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2022 Exploring the synergy between R&D and avertising and firm performance_Neural Network Approach (BIJ 2022).pdf
Bench Marking_An International Journal (2022)
  • Jooh Lee
  • He-Boong Kwon, Colorado State University - Pueblo
Abstract
Purpose–Thispaperexploresthenonlinearinteractionsofresearchanddevelopment(R&D)andadvertising and their synergistic effect on firm performance using Tobin’s Q. This study also aims to investigate differential synergy patterns under varying levels of exports with a precision impact on performance. Design/methodology/approach–Unlikeaconventionalstatisticalapproach,thisstudyuniquelypresentsa neural network approach to explore the dynamic interplay of strategic factors. A multilayer perceptron neural network (MPNN) is designed to capture complex interaction patterns through a predictive analytic process. Findings–Thisstudyfinds that the impactof R&Dand advertising is positive, with a greater effect on highexport firms. Moreover, the experimentresultsshowthatthesynergyofR&Dandadvertisinggoesbeyondthe formatted positive/negative frame and actually has a reinforcing effect. Practicalimplications–ThisstudynotonlyconveysthesignificantnexusofR&Dandadvertisingforfirm performance but also provides industry managers’ practical means to assess the joint effect of R&D and advertising on firm performance. The proposed analytic mechanism in particular provides pragmatic decision support to managers in harmonizing their R&D and advertising efforts for a foreseeable impact. Originality/value– This paper presents an innovative analytic process using the MPNN to explore the synergy between R&Dandadvertising. In addition to offering new perspectives on R&Dand advertising, this study presents pragmatic implications for managing those strategic resources to meet performance targets. Keywords Advertising, Artificial neural network, Research and development, Synergy Paper type Research paper
Keywords
  • R&D. Advertising. Synergy Effect. Artificial Neural Network
Disciplines
Publication Date
Summer June, 2022
DOI
DOI 10.1108/BIJ-11-2020-0605
Publisher Statement
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Citation Information
Jooh Lee and He-Boong Kwon. "2022 Exploring the synergy between R&D and avertising and firm performance_Neural Network Approach (BIJ 2022).pdf" Bench Marking_An International Journal (2022) ISSN: 1463-5771
Available at: http://works.bepress.com/jooh-lee/63/