Journal of Management Research

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The Effects of Technological Relatedness and Ownership Structure on R&D Performance


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1 Long Island University, CW Post Campus 720 Northern Blvd. Brookville, NY 11548
     

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In diversified firms, resource relatedness has often been suggested as having positive effects on corporate performance. This paper proposes, however, an inverted U relationship between technological relatedness and corporate R&D performance. In addition, institutional ownership and CEO ownership is proposed to moderate the effects of technological relatedness on R&D performance by influencing CEOs' tendencies to take risks.

Keywords

R&D, Technological Relatedness, Diversification, Institutional Ownership, CEO Ownership
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  • The Effects of Technological Relatedness and Ownership Structure on R&D Performance

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Authors

Jongtae Shin
Long Island University, CW Post Campus 720 Northern Blvd. Brookville, NY 11548

Abstract


In diversified firms, resource relatedness has often been suggested as having positive effects on corporate performance. This paper proposes, however, an inverted U relationship between technological relatedness and corporate R&D performance. In addition, institutional ownership and CEO ownership is proposed to moderate the effects of technological relatedness on R&D performance by influencing CEOs' tendencies to take risks.

Keywords


R&D, Technological Relatedness, Diversification, Institutional Ownership, CEO Ownership

References