Article
2022 Exploring Synergy_R&D and Advertsing and Firm Performance (BIJ, Kwon, Lee and Choi 2022).pdf
Benchmarking: An International Journal
(2022)
Abstract
Abstract Purpose – This paper explores the nonlinear interactions of research and development (R&D) and advertising 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 –Unlike a conventional statistical approach, this study uniquely presents a 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 – This study finds that the impact of R&D and advertising is positive, with a greater effect on highexport firms. Moreover, the experiment results show that the synergy of R&D and advertising goes beyond the formatted positive/negative frame and actually has a reinforcing effect. Practical implications – This study not only conveys the significant nexus of R&D and advertising for firm 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&D and advertising. In addition to offering new perspectives on R&D and 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 pape
Keywords
- R&D,
- Advertising. Firm Performance. Synergy
Disciplines
Publication Date
June, 2022
DOI
https://doi.org/10.1108/BIJ-11-2020-0605
Citation Information
https://www.emerald.com/insight/content/doi/10.1108/BIJ-11-2020-0605/full/html