The Effect of a Financial Support on Firm Innovation Collaboration and Output: Does Policy Work on the Diverse Nature of Firm Innovation?

Kim, Ki-Man; Choi, Sunghyun; Lee, Sooyeon

doi:10.1007/s13132-020-00667-9

Cited by 18 publications

(10 citation statements)

References 112 publications

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“…The intent of this research has been to advance the understanding of the influence of owner/managers’ behavioural characteristics on their financing decision making and financial choices. Prior research (Kim et al, 2021 ; Owusu-Manu et al, 2021 , Owusu-Manu et al, 2019 , Nkwocha et al, 2019 ; Aninze et al, 2018 ; Khawaja et al, 2016 ; Hussain & Matlay, 2007 ; Hussain et al, 2006 ) has considered the finance gaps for SMEs and identified lack of collateral and information asymmetry as the major factors that make SME risky clients and cause them to get excluded from formal financial provisions. This paper bridges the small enterprise literature, traditional financing concepts, and extended planned behaviour theories and sets out to explain why small tourism businesses are not always innovative in using different financing sources.…”

Section: Findings and Discussionmentioning

confidence: 99%

“…Researchers argue that SToT and POT theories might not be pertinent to firms in developing countries because of institutional and cultural alterations (Zellweger et al, 2019 ; Sarria-Allende et al, 2006 ; Morrison & Teixeira, 2004 ). Nonetheless, these theories could not describe SME financing preferences and decisions in developing economies because of the different sociological and psychological paradigm and various other types of obstacles faced by SME owner/managers (Baixauli-Soler et al, 2021 ; Kim et al, 2021 ; Weqar et al, 2021 ; Zellweger et al, 2019 ; Newman et al, 2011 ). Still, most small and medium enterprises employ elements of traditional capital theories (Kieschnick & Moussawi, 2017 ).…”

Section: Review Of the Literature Theory Hypotheses Development And C...mentioning

confidence: 99%

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Unveiling the Impact of Psychological Traits on Innovative Financial Decision-making in Small Tourism Businesses

Sandhu

El-Gohary

2022

J Knowl Econ

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Understanding factors affecting innovative financial decision-making involves the usage of more than one theory-driven model including those related to psychological behaviour (e.g. theory of planned behaviour). This study validates a conceptual framework extending the traditional financing model (TFM) and behavioural financial decision (BFD) to explain innovative financial decision-making utilising both qualitative and quantitative approaches. Based on a sample of 140 small tourism businesses, employing structured equation modelling, the findings reinforce the importance of the behavioural approach on innovative financial decision-making in small tourism businesses. The findings does not only make a respectable contribution the field, but also offer a practical evidence for the adaptation of the theory of planned behaviour in developing countries.

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Section: Findings and Discussionmentioning

confidence: 99%

Section: Review Of the Literature Theory Hypotheses Development And C...mentioning

confidence: 99%

Unveiling the Impact of Psychological Traits on Innovative Financial Decision-making in Small Tourism Businesses

Sandhu

El-Gohary

2022

J Knowl Econ

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“…Knowledge resource related to innovation activities play an important role in high-quality economic development. As the government’s knowledge resource investment has been rising, the importance of policy evaluation has become pronounced [ 46 , 47 ]. Regression Discontinuity Design (henceforth, RDD), as a mainstream quasi-experimental approach, has been gradually applied to economics since the late 1990s [ 48 ].…”

Section: Literature Reviewmentioning

confidence: 99%

Can the establishment of state-level urban agglomeration stimulate enterprise innovation?—Taking Yangtze River Delta and Pearl River Delta as an example

Zhao

Hua-hua

2022

PLoS ONE

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This study uses a quasi-experimental method, Geographic Regression Discontinuity Design (GRDD), to evaluate the actual effect of establishing Yangtze River Delta and Pearl River Delta urban agglomerations on enterprise innovation. GRDD is a design in which a geographic boundary splits the units into treated and control areas in an as-if random fashion, and the shortest distances from each enterprise’s location to the boundary of urban agglomeration calculated by ArcGIS are considered as the running variable. The actual effect can be identified by the probability of receiving treatment jumps discontinuously at the known cutoff. It is shown that the establishment of Yangtze River Delta and Pearl River Delta urban agglomerations can significantly improve the enterprise innovation, and this outcome is verified by rigorous robustness tests including the placebo test with pseudo-boundary, the bandwidth sensitivity test, the parametric test with different functional forms and the extreme value test. Further, the influence mechanisms of state-level urban agglomerations promoting enterprise innovation are explored by Staggered DID. It is confirmed that the urban agglomeration construction can promote enterprise innovation through financial support and regional coordination channels.

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“…A moderate expansion of government size could better compensate for market failures [ 10 ] and guide resources such as funds and talents towards areas in urgent need of development [ 11 ], especially in areas with high investment costs and high-risk factors such as green technology innovation [ 12 ]. For example, financial support and strengthening of legislative protection could guide more resources to flow to the field of green technology innovation [ 13 , 14 ]. However, the excessive expansion of government size, beyond the critical value, and excessive intervention will inevitably damage social welfare and cause abnormal economic development [ 15 , 16 ], which is similar to the planned economic system.…”

Section: Introductionmentioning

confidence: 99%

How Government Size Expansion Can Affect Green Innovation—An Empirical Analysis of Data on Cross-Country Green Patent Filings

Wen

Zhang

et al. 2022

IJERPH

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The expansion of government size will have dual effects on a country’s green innovation. An appropriately sized government size increases marginal productivity and stimulates the development of green innovation by increasing government expenditure. On the contrary, an excessively sized government creates a huge administrative agency, which not only increases the tax burden but also damages social welfare by excessive intervention. Therefore, the effect of government size on green innovation is not linear. In order to prove this proposition, this study examines the impact of government size on green innovation in 166 countries between 1995 and 2018, using a two-way fixed effects model. The results reveal an inverted U-shaped relationship between government size and the level of green innovation, indicating that optimal government size may maximize a country’s green innovation output. The results further suggest that this inverted U-shaped relationship is mainly influenced by environmental regulations and financial support. Finally, our heterogeneity analysis demonstrates that the inverted U-shaped relationship is more pronounced for countries with high organizational inertia and more R&D expenditure than for those with low organizational inertia and less R&D expenditure. This finding makes up for the research gap between government size and green innovation and provides a reference for countries to formulate the optimal government size to improve the level of green innovation.

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The Effect of a Financial Support on Firm Innovation Collaboration and Output: Does Policy Work on the Diverse Nature of Firm Innovation?

Cited by 18 publications

References 112 publications

Unveiling the Impact of Psychological Traits on Innovative Financial Decision-making in Small Tourism Businesses

Unveiling the Impact of Psychological Traits on Innovative Financial Decision-making in Small Tourism Businesses

Can the establishment of state-level urban agglomeration stimulate enterprise innovation?—Taking Yangtze River Delta and Pearl River Delta as an example

How Government Size Expansion Can Affect Green Innovation—An Empirical Analysis of Data on Cross-Country Green Patent Filings

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