Publicação
How the threat of knowledge loss drives firms’ R&D dynamism
| Resumo: | Drawing on threat rigidity theory, this paper argues that the threat of knowledgeloss gives rise to a threat rigidity effect in firms’ R&D function, that is, reduces their R&Ddynamism. It further argues that the dampening of R&D dynamism is greater for firms morevulnerable to the threat of knowledge loss due to facing greater product market competition, yetlower for firms that can better respond to the threat due to having relatively higher absorptivecapacity and/or greater financial slack. Using a sample of publicly listed US manufacturingfirms tracked over a 15-year observation period from 1991 to 2015 and leveraging the quasi-natural experiment created by the staggered rejection of the inevitable disclosure doctrine (IDD)across fourteen US states, it empirically tests and finds support for the above hypotheses |
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| Autores principais: | Asija, Aman |
| Outros Autores: | Ringov, Dimo |
| Assunto: | Difference-in-differences Inevitable disclosure doctrine Threat of knowledge loss Threat rigidity theory |
| Ano: | 2025 |
| País: | Portugal |
| Tipo de documento: | artigo |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | Drawing on threat rigidity theory, this paper argues that the threat of knowledgeloss gives rise to a threat rigidity effect in firms’ R&D function, that is, reduces their R&Ddynamism. It further argues that the dampening of R&D dynamism is greater for firms morevulnerable to the threat of knowledge loss due to facing greater product market competition, yetlower for firms that can better respond to the threat due to having relatively higher absorptivecapacity and/or greater financial slack. Using a sample of publicly listed US manufacturingfirms tracked over a 15-year observation period from 1991 to 2015 and leveraging the quasi-natural experiment created by the staggered rejection of the inevitable disclosure doctrine (IDD)across fourteen US states, it empirically tests and finds support for the above hypotheses |
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