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Strategic Control of R&D Resource Allocations in Diversified Businesses
Author(s) -
Ayal Igal,
Rothberg Robert
Publication year - 1986
Publication title -
journal of product innovation management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.646
H-Index - 144
eISSN - 1540-5885
pISSN - 0737-6782
DOI - 10.1111/1540-5885.340238
Subject(s) - control (management) , linkage (software) , business , strategic management , resource allocation , industrial organization , management control system , resource (disambiguation) , marketing , economics , management , computer science , computer network , biochemistry , chemistry , gene
Proper allocation of R&D resources across strategic business units is a challenge that has long been faced by executives of diversified business enterprises. Igal Ayal and Robert Rothberg have chosen to address this issue, applying a distinction between effectiveness and efficiency of R&D spending. Most companies seem to overcontrol such allocations in terms of tactical detail or efficiency considerations, and undercontrol in terms of strategic significance or effectiveness. Attention to the effectiveness of allocations requires that management assess the linkage between R&D spending and the attainment of overall corporate goals. The article draws conclusions about the design of appropriate R&D proposal generation and evaluation procedures and project control systems in strategically decentralized companies.