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Innovation and Firm Performance: The Moderating and Mediating Roles of Firm Size and Small and Medium Enterprise Finance

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  • Ploypailin Kijkasiwat

    (Faculty of Business Administration and Accountancy, Khon Kaen University, 123 Mittraphap Rd., Muang KhonKaen 40002, Thailand)

  • Pongsutti Phuensane

    (Faculty of Business Administration and Accountancy, Khon Kaen University, 123 Mittraphap Rd., Muang KhonKaen 40002, Thailand)

Abstract

This study examines the moderating effect of firm size on the relationship between innovation and firm performance of small and medium enterprises in 29 countries in Eastern European and Central Asia. The study also investigates whether the impact of innovation in products and processes on firm performance is affected by financial capital. The method applied is partial least square structural equation modelling. The findings indicate that firm size and the financial capital both moderate and mediate the impact of innovation on firm performance, positively or negatively. The findings have implications for decision makers by highlighting the significance of firm size and financial sources when planning to introduce innovations to enhance firm performance.

Suggested Citation

  • Ploypailin Kijkasiwat & Pongsutti Phuensane, 2020. "Innovation and Firm Performance: The Moderating and Mediating Roles of Firm Size and Small and Medium Enterprise Finance," JRFM, MDPI, vol. 13(5), pages 1-15, May.
    • Handle: RePEc:gam:jjrfmx:v:13:y:2020:i:5:p:97-:d:358892
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