Innovation and Firm Performance: The Moderating and Mediating Roles of Firm Size and Small and Medium Enterprise Finance

Kijkasiwat, Ploypailin; Phuensane, Pongsutti

doi:10.3390/jrfm13050097

Cited by 74 publications

(61 citation statements)

References 76 publications

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“…As a consequence, the main determinants of innovation in SMEs are proposed to be: sector belonging, the particular nature of innovation and the characteristics of the firm itself, such as size and age (Avermaete et al 2003;Bhattacharya and Bloch 2004;Ortega-Argilés et al 2009). Another stream of studies examined the effects of innovation on firm performance (Anwar 2018;Kijkasiwat and Phuensane 2020;Wolff and Pett 2006). Most of the works focus on innovative activity in particular countries (e.g., Hall et al 2009;Lecerf and Omrani 2019 in Germany;Oke et al 2007 in the UK; Varis and Littunen 2010 in Finland).…”

Section: Smes and Innovationsmentioning

confidence: 99%

“…However, the existing body of the literature in this field remains focused on the public support for innovative SMEs, as it has been confirmed that firms may face difficulties in finding external market-based finance for intangible (knowledge-based) assets (Lee et al 2015;Vasilescu 2014). Numerous studies have also examined the relevance of venture capital funding and recently-crowdfunding, in the context of innovative SMEs (Anwar 2018;Baldock and Mason 2015;Kijkasiwat and Phuensane 2020;Schenk 2015). The relevance of debt finance and internal funding (determined by the efficient performance) in enhancing innovation in SMEs remains relatively less explored (Kerr and Nanda 2015;Sau 2007).…”

Section: Introductionmentioning

confidence: 99%

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Innovation in SMEs and Financing Mix

Błach

Wieczorek-Kosmala

Trzęsiok

2020

JRFM

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This study addresses the types of innovation activity of SMEs (Small and medium-sized enterprises) in the European Union and its association with financing decisions. The main objective is to capture the cross-country differences in the types of innovation in SMEs and then investigate the relationship between the types of innovations and relevance of a given type of funding. In the empirical examinations, we use the non-parametric methods, due to the nature of the data. We have found out that there are differences in the types of innovation activity of SMEs in the cross-country dimension. We have also confirmed the contingencies between the types of innovations undertaken by SMEs in each cluster of the European countries, which suggests that various types of innovations co-exist. However, we have not found any unified pattern of correlations between the relevance of a given source of financing and a given type of innovation. Our study contributes to the ongoing debate on the different intensity of innovation activity of SMEs, as linked to the problem of the SMEs financing gap as one of the fundamental drivers of innovation.

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Section: Smes and Innovationsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Innovation in SMEs and Financing Mix

Błach

Wieczorek-Kosmala

Trzęsiok

2020

JRFM

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“…Also, Canepa and Stoneman (2008), Czarnitzki (2006), and Freel (2007) suggest that all these structural problems with innovative financing firms are amplified in the case of SMEs. Finally, as Kijkasiwat and Phuensane (2020) documented, bigger companies are more able to benefit from external and internal innovative projects, while the smaller ones only benefit from internal projects.…”

Section: Sizementioning

confidence: 88%

Capital Structure Choices in Technology Firms: Empirical Results from Polish Listed Companies

Kędzior

Grabińska

Grabiński

et al. 2020

JRFM

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The main aim of the paper is the identification of capital structure determinants, with a special emphasis on investments in the innovativeness of Polish New Technology-Based Firms (NTBFs). Poland is a unique country in that it is an emerging market that was also promoted in 2018 to the status of a developed country. The study sample consisted of 31 companies listed in the Warsaw Stock Exchange that are classified as high-tech firms and covers the period 2014–2018. The following factors influencing the capital structure were analyzed: internal and external innovativeness and the firm’s size, liquidity, intangibility, age, profitability, and growth opportunities. The results of the research provide empirical evidence that liquidity, age, and investments in innovativeness determine capital structure, which provides an additional argument supporting the trade-off theory and the modified version of the pecking order theory. More specifically, the results suggest that companies whose process of investment in innovativeness is based on the external acquisition of technology are able to attract external financing, while the process based on internally generated innovativeness (R&D activity) deters external capital. The results are interesting for policymakers in emerging markets.

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“…The benefits of firms undertaking innovation activity are invaluable. Firstly, they positively affect not only the financial results of the company itself but also production processes, productivity, efficiency, productivity, work quality, and organisation [56][57][58]. Secondly, they also affect development and competitiveness in the national and global economy [59][60][61].…”

Section: Business Innovation and Innovation Activity: Theoretical Backgroundmentioning

confidence: 99%

A Model of Innovation Activity in Small Enterprises in the Context of Selected Financial Factors: The Example of the Renewable Energy Sector

Kuś

Grego-Planer

2021

Energies

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One of the biggest problems of the modern economy is the depletion of traditional energy sources. Despite the fact that this problem was noticed several dozen years ago, steps to solve it were taken relatively recently. In December 2017, the European Union adopted a position on the directive, promoting the use of energy from renewable sources in all Member States. The EU has committed itself that by 2030, at least 27% of its energy consumption will come from renewable sources. On the one hand, it is a huge challenge, but on the other hand, it is an opportunity to achieve economic growth through innovation and a sustainable energy policy. On the Polish market, the chance to achieve the assumed plan is offered mainly by small companies that have been involved in innovative activities in the renewable energy sector in recent years. Innovation is an extraordinarily important determinant of the sustainable development of economies across the world. However, introducing it into business practice is extremely challenging for business leaders. Although there are many different factors influencing companies’ engagement in innovation activity, for smaller entities, the financial aspect plays a key role. Managers of small enterprises must frequently deal with limited access to additional financial resources, the complexity of the process of determining final cost and capital structure, and its accompanying various levels of investment risk. Small companies also struggle with certain limitations on resources related to a knowledge gap in finance, tax regulations, and the forms of support potentially available at different stages of the innovation process. In light of this, it seems reasonable to establish the strict financial factors that significantly influence the innovation activity of small enterprises, especially those operating in the energy industry, due to their dynamics of development in recent years. This article aims to develop a model to explain the financial incentives for implementing innovative solutions in small businesses in the energy sector. An empirical study using the Computer-Assisted Personal Interviewmethod on a sample of 115 Polish small companies, operating in the renewable energy sector, identified critical financial factors stimulating the implementation of innovative projects. The significance of impact of key financial factors on the innovation activity of these enterprises was analysed based on a logit regression model. The results indicate that 5 of the 18 factors identified in the model were significant. These statistically significant financial determinants of the innovation activity of Polish small enterprises in the energy sector exhibited both positive and negative impacts on the level of innovation activities undertaken.

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Innovation and Firm Performance: The Moderating and Mediating Roles of Firm Size and Small and Medium Enterprise Finance

Cited by 74 publications

References 76 publications

Innovation in SMEs and Financing Mix

Innovation in SMEs and Financing Mix

Capital Structure Choices in Technology Firms: Empirical Results from Polish Listed Companies

A Model of Innovation Activity in Small Enterprises in the Context of Selected Financial Factors: The Example of the Renewable Energy Sector

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