Built　on　the　Behavioral　Theory　of　the　Firm,　the　paper　examines　how　firm　response　to　performance　feedback　is　influenced　by　firm　expectation　on　the　likelihood　of　an　action　to　close　the　performance　gap.　Using　firm　level　change　in　R&D　intensity　as　a　problemistic　search　behavior,　we　explore　how　performance　shortfalls　relative　to　social　and　historical　aspirations　may　prompt　underperforming　firms　to　adjust　its　R&D　investment　intensity,　and　how　the　magnitude　of　this　adjustment　is　moderated　by　firm　resources,　past　experience,　industry　and　market　conditions.　We　conduct　our　analysis　using　a　longitudinal　sample　of　Chinese　firms　listed　on　the　ChiNext　Board　between　2009　and　2017.　Our　results　indicate　that　underperforming　firms　increase　their　R&D　intensity　to　a　larger　degree　than　their　over-performing　peers　and　periods　when　these　firms　have　substantial　cumulated　R&D　spending,　abundant　organizational　slack,　and　are　competing　in　more　dynamic　industries.　We　also　document　that　these　moderating　factors　influence　relationships　between　social　and　historical　aspirations　and　R&D　investment　decisions　in　a　distinct　way.　We　conclude　that　firm　internal　resources,　capabilities　and　external　industry　and　market　conditions　all　affect　firm　expectations,　and　consequently　shape　the　direction　and　magnitude　of　organizational　actions　in　response　to　performance　aspirations.