Moderation Effect of Organizational Culture on the Relationship Between R&D Investments and Performance of Leading R&D-Intensive Firms in the US

Although R&D investments are an important precursor of firm performance, substantial variations exist among firms in achieving the desired performance. To explain these variations, this study examines the impact of both the resourceful and demanding attributes of organizational culture on the relationship. This study proposes not only a positive moderation effect of innovative and fair-compensation culture but also a negative effect of overwork and job-insecurity culture on the relationship. Based on a sample dataset comprising 198 leading R&D-intensive firms in the US, this study utilizes employee reviews from Glassdoor, adopts a topic modeling approach to measure organizational culture, and incorporates Tobin's Q as a measure of organizational performance. Using this unique dataset, this study conducts a weighted least-square regression analysis to test hypotheses. The results show that both innovative and fair-compensation cultures have a positive moderating effect on the relationship between R&D investments and organizational performance. Furthermore, confirming the predictions, the overwork and job-insecurity culture has a negative moderating effect on the relationship, restricting the effective utilization of R&D resources.