A Managerial Perspective on Risk and Return for Corporate Innovation Projects
- Authors
- Merriman, K.K.; Nam, D.-I.
- Issue Date
- 2015
- Publisher
- Routledge
- Keywords
- corporate innovation; managerial decision making; patent output; risk and return
- Citation
- Organization Management Journal, v.12, no.4, pp.200 - 207
- Indexed
- SCOPUS
- Journal Title
- Organization Management Journal
- Volume
- 12
- Number
- 4
- Start Page
- 200
- End Page
- 207
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/95905
- DOI
- 10.1080/15416518.2015.1081553
- ISSN
- 1541-6518
- Abstract
- Virtually all companies today pursue innovation in order to remain competitive. The question facing corporate decision makers is not whether to innovate, but rather which projects to pursue. Conventional wisdom suggests high-risk projects provide the highest returns. We explore this notion with attention to the patent output from a cross-sectional sample of U.S. corporate innovation projects. Project risk is assessed upon project proposal using a managerial perspective. The manager viewpoint is an important one since managers are distinct in their approach to assessing risk, as we expound, and are often the initial filtering point for project proposals. Patent counts are measured 3 to 5 years later as an indicator of project returns. We find that a swing-for-the-fences strategy is effective, but not the sole best path to patent output. Findings inform research on managerial risk construal and provide a fundamental basis for evaluation of potential innovation projects. Copyright © Eastern Academy of Management.
- Files in This Item
- There are no files associated with this item.
- Appears in
Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.