'Innovate or Perish?'Companies under crisis

  1. Elena Shakina 1
  2. Angel Barajas 1
  1. 1 Higher School of Economics, National Research University
    info

    Higher School of Economics, National Research University

    Moscú, Rusia

    ROR https://ror.org/055f7t516

Revue:
European Research on Management and Business Economics

ISSN: 2444-8834

Année de publication: 2020

Volumen: 26

Número: 3

Pages: 145-154

Type: Article

DIALNET GOOGLE SCHOLAR lock_openAccès ouvert editor

D'autres publications dans: European Research on Management and Business Economics

Résumé

This paper tests the behavioral firm theory by examining exogenous economic shocks to explore whetherswitching to an innovative strategy is always reasonable. A quasi-experimental design – difference-in-difference – has been run on 1000 companies for 11 years to explore the consequences of strategic shiftstowards innovations. It is found that companies that introduced innovations do not have any substantialdifferences from those that kept the ‘status quo’. However, those few companies that decided to fol-low a proactive strategy during crisis by introducing new R&D projects outperform their rivals in themedium-term. A nonlinear relation between the decision to switch to an innovative strategy and relatedperformance suggests that returns to scale exist. Only those cases of innovative shifts that enable thegrowth of more than 50% in intangible assets on average and more than 30% in a recession appear to besuccessful and lead to higher performance for companies

€ Voir financement

Information sur le financement

This study comprises research findings from the Project No. 18-18-00270 supported by the Russian Science Foundation.

Financeurs

Références bibliographiques

  • Archibugi, D. (2017). “Blade Runner economics: Will innovation lead the economicrecovery?”. Research Policy, 46(3), 535–543.
  • Archibugi, D., & Filippetti, A. (2013). Innovation and economic crisis: Lessons andprospects from the economic downturn. Routledge.
  • Archibugi, D., Filippetti, A., & Frenz, M. (2013a). “Economic crisis and innovation: Isdestruction prevailing over accumulation?”. Research Policy, 42(2), 303–314.
  • Archibugi, D., Filippetti, A., & Frenz, M. (2013b). “The impact of the economic crisis oninnovation: Evidence from Europe”. Technological Forecasting and Social Change,80(7), 1247–1260.
  • Bamiatzi, V., Bozos, K., Cavusgil, S. T., & Hult, G. T. M. (2016). “Revisiting the firm,industry, and country effects on profitability under recessionary and expansionperiods: A multilevel analysis”. Strategic Management Journal, 37(7), 1448–1471.
  • Cincera, M., Cozza, C., Tübke, A., & Voigt, P. (2010). Doing R&D or not, that is thequestion (in a crisis. . .), JRC-IPTS working papers on corporate R&D and inno-vation No. 2010–12, institute of prospective technological studies, joint researchcentre available at: http://econpapers.repec.org/paper/iptwpaper/201012.htm(accessed 19 February 2016). Eekels, J. (1984). “Innovate or perish: A cautionary tale”. Technovation, 2(3), 149–167.
  • Erdil S ̧ ahin, B. (2015). “The relationship between R&D expenditures and economicgrowth: Panel data analysis 1990-2013”, presented at the EY international congresson economics II “GROWTH, INEQUALITY AND POVERTY”, ekonomik yaklasim asso-ciation, Ankara. pp. 1–18.
  • Fernández-Olmos, M., & Ramírez-Alesón, M. (2017). “How internal and externalfactors influence the dynamics of SME technology collaboration networks overtime”. Technovation, 64–65, 16–27.
  • Gilbert, R. (2014). “Innovate or perish”. RSM Discovery - Management Knowledge,17(1), 8–11.
  • Greve, H. R. (2003). “A behavioral theory of R&D expenditures and innovations: Evi-dence from shipbuilding”. The Academy of Management Journal, 46(6), 685–702.
  • Hallegatte, S., Ghil, M., Dumas, P., & Hourcade, J.-C. (2008). “Business cycles, bifur-cations and chaos in a neo-classical model with investment dynamics”. Journalof Economic Behavior & Organization, 67(1), 57–77.
  • Hirooka, M. (2006). Innovation dynamism and economic growth: A nonlinear perspec-tive. Edward Elgar Publishing.
  • Hommes, C., & Zeppini, P. (2014). “Innovate or imitate? Behavioral technologicalchange”. Journal of Economic Dynamics & Control, 48, 308–324.
  • Insch, G. S., & Steensma, H. K. (2006). “The relationship between firm strategic profileand alliance partners’ characteristics”. Journal of Managerial Issues, 18(3), 321.
  • Jenkins, M. (2014). “Innovate or imitate? The role of collective beliefs in competencesin competing firms”. Long Range Planning, 47(4), 173–185.
  • Kaufmann, A. (2015). The Role of Innovation in the Recovery of Austrian Regions after thecrisis in 2009. Rochester, NY: SSRN Scholarly Paper No. ID 2705780, Social ScienceResearch Network., available at: https://papers.ssrn.com/abstract=2705780(accessed 30 March 2017).
  • Lutz, S. (2014). Does R&D increase the profit contribution of intangible assets?An exploration of european and american automotive suppliers, No. 2014–07,universidad complutense de madrid, facultad de ciencias económicas yempresariales, instituto complutense de análisis económico available at:https://ideas.repec.org/p/ucm/doicae/1407.html (accessed 28 December 2017)..
  • Ministry of Economic Development of Russia. (2009). Key indicators offinalized forecast of the socio-economic development of russian feder-ation for 2009 (Ochовhыe Покɑзɑteли Уtочhehого ПрогhозɑCоциɑльhо-Экоhомичecкого Pɑзвиtия Pоccийcкой Фeдeрɑции Hɑ2009 од) available at: http://economy.gov.ru/minec/activity/sections/macro/prognoz/doc1237994143811 (accessed 6 January 2018)..
  • Ministry of Economic Development of Russia. (2010). “Finalized forecast of thesocio-economic development of Russian Federation for 2010 and plans for 2011-2012 (Уtочhehhый прогhоз cоциɑльhо-экоhомичecкого рɑзвиtияhɑ 2010 год и плɑhовый пeриод 2011 и 2012 годов)” 4 June, availableat: http://economy.gov.ru/minec/activity/sections/macro/prognoz/prog2010(accessed 6 January 2018)..
  • Ruth, D., Iyer, D. N., & Sharp, B. M. (2013). “Motivation and ability in the decision toacquire”. Journal of Business Research, 66(11), 2287–2293.
  • Samra, Y. M., Zhang, H., Lynn, G. S., & Reilly, R. R. (2018). “Crisis management innew product development: A tale of two stories”. Technovation, available at:https://doi.org/10.1016/j.technovation.2018.06.001.
  • Shakina, E., & Barajas, A. (2015). “Intangible-intensive profile of a company: The keyto outperforming”. Journal of Intellectual Capital, 16(4), 721–741.
  • Shakina, E., Barajas, A., Parshakov, P., & Chadov, A. (2017). “Status-quo vs new strat-egy in intangibles”. Journal of Economic Studies, 44(1), 138–153.
  • Tidd, J., Bessant, J., & Pavitt, K. (2005). Managing innovation: Integrating techno-logical, market and organizational change. Chichester, UK: John Wiley & SonsLtd., available at: https://www.wiley.com/en-us/Managing+Innovation%3A+Integrating+Technological%2C+Market+and+Organizational+Change%2C+5th+Edition-p-9781118360637 (accessed 3 January 2018).
  • Ugur, M., Trushin, E., & Solomon, E. (2016). “Inverted-U relationship between R&Dintensity and survival: Evidence on scale and complementarity effects in U.K.data”. Research Policy, 45(7), 1474–1492.
  • Vocoli. (2014). “10 companies that failed to innovate and what happened tothem”. In Vocoli. July, available at: https://www.vocoli.com/blog/july-2014/10-companies-that-failed-to-innovate-and-what-happened-to-them/ (accessed12 May 2017).
La source de données: Dialnet