R&amp;D and Human Capital Policies as Determinant Factors for a Company's Performance and Profitability

Ţilică, Elena Valentina

doi:10.25103/ijbesar.141.02

Cited by 2 publications

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“…In 2022, Pourkarimi and Kam [19] also found a positive correlation between R&D investment and corporate profitability when researching American companies. Turning to EU countries, Nunes [31] and Tilică [23] also confirm the existence of this positive link. When analyzing Turkish companies, Ergun [24] also affirmed the role of R&D investment in promoting corporate profitability.…”

Section: Discussionmentioning

confidence: 62%

“…He proposed that one dollar of R&D spending increases the company's revenue by 22%. In the research on the European Union's enterprises, the positive impact of R&D investment on corporate performance is also significant [20][21][22][23][24]. Kılıç [25] also found a significant positive correlation between them in a study of IT companies in Istanbul.…”

Section: Randd Investment and Business Performancementioning

confidence: 99%

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Exploring the Relationship between R&D Investment and Business Performance—An Empirical Analysis of Chinese ICT SMEs

Estébanez

2023

Sustainability

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Service and product innovation have been emphasized as being essential to the success of ICT firms in numerous studies. Being ongoing processes, R&D activities make it challenging to forecast the benefits to a business. Does the company obtain immediate returns on its research and development expenditures? How long will their effectiveness remain? During the development of a strategy, business managers must take all these factors into account. A major objective of this paper is to determine the relationship between a company’s R&D investment and its business performance. We collected data from 1262 small- and medium-sized enterprises in the ICT service industry in China between 2011 and 2020. The R&D investment was selected as the independent variable, while its financial performance (ROA, ROE, liquidity ratio, debt asset ratio, and interest cover ratio) and market value (Tobins’ Q) were selected as the dependent variables. Multiple linear regressions were used to determine whether there was a correlation between these variables. Firstly, R&D investment improve current profitability and there is a one-period lag in these benefits. Second, R&D is negatively correlated with short-term debt-paying ability, but positively correlated with a long-term view, and these effects will last for one period. Lastly, R&D investment has a negative impact on the current market value, but the R&D investment within the two lagged periods still has a positive impact. This study addresses a significant gap in empirical research. Recommendations for companies to consider when making R&D decisions are also included in the paper.

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Section: Discussionmentioning

confidence: 62%

Section: Randd Investment and Business Performancementioning

confidence: 99%

Exploring the Relationship between R&D Investment and Business Performance—An Empirical Analysis of Chinese ICT SMEs

Estébanez

2023

Sustainability

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Emerging Markets and Marketing Intelligence

Mandal

2022

International Journal of Organizational and Collective Intelligence

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Multinational companies enter markets with emerging economies to expand their businesses. Multinationals need to obtain marketing intelligence to understand the emerging markets which have requirements different from that of developed markets. They require adopting new approaches to gathering and using marketing intelligence in emerging markets. The study discusses the importance of obtaining marketing intelligence in emerging markets. Multinationals require to treat and manage marketing intelligence as a strategic asset, organize differently for marketing intelligence in emerging markets, and use a wide range of sources and methods to obtain marketing intelligence. Multinationals should also ensure shared responsibility for marketing intelligence between corporate office and executives in the emerging markets. The above strategies will help multinational companies in obtaining adequate marketing intelligence and in growing in fast-changing economies.

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R&D and Human Capital Policies as Determinant Factors for a Company's Performance and Profitability

Abstract: Purpose: This paper investigates the impact of R&D expenses and human capital related indicators on the performance and profitability of companies from the European pharmaceutical sector.

Cited by 2 publications

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Exploring the Relationship between R&D Investment and Business Performance—An Empirical Analysis of Chinese ICT SMEs

Exploring the Relationship between R&D Investment and Business Performance—An Empirical Analysis of Chinese ICT SMEs

Emerging Markets and Marketing Intelligence

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