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Analyzing the Effect of Financial Constraints on Technological and Management Innovation in SMEs: A Gender Perspective

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  • Daniel Ruiz-Palomo
  • Manuel à ngel Fernández-Gámez
  • Ana León-Gómez

Abstract

The aim of this research is twofold: establishing whether access to bank financing facilitates innovation in SMEs and whether such effect can be explained from a gender perspective. Using a sample of 310 Spanish SMEs, this study first examines the effect of alleviating financial constraints on both technological and management innovation through a structural equation model. Then, the moderating effect of gender is examined. Our results showed that (a) relaxing financial constraints helps SMEs to innovate in both technological and management innovation, (b) the effect of the relaxation of financial constraints is significantly greater in companies managed by women, and (c) the moderating effect of gender occurs from the double perspective of technological innovation and management innovation. Our empirical results suggest that the gender of the CEO plays a vital moderating role among innovation and financial constraints, providing new evidence about women’s contribution to innovation in SMEs, so these results have practical business and institutional implications as they point out the relevance to promote employment policies that favour the gender diversity of employees at all hierarchical levels of the company.

Suggested Citation

  • Daniel Ruiz-Palomo & Manuel à ngel Fernández-Gámez & Ana León-Gómez, 2022. "Analyzing the Effect of Financial Constraints on Technological and Management Innovation in SMEs: A Gender Perspective," SAGE Open, , vol. 12(1), pages 21582440221, March.
    • Handle: RePEc:sae:sagope:v:12:y:2022:i:1:p:21582440221079925
    DOI: 10.1177/21582440221079925
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    Cited by:

    1. Ana León-Gómez & José Manuel Santos-Jaén & Daniel Ruiz-Palomo & Mercedes Palacios-Manzano, 2022. "Disentangling the impact of ICT adoption on SMEs performance: the mediating roles of corporate social responsibility and innovation," Oeconomia Copernicana, Institute of Economic Research, vol. 13(3), pages 831-866, September.
    2. José Manuel Santos-Jaén & Ana León-Gómez & Daniel Ruiz-Palomo & Francisca García-Lopera & María del Carmen Valls Martínez, 2022. "Exploring Information and Communication Technologies as Driving Forces in Hotel SMEs Performance: Influence of Corporate Social Responsibility," Mathematics, MDPI, vol. 10(19), pages 1-15, October.
    3. Ruiying Xiao, 2024. "Female Entrepreneur on Board:Assessing the Effect of Gender on Corporate Financial Constraints," Papers 2401.02134, arXiv.org.

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