The impact of financial management on innovation

Marcus Illmeyer (), Dietmar Grosch (), Maria Kittler () and Pamela Priess ()
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Marcus Illmeyer: Pan-European University, Slovakia
Dietmar Grosch: Pan-European University, Slovakia
Maria Kittler: Pan-European University, Slovakia
Pamela Priess: Pan-European University, Slovakia

Entrepreneurship and Sustainability Issues, 2017, vol. 5, issue 1, 58-71

Abstract: In the current competitive market, innovation has become a crucial element for organizations, willing to grow. Financial management in this regard is playing a significant role in improving firms’ innovation capacity. This research paper evaluates the impact of financial management components on innovativeness of Austrian SMEs. Using data of 118 employees from 41 SMEs operating in Austria, the research finds a significant impact of the financial management model on firms’ innovation. The three components: liquidity, controlling, and financial literacy are statistically significant is explaining innovativeness at 1% level. The study suggests focus on the three financial management constructs in order to improve their innovation capability and capacity.

Keywords: financial management; financial controlling; liquidity; financial literacy; innovativeness; innovation capacity (search for similar items in EconPapers)
JEL-codes: G20 M11 M16 O10 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:5:y:2017:i:1:p:58-71

DOI: 10.9770/jesi.2017.5.1(5)

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