Authors: Istemi S. Demirag, Noriyuki Doi
Addresses: School of Management and Economics, Queen's University Belfast, Belfast, BT7 1NN, UK. ' School of Economics, Kwansei Gakuin University, Nishinomiya 662-8501, Japan
Abstract: This study compares the short-term behaviour of finance directors the UK and in Japan, in the context of their corporate governance systems, using the funding, structure and evaluation of Research and Development (R&D) projects as indicators. The empirical part of the study consists of two questionnaire studies carried out in the UK and Japan. A number of personal interviews were also carried out with UK and Japanese senior finance managers. The results of the study indicate different management behaviour with respect to short-termism in the UK and Japan. There is a statistically significant difference in perceptions between the finance directors of two countries. Managers in both countries appreciate and would like to use long term performance criteria to assess and manage R&D projects. In practice however, Japanese finance directors are much better protected from short-term pressures than their UK counterparts in dealing with most aspects of their management R&D. These differences in behaviour are identified and possible reasons for them are offered in the paper.
Keywords: innovation; performance evaluations; performance management; research and development; R&&D; research budgets; short termism; UK; United Kingdom; Japan; finance directors.
International Journal of Technology Management, 2007 Vol.40 No.4, pp.249 - 277
Published online: 12 Nov 2007 *Full-text access for editors Access for subscribers Purchase this article Comment on this article