Financial Constrains for Innovative Firms: The Role of Size, Industry and ICT Uses as Determinants of Firms’ Financial Structure

2010 ◽  
pp. 34-45
Author(s):  
David Castillo-Merino ◽  
Jordi Vilaseca-Requena ◽  
Dolors Plana-Erta
Keyword(s):  
Financial Structure ◽  
Innovative Firms

scholarly journals A Study on the Impact of R&D Intensity on Business Performance: Evidence from South Korea

2021 ◽  
Vol 7 (2) ◽  
pp. 135
Author(s):  
Hun Park ◽  
Jun-Hwan Park ◽  
Sujin Lee ◽  
Hyuk Hahn
Keyword(s):  
South Korea ◽  
Research And Development ◽  
Business Performance ◽  
Decision Makers ◽  
The Other ◽  
Research Groups ◽  
Innovative Firms ◽  
The Impact ◽  
Knowledge Services

The role of R&D (research and development) intensity on the effect of knowledge services on the business performance of firms has been discussed by using PLS-SEM and PLS-MGA methods. Research groups were divided into two groups, innovative and non-innovative. Respondents were classified into innovative firms if their R&D intensity was over 3% and vice versa. PLS-SEM and PLS-MGA results were compared for two groups and valuable insights were extracted. For innovative firms, knowledge services seemed to be verified and processed by the decision makers and utilized to achieve their business performance. On the other hand, a large number of non-innovative firms seemed to have a stronger tendency to utilize knowledge services directly for their business without sufficient verification by the decision makers.

ON THE CHARACTERISTICS OF INNOVATIVE FIRMS IN KOREA: THE ROLE OF R&D AND INNOVATION TYPE

1999 ◽  
Vol 03 (01) ◽  
pp. 111-131 ◽  
Author(s):  
YONG-TAE PARK ◽  
CHUL-HYUN KIM ◽  
JI-HYO LEE
Keyword(s):  
Large Scale ◽  
Data Gathering ◽  
Policy Implications ◽  
Future Research ◽  
Different Types ◽  
Innovative Firms ◽  
Unexpected Findings ◽  
Innovation Type ◽  
Recent Extension

In spite of the recent extension of our knowledge on technological innovation, little inquiry has been made of the distinctive characteristics between R&D firms and non-R&D firms, as well as between product-innovative firms and process-innovative firms. To this end, the main objective of this empirical study, grounded on a large-scale innovation survey of Korean manufacturing firms, is to contrast these two types of firms. The results were mixed. Some hypotheses were confirmed while others were discordant with expectation. By and large, R&D firms and product-innovative firms seem to share a similar propensity, whereas non-R&D firms and process-innovative firms are alike in character. However, there were some unexpected findings which merit attention and are worthy of in-depth examination. Although the study is subject to limitations in terms of its research design and data gathering, the results render some important policy implications. Furthermore, comparative analyses between different types of innovations need to be addressed more extensively in future research.

Internal and external search strategies of innovative firms: the role of the target market

2018 ◽  
Vol 24 (3) ◽  
pp. 495-518 ◽  
Author(s):  
Guillermo Ruiz-Pava ◽  
Clemente Forero-Pineda
Keyword(s):  
International Markets ◽  
Search Strategies ◽  
Local Market ◽  
Target Market ◽  
Local Markets ◽  
Content Type ◽  
Innovative Firms ◽  
External Sources ◽  
Internal Sources

Purpose This paper aims to develop the concept of internal search of ideas to show the contrast between search strategies adopted by firms that introduce new products into local and international markets. Design/methodology/approach Based on data from 2,652 innovative firms, the paper uses factor analysis to explore and confirm appropriate groups of sources of innovative ideas. The analysis differentiates between internal and two types of external sources. Logistic and bivariate regressions reveal different search strategies for innovation in local and international markets. Findings Firms reporting products new to international markets exhibit search strategies combining ideas from internal sources with ideas from other firms. Firms reporting products new to local market reveal a search strategy centered on ideas from other firms. Practical implications Managers and policymakers wishing to promote innovations for international markets should concentrate their resources on developing the organizations’ capacity to generate ideas internally while monitoring other firms’ ideas. Managers targeting local markets may focus their efforts on intelligence over ideas coming from other firms. Originality/value Clarifying the relationship between knowledge and ideas, the paper finds that search strategies of firms are more effective for innovation depending on the target market. Firms searching for ideas among other firms generate ideas that might trigger innovation in products new to local markets. Firms searching both for internal and external ideas generate ideas leading to products new to international markets.

Hierarchical financing and reality of the financial structure of Moroccan listed companies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Firano Zakaria ◽  
Doughmi Salawa
Keyword(s):  
Stock Exchange ◽  
Financial Structure ◽  
Order Theory ◽  
Debt Ratio ◽  
Growth Opportunities ◽  
Pecking Order ◽  
Positive Role ◽  
Pecking Order Theory ◽  
Content Type

Purpose There is a wealth of literature on the financing structure of a company. For this reason, the authors considered it useful to present a theoretical and empirical literature review of classical and new theories of the financial structure. The purpose of this study is to realize on a panel of 15 nonfinancial Moroccan companies listed on the Casablanca Stock Exchange, over a period of 11 years. Design/methodology/approach The results obtained indicate that only a few variables from financial theory have an important role in the financing policy of Moroccan companies. The authors have presented the positive role of size and self-financing on the debt ratio. The analysis of the effects of profitability shows in this study that it is negative related on the debt ratio which asserts the predictions of the pecking order theory. Also, the age of the company and the growth opportunities explain the level of indebtedness. Findings Econometric analysis is used to ascertain the nature of the financial structure of listed companies. For this purpose, a large number of companies listed on the Casablanca stock exchange were used. Originality/value The authors have presented the positive role of size and self-financing on the debt ratio. Regarding the influence of profitability, this analysis shows that it is negative related on the debt ratio which asserts the predictions of the pecking order theory. Also, the age of the company and the growth opportunities explain the level of indebtedness.

scholarly journals Bridging Academia and Industry: How Geographic Hubs Connect University Science and Corporate Technology

2020 ◽  
Vol 66 (8) ◽  
pp. 3425-3443 ◽  
Author(s):  
Michaël Bikard ◽  
Matt Marx
Keyword(s):  
Unobserved Heterogeneity ◽  
Academic Science ◽  
Knowledge Flow ◽  
Innovative Firms ◽  
Localized Knowledge ◽  
University Science

Innovative firms rely increasingly on academic science, yet they exploit only a small fraction of all academic discoveries. Which discoveries in academia do firms build upon? We posit that hubs play the role of bridges between academic science and corporate technology. Tracking citations from patents to approximately 10 million academic articles, we find that hubs facilitate the flow of academic science into corporate inventions in two ways. First, hub-based discoveries in academia are of higher quality and are more applied. Second, firms—in particular young, innovative, science-oriented ones—pay disproportionate attention to hub-based discoveries. We address concerns regarding unobserved heterogeneity by confirming the role of firms’ attention to hub-based science in a set of 147 simultaneous discoveries. Importantly, hubs not only facilitate localized knowledge flow but also extend the geographic reach of academic science, attracting the attention of distant firms. This paper was accepted by Ashish Arora, entrepreneurship and innovation.

Opening the black box of diagnosis-related groups (DRGs): unpacking the technical remuneration structure of the Dutch DRG system

2018 ◽  
Vol 15 (2) ◽  
pp. 196-209
Author(s):  
Sam van Herwaarden ◽  
Iris Wallenburg ◽  
Joris Messelink ◽  
Roland Bal
Keyword(s):  
Diagnosis Related Groups ◽  
Financial Structure ◽  
Black Box ◽  
Reward Structure ◽  
Drg System ◽  
System A ◽  
Coding Systems ◽  
Technical Features

AbstractWhile we know that upcoding of diagnosis-related groups (DRGs) regularly occurs, we have little knowledge of the role of the technical features of coding systems in inducing coding behaviour. This paper presents methods for investigating the financial structure of the Dutch DRG system, and more in particular the grouper software, to gain such insight. The paper describes a system for investigating the robustness of the reward structure, by simulating the response of the DRG system to small changes in individual coding. The results from these analyses are used to visualise some data on coding behaviour, and to investigate how this behaviour is affected by incentives in the technical features of the DRG system. A number of technical weaknesses in the system are also identified.

scholarly journals Does Corporate Financial Architecture of Innovative Companies Differ? The Evidence From USA

2018 ◽  
Vol 12 (4) ◽  
pp. 7-28 ◽  
Author(s):  
Irina Ivashkovskaya ◽  
Sergei Evdokimov
Keyword(s):  
Corporate Governance ◽  
Risk Sharing ◽  
Business Models ◽  
Manufacturing Companies ◽  
Publicly Traded ◽  
Financial Architecture ◽  
Innovative Firms ◽  
Knowledge Intensive ◽  
Distinct Features

Each company operates within the framework of interrelated structures: ownership, corporate governance and capital structure. The particular combination of these dimensions determines the corporate financial architecture of the company. Despite the growing body of literature on the challenges of the knowledge economy to the structural dimensions of companies, still little is known about the financial architecture of innovative firms. At the same time it is widely recognized that such companies substantially differ from traditional types of businesses in their business models and dynamics. Meanwhile, the financial architecture of a company generates the distribution of the incentives to enhance innovations affecting interests and risk-sharing among stakeholders. To address the lack of research into the interaction of corporate structures and their distinct features in innovative companies, this paper aims at identifying the robust financial architecture patterns of innovative companies. Using a sample of more than 1,300 publicly traded US-based manufacturing companies, we use an agglomerative hierarchical clustering method to identify relevant patterns and compare them to the firms which are not considered to be ‘knowledge intensive’. The empirical results allow the identification of seven robust financial architecture patterns within innovative companies. Our findings show that the first major difference between the financial architecture of innovative and non-innovative firms is in the higher role of activist institutional investors in the ownership. The second notable difference is related to CEO-duality, which plays a significant role in corporate governance only in innovative firms. Moreover, innovative companies are less leveraged than non-innovative firms. In addition, mature innovative companies demonstrate better financial performance.

Financial Needs for a Competitive Business Model in the Knowledge Society

2010 ◽  
Vol 1 (4) ◽  
pp. 69-79 ◽  
Author(s):  
David Castillo-Merino ◽  
Dolors Plana-Erta
Keyword(s):  
Business Model ◽  
Financial Constraints ◽  
Knowledge Society ◽  
Financial Structure ◽  
Original Data ◽  
Investment Model ◽  
Data Set ◽  
Innovative Firms ◽  
The Relationship ◽  
Over Time

This paper investigates the constraints for companies to innovate in order to be competitive in the knowledge society. Using a large and original data set of Catalan firms, the authors have conducted a micro econometric analysis following Henry et al.’s (1999) investment model and von Kalckreuth (2004) methodology empirically contrasting the relationship between firms’ investment spread over time and their financial structure. Results show that it exits a positive and significant relationship between firms’ investment shift and financial structure, emerging financial constraints for more innovative firms. Furthermore, these constraints are higher for micro companies and firms within the knowledge-advanced services’ industry. Finally, the authors find that advanced ICT uses by more innovative firms allow them to reduce constraints of access to sources of finance.

The role of financial statements in the prediction of innovative firms: empirical evidence from Greece

2014 ◽  
Vol 14 (3) ◽  
pp. 439-451 ◽  
Author(s):  
Petros Kalantonis ◽  
Chrysovalantis Gaganis ◽  
Constantin Zopounidis
Keyword(s):  
Empirical Evidence ◽  
Financial Statements ◽  
Innovative Firms
Sign in / Sign up

Export Citation Format

Share Document