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When not investing in formal R&D, how do they manage innovative capacity? Evidence from Indian manufacturing firms

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Drawing upon multiple theories, our research attempts to examine the role of various organisational characteristics that potentially influence distinct strategic choices for management of innovative capacities of firms. We use… Click to show full abstract

Drawing upon multiple theories, our research attempts to examine the role of various organisational characteristics that potentially influence distinct strategic choices for management of innovative capacities of firms. We use data from the World Bank with a sample size of 2,206 Indian manufacturing firms across industries collected from 20 industrial hubs. We examine how various organisational characteristics influence strategic choices and subsequently how these strategic choices affect the innovative capabilities of the firm. Results indicated that organisational characteristics play a significant role in its strategic choice for innovation. Our research contributes to the existing discourse on market entry strategies, technology transfer arrangements, and innovation management. Our research inherits a number of limitations such as omitted variables, selective firm level characteristics, mutually exclusive event that we have highlighted at the end before drawing tentative conclusions.

Keywords: investing formal; strategic choices; manufacturing firms; organisational characteristics; indian manufacturing

Journal Title: International Journal of Innovation and Learning
Year Published: 2017

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