Balancing allocative and dynamic efficiency with redundant R&D allocation: The role of organizational proximity and centralization

IF 6.5 1区 管理学 Q1 BUSINESS Strategic Management Journal Pub Date : 2024-09-02 DOI:10.1002/smj.3662
Vivek Tandon, Anand Nandkumar, Ronak Mogra, Kannan Srikanth
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Abstract

Research SummaryResource‐based‐view scholars have mainly examined two resource allocation approaches for competitive advantage in multiunit firms: resource sharing and resource redeployment. These approaches emphasize allocative efficiency—the optimal allocation of resources to maximize their current value. In technology‐intensive industries, firm success also requires achieving dynamic efficiency to increase its future value‐creation. We propose that the redundant allocation of resources—the parallel deployment of non‐scale‐free resources towards the same objective—although allocatively inefficient, increases dynamic efficiency by stimulating inter‐unit competition. Firms' structural features moderate these effects. An analysis of large pharmaceutical firms reveals that redundant R&D increases innovations with high firm‐specific value but simultaneously increases project terminations to reduce wastage. Organizational proximity increases the former effect and decreases the latter. Firm's R&D centralization amplifies the effect of unit proximity.Managerial SummaryIn technology‐intensive industries, multiunit firms often employ redundant allocation of R&D resources, that is, the parallel deployment of scientists and equipment in different units towards realizing the same business objective. Although common, there is little managerial guidance on how this practice impacts firms' R&D outcomes, and how organizational characteristics influence this relationship. An analysis of large pharmaceutical firms reveals that redundant allocation of R&D resources across units increases wastage but also stimulates competing units to create innovations with high firm‐specific value. Organizationally proximate units are less likely to have their redundant projects terminated, while creating more high‐value‐innovations. Centralization of the firm's R&D amplifies the effect of unit proximity.
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利用冗余研发分配平衡分配效率和动态效率:组织接近性和集中化的作用
研究摘要基于资源观的学者们主要研究了两种促进多单位企业竞争优势的资源配置方法:资源共享和资源调配。这些方法强调分配效率--资源的最优配置,以实现资源当前价值的最大化。在技术密集型产业中,企业的成功还需要实现动态效率,以增加其未来的价值创造。我们提出,冗余的资源配置--为实现同一目标而并行配置非规模资源--虽然在分配上效率低下,但却能通过刺激单位间的竞争来提高动态效率。企业的结构特征会缓和这些效应。对大型制药企业的分析表明,冗余研发增加了企业特有价值高的创新,但同时也增加了项目终止以减少浪费。组织的接近性增加了前一种效应,减少了后一种效应。管理总结在技术密集型产业中,多单位企业经常采用研发资源冗余分配的做法,即在不同单位平行部署科学家和设备,以实现相同的业务目标。虽然这种做法很常见,但对于这种做法如何影响企业的研发成果,以及组织特征如何影响这种关系,却很少有管理方面的指导。对大型制药公司的分析表明,研发资源在不同单位之间的冗余分配会增加浪费,但同时也会刺激竞争单位创造出具有高公司特定价值的创新。组织结构相近的单位终止多余项目的可能性较小,但却能创造出更多高价值创新。公司研发的集中化扩大了单位邻近性的影响。
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来源期刊
CiteScore
13.70
自引率
8.40%
发文量
109
期刊介绍: At the Strategic Management Journal, we are committed to publishing top-tier research that addresses key questions in the field of strategic management and captivates scholars in this area. Our publication welcomes manuscripts covering a wide range of topics, perspectives, and research methodologies. As a result, our editorial decisions truly embrace the diversity inherent in the field.
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