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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…
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.
The study of business ethics has seldom shed light on small- and medium-sized enterprises (SMEs) despite their theoretical and practical significance. Drawing from strain…
The study of business ethics has seldom shed light on small- and medium-sized enterprises (SMEs) despite their theoretical and practical significance. Drawing from strain perspective, the purpose of this paper is to address this insufficiency and investigate SME owners’ ethical attitudes toward money-related deviances.
Based on a large sample of 741 Chinese SMEs, an OLS regression analysis was employed to test associated hypotheses. The robustness of results was additionally checked.
The results suggest that for stratification variables, education level is positively related to ethical attitudes, whereas household income level is surprisingly negatively associated with ethical attitudes; for materialism facets, success and happiness exert a negative impact on ethical attitudes as hypothesized, but centrality has no associated impact.
This study has examined both structural and motivational sources of personal strains on the ethical attitude of SME owners, while the characteristics of these strains could be explored in the future studies.
This study advances and complements the dominant behavior approach that emphasizes cognitive and other psychological processes in explaining individual ethical attitudes. It is also seemingly the first study to examine the influence of three materialism facets on entrepreneurial ethical attitudes.