Measuring R&D Effectiveness in Korean Companies

A measurement scheme with IS criteria has been validated empirically by respondents from 28 industrial firms. OVERVIEW: An integrative measuring scheme for evaluating the effectiveness of RD e.g., Ranftl (15), Steele (16), Brown and Gobeli (7), and Szakonyi (8). And none of them offers a means of measuring effectiveness and validating it empirically. Constructing a Measurement System Because of the limitations of previous studies, we developed an integrative measuring scheme that considers all the phases from input to outcome, and validated it with field data. Many criteria for measuring effectiveness appear in the literature (3,5-8,15-21). We chose 25 based on their frequency of use, measurability, controllability, and independence (Tables 1 and 2). The criteria were operationalized, as indicated in the tables. A five-point Likert scale was established for testing the reliability of evaluation criteria measured by perception and to obtain the relative importance of each such criterion. This "semantic differential scale" was adapted from Bailey and Pearson (22) and Ives, Olson and Barroundi (23). Of the 25 chosen criteria, this scale was used to measure and assess the importance of 18 "perceptual criteria" (asterisked in the tables). Thus, each of the perceptual criteria comprises five scales, four of the bipolar adjective pairs and one of its perceived relative importance. This relative importance was then used to test construct validity and to find relatively more important criteria for effectiveness. The diagram on page 30 shows the use of this semantic differential technique in measuring the morale and human relations criterion. The seven remaining criteria were answered from organizational records. Maximum value of this data was converted to 20 points: minimum four and the others linearly attributed between four and 20. Relative importance of these criteria was measured in the same way as the perceptual criteria. A semiquantitative technique described by Collier measured the degree of goal achievement (3). This technique describes how well a department meets agreedupon objectives based on qualitative judgment (24). …