Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
The impact of operational transparency on R&D novelty
Hanu Tyagi1, Manuel Hermosilla2, Rachna Shah1
1University of Minnesota, Twin Cities; 2Johns Hopkins University
Being operationally transparent is often misaligned with firms’ incentives. In such situations, regulators or industry watchdogs may impose operational transparency requirements on firms. In this study, we examine the impact of operational transparency on R&D novelty. Exploiting an exogenous shock in the US pharma industry, we show that increased transparency leads to less novel R&D bets. Our research not only contributes to operations management theory but also informs policy.
More investment less profit? An R&D investment conundrum of a financially constrained firm in a supply chain
Junghee Lee1, Jingqi Wang2
1University of Notre Dame, United States of America; 2The Chinese University of Hong Kong, Shenzhen
A financial constraint for R&D is an essential issue for a firm's operations yet often ignored in research. We analyze a supply chain consisting of a supplier and a manufacturer, where the latter has an R&D opportunity with limited resources. We show that the latter's profit can decrease even if it can afford more investment, referred to as the R&D conundrum. We investigate operational and information strategies, including upfront R&D investment and keeping its financial budget private.
Sequential versus concurrent product development: Approval uncertainty, time-sensitive consumption utility, and asymmetric competition
Yasemin Limon1, Christopher S. Tang2, Fehmi Tanrisever1
1Faculty of Business Administration, Bilkent University; 2Anderson School of Management, University of California, Los Angeles
Concurrent development strategies can enable a firm to gain the first-mover advantage by developing a new product faster. However, they usually entail upfront investments that the firm cannot recoup if the product failed to meet certain quality requirements. Using a two-stage duopoly model, we examine under what conditions a firm will adopt concurrent development strategy in equilibrium in view of uncertain product approval, time-sensitive consumer utility, and asymmetric competition.