Too much of a good thing? Untangling the relationship between R&D volatility and firm performance
Makaleler > Tam Makale · 2026
Yazarlar: Jiaojiao Qin, Annapoornima Subramanian, Haydar YALÇIN, Tuğrul Daim
IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, SCI Expanded İndekslerine Giren Dergi, Uluslararası, Social Sciences Citation Index, 2026, cilt 1, ss 1-11
Özet
<p>Research shows that R&D volatility is an important predictor of firm performance. To date, however, answers on how this relationship manifests remain elusive, and practitioners have no clear guidelines for firms’ R&D spending strategy. By incorporating the strategic change view into the R&D volatility research, this study proposes a nonlinear framework to revisit the effect of R&D volatility on firm performance. Since the performance implications of a firm’s strategic change are determined by the strategic fit between it and internal capability, we also explore the contingency effect of technical capability in terms of firm digitalization and TMT technical experience. Based on a panel sample of Chinese listed firms from 2011 to 2023, we find that the impact of R&D volatility on firm performance is not simply linear, but follows an inverted U-shaped pattern. Moreover, firm digitalization moderates this curvilinear effect in such a way that makes it move upward. A bibliometric analysis is further conducted to better situate our findings within existing literature, and these research findings provide important theoretical and practical implications. In conclusion, our research introduces a nonlinear framework to explore the R&D volatility for the first time.</p>