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The impact of corporate performance on innovation management: Empirical evidence from emerging Asian economies

Author

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  • Rossi, Matteo
  • Mardini, Ghassan H.
  • Kyriakidou, Niki
  • Festa, Giuseppe

Abstract

Innovation is the key to survive, adapt, and succeed in modern markets, which are increasingly exposed to and impacted by the transformation in progress, especially from a technological point of view, and even more so as a result of the COVID-19 pandemic. However, the propensity to innovate is not only a desirable orientation of enterprises, but also a business process that absorbs relevant resources. In this vein, this study aims to understand if there is a connection, in the form of a direct and positive effect, between corporate performance and innovation, measured in terms of both expenses and intensity, with a specific focus on the Asian region (China, Hong Kong, Malaysia, Singapore, South Korea, and Thailand). While a direct relationship seems to exist when assessed by financial indicators (Tobin's Q), the same cannot be completely proved in relation to accounting ones (return on equity). Related implications, at the theoretical and practical level, are then provided, especially in regard to the potential contribution (and consequent appreciation) of intellectual capital.

Suggested Citation

  • Rossi, Matteo & Mardini, Ghassan H. & Kyriakidou, Niki & Festa, Giuseppe, 2023. "The impact of corporate performance on innovation management: Empirical evidence from emerging Asian economies," Journal of International Management, Elsevier, vol. 29(6).
    • Handle: RePEc:eee:intman:v:29:y:2023:i:6:s1075425323000881
    DOI: 10.1016/j.intman.2023.101091
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