DATA PROCESSING
Descriptive statistics are provided in Table 3
Table 4 illustrates the distribution of study data between industry innovativeness and relative R&D intensity variables.
Introduction Example BMW designers have often been the first to market automobiles with enhanced functionality and new, technologybased features .Often, these design choices involve greater risks of product reliability failures that stem from increased complexity, unproven product. technologies, and inexperience with production technologies. As a result, BMW’s most innovative automobiles have often had among the poorest of reliability records
Introduction
Innovation point
③we construct a new variable, “unexpected
product failure costs,” which gives a measure of uncertainty in product reliability outcomes.
Introduction Profitability
When innovative firms seek to develop new products and processes, they must balance sales benefits of enhanced product performance and novelty against the cost detriments that potentially arise from unpredictable product reliability.
HYPOTHESES
H4
H4. Industry innovativeness positively moderates (makes more negative) the negative relationship between unexpected product failure costs and the firm’s adjusted ROA.
DATA PROCESSING
Adjusted ROA=((Net Income + Warranty Claims Expense)/Total Assets).
In the literature, a firm’s innovation intensity has frequently been gauged by its R&D/sales ratio.
Introduction
Innovation point
①our study is important because it is an initial effort at
assessing a previously neglected factor in linking innovativeness to performance, and because it provides a fuller picture of trade-offs related to product and process design, warranty, and quality related planning
HYPOTHESES
HYPOTHESES
H1
H1. Firm innovativeness is associated with a higher level of unexpected product failure costs
HYPOTHESES
H2
H2. Unexpected product failure costs reduce a firm’s adjustend in addition to, direct warranty claims costs.
Chapter Three SAMPLE AND DATA PROCESSING
Chapter Four
RESULTS AND LIMITATION
INTRODUCTION
Introduction Firm innovativeness
In order to grow profits and to gain competitive advantages , firms often invest in R&D efforts to develop innovative new products and processes
Discussion and Conclusion
Conclusion 3
The examination of lagged effects of unexpected failure costs on adjusted ROA showed that effects beyond one year of time were not significant.
RESULTS AND LIMITATION
RESULTS
result
1
Results using relative R&D intensity as a measure of firm innovativeness
result
2
Post-hoc analyses using relative R&D intensity as a measure of firm innovativeness 6.3. Results using patent citation index as a measure of firm innovativeness
Utilizing the R&D based dataset to the analysis of the patent based dataset.
Financial data was obtained from the firms with the SEC per Financial Accounting Standards Board
Discussion and Conclusion
SAMPLE AND DATA PROCESSING
Data Sources
A B C D E
Our hypotheses are examined using a dataset compiled from publicly available data Our patent based sample contains 3522 firm-quarter observations between 1Q 2003 and 4Q 2006. Merging the warranty was by a sample size of 482 unique firms
ε = Unexpected Product Failure Costs; i = 1, 2, . . ., 482—firm index ; q = 1, 2, . . ., 4—quarter index; where Fi and Fq, represent fixed effects for firm and quarter.
DATA PROCESSING
The operationalization of our patent citation index based measure of firm innovativeness at time t is shown below in Equation 2.
This measure not only taps into the firm’s level of “radical” innovation, but also captures its innovation activity relative to its industry.
How firm innovativeness and unexpected product reliability failures affect profitability
Group IX Lee
Contents
Chapter One Chapter Two INTRODUCTION HYPOTHESES
result
3
Discussion and Conclusion
Conclusion 1
Our findings highlight the significant challenges that innovative firms face as they try to manage complex relationships among product innovation strategies, product reliability, and firm profits.
Data Sources
Merging the warranty was by a sample size of 482 unique firms，They are shown in Table 1 and Table 2