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This research aims to examine the moderating role of the existence of risk management committee between risk-taking behavior and companies’ performance.

Research sample includes 383 manufacturing company-year that listed on the Indonesian Stock Exchange period of 2017–2020. The risk-taking behavior includes the use of leverage, capital intensity, research and development intensity, and earnings uncertainty. The hypothesis test uses company fixed-effect regression.

The result shows that risk management committee moderates the effect of risk-taking behavior on companies’ performance. This research also finds the similar result when risk management committee and risk-taking behavior are examined on the future performance. In the further analysis, the result also finds that the expertise of risk management committee moderates the effect of risk-taking behavior on companies’ performance.

This research contributes to fill the previous gap of risk-taking behavior and companies’ performance by considering the existence of risk management committee to promote oversight role on risk-taking behavior. This research also contributes to give new evidence in Indonesia about the role of risk management committee to improve the benefits or to reduce the costs of risk-taking behavior.

The objective of the study is to analyse the impact of research and development investment on the firm performance of “small” scale firms vis-a-vis “medium”-scale firms.

The dataset comprised of a balanced panel of 486 research and development conducting Indian manufacturing small and medium enterprises, constructed for the period of 2006–2017. Fixed Effects, Random Effects Model and Hausmann test were used to analyse the determinants of firm performance in manufacturing small and medium enterprises in India.

It was found that from firms’ research and development (R&D) investments in terms of performance could be attained if simultaneously internationalisation and higher capital intensity could be achieved.

Managers could pay specific attention to the antecedents of firm performance and calibrate their R&D investment, internationalisation efforts and capital intensity simultaneously to achieve higher growth and productivity. For policymakers, the results provide an insight into how the firms in both categories could be differently incentivised, such that resources are better utilised.

The study analysed the determinants of firm performance in small and medium-sized firms at a disaggregate level as well as at a sectoral level using fixed effects, random effects and lagged effects to arrive at novel results, which have important implications for their competitiveness.

This paper aims to examine the behavioral determinants of firm research and development (R&D) investment in China by looking into the interaction between performance aspiration and industrial search.

The author argues that the performance aspiration effect is strengthened in R&D-intensive industries based on the isomorphism rationale, whereas it is weakened by high industry R&D intensity owing to the differentiation rationale. Deriving from the isomorphism and differentiation rationales, the author developed a set of competitive hypotheses and empirically tested them by using a large panel data of 6,539 company-years from China for the period 2001-2003.

First, R&D intensity is positively related to the deviation of firm performance from aspiration. Second, industry R&D intensity negatively moderates the relationship between performance aspiration and firm R&D intensity for firms performing above aspiration. Therefore, the results provide support for the differentiation rationale.

The study contributes to the ongoing research that provides and tests the behavioral explanations for R&D and innovation. By delving into the moderating role of industry R&D intensity, the author advocate the need for contextualizing performance aspiration in industrial environments. The study informs policymakers and business leaders about the interaction between the external environment and internal decision process in R&D investment decision.

Drawing on the related insights from the upper echelon perspective, modern cognitive theory and path dependence theory, this paper aims to first integrate top management teams (TMTs) overseas experiences, research and development (R&D) strategic decision-making and innovation performance into a uniform theoretical framework and try to understand TMTs’ overseas experiences accounting for both the direct and indirect mechanisms of the variables involved within the transition economy of China.

The paper adopts research sample from the listed companies on the Growth Enterprises Market Board (GEMB) of Shenzhen Stock Exchange of China due to their stronger innovation consciousness. The research data are mainly from the WIND database of China, as the data issued in this database must be checked and approved by China’s legal institutions including China Securities Regulatory Commission and its authorized agencies. The samples cover different types of ownership and the vast majority of industries of China, which makes the objects a wide range of coverage and representativeness. In addition, according to suggestions of Podsakoff et al. (2003), the authors design the controlling measures from two aspects of data collection and statistical analysis to reduce the homologous error as much as possible.

Empirical results show that innovation performance is positively affected by the centrality overseas functional experience and industrial experience but negatively affected by the heterogeneity of overseas functional experience of TMT. Meanwhile, R&D intensity and modes play partially mediating effect in the relationship between TMTs’ overseas functional experience centrality and industrial experience heterogeneity and innovation performance, but for the relationship between overseas functional experience heterogeneity and innovation performance, R&D intensity leads to fully mediating effect.

This study contributes toward filling the gaps by elucidating the effect of TMTs’ overseas experiences on the innovation performance, identifying the mediating role of R&D strategic decision-makings in this relationship and empirically examining the acting mechanisms and paths of the variables involved in the Chinese context. In addition, practitioners could use these findings to improve their selection and training processes regarding both the top management members and the designing of the R&D strategies.

This study aims to investigate how relatively weaker manufacturers respond to the dominance of stronger suppliers and/or customers. The study also analyzes how the competitive intensity perceived by manufacturers moderates their responses to powerful chain partners.

Using hierarchical regression, data from 1,417 manufacturing companies sampled from the fifth and sixth versions of the International Manufacturing Strategy Survey were analyzed.

This study found that relatively weaker manufacturers often adopt exploration strategies to countervail the dominance of suppliers and adopt exploitation strategies to deal with more powerful customers. In dealing with both dominant suppliers and customers, relatively weaker manufacturers are prone to adopt exploration and exploitation strategies simultaneously and hence become ambidextrous. Furthermore, the link between dominance in supply chains and the exploration (exploitation) strategy is strengthened (weakened) as market competition perceived by manufacturers intensifies.

The contribution of this paper is multi-folds. First, this paper develops and test a novel theoretical model on how relatively weaker manufacturers create tailored strategies to defend their positions in the supply chain. Second, it integrates resource dependence theory and organizational learning theory to propose that relatively weaker manufacturers could use a unique configuration of exploration and exploitation strategies to counteract the dominance of their suppliers and customers. Third, it investigates supply chain power by considering the manufacturers’ upstream and downstream powerful partners together, rather than individually and fourth, it reveals that relationships linking supply chain power to manufacturers’ tailored strategies are contingent on competitive intensity.

This study aims to explore the strategic impact of R&D and export activity on the diverse dimensions of US manufacturing firms’ performance. It also explores, using a predictive analytic model, the interactive synergistic effect that R&D and exports have on firm performance.

This study presents an innovative two-stage regression-neural network approach. Complementing conventional statistical analysis, the predictive backpropagation neural network explores the relative impact of R&D and exports and their synergistic effect on firm performance.

This study demonstrates the significant and positive effect of R&D and export strategy/activity on the economic performance of leading US manufacturing firms, particularly on their market-based performance (i.e. sustained growth rate or SGR). Furthermore, this study finds that the synergistic effect of R&D and exports on short-term performance (i.e. return on investment) is positive in high-tech firms but negative in low-tech firms. However, the synergistic effect on SGR is increasingly positive regardless of the level of technology.

In addition to traditional statistical analysis, this study uniquely investigates the relative importance of selected strategic variables, along with R&D and export activity and their differential synergistic effects, for firms’ economic performance in contrasting industry settings (high-tech vs low-tech).

The purpose of this study is to investigate the moderating roles of innovation intensity and lenders’ monitoring on the relation between financial slack and performance.

This study adopts an empirical method using data from firms listed in both the Compustat S&P500 and Boardex for the period 2010 to 2019 to analyze the effects of innovation intensity and lenders’ monitoring on the relation between financial slack and performance.

The authors find that financial slack is positively related to performance, and this relation is stronger as innovation intensity increases. Furthermore, we demonstrate that lenders’ monitoring strengthens the positive relationship between financial slack and performance.

First, this study focuses on the effects of financial slack, research and development (R&D) intensity and lenders’ monitoring on financial performance. Future research might extend this study by investigating the effects of these variables on non-financial performance. Second, the data and results do not provide insights into the reasons for firms to accumulate financial slack. Future research might conduct a longitudinal field study to understand why firms build financial slack. Finally, this study only uses R&D intensity and lenders’ monitoring as the moderating variables. Future studies might incorporate other contingency variables such as firms’ budgeting and budget-based compensation systems to provide useful insights into the relationship between financial slack and performance.

This study provides important insights into the value of financial slack for firms that invest heavily in R&D activities. This study also provides useful insight into the benefits of lenders’ monitoring to mitigate managers’ unethical behavior.

This study provides useful insights for companies that invest heavily in innovation activities by showing that financial slack is beneficial for this company and lenders’ monitoring is needed to discipline managers in using the slack resources.

This study is the first to investigate the moderating effects of innovation intensity and lenders’ monitoring on the relation between financial slack and performance. Previous studies focus their investigations on the direct effect of financial slack and performance.

Firms that pursue invention face special conditions that heighten the potential conflict between managers and shareholders. High R&D spending increases the information asymmetry between managers and shareholders because the invention process is rooted in tacit knowledge. Because tacit knowledge is difficult to communicate to external parties, shareholders will have problems monitoring whether managers are spending R&D in a manner that maximizes firm value.

Using agency theory, it is argued that managerial ownership is one solution to this problem and that high levels of R&D intensity will necessitate high levels of managerial ownership to counteract agency problems. However, it is also argued based on signaling theory that a firm's patenting activity reduces ownership requirement as well as moderating the managerial ownership‐R&D relationship.

Using a sample of firms from the knowledge‐intensive biotechnology industry, a positive relationship was found between R&D spending and managerial ownership. It was also found that this relationship is most strongly moderated by patenting activity.

The findings would be strengthened by replication using samples from other knowledge‐intensive industries. Future research should examine how the critical determinants of success in other industries affect managerial ownership of firms in those industries.

The study shows that top managers have some control over the contracting environment. By aggressively pursuing patents managers can reduce their level of ownership in the firm.

The study finds evidence that in order to prevent agency problems firms undertaking inventive activity may require their managers to take larger ownership or aggressively pursue patents. High managerial ownership levels and patents can provide a signal to shareholders about the growth potential of the firm.

The study aims to examine the military-connected firms' risk preference, specifically in the innovation intensity level context. The authors argue that firms with military-experienced top management have conservative and risk-averse behavior, influencing the innovation investment policy.

The authors use nonfinancial Indonesian-listed firms from 2010 to 2018 amounted to 2,504 firm-year observations.

The authors document a negative relationship between military connection with both innovation activities and outputs. The additional analysis documents that risk-preferences of military-connected firms will be drastically changed when the industry has a high digital level, which confirms that risk-averse military-experienced management is less dominant with adaptation skill. The authors also identify that veterans did not need a long tenure to influence firms' innovation investment policy. Lastly, the result is robust due to various endogeneity tests employed.

This study further examines military-connected firms' technological innovation compared to prior studies and enriches the related literature.

Servitization has been used widely by manufacturing firms to secure strategic positions in industrial transformation. However, its impact on firms’ market power remains to be investigated, especially in developing countries. This study aims to investigate servitization’s impact on firms’ market power, along with the moderating roles of research and development (R&D) intensity and firm size.

Using the two-stage least squares with instrumental variables (2SLS-IV) method, the authors conduct an empirical analysis of servitization in China based on panel data for 1,797 publicly traded manufacturing firms during the period 2012–2018.

The findings show that servitization helps increase a firm’s market power. Furthermore, heterogeneity analysis suggests that embedded servitization increases a firm’s market power, whereas hybrid servitization reduces it. The findings also indicate that this effect varies depending on critical firm conditions. Servitization’s effect on firms’ market power increases with R&D intensity but decreases with manufacturer expansion.

This study describes the positive effects of servitization on firms’ market power in response to calls for research that will adopt a comprehensive business performance perspective on the servitization field.

The findings provide guidance for what type of servitization manufacturing firms should choose and how it fits with their size and R&D capabilities.

This pioneering empirical study uses a large longitudinal data set and the 2SLS-IV method to examine the effects of embedded servitization and hybrid servitization on firms’ market power. The findings provide a new perspective on ongoing discussions of “desertification” and the “service paradox.”