories of R&D activities and investigate their impact on the financial and non-financial performance of 100 ICT firms, with a focus on small and medium enterprises (SMEs) in South Korea. We postulate positive relationships between R&D efforts and a firm's performance. However, the findings only partially support our hypotheses; unexpected results demonstrate that the presence of R&D management negatively influences a firm's performance. We present detailed statistical results and discuss the implications of the study.     

The antecedents of new R&D collaborations with different partner types: On the dynamics of past R&D collaboration and innovative performance

We examine firms' propensity to adapt their R&D collaboration portfolio by establishing new types of R&D collaboration with different kinds of partners (suppliers, customers, competitors and universities & public research institutions). We argue that existing R&D collaboration with one of the two value chain partners (suppliers or customers) is associated with the formation of new R&D collaboration with the other value chain partner to ensure temporal alignment in innovation within the value chain. In contrast, issues related to governance and unintended knowledge spillovers suggest that ‘horizontal’ R&D collaboration with competitors only spurs R&D collaboration with other partner types if such competitor R&D collaboration has been discontinued earlier (‘delayed temporal alignment’). We posit that persistent prior R&D collaboration with institutional partners is an antecedent to the establishment of new R&D collaboration with industrial partners, and that discontinuation of a particular type of R&D collaboration is likely to lead to a restart of such R&D collaborative effort. Strong prior innovative performance is expected to increase the probability that firms establish R&D collaborations with new partner types, except for R&D collaboration with competitors, since the most innovative firms may fear leakage of proprietary knowledge to rivals. We find broad support for these predictions in a large panel of Spanish innovating firms (2004–2011). Our findings highlight that it is not just the configuration of R&D collaborations with existing partner types that predicts tie formation with new partner types, but also the intertemporal pattern of prior R&D collaboration and managerial discretion provided by past innovation success.     

Managing Cross-Functional Cooperation for New Product Development Success

This article focuses on conditions that make cross-functional cooperation in new product development projects more or less productive. We investigate 40 NPD projects in the consumer electronics and pharmaceuticals industries in which R&D and marketing played key roles. We find that the contributions of cross-functional cooperation to NPD success are contingent on the type of market and technology opportunities being pursued. More specifically, our results suggest that when a project team pursues an opportunity characterized by high levels of technological and market risks, investments in high levels of cross-functional cooperation are warranted to increase NPD success. We do not find evidence that cross-functional cooperation moderates the relationship between the openness of an NPD project towards external information and knowledge and its performance. This suggests that less integrated project teams could achieve similar results as more integrated teams in terms of processing large quantities of information and knowledge without incurring the costs that may stem from high levels of cross-functional cooperation.     

Planning for strategic decision support systems

The emergence of Strategic Decision Support Systems has opened up new vistas for the true integration of formal models into the strategic planning process. However, with these new opportunities also come the need to develop planning mechanisms that will permit these sophisticated systems to achieve their potential. The process of strategic planning for Strategic Decision Support Systems that is described in this article serves to cast the organization's overall plans, strategies and strategic attributes into a framework that can be used to develop formal SDSS plans.     

Antecendents and effects of decision comprehensiveness: The role of decision quality and perceived uncertainty

On the basis of a sample of 184 top executives, we investigated the roles of decision quality and perceived uncertainty in the relationship between decision comprehensiveness and performance. Our results show that decision quality mediates a large proportion of the comprehensiveness–performance relationship and may thus provide a more proximate outcome measure of the effect of comprehensiveness. In addition, we found that perceived uncertainty directly affects the level of comprehensiveness in organizations rather than moderating its effect on performance as conceptualized by previous research. Based on the integration of behavioral and information processing theories we suggest that more process-oriented measures such as decision quality and perceived uncertainty may overcome conflicting empirical results in the field.