<scp>R &amp;D</scp> investments and profitability during the crisis: evidence from Greece

Dimitropoulos, Panagiotis

doi:10.1111/radm.12424

Cited by 15 publications

(13 citation statements)

References 31 publications

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“…Firms with high fixed assets efficiency (for firms of the chemicals and plastics industries), labour efficiency (pharmaceutical firms), gross profit margin (pharmaceuticals and chemicals firms) and with small size (chemicals and plastics firms) have been proven to be more profitable during the period of 2008-2011(Voulgaris and Lemonakis, 2014. For the tourism sector, the determinants of firm profitability that have been reported are the age of the firm, the size, the market share, the low high market share, the capitalisation, the investments, the turnover and the low leverage and cost-efficiency (Magoutas et al, 2016;Agiomirgianakis et al, 2013;Dimitri c et al, 2019;Dimitropoulos, 2020).…”

Section: The Firm Profitability In the Case Of Greecementioning

confidence: 99%

Performance of large firms in Greece during the unstable period of 2011–2016: lessons from the weak parts of Europe

Tsiapa

2021

EJMBE

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PurposeThe unprecedented economic crisis in Greece deeply affected entrepreneurship, which was traditionally characterised by low levels of innovation and competitiveness, the dominant presence of micro-sized enterprises and the weak signs of prosperity in large firms. This paper, in acknowledgement of the necessary transformations that production incurred due to the crisis, attempts to detect the characteristics of large manufacturing firms that contributed to their greater resilience during the unstable period of 2011–2016 by analysing the determinants of the higher profitability of firms. The analysis shows that firms that improved their productivity and sales levels and in parallel are flexible, in the sense that they have limited amounts of both assets and liabilities and thus a small risk, are those that presented higher profits during the period under study. Initial conditions, sectoral characteristics and the broader national environment do not seem to have a strong contributive role in firms' profitability.Design/methodology/approachThe analysis follows a dynamic system generalised method of moments (GMM) estimation based on a panel data set of 125 Greek large firms over the time span 2011–2016.FindingsThe analysis shows that firms that improve their productivity and sales levels and in parallel are flexible, in the sense that they have a limited amount of both assets and liabilities and thus a small risk, are those that present higher profits during the period under study. Initial conditions, sectoral characteristics and the broader national environment do not seem to have a strong contributive role in firms' profitability.Research limitations/implicationsThe present paper attempts to explain the performance of the most dynamic large manufacturing firms in Greece by investigating the role of some of the most important determinants of firm profitability (according to data availability), acknowledging, however, some analysis' limitations as the absence of some other parameters like the export activity or the incorporation of any innovative features in the firmsOriginality/valueThe novelty of this paper lies in two points. First, the subject of the analysis is the large firms in Greece, which have not received much attention as Greek entrepreneurship was traditionally based on the light, labour- or resource-intensive production and the main bulk of the literature was not on that topic. Second, during the deep and protracted crisis that Greece has experienced, several production transformations have taken place that remain partly undiscovered. The present paper attempts to analyse the characteristics of large firms that drove their profitability and improved their resilience during the crucial time period 2011–16.

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Section: The Firm Profitability In the Case Of Greecementioning

confidence: 99%

Performance of large firms in Greece during the unstable period of 2011–2016: lessons from the weak parts of Europe

Tsiapa

2021

EJMBE

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“…According to this model, growth cannot go on forever without innovation as diminishing returns would reduce investment (Morales, 2003). At the micro-level, companies invest in R&D to create new products (Lee and Wu, 2015;Pindado et al, 2015), to achieve continuous innovation (Lee and Wu, 2015) and thus increase profits (Lee and Wu, 2015;Dimitropoulos, 2020) and corporate value (Poletti Hughes, 2008). At the macro-level, R&D expenditures may accelerate technological change and innovation (Pindado et al, 2015) and increase academic research productivity (Teitel, 1994) and thus foster growth (Boeing et al, 2022).…”

Section: Economics and Financementioning

confidence: 99%

“…At the micro-level, companies invest in R&D to create new products (Lee and Wu, 2015; Pindado et al. , 2015), to achieve continuous innovation (Lee and Wu, 2015) and thus increase profits (Lee and Wu, 2015; Dimitropoulos, 2020) and corporate value (Poletti Hughes, 2008). At the macro-level, R&D expenditures may accelerate technological change and innovation (Pindado et al.…”

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

Macroeconomic factors, R&D expenditure and research productivity in economics and finance

Uyar

Kuzey

Kılıç

2022

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PurposeDrawing on institutional theory and knowledge spillover, the study aims to examine whether there is a causality relationship between macroeconomic factors and research productivity.Design/methodology/approachThe study uses fixed-effects (FE) panel regression analysis, utilizing 1,614 country–year observations and 541,732 citable publications between 1996 and 2017, to explore the relationship between macroeconomic factors, research and development (R&D) expenditure and research productivity in economics and finance.FindingsThe results highlight a two-way relationship between R&D expenditure and economic development and research productivity. However, research productivity has no relationship with foreign direct investment (FDI), trade and financial development. In terms of remaining macroeconomic factors, financial development, trade and FDI have insignificant associations with research productivity in both directions of causality. In line with institutional theory, the findings support the notion that economically more developed countries and countries dedicating greater R&D funds have more potential to support research activities. On the other hand, in line with knowledge spillover, the research output of nations contributes to the economic development and expansion of R&D budgets. The results are robust to alternative methodology, endogeneity concerns, additional control variables, alternative sampling and alternative research productivity proxy.Research limitations/implicationsThe study suggests practical implications for nations to formulate macro-policies and a better research environment for academicians and to establish links between academic research and macroeconomic factors.Originality/valueFirst, as there is limited research focusing on the bidirectional causality between the macroeconomic environment and academic research activity, the study adds to the understanding of the causality relationship between these two constructs. Second, it examines the bidirectional relationship between macroeconomic factors and research output at a global scale, while prior studies mostly focus on a single country, or a certain region or continent. Further, it is one of the few attempts particularly focusing on economics and finance research's bidirectional relation with the macroeconomic environment.

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“…The experience from previous studies showed that during the time of crisis, the firm focused on the R&D activity and marketing strategy (Knudsen & Lien, 2019;Dimitropoulos, 2020). The unique feature of the fintech company is innovation, which strongly links to R&D activity (Dorfleitner, Hornuf, Schmitt, and Weber, 2017;Arner, Arner, Barberis, and Buckley, 2015).…”

Section: Consolidation Strategymentioning

confidence: 99%

Fintech, strategic adaptation in shock of COVID-19: A review of the empirical literature

Pham¹,

Tran²,

NguYen³

2022

JOMEINO

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This study is an empirical literature review about the strategic adaptation in the context of COVID-19 that is a cause of economic shock. We reviewed existing publications and determined that COVID-19 is an economic shock; it significantly influences firm strategy. Besides that, the fintech company's characteristics and the firm respondents' experience lessons from the previous crisis are explored, which are the background to propose the two strategic adaptations for the fintech company. Firstly, the consolidation strategy for the time of COVID-19 contains three respondents: maintain frequent operational activities, increase research and development investment, and implement marketing campaigns. Secondly, in the spreading strategy for the post-COVID-19 period, we recommend a product and customer diversification strategy, concentrating on the risk of law and allocating resources efficiently. Besides that, we discuss the trend of an alliance network between the fintech company and the traditional financial institution, like the win-win strategy for both entities. Furthermore, suggestions for the directors of the fintech companies and directions for further research are proposed.

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R &D investments and profitability during the crisis: evidence from Greece

Cited by 15 publications

References 31 publications

Performance of large firms in Greece during the unstable period of 2011–2016: lessons from the weak parts of Europe

Performance of large firms in Greece during the unstable period of 2011–2016: lessons from the weak parts of Europe

Macroeconomic factors, R&D expenditure and research productivity in economics and finance

Fintech, strategic adaptation in shock of COVID-19: A review of the empirical literature

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