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Enhancing Financial Performance through Absorptive Capacity: Evidence from Croatian Export Companies in Domestic and International Markets

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  • Martinčević Ivana

    (University North, Department for Logistics and Sustainable Mobility, Croatia)

Abstract

Background Export activities represent one of the prerequisites for the growth and development of economies. In combination with new digital technologies, they create a sustainable advantage and competitiveness in the market. Objectives The focus of this research was to determine whether there is a significant difference and connection between the absorptive capacity of accepting new technologies and its influence on financial performance in the domestic and foreign markets. Methods /Approach The relationship between the absorptive capacity of the application of new technologies and its influence on financial performance was investigated in a sample of Croatian companies. Structural equation modelling was used to investigate the relationship between absorptive capacity and financial performance. Results The results of the research confirm a statistically significant relationship between the absorptive capacity of accepting new technologies and its influence on the financial performance of export companies. Conclusion The analysis revealed that absorptive capacity significantly impacts the financial performance of Croatian export companies, with a stronger influence observed in foreign markets compared to domestic ones. These findings suggest that investing in the ability to absorb and apply new technologies is crucial for enhancing financial outcomes, particularly in the global marketplace.

Suggested Citation

  • Martinčević Ivana, 2023. "Enhancing Financial Performance through Absorptive Capacity: Evidence from Croatian Export Companies in Domestic and International Markets," Business Systems Research, Sciendo, vol. 14(2), pages 214-238, December.
    • Handle: RePEc:bit:bsrysr:v:14:y:2023:i:2:p:214-238:n:12
    DOI: 10.2478/bsrj-2023-0020
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    More about this item

    Keywords

    absorptive capacity; new digital technologies; export; export companies of the Republic of Croatia; sustainable development;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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