A Systems View Across Time and Space
Table 1 Summary of research studies on impact of innovation on firm performance
From: Firm performance over innovation cycle: evidence from a small European economy
Study | Country | Sample size | Time period | Controls | Performance indicators | Estimation method | Key findings |
|---|---|---|---|---|---|---|---|
Artz et al. (2010) | USA | 272 R&D spenders | 1986–2004 | Firm size, industry | Growth in sales | 3SLS | Negative relationship between patents and growth in ROA and sales |
Jiménez-Jiménez and Sanz-Valle (2011) | Spain | 451 firms | n.a | Firm size, age, sector, environmental turbulence | SSA: evolution of firm performance | SEM | Organisational learning and innovation contribute to business performance |
Gunday et al. (2011) | Turkey | 184 manufacturing firms | 2006–2007 | n.a | SSA: evolution of sales, profits, ROA, ROS | SEM | Financial performance is an output of innovation, production and market performance |
Atalay et al. (2013) | Turkey | 113 automotive suppliers | 2011 | n.a | SSA: performance relative to that of relevant competitors | FA, HR | Positive impact of product and process innovation, but not of organisational and marketing innovation |
Bigliardi (2013) | Italy | 98 food industry SMEs | n.a | Firm size | SSA: performance relative to that of relevant competitors | OLS | Financial performance enhanced by product innovation, but not the technology adopted |
VanderPal (2015) | USA | 272 R&D spenders | 1980–2013 | n.a | Revenue, equity, ROA, ROE | Panel regression | Positive relationship between R&D expenses and equity, revenue and ROA |
Tavassoli and Karlsson (2016) | Sweden | 4201 firms, CIS | 2002–2012 | Firm size, human and physical capital, industry | Labour productivity (value added per employee) | OLS, GLS, HTRE, FD | Firms with a complex innovation strategy are more productive than those with simple or no innovation strategies |
Bistrova et al. (2017) | CEE countries | 2672 firms, Amadeo database | 2005–2013 | Intangibles in % of total assets | ROE, gross margin, profit margin | OLS, PR | Lower shares of intangibles are associated with higher capital profitability |
Vasconceles and Oliveria (2018) | Brazil | 55 SMEs in foodservice | 2015–2016 | Firm age and size | Revenue | OLS, QR | Marketing innovations improve firm performance |
Rajapathirana and Hui (2018) | Sri Lanka | 379 insurance industry managers | 2016 | n.a | SSA: investments, sales and profits | SEM | Innovation performance has a positive impact on financial performance |
Ramadani et al. (2019) | 16 CEE and SEE countries | 2109 SMEs, BEEPS | 2013–2014 | Age, ownership, industry, human capital, R&D | Labour productivity | CDM | Product innovation, firm size, total labour cost, and capital have a positive impact, while age has a negative impact on firm performance |
Canh et al. (2019) | Vietnam | 9814 firms, VTCS | 2011–2013 | Assets, debt | ROA | Panel regression | Process and product innovations increase the market share, but not the return on total assets |
Lee et al. (2019) | Korea | 856 firms in KIS | 2014 | n.a | SSA: estimate of innovation-related turnover | SEM | Marketing innovation improves the performance of high-tech firms, while organisational innovation does so for low-tech firms |
Kijkasiwat and Phuensane (2020) | 29 EE and CA countries | 12,890 SMEs, BEEPS | 2013–2014 | Firm size, age, sector | Sales, fixed assets | SEM | Firm size and financial capital both moderate and mediate the impact of innovation on firm performance |