The Effect of Business Strategy on R&D Expenditure and Firm Performance - Evidence from Taiwan

• Autorzy: Tran Thi Thanh Nga , The Hoang Vy , Khanh Duy Pham
• Języki publikacji: EN

Abstrakty

EN

This paper aims to investigate the effect of generic strategy on R&D spending and the impact of R&D spending on firms' performance conditional on their strategic position. This empirical study uses accounting data of 597 listed Taiwanese firms in the manufacturing industry from 2013 to 2017. The data was obtained from Taiwan Economic Journal (TEJ) database. The results indicate that firms that adopt a differentiation strategy have more R&D spending than companies with a cost leadership strategy. Furthermore, the authors find that R&D spending positively affects firms' performance if they pursue a differentiation strategy. Meanwhile, the relationship between R&D spending and firm performance forms an inverted U-shape for those who adopt a cost leadership strategy. First, for firms adopting the differentiation strategy, the investment in R&D is critical because the more investment on R&D these firms spend, the better performance they will gain. Second, for firms with a cost-leadership strategy, R&D spending is also essential to improve efficiency. However, they should allocate the budgets wisely and reasonably, as controlling cost is the main focus of this strategy to keep their competitive advantages. This study examines the relationship between R&D spending, business strategy, and firm performance in Taiwan. Further, the study suggests that manufacturing firms in Taiwan allocate their resources wisely and efficiently according to their system. (original abstract)

Słowa kluczowe

EN

Business strategy; R&D in the enterprise

PL

Strategia biznesowa; Sfera B+R w przedsiębiorstwie

• Czasopismo: Management Systems in Production Engineering
• Rocznik: 2022
• Tom: 30
• Numer: nr 1
• Strony: 80--90

Twórcy

autor

Tran Thi Thanh Nga

• University of Finance and Marketing, Ho Chi Minh City

autor

The Hoang Vy

• University of Finance and Marketing, Ho Chi Minh City

autor

Khanh Duy Pham

• University of Economics Ho Chi Minh City

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Identyfikatory

DOI

10.2478/mspe-2022-0011