What does this research mean for the field?

While research and development (R&D) and capital expenditures (CAPEX) individually improve firm profitability, their joint interaction negatively impacts market value and profitability while positively influencing competitive position. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

The aim is to evaluate how R&D and CAPEX investments influence firm performance dimensions, including market value and profitability.

June 6, 2026Journal of strategy and management

Orchestrating R&D and capital investments for firm performance: strategic alignment and bounded returns

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Authors

NGNurdan GürkanBülent Ecevit University

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Implication

Randomized trial examines R&D and CAPEX effects on market value and profitability, suggesting interdependence matters.

Key Points

The aim is to evaluate how R&D and CAPEX investments influence firm performance dimensions, including market value and profitability.
Analyzed longitudinal panel data from 4,751 global R&D-leading firms (2005–2024).
Estimated firm fixed-effects models with lagged independent variables to assess the effects of R&D and CAPEX.
Conducted additional analyses for robustness across alternative specifications.
R&D intensity shows a positive association with market value (p<0.05) and profitability (p<0.05).
CAPEX intensity is positively associated with profitability but does not significantly correlate with market value.
The R&D–CAPEX interaction negatively impacts market value and profitability while positively influencing competitive position.

Cite This Study

Nurdan Gürkan (2026) studied this question.

synapsesocial.com/papers/6a23bc5171a5da9775e77a2c https://doi.org/10.1108/jsma-03-2026-0158

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Orchestrating R&D and capital investments for firm performance: strategic alignment and bounded returns

Discussion

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Implication

Key Points

Cite This Study

Orchestrating R&D and capital investments for firm performance: strategic alignment and bounded returns

Discussion

Member takes

Implication

Key Points

Cite This Study

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