Resource Allocation Strategy for Innovation Portfolio Management

Question: Discuss about the Resource Allocation Strategy for Innovation Portfolio Management. Answer: Literature Review The authors cited clear literature reviews which are available within each section of study. Proper titles are also used to elaborate different parameters and show their effectiveness. The various sections into which the research is divided are: Theory Resource Allocation breadth Selectiveness Innovative intent Data and methods Measures Estimation Results Discussion Conclusion The centre point of the journal is the inclusion of data and analysis sheet within the study material. The results show a correlation table depicting the relationship between various factors which effects the decision of innovation portfolio management. Some examples are new product sales, size of the firm, process innovation, innovation expenditure etc. The correlation table specifies how each and every factor gets affected by the decision and shows the viability of a decision. Further, an analysis has been given for various models including NEW, NTF and NTM models. Thus, the overall picture has been described which should get affected when a business needs to invest in new portfolio. The journal shows the idea of selecting a portfolio based on the size and selectiveness of the projects and the data analysis further reinforces the conclusion drawn. The literature review as presented by the research is full of information. However, the information given in the literature review is not up to date. The researcher properly referenced the literature review but incorporates data that are dated 1985, 1997, 1981, 2002, 2000 and some older years. While carrying out the literature review, the researcher made it sure to incorporate all the aspects of innovation that the readers should know. The authors talk about the resource allocation breadth that talks about the parallelization of allocations of resources so that every organization is able to get equal amount of resources to bring in the innovation. Selectiveness is all about allocation resource when the research is going on. Resources are allocated based on the importance of the importance of the individual project. Due to selective resource allocation, there is discrimination for resources among the projects as the resource allocated will be different for each type of project. The in novation intent is related to the intention of the organization to bring in the innovation. The readers might not be knowing the various ways of resource allocation. The literature review throws light on the resource allocation strategies that will help the organization to bring in different types of innovation. Hypothesis This research tested hypothesis about what factors cumulatively derive a prudent decision for effective and objective portfolio management in an innovative environment. The theory well describes the commonly adopted methods which may lead to a complete failure of a project. The authors very well described the need for a portfolio while taking an investment decision especially which scarce and limited resources. The resource allocation breadth has been described as one of the important decisions. The importance of availability of a wide range of projects for making a portfolio has been considered. The authors considered prior research conducted on the topic and concluded that more and more availability of projects may lead to overstretching which can be effectively curbed by adopting the selective approach. This idea has been well developed and depicted as a major and centric approach. Objectives The study sought to achieve the following objectives- How new product sales are affected by the decision of innovative portfolio management. Allocation of resources to the wide range of available projects. How an approach to test the overall effect of a portfolio and non analysis of individual projects may determine the credibility of a business Is the data produced by the Community Innovation Survey (CIS) be utilized for deriving useful results for portfolio management. Is the breadth of the portfolio has greater impact than the selectiveness or a balanced approach needs to be followed. Whether the innovative intent visualized by an organization has been able to be achieved by the designed portfolio. Whether firms should invest in greater projects initially and switch to limited projects which are performing well. Research questions are not given in the article. Every article should have research questions so that the readers would be able to understand the areas that the researcher will investigate or in other words find the answers to the questions. If the researcher would have put the research questions, it would have been easier for the readers to identify the areas that the research is putting the focus on. Methodology The treatment followed a study based on factorization of the effectiveness of an innovative portfolio and its success. The journal depicts short emphasis on each and every factor namely- breadth of the projects, selectiveness and innovative intent of a business. These three factors are considered the pillars of the discussion. Further, the authors used sample method to prove their research outcome. The 2009 Mannheim Innovation Panel conducted a survey for the period 2006-2008 which was a part of the European Community Innovation Survey. A journal from the Oslo Manual has also been referred in the work. The Oslo Manual provides an annual survey of firms providing a wide range of record for check on the consistency of the projects. The sample chosen by the authors has 35,197 enterprises. The authors also analyzed the data in the light of dependent, independent variables and control variables. The research design as applied by the researcher is appropriate for the research. The researcher took into consideration both secondary data and primary data. The secondary data is described properly in the literature review. The primary data is being analyzed with the help of co-relational method. As the authors are trying to find the relation between resource allocation and innovation portfolio management, co-relational analysis seemed to the best choice by the authors. The analysis will help the authors find out the relation between the two. Findings The introductory part demonstrates the objective of the research which shows that the journal particularly discussed about the approach to be followed when a business wants to invests in some innovative intent with the potential to generate more future profits. The decision particularly relies on a number of factors which are highlighted by the authors. A brief discussion about each factor further enhances the correct objective selection for the journal. Each discussion describes how it affects the management of a portfolio of an innovative investment along with the strengths and weaknesses of utilizing that factor. The solutions and related articles and works are also cited along with the research of authors to strengthen the vision of the journal. The data referred by the authors to base their findings was authentic and well accepted. The sample taken depicts a proper survey of businesses who wants to step in the innovative market and make a mark of success in their work histories. Each and every part of the sample and other works has been mentioned with proper source citing and the authentication of the sources. A short introduction about the sources has also been given to strengthen the findings. The variable method was adopted to show that the results derived by the research are well tested and proved. The novelty of new products has been tested using three categories viz. NTM (new to market), NTF (new to firm) and NEW (new and improved products). A ratio of the investment capability of a firm to its new products has been calculated and evaluated to depict the innovation appetite of a firm and the ability of smaller firms to diversify by investing in new projects. The estimation was done on the basis of Tobit analysis method. Split sample or split variables analysis was performed to measure the changing effects breadth under various situations. A proper analysis has been done of different variables under multiple situations and correlation among them has been analyzed and reported in the journal. Thus, proper statistical tools have been used by the authors to reach the final conclusion. All the works and analysis of the authors are properly shown in the journal so that the reader can understand the pros and cons of each and every factor and understand the viability of the decision. The data analysis part of the article is presented well by the authors. The researcher has mentioned the data and the analysis of the data properly. The researcher has mainly discusses three types of allocation strategies in innovation. The authors have mentioned all the aspects of the different tables that have been based on the three factors. The readers would not face any issue to understand the data that has been set by the researchers and they would easily understand the types of analysis that has been incorporated in the article. The presentation of the data has made it easier for the readers to relate them with the discussion and the result that have been mentioned in the article. The researcher has not forgotten to relate the analysis with the result of the article. The models that are being evaluated by the author are being controlled for principle industry membership. The authors revaluated the data by rerunning the model by an augmented operationalization of breadth. The outcome of the analysis show that the result that has been concluded is consistent and hence the research can be said to be successful. The limitation of the research has been addressed in the article properly. The best part of the research is that the researcher has incorporated scope for the future research along with the limitations of the research. The readers will know that the limitation of the present research will help in understanding the areas where further they could further carry out the research. The future researcher will get to know the issues that they could face while carrying out future research. The authors have said that the authors could not evaluate the quality of information that is added in strategy. The authors could not have any control over the resources that are being fed in the strategy. The innovations will vary based on the quality of the ideas. If research is being done on single industry context then the result between the performance and portfolio resource allocation breadth might have been different. Recommendation "Additional research is needed in other statistical settings to see if consistent findings about breadth analysis, requirement of innovative intent, selectiveness and attitude are achieved." However, the journal properly analysis various aspects of an innovative market culture and how different parameter need to be drawn before taking the portfolio and investment decisions. The analysis of the factors under different other statistical scenarios may provide different results than what is derived by the authors. The strength of the journal lies in the base formation which is made up of an authenticated survey which cannot be nullified in any sense but the dynamic business era may provide changing results under different situations and during different period of time. Thus, another measurement tools and references must be followed before concluding anything. Conclusions Conclusions and implications were formulated with the knowledge that subjects for this study used breadth and selectiveness extensively for selecting a perfect innovation portfolio. In this investigation, final examination scores were independent of the method of testing. The method of testing was not a determinant of how business should particularly follow a path while investing in an innovation portfolio. Since time required was not consistent over the two replications, the methods of testing as well as other factors appear to influence the time requirements of test completion. Overall Critique This was a very in-depth research project, particularly for a journal article. For the most part, it was well written and well organized. There was a definite need for a short review of literature to develop the situation. The article did get a little complicated in the reporting of data due to the complicated statistical procedures used. Overall, it was a very interesting, significant contribution to the field of research.