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The Relationship between R&D Investment, Strategic Evolution and Firm Performance in the Automotive Industry

Brunk, Hans LU and Hamandi, Lynn LU (2020) IBUH19 20201
Department of Business Administration
Abstract
The purpose of this study is to investigate the relationship between R&D investment and strategy on firm performance for two automotive firms—Renault and BMW. This research was selected to explore the relatively undiscovered area of R&D expenditures and strategy as crucial determinants of firm performance. A mixed-method case study with a deductive research approach was chosen. The results reveal a statistically insignificant relationship between R&D investment and strategy on firm performance. We found that strategy resulting from management decisions forms the unseen, yet vital factor that affects how a firm performs. Despite statistical insignificance, the results display unique findings; the examined firms increased their R&D... (More)
The purpose of this study is to investigate the relationship between R&D investment and strategy on firm performance for two automotive firms—Renault and BMW. This research was selected to explore the relatively undiscovered area of R&D expenditures and strategy as crucial determinants of firm performance. A mixed-method case study with a deductive research approach was chosen. The results reveal a statistically insignificant relationship between R&D investment and strategy on firm performance. We found that strategy resulting from management decisions forms the unseen, yet vital factor that affects how a firm performs. Despite statistical insignificance, the results display unique findings; the examined firms increased their R&D investments and performance while pursuing a Product-focus strategy. It was concluded that the relationship between R&D investment and strategy on firm performance is rather complex and vulnerable to many internal and external influences. Trends identified may be used to outline how a relationship could look like if the study scope were widened. (Less)
Please use this url to cite or link to this publication:
author
Brunk, Hans LU and Hamandi, Lynn LU
supervisor
organization
course
IBUH19 20201
year
type
M2 - Bachelor Degree
subject
keywords
Strategy, R&D, Firm Performance, Renault, BMW
language
English
id
9021789
date added to LUP
2020-11-16 14:11:42
date last changed
2020-11-16 14:11:42
@misc{9021789,
  abstract     = {{The purpose of this study is to investigate the relationship between R&D investment and strategy on firm performance for two automotive firms—Renault and BMW. This research was selected to explore the relatively undiscovered area of R&D expenditures and strategy as crucial determinants of firm performance. A mixed-method case study with a deductive research approach was chosen. The results reveal a statistically insignificant relationship between R&D investment and strategy on firm performance. We found that strategy resulting from management decisions forms the unseen, yet vital factor that affects how a firm performs. Despite statistical insignificance, the results display unique findings; the examined firms increased their R&D investments and performance while pursuing a Product-focus strategy. It was concluded that the relationship between R&D investment and strategy on firm performance is rather complex and vulnerable to many internal and external influences. Trends identified may be used to outline how a relationship could look like if the study scope were widened.}},
  author       = {{Brunk, Hans and Hamandi, Lynn}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Relationship between R&D Investment, Strategic Evolution and Firm Performance in the Automotive Industry}},
  year         = {{2020}},
}