R&D investment, firm performance and the moderating role of systems and safeguards : evidence from emerging markets

Alam, MA ORCID: https://orcid.org/0000-0002-8260-235X, Uddin, MM, Yazdifar, H, Shafique, S and Lartey, T 2019, 'R&D investment, firm performance and the moderating role of systems and safeguards : evidence from emerging markets' , Journal of Business Research, 106 , pp. 94-105.

[img] PDF - Accepted Version
Restricted to Repository staff only until 26 March 2021.

Download (604kB) | Request a copy
[img] Microsoft Word - Accepted Version
Restricted to Repository staff only

Download (249kB) | Request a copy

Abstract

The relationship between R&D and firm performance is highly dependent on the external environment. Therefore, this paper examined the effects of country level investor protection (safeguards) and governance mechanisms (systems) on the relationship between R&D and firm performance. Using GMM estimation and elasticity testing of panel data for 423 firms from 12 emerging countries, we find that a country’s safeguards tend to moderate the relationship between R&D and firm performance more than the system of a country. The results indicate that safeguarding is relatively more important for the relationship between R&D and firm performance than other country level governance mechanisms, as the former can easily attract outside capital when it is strong. These results have significant implications for innovation policy. In particular, managers may wish to strengthen investor protection to promote high R&D investment in order to increase firm performance.

Item Type: Article
Schools: Schools > Salford Business School
Journal or Publication Title: Journal of Business Research
Publisher: Elsevier
ISSN: 0148-2963
Related URLs:
Depositing User: MA Alam
Date Deposited: 11 Sep 2019 09:50
Last Modified: 01 Oct 2019 15:00
URI: http://usir.salford.ac.uk/id/eprint/52315

Actions (login required)

Edit record (repository staff only) Edit record (repository staff only)

Downloads

Downloads per month over past year