The impact of managers' short-term perceptions on technology management and R&D in UK companies

Short-term financial pressures on the manufacturing sector in the UK have had a negative impact on the management of technology as can be seen by the reduction in R&D spending, patenting rates and in market shares of this sector. It has been argued that capital market pressures are increasingly directed towards short-term performance evaluation of managers and their operations. This paper begins by offering a theoretical framework Sor studying the effects of management perceptions on short-term behaviour of firms. Drawing on the theoretically framework, hypotheses are developed on the possible relationships between short-term perceptions of finance directors and their companies' management of technology and in particular R&D. The overall findings of the survey support the view that perceived short-term pressures are causing firms to retain or adopt 'financial control' management styles. They also show that these short-term financial pressures are the principal strategic element of UK companies and as such they dominate their technology management and R&D.