A short term forecasting model for R & D expenditures

Whenever budget requests for individual R & D projects contain a built-in contingency then this will result in inefficient use of scarce resources. At the end of the year the annual budget may have been fully allocated but not necessarily fully utilized. This can result in delays or even complete cancellation of other proposed R & D projects because of an apparent lack of funding.The objective of the study was to forecast monthly R & D expenditures with a better accuracy than available from the subjective estimates of individual project leaders. The method described in this paper proved to be successful in practice.     

Financial planning for new products: Part I—Basis for model formulation

In a previous paper the author presented a staged approach methodology for the evaluation and selection of R & D projects. The present paper is intended to serve as its complement.The aim is the formulation of a matching overall long range budget planning policy which will attempt to answer the questions of “how many projects to prove” and “how much to fund” on the basis of satisfying the company growth objective.To achieve the above purpose, a staged budget planning model has been developed which recognizes and utilizes the specific attributes of the various R & D stages. Tje project stage survival rate and project stage cost ratio concepts are discussed. A steady flow of projects through the various R & D stage is maintained. The aim of the program is to produce periodically a planned number of new products fro commercial investment.This methodology may apply to R & D program with a sufficient number of moderately sized projects that justify the use of survival rate and cost ratio values. It should be constructed as a tentative effort for possible use within the staged limitations.     

The strategic management of R & D. Part II—Organizing for integration

The possibility of the R & D activity integrating with the ‘physiology’ of the industrial enterprise depends on the model management adopts for structures, roles and human resources. Such a model should allow integration between R & D and the enterprise and encourage innovation. Two main roads lead to the attainment of the integration process. The author outlines them by observing the experience of research laboratories in the United States and in Europe. The two roads are the ‘managerial integration’ model and the ‘technological integration’ model, analytically described in the article.     

A framework for the strategic management of future tyre technology

Strategically managing technology faces one major problem: technology planners and managers who mistake ‘R & D management’ for ‘strategic technology management’. In globally competitive markets, survival and growth of tyre companies will increasingly depend upon the ability to manage technological resources strategically. This article proposes a process model which views the strategic management of technology as ‘techno-business management’, where technology and business strategy, planning and implementation can be facilitated by the use of portfolio frameworks and technology forecasting techniques in analysing and addressing the key strategic management areas of techno-business strategy development and strategy implementation.     

Integration mechanisms and R&D project performance

Information processing theory suggests the need for different types of integration mechanisms in R&D project management depending on levels of uncertainty and equivocality. This paper examines the use of these mechanisms and their links to project performance in a sample of 121 R&D projects in a large research laboratory. Overall, it is found that formal leadership, planning and process specification, and to a lesser extent information technology use are related to project performance while the positive effects of horizontal structures are apparently balanced out by their costs. The integration mechanisms studied act on performance partly through their effect on horizontal communications. Modest support was found for the contingency hypotheses derived from information processing theory. It appears that managers adjusted their use of horizontal structures, planning and process specification, and informal leadership to project uncertainty but not to project equivocality. The positive effects of horizontal communications on performance were found to be greatest under high project equivocality as would be predicted by information processing arguments. Moreover, with the exception of formal leadership, the use of integration mechanisms did not enhance performance in contexts of low uncertainty and low equivocality.     

Strategic planning and research and development—Can we integrate them?

The main problem affecting the R & D function has always been caused by its lack of integration with the enterprise. Such a problem makes it difficult to pass from invention to innovation—that is, to turn the invention into processes and products to be exchanged on the market. The author points out the main social and organizational problems which prevent R & D from entering the ‘circulatory system’ of the enterprise. The identification of such problems is important in order to set up and to implement innovative strategies. This is the first of two articles by Professor Petroni on this subject. The second article will appear in April 1983.     

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.     

Who should plan technological innovation?

Over the last 10 years there has been a growing need to improve integration between business planning and R & D activities. One reason for this has been a decrease in the returns on R & D investments. An understanding of the relationship between demand and technological innovation is needed to achieve this integration. The planning approach will be very different depending on whether the company's business is based on ‘technology-push’ or ‘demand-pull’, and whether planning is controlled by the R & D or the marketing function.     

Investment and planning in R & D

When planning investment in R & D the required resources must be available—including intellectual resources. Ideally all the issues should be clear: and the R & D programme itself should be the most direct route to the objective, avoiding costly lavishness that may divert attention and effort. Innovation involves using intellectual capital and resources to their best advantage, for commercially worthwhile technical progress in industry. Planning is one of the ‘tools’ and both R & D and investment are ‘materials’ of progress. In this paper, the author examines the many implications behind this statement.     

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.     

Genetic distance,international experience and the performance of cross-border R&D for EMNEs

Cross-border R&D can contribute to the enhancement of independent innovation capabilities of emerging markets multinational enterprises (EMNEs) by benefiting from knowledge management. However, scant research exists examining the location impact of cross-border R&D for EMNEs on performance implications. This paper fills this important theoretical gap by building upon the literature of genetic distance in connection with knowledge management. We use a panel data of Chinese high-tech listed companies to empirically examine the impact of genetic distance on the performance of cross-border R&D and the role played by international experience. Our results reveal a positive relationship between genetic distance and the performance of cross-border R&D. Importantly, we highlight the motivation for cross-border R&D of EMNEs to acquire technical knowledge magnifies the positive effects of genetic distance and performance. Furthermore, our analysis indicates that international experience significantly enhanced the positive effect of genetic distance on cross-border R&D performance. We conclude this paper by discussing theoretical contributions to genetic distance, international management and knowledge management, as well as practical implications for cross-border R&D of EMNEs.     

The integration of TQM and technology/R&D management in determining quality and innovation performance

This paper presents an empirical study which examines the co-alignment between Total Quality Management (TQM) and technology/research and development (R&D) management in predicting organizational performance in terms of quality and innovation. This study improves our understanding of the relationship between TQM and innovation based on the following two major issues. First, this study contributes to the understanding of the co-alignment between TQM and technology management along with R&D management by bridging the gap between the two areas which are often addressed in a separate fashion. Second, this study also examines the impact of the integration between TQM and technology/R&D on quality and innovation performance which have been considered as the primary sources of a competitive advantage. The empirical data was drawn from 194 Australian organizations and analyzed using the Structural Equation Modeling (SEM) technique. The findings indicate that TQM shows a strong predictive power against quality performance but no significant relationship against innovation performance. On the other hand, technology and R&D management shows a significant relationship with quality performance but at a lower level than that of TQM, and shows much stronger relationship with innovation performance. In addition, there is strong and positive correlation between TQM and technology/R&D management. The major implication of this study is that technology/R&D management is an appropriate resource to be used in harmony with TQM to enhance organizational performance, particularly innovation.     

Tightening the belt: methods for reducing development costs associated with new product innovation

Despite the fact that many firms are under pressure to reduce research and development (R&D) expenditures, there are few studies which test methods for containing costs associated with innovation. A multi-industry study of new product development projects suggests that development costs are lower when there are (a) high rewards for speedy development, high clarity of product concept, and low management interest in the project (criteria-related factors), (b) high use of external ideas and technologies (scope-related factor), (c) high number of product champions, low project leader's position in the organization, low project members' education level, and low team representativeness (staffing-related factors), and (d) low process overlap, low team proximity, low frequency of testing, and high use of CAD systems (structuring-related factors). The final model was significant at the p<0.001 level and explained 61% of the variance in development costs. Implications for scholars and managers are discussed.     

Managing Internal R&D Networks in Global Firms: What Sort of Knowledge is Involved?

How should a global firm manage its network of R&D centres in an effective manner? Some have developed an Integrated Network model in which the R&D centres around the world are tightly integrated into a coherent whole. Others have adopted a Loosely-Coupled Network model in which individual “centres of excellence” are given considerable autonomy. In this paper we argue that the way individual R&D units are structured, and the way the entire network is managed, should be based not on administrative heritage, environmental turbulence or management style, but on the basis of the underlying characteristics of the firm’s knowledge assets. In particular we focus on the observability and mobility of the firm’s knowledge assets, the impact these factors have on the way individual R&D centres are structured, and how they relate to one another in the international network. The argument is supported using examples and data from Swedish firms including ABB, Alfa Laval and Ericsson.     

In support of evidence-based management and research-informed HRD through HRD professional partnerships: an empirical and comparative study

This article describes a programme of practice-grounded empirical management research set within an NHS Trust Hospital in the UK that was conducted as part of an HRD Professional Partnership of the kind advocated by Jacobs (1997). The research was concerned with identifying the criteria of managerial effectiveness at the middle and front-line levels of management using critical incident technique and factor analytic methods. The results are compared against those from an equivalent partnership research study carried out previously by the author within one part of the British Civil Service, namely the Anglia Collection of HM Customs & Excise. The findings lend support to the notion of the 'universally effective manager', and provide empirical support for the potential development of evidence-based and research-informed approaches to management and human resource development within the case-study NHS Trust Hospital, and possibly beyond.     

The Japanese multinational

In this article the author examines the four features found in the emerging Japanese multinational enterprises, (1) joint ventures with participation of trading companies, (2) the R & D capabilities, (3) the Japanese style of management, and (4) socio-political reactions in Asian countries. These features provide the Japanese multinational enterprises with both opportunities and challenges for their future development. Proper consideration is given to the comparison with the American multinational enterprises.     

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.     

Governing inter-organisational R&D supplier collaborations: a study at Jaguar Land Rover

This article discusses the importance of collaboration with suppliers and partners during research and development (R&D) technology projects. It details how this can be accomplished using the collaborative enterprise governance (CEG) concept to manage a technology project. CEG is based on the premise that parts of companies work with parts of other companies, which are reconfigured on dynamic bases according to a variety of different internal and external factors. This article presents an overview of the founding literature, the CEG and its methodology, and examples based at Jaguar Land Rover in the UK. CEG has been used here to explain why some technology projects have succeeded while others have done less well. This article concludes by offering new propositions, inducted through grounded theory, relating to the successful management of R&D projects, which should be picked up by future research studies in the area.     

Technology development control styles in multinational corporations: a case study

Multinational firms tend to geographically disperse their R&D activities to a larger extent than in the past. International R&D seems to play an increasingly important role within the global process of technological innovation taking place in multinational corporations. As a consequence, firms are challenged to design global R&D organisations and manage foreign units playing a central role in their innovation process. A key managerial aspect is the balance between autonomy and control of foreign R&D units. This case study deals with management control styles over foreign R&D units. It is based on the results of an empirical analysis of 16 multinational firms operating in technology-intensive industries. It proposes a taxonomy of management control styles in foreign R&D and gives the cue for further research in the area of technology development control.