R&D project termination decisions by discriminant analysis-aninternational comparison

Substantial efforts have been made to improve R&D project termination decisions. One major stream of research has demonstrated that discriminant functions can distinguish between successful and unsuccessful projects. It is of considerable importance to test the validity of discriminant functions. In the present study the authors show the applicability of a discriminant function that was originally developed by Balachandra for US R&D projects to data from British and German R&D projects. The results are mixed. It is encouraging that a very high percentage of projects can be correctly classified as successes or failures. But the discriminant functions vary between countries. Thus, the results reveal different management perceptions of project success factors in these countries     

To terminate or not an ongoing R&D project: a managerialdilemma

This empirical study attempts to develop a framework to assist managers in deciding whether to abandon an ongoing research and development (R&D)/innovation project at various stages of R&D. The monitoring framework is based upon the models developed through multiple logistic regression analysis on a data set of 60 successful and unsuccessful projects. The technique determines those factors which discriminate between success and failure of a project. The major advantage of the proposed framework is that it provides a single indicator which can be used to monitor the success of an ongoing project at various stages over its life span. The indicator incorporates the combined effect of all the factors and avoids the problem of setting thresholds for individual factors or success indicators     

Innovation strategy and the R&D-marketing interface in Japanesefirms: a contingency perspective

This study proposes a contingency model suggesting that a firm's strategic position will affect cross-functional involvement and information sharing between R&D and marketing departments in five major new product development stages, as well as the quality of R&D-marketing relations and organizational structure. To test the model, the authors surveyed 274 R&D managers and 264 marketing managers in 315 Japanese high-technology firms. The results indicate that, contrary to anecdotal suppositions of Japanese firm homogeneity, Japanese firms differ among themselves and among the strategic types in several important ways. The results also suggest that the level of R&D-marketing integration should be contingent on new product development strategy, making uniform promotion of cross-functional team integration questionable. Despite the differences in innovation strategy pursued by aggressive new product developers versus nonaggressive new product developers, all three strategic types rank the stages of innovation in a similar manner     

Message and source factors, market uncertainty, and extrafunctionalinformation processing: hypotheses and empirical evidence

This article examines how the perceived quality of extrafunctional information improves the innovation management process and contributes to success with innovations. Data collected from 420 Japanese managers and 270 US managers are used to test hypotheses about the antecedents of satisfaction with extra-functional information and the impacts on new product performance. The results demonstrate that the level of marketing and R&D managers' satisfaction with extrafunctional information is an important predictor of new product success and financial performance. The results also show that marketing and R&D managers differ significantly in their preferences and criteria for evaluating extrafunctional information. The empirical evidence suggests that the factors that increase R&D's satisfaction with market information are not necessarily the same as those that increase marketing's satisfaction with R&D satisfaction. Each functional area should recognize which message factors are most related to high satisfaction with received information, and emphasize these when sending such information. The authors also discovered the moderating effects of market and technical uncertainty that should provide guidance for marketing and R&D managers on how to allocate their efforts in information transfer based on the external environment. The empirical findings also revealed some cross-cultural differences, as well as a few similarities, between US and Japanese respondents     

Recommendations from the commercialization of government-sponsoredtelecommunications R&D with multiple development cycles inKorea

A number of government-sponsored large-scale R&D projects in the telecommunications sector have been carried out in Korea. Among them is the time division exchange (TDX) project that lasted for more than 15 years. The project has two characteristics: the commercialization of government-sponsored R&D and the commercialization of R&D with multiple development cycles. This paper describes these characteristics of the project from various viewpoints: product development strategy, the role of each organization, success factors of each product, the classification of commercial products by commercialization model, and technology transfer strategies encouraging participation of manufacturing firms. We conclude with several recommendations     

Recent progress in modeling R&D project-selection processes

The authors review the progress that has been made in the development of quantitative models of R&D project-selection processes. Future research needs in the area are assessed. R&D project-selection has traditionally been modeled in the management science literature as a constrained optimization problem. The deficiencies of this approach have been described, and the need for new approaches has been recognized. In particular, the optimization approach ignores the organizational context in which decisions are made. A new stream of research in R&D project-selection models emerged in the 1970s in response to this need. The philosophy underlying the new approach differs significantly from traditional optimization models. The new approach seeks insight rather than outcomes and focuses on the decision process     

Technology development and integration: an empirical study of theinteraction between applied science and product development

The authors report on the results of an empirical study of the development of products based on novel technologies. Their observations are based on field investigations of recent projects performed by all leading mainframe computer producers. All projects focused on the development of advanced technologies for a specific product application, and probed deeply into its science base. The results indicate striking differences in development lead time and R&D productivity between different groups of firms. The authors relate the development performance of the projects to managerial and organizational structures and processes for the integration of new technology     

转变产品研发体系推动电信企业转型

企业转型是商业模式的再设计,中国电信企业的传统商业模式已经不适应当前的商业环境,亟需创建成功的新商业模式,实现企业转型。对于当前的中国电信企业来说,转型成功的关键因素是实现从基于产品的研发体系到基于商业模式的产品研发体系的转变。基于商业模式的产品研发体系应与战略紧密结合,建立跨部门的合作机制和目标研发管理框架,并以客户为中心设计解决方案。     

An interactive approach for selecting IR&D projects

The authors present a strategy for systematically allocating resources to competing independent research and development (IR&D) projects in a company building systems for the US Department of Defense. The approach is less mathematically complex than many techniques reported in the literature, utilizing the judgement of key business and technical elements in the organization. The authors first give a taxonomy characterizing various approaches and briefly review R&D selection methods reported in literature. Then they describe an interactive process that they have developed for selecting IR&D projects which, rather than substituting complex calculations for good technical and material judgement, facilitates better utilization of the expertise of various organizational elements within the context of corporate strategic planning. Procedures are included for idea submittal and evaluation. Experiences are discussed obtained during the application of the process to a corporation with multiple business units     

R&D/marketing communication during the fuzzy front-end

The planning stage of an innovation project has a great effect on the commercial performance of the project. During the “fuzzy front-end”, the organization formulates a concept of the product to be developed, and determines whether or not the organization will invest resources in the concrete development of the idea. The integration of R&D and marketing activities is a necessary condition for success in innovation projects. The research question of this study is: from an information processing perspective, what role does information transfer play in integrating R&D and marketing functions during the planning stage, and what effects do project formalization and project centralization of R&D and marketing planning activities have on the efficiency of marketing and technological uncertainty reduction? The authors use an ex post facto research design to test the propositional model. The findings show that successful project teams are characterized by a maximum uncertainty reduction during planning, i.e., by a maximum decrease of R&D and marketing task variability, and a maximum increase of R&D and marketing task analyzability. Information flows between these functions help them to achieve this efficient uncertainty reduction. While project centralization has a negative effect on efficient uncertainty reduction, project formalization is curvilinearly related to the amount of uncertainty reduced during planning     

Upward influence styles of R&D project leaders

Innovation is not only a technological but also a sociopolitical process of contested change, which implies that the fate and the result of an R&D project are shaped by how influence is exercised. As a means of encouraging internal entrepreneurial efforts, the capacity of project leaders to successfully influence others has been widely discussed. Nevertheless, only a few studies have systematically investigated the influence behaviors of project leaders. Due to the lack of previous empirical research, we do not know much about the influence behaviors of project leaders, nor about how to manage this phenomenon, if it can be done at all. To address this gap, this study draws on a social influence framework for understanding the upward influence behaviors of the R&D project leaders. The authors propose and test a model that the influence styles used by project leaders are affected by personal, task, and relational factors and in turn affect the project performance. The empirical data of 83 ongoing projects collected from 22 Korean public and private R&D institutes in the electronics/telecommunication, machinery, and chemical industries are analyzed. The results reveal that: (1) project leaders differ not only in the general level of influence but also in how to mix various influence tactics; (2) personal characteristics (need for achievement and self-monitoring) affect the selection of influence styles (that is, tacticians, shotguns, and bystanders) of project leaders; and (3) the influence styles used by project leaders, in turn, have an effect on team performance through the influence that project leaders have on other people. Based on these findings, several theoretical and practical implications related to upward influence behaviors of project leaders and some areas for future research are discussed     

The causes of project failure

A study was conducted of 97 projects identified as failures by the projects' managers or parent organizations. Using the project implementation profile, a set of managerially controllable factors is identified as associated with project failure. The factors differed according to three contingency variables: the precise way in which failure was defined; the type of project, and the stage of the project in its life cycle. Implications for project management and for future research on failed projects are discussed. The results demonstrated empirical justification for a multidimensional construct of project failure, encompassing both internal efficiency and external effectiveness aspects. The fact that the critical factors associated with failure depended on the way in which failure is defined suggests that it is necessary to know considerably more about how project managers define failure (and success) and, indeed how the parent organization makes judgments on the matter     

R&D project selection using the analytic network process

The analytic network process (ANP) is presented as a potentially valuable method to support the selection of projects in a research and development (R&D) environment. This paper first discusses the requirements of the R&D project selection problem, which requires the allocation of resources to a set of competing and often disparate project proposals. Among the factors complicating this task is the need to make the decision within the framework of an enterprise's strategic objectives and organizational structure while considering and integrating financial and strategic benefits of each project. The paper discusses the use of the ANP, a general form of Saaty's analytic hierarchy process, as a model to evaluate the value of competing R&D project proposals. A generic ANP model developed by the authors, which includes in its decision levels the actors involved in the decision, the stages of research, categories of metrics, and individual metrics, is presented. The paper concludes with a case study describing the implementation of this model at a small high-tech company, including data based on the actual use of the decision making model     

The R&D cycle: the influence of product and process R&D onshort-term ROI

The purposes of this paper are first to explore the relationship between the total R&D budget and two major components, product and process R&D, and second, to examine the relationship between these two types of R&D and the profitability of the business. The paper explores a cyclical pattern in the relationship between product and process R&D on the one hand and the short-term return on investment (ROI) of the business on the other hand. The total level of R&D investment plays a key role in this relationship. The foundation of this paper is based on prior work about the changing role of R&D over the life cycle of a new product or a new technology. It is also based on the notions of the S-curve response function and the limited compatibility between product and process R&D. The empirical part of the paper is derived from the PIMS database where the sampling units are strategic business units (SBUs). It is, therefore, different from studies where the focus of analysis is a single product or technology. Two forms of analysis are presented: correlation analysis of the hypothesized relationship and nonparametric tests of the stability of findings. The analysis assumes a lagged relationship between the investment in R&D and performance in terms of ROI. The primary conclusion is that product and process R&D modestly affect ROI two years later. The relationship appears to be different depending on the level of total R&D spending     

An interactive approach to R&D project selection andtermination

A decision support tool is developed that can be used by the R&D manager to effectively update his or her portfolio when a review is called for. The approach is interactive and builds on two sets of critical factors. Initially, projects are screened to see if they are at an acceptable level, and if they are making reasonable progress toward completion. Those failing the test are terminated, those remaining are weighed with candidate projects to determine which should be included in the portfolio. This is achieved with a mathematical programming routine that maximizes expected returns. A case study centering on a peripheral equipment manufacturer is presented to demonstrate the methodology     

Determinants of new industrial product performance: a strategicre-examination of the empirical literature

Research on the determinants of industrial innovation performance using a three-dimensional framework is examined. Those dimensions are: generality over innovations, decision focus, and managerial controllability. The major determinants identified are: strategic and organizational factors, including general management's support, business-project fit, and R&D-marketing interaction; R&D and production factors, including product superiority, experience and synergy effect, user benefit of the product, and patent protection; and market and environmental factors, including degree of competition and market growth. An empirical study of 112 industrial products confirms that dynamic interaction exists between these determinants and the launch time of the product     

Integrating R&D and marketing: a comparison of practices in theJapanese and American chemical industries

The authors analyze survey information collected from R&D and marketing managers working for American and Japanese chemical manufacturers. They report three key differences in the R&D marketing relationships between Japanese and American firms. Those differences involve the procedures for allocating the tasks between the functional areas, the activities assigned to each area as a result, and the potential for conflict between the two functions. Specifically, the authors find evidence that R&D departments in Japanese firms have a larger role in new product development than do marketing departments. American firms are not characterized by the same asymmetry in their relationship. Finally, the American firms studied did exhibit a greater potential for conflict between functions     

Organization, autonomy, and success of internationally dispersedR&D facilities

The organization and autonomy of internationally dispersed R&D facilities and their influence on the success of R&D are analyzed from the point of view of their headquarters. It is shown that different organizational structures for internationally dispersed R&D are connected with specific degrees of autonomy. The three classical success factors-timing, performance, and budgeting-for measuring project success can be identified. Although quite a few R&D facilities are left with a high degree of autonomy, these units are not perceived, with respect to these success factors, to be as successful as those facilities with a lower degree of autonomy and a low degree of centralization     

Following the leader in R&D: the joint effect of subordinateproblem-solving style and leader-member relations on innovative behavior

There have been relatively few theoretically-based empirical studies of leadership in research and development (R&D) settings despite theoretical indications of its importance. Some recent studies have found support for a relationship between transformational leadership and R&D project success. In the current study, the authors discuss the transactional and transformational nature of leader-member-exchange (LMX) theory. They then develop hypotheses regarding the relationship of LMX and problem-solving style to individual innovative behavior. They tested these hypotheses in two independent samples of R&D professionals. The results of hierarchical regression supported the hypotheses; innovative behavior was negatively related to associative and positively related to bisociative problem-solving style and innovative behavior was positively related to LMX. Further, LMX explained variance in innovative behavior beyond that explained by problem-solving style alone. This relationship was shown to hold regardless of the type of task in which the R&D professionals were engaged. Implications for theory and for practising managers are discussed     

Impact of Cooperative R&D Projects on ICT‐Based Technology Convergence

This study examines how the characteristics of cooperative research and development (R&D) projects in the public domain impact information and communication technology (ICT) convergence. Based on the analysis of 416 cooperative R&D projects under the ICT‐based industry convergence R&D program in Korea, the study finds that the characteristics of cooperative R&D projects significantly impact ICT convergence. Moreover, the participation of public research institutes and universities is critical for ICT convergence compared with that of firms. However, in firm‐to‐firm cooperation, the participation of small and medium enterprises contributes to cross‐sectional convergence, while the participation of large firms leads to overall and longitudinal convergence. R&D inputs such as the number of partners and government subsidies exhibit an inverted U‐shaped relationship (negative quadratic effect) with technology convergence. Project duration and homogeneous partners are also critical factors for ICT convergence. The results indicate several implications and guidelines on how to effectively organize cooperative R&D projects to facilitate technology convergence.