TOP MANAGEMENT INVOLVEMENT IN R&D BUDGET SETTING: THE IMPORTANCE OF FINANCIAL FACTORS, BUDGET TARGETS, AND R&D PERFORMANCE EVALUATION

Abstract

Organizations are increasingly reliant on their top management to provide research and development (R&D) units with a strategic focus reflecting changes in their competitive environments. However, little research has specifically explored implications arising from top management involvement in R&D budget setting. This study examines empirically the extent to which such involvement is associated with first, an emphasis on financial factors in setting R&D budgets, and second, with the importance of budget targets for R&D managers. Third, the study evaluates the impact of that involvement on R&D performance evaluation. The results of the research provide evidence of the relation R&D budget setting has to these three factors.

Citation

Dunk, A.S. and Kilgore, A. (2003), "TOP MANAGEMENT INVOLVEMENT IN R&D BUDGET SETTING: THE IMPORTANCE OF FINANCIAL FACTORS, BUDGET TARGETS, AND R&D PERFORMANCE EVALUATION", Advances in Management Accounting (Advances in Management Accounting, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 191-206. https://doi.org/10.1016/S1474-7871(02)11008-2