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
Dietmar Grosch: Pan-European University
Maria Kittler: Pan-European University
Pamela Priess: Pan-European University

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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: innovativeness; financial literacy; liquidity; innovation capacity; financial management; financial controlling (search for similar items in EconPapers)
Date: 2017-09-29
New Economics Papers: this item is included in nep-fle, nep-ino and nep-sbm
Note: View the original document on HAL open archive server: https://hal.science/hal-01724084
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Citations: View citations in EconPapers (5)

Published in Entrepreneurship and Sustainability Issues, 2017, 5 (1), pp.58 - 71. ⟨10.9770/jesi.2017.5.1(5)⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01724084

DOI: 10.9770/jesi.2017.5.1(5)

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