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Managerial Cognition in R&D Processes Within Indian hi-tech firms: A Conceptual Framework

Year 2013, Volume: 2 Issue: 3, 79 - 98, 01.12.2013

Niharika Garud Lakshmanan Prasad

Abstract

New products are a source of firms’ competitive advantage. Research on R&D investments, processes and performance has majorly been at the level of analysis of organizations. In this research, we theorize and build theoretical arguments on managerial cognition in R&D projects and impact on performance within firms at an individual level entrepreneurial decision-making and resource utilization processes. We bridge behavioral-decision with cognitive perspective in building propositions on R&D processes. We examine corporate R&D managers, under resource constraints and high uncertainty, apply cognitive processes to take decisions and how it affects performance. We argue that cognitive processes are moderated by political skills of R&D manager and how it affects performance. This research also builds our understanding of managerial cognition under uncertainty within large organizations.

Keywords

management of innovation R&D emerging economies resource constraints

References

  • Adams, R., Bessant, J., & Phelps, R. (2006) “Innovation Management Measurement: A Review”. International Journal of Management Reviews, 8(8): 21-47.
  • Baker, T., Miner, A. S., & Eesley, D. T. (2003) “Improvising firms: Bricolage, account giving and improvisational competencies in the founding process”. Research Policy, 32(2): 255-276.
  • Bantel, K. A., & Jackson, S. E. (1989) “Top management and innovations in banking: Does the composition of the top team make a difference?” Strategic Management Journal, 10(S1): 107–124.
  • Bedrock, R., & Watson, T. (1993) “Managing innovation for survival and growth: Rotunda PLC — a case in point”. Paper presented at 16th National Small Firms Policy and Research Conference.
  • Brettel, M., Mauer, R., Engelen, A., & Kupper, D. (2012) “Corporate effectuation: Entrepreneurial action and its impact on R&D project performance”. Journal of Business Venturing, 27(2): 167-184.
  • Brinckmann, J., Grichnik, D., & Kapsa, D. (2010) “Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting business planning-performance relationship in small firms”. Journal of Business Venturing, 25(1): 24-40.
  • Burgelman, R. (1983) “Corporate entrepreneurship and strategic management: Insights from a process study”. Management Science, 29(12): 1349-1364.
  • Busenitz, L. W., & Barney, J. B. (1997) “Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making”. Journal of Business Venturing, 12(1): 9-30.
  • Campbell, C. A. (1992) “A decision theory model for entrepreneurial acts”. Entrepreneurship Theory & Practice, 17(1): 21.
  • Chandler, G. N., McKelvie, A., DeTienne, D., & Mumford, T. (2011) “Causation and effectuation processes: A validation study”. Journal of Business Venturing, 26(3): 375-390.
  • Cohen, W. M., & Levinthal, D. A. (1990) “Absorptive capacity: A new perspective on learning and innovation”. Administrative Science Quarterly, 35(1).
  • Davenport, T. H., & Short, J., E. (1990) “The new industrial engineering: Information technology and business process redesign”. Sloan Management Review, Summer 11-27.
  • Deeds, D. L. (2001) “The role of R&D intensity, technical development and absorptive capacity in creating entrepreneurial wealth in high technology start-ups”. Journal of Engineering and Technology Management, 18(1): 29-47.
  • Deeds, D. L., Decarolis, D., & Coombs, J. (2000) “Dynamic capabilities and new product development in high technology ventures: An empirical analysis of new biotechnology firms”. Journal of Business Venturing, 15(3): 211-229.
  • Deutsch, Y. (2007) “The influence of outside directors’ stock-option compensation on firms’ R&D”. Corporate Governance: An International Review, 15(5): 816-827.
  • Dew, N., Read, S., Sarasvathy, S. D., & Wiltbank, R. (2009) “Effectual versus predictive logics in entrepreneurial decision-making: Differences between experts and novices”. Journal of Business Venturing, 24(4): 287-309.
  • Dutz, M. A. (2007) Unleashing India’s innovation: Toward sustainable and inclusive growth. Washington DC: The World Bank.
  • Ferris, G. R., Treadway, D. C., Kolodinsky, R. W., Hochwarter, W. A., Kacmar, C. J., Douglas, C., & Frink, D. D. (2005) “Development and validation of the political skill inventory”. Journal of Management, 31(1): 126-152.
  • Ferris, G. R., Treadway, D. C., Perrewe, P. L., Brouer, R. L., Douglas, C., & Lux, S. (2007) “Political skill in organizations”. Journal of Management, 33(3): 290-320.
  • Fredrickson, J. W., & Iaquinto, A. L. (1989) “Inertia and creeping rationality in strategic decision processes”. Academy of Management Journal, 32(3): 516-542.
  • Green, S. G., Welsh, M. A., & Gordon, E. D. (2003) “Advocacy, performance, and threshold influences on decisions to terminate new product development”. The Academy of Management Journal, 46(4): 419-434.
  • Greve, H. R. (2003) Organizational learning from performance feedback: A behavioral perspective on innovation and change. Cambridge: Cambridge University Press.
  • Griffin, A. (2002) “Product development cycle time for business-to-business products”. Industrial Marketing Management, 31(4): 291-304.
  • Grinstein, A. (2008) “The effect of market orientation and its components on innovation consequences: a meta-analysis”. Journal of the Academy of Marketing Science, 36(2): 691-703.
  • Hoffman, K., Parejo, M., Bessant, J., & Perren, L. (1998) “Small firms, R&D, technology and innovation in the UK: A literature review”. Technovation, 18(1): 39-55.
  • Kessler, E. H., & Chakrabarti, A. K. (1996) “Innovation speed: A conceptual model of context, antecedents, and outcomes”. Academy of Management Review, 21(4): 1143-1191.
  • Klein, K. J., & Sorra, J. S. (1996) “The challenge of innovation implementation”. Academy of Management Review, 21(4): 1055-1080.
  • Lichtenthaler, U. (2009) “Absorptive capacity, environmental turbulence, and the complementarity of organizational learning processes”. Academy of Management Journal, 52(4): 822-846.
  • Lyon, D. W., Lumpkin, G. T., & Dess, G. G. (2000) “Enhancing entrepreneurial orientation research: Operationalizing and measuring a key strategic decision making process”. Journal of Management, 26(5): 1055-1085.
  • Mintzberg, H., & Waters, J. A. (1985) “Of strategies, deliberate and emergent”. Strategic Management Journal, 6(3): 257-272.
  • Olson, E. M., Walker, O. C., Ruekerf, R. W., & Bonnerd, J. M. (2001) “Patterns of cooperation during new product development among marketing, operations and R&D: Implications for project performance”. Journal of Product Innovation Management, 18(4): 258-271.
  • Parthasarthy, R., & Hammond, J. (2002) “Product Innovation Input And Outcome: Moderating Effects Of The Innovation Process”. Journal of Engineering and Technology Management, 19(1): 75-91.
  • Petersen, K. J., Handfield, R. B., & Ragatz, G. L. (2003) “A Model Of Supplier Integration Into New Product Development”. Journal of Product Innovation Management, 20(4): 284-299.
  • Read, S., Song, M., & Smit, W. (2009) “A Meta-Analytic Review Of Effectuation And Venture Performance”. Journal of Business Venturing, 24(6): 573-587.
  • Salancik, G. R., & Pfeffer, J. (1978) “Social information processing approach to job attitudes and task design”. Administrative Science Quarterly, 23(2): 224-253.
  • Sarasvathy, S. D. (2001) “Causation and effectuation: towards a theoretical shift from economic inevitability to entrepreneurial contingency”. Academy of Management Review, 26(2): 243-263.
  • Sarasvathy, S. D. (2008) Effectuation: Elements of entrepreneurial expertise. Northampton, MA, USA: Edward Elgar Publishing, Inc.
  • Schumpeter, J. (1947) The Creative Response in Economic History, Journal of Economic History, November, pp. 149-159
  • Scott, S. G., & Bruce, R. A. (1994) “Determinants of innovative behavior: A path model of individual innovation in the workplace”. The Academy of Management Journal, 37(3): 580-607.
  • Seidel, V. (2007) “Concept shifting and the radical product development process”. Journal of Product Innovation Management, 24: 522-533.
  • Senyard, J. M., Baker, T., & Steffens, P. R. (2010) “Entrepreneurial bricolage and firm performance: Moderating effects of firm change and innovativeness”, Annual Meeting of the Academy of Management. Montreal, Canada.
  • Weick, K. E., (1993) “The collapse of sensemaking in organizations: The Man Gulch disaster”. Administrative Science Quarterly, 38: 628-652.
  • West, M., & Farr, J. (1989) “Innovation at work: Psychological perspectives”. Social Behavior, 4: 15-30.
  • Wiltbank, R., Dew, N., Read, S., & Sarasvathy, S. D. (2006) “What to do next? The case for non-predictive strategy”. Strategic Management Journal, 27(10): 981-998.

Managerial Cognition in R&D Processes Within Indian hi-tech firms: A Conceptual Framework

Year 2013, Volume: 2 Issue: 3, 79 - 98, 01.12.2013

Niharika Garud Lakshmanan Prasad

Abstract

References

  • Adams, R., Bessant, J., & Phelps, R. (2006) “Innovation Management Measurement: A Review”. International Journal of Management Reviews, 8(8): 21-47.
  • Baker, T., Miner, A. S., & Eesley, D. T. (2003) “Improvising firms: Bricolage, account giving and improvisational competencies in the founding process”. Research Policy, 32(2): 255-276.
  • Bantel, K. A., & Jackson, S. E. (1989) “Top management and innovations in banking: Does the composition of the top team make a difference?” Strategic Management Journal, 10(S1): 107–124.
  • Bedrock, R., & Watson, T. (1993) “Managing innovation for survival and growth: Rotunda PLC — a case in point”. Paper presented at 16th National Small Firms Policy and Research Conference.
  • Brettel, M., Mauer, R., Engelen, A., & Kupper, D. (2012) “Corporate effectuation: Entrepreneurial action and its impact on R&D project performance”. Journal of Business Venturing, 27(2): 167-184.
  • Brinckmann, J., Grichnik, D., & Kapsa, D. (2010) “Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting business planning-performance relationship in small firms”. Journal of Business Venturing, 25(1): 24-40.
  • Burgelman, R. (1983) “Corporate entrepreneurship and strategic management: Insights from a process study”. Management Science, 29(12): 1349-1364.
  • Busenitz, L. W., & Barney, J. B. (1997) “Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making”. Journal of Business Venturing, 12(1): 9-30.
  • Campbell, C. A. (1992) “A decision theory model for entrepreneurial acts”. Entrepreneurship Theory & Practice, 17(1): 21.
  • Chandler, G. N., McKelvie, A., DeTienne, D., & Mumford, T. (2011) “Causation and effectuation processes: A validation study”. Journal of Business Venturing, 26(3): 375-390.
  • Cohen, W. M., & Levinthal, D. A. (1990) “Absorptive capacity: A new perspective on learning and innovation”. Administrative Science Quarterly, 35(1).
  • Davenport, T. H., & Short, J., E. (1990) “The new industrial engineering: Information technology and business process redesign”. Sloan Management Review, Summer 11-27.
  • Deeds, D. L. (2001) “The role of R&D intensity, technical development and absorptive capacity in creating entrepreneurial wealth in high technology start-ups”. Journal of Engineering and Technology Management, 18(1): 29-47.
  • Deeds, D. L., Decarolis, D., & Coombs, J. (2000) “Dynamic capabilities and new product development in high technology ventures: An empirical analysis of new biotechnology firms”. Journal of Business Venturing, 15(3): 211-229.
  • Deutsch, Y. (2007) “The influence of outside directors’ stock-option compensation on firms’ R&D”. Corporate Governance: An International Review, 15(5): 816-827.
  • Dew, N., Read, S., Sarasvathy, S. D., & Wiltbank, R. (2009) “Effectual versus predictive logics in entrepreneurial decision-making: Differences between experts and novices”. Journal of Business Venturing, 24(4): 287-309.
  • Dutz, M. A. (2007) Unleashing India’s innovation: Toward sustainable and inclusive growth. Washington DC: The World Bank.
  • Ferris, G. R., Treadway, D. C., Kolodinsky, R. W., Hochwarter, W. A., Kacmar, C. J., Douglas, C., & Frink, D. D. (2005) “Development and validation of the political skill inventory”. Journal of Management, 31(1): 126-152.
  • Ferris, G. R., Treadway, D. C., Perrewe, P. L., Brouer, R. L., Douglas, C., & Lux, S. (2007) “Political skill in organizations”. Journal of Management, 33(3): 290-320.
  • Fredrickson, J. W., & Iaquinto, A. L. (1989) “Inertia and creeping rationality in strategic decision processes”. Academy of Management Journal, 32(3): 516-542.
  • Green, S. G., Welsh, M. A., & Gordon, E. D. (2003) “Advocacy, performance, and threshold influences on decisions to terminate new product development”. The Academy of Management Journal, 46(4): 419-434.
  • Greve, H. R. (2003) Organizational learning from performance feedback: A behavioral perspective on innovation and change. Cambridge: Cambridge University Press.
  • Griffin, A. (2002) “Product development cycle time for business-to-business products”. Industrial Marketing Management, 31(4): 291-304.
  • Grinstein, A. (2008) “The effect of market orientation and its components on innovation consequences: a meta-analysis”. Journal of the Academy of Marketing Science, 36(2): 691-703.
  • Hoffman, K., Parejo, M., Bessant, J., & Perren, L. (1998) “Small firms, R&D, technology and innovation in the UK: A literature review”. Technovation, 18(1): 39-55.
  • Kessler, E. H., & Chakrabarti, A. K. (1996) “Innovation speed: A conceptual model of context, antecedents, and outcomes”. Academy of Management Review, 21(4): 1143-1191.
  • Klein, K. J., & Sorra, J. S. (1996) “The challenge of innovation implementation”. Academy of Management Review, 21(4): 1055-1080.
  • Lichtenthaler, U. (2009) “Absorptive capacity, environmental turbulence, and the complementarity of organizational learning processes”. Academy of Management Journal, 52(4): 822-846.
  • Lyon, D. W., Lumpkin, G. T., & Dess, G. G. (2000) “Enhancing entrepreneurial orientation research: Operationalizing and measuring a key strategic decision making process”. Journal of Management, 26(5): 1055-1085.
  • Mintzberg, H., & Waters, J. A. (1985) “Of strategies, deliberate and emergent”. Strategic Management Journal, 6(3): 257-272.
  • Olson, E. M., Walker, O. C., Ruekerf, R. W., & Bonnerd, J. M. (2001) “Patterns of cooperation during new product development among marketing, operations and R&D: Implications for project performance”. Journal of Product Innovation Management, 18(4): 258-271.
  • Parthasarthy, R., & Hammond, J. (2002) “Product Innovation Input And Outcome: Moderating Effects Of The Innovation Process”. Journal of Engineering and Technology Management, 19(1): 75-91.
  • Petersen, K. J., Handfield, R. B., & Ragatz, G. L. (2003) “A Model Of Supplier Integration Into New Product Development”. Journal of Product Innovation Management, 20(4): 284-299.
  • Read, S., Song, M., & Smit, W. (2009) “A Meta-Analytic Review Of Effectuation And Venture Performance”. Journal of Business Venturing, 24(6): 573-587.
  • Salancik, G. R., & Pfeffer, J. (1978) “Social information processing approach to job attitudes and task design”. Administrative Science Quarterly, 23(2): 224-253.
  • Sarasvathy, S. D. (2001) “Causation and effectuation: towards a theoretical shift from economic inevitability to entrepreneurial contingency”. Academy of Management Review, 26(2): 243-263.
  • Sarasvathy, S. D. (2008) Effectuation: Elements of entrepreneurial expertise. Northampton, MA, USA: Edward Elgar Publishing, Inc.
  • Schumpeter, J. (1947) The Creative Response in Economic History, Journal of Economic History, November, pp. 149-159
  • Scott, S. G., & Bruce, R. A. (1994) “Determinants of innovative behavior: A path model of individual innovation in the workplace”. The Academy of Management Journal, 37(3): 580-607.
  • Seidel, V. (2007) “Concept shifting and the radical product development process”. Journal of Product Innovation Management, 24: 522-533.
  • Senyard, J. M., Baker, T., & Steffens, P. R. (2010) “Entrepreneurial bricolage and firm performance: Moderating effects of firm change and innovativeness”, Annual Meeting of the Academy of Management. Montreal, Canada.
  • Weick, K. E., (1993) “The collapse of sensemaking in organizations: The Man Gulch disaster”. Administrative Science Quarterly, 38: 628-652.
  • West, M., & Farr, J. (1989) “Innovation at work: Psychological perspectives”. Social Behavior, 4: 15-30.
  • Wiltbank, R., Dew, N., Read, S., & Sarasvathy, S. D. (2006) “What to do next? The case for non-predictive strategy”. Strategic Management Journal, 27(10): 981-998.
There are 44 citations in total.

Details

Primary Language Turkish
Journal Section Research Article
Authors

Niharika Garud This is me

Lakshmanan Prasad This is me

Publication Date December 1, 2013
Published in Issue Year 2013 Volume: 2 Issue: 3

Cite

APA Garud, N., & Prasad, L. (2013). Managerial Cognition in R&D Processes Within Indian hi-tech firms: A Conceptual Framework. Journal of Entrepreneurship and Innovation Management, 2(3), 79-98.