IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v58y2022i5p1288-1307.html
   My bibliography  Save this article

The Ownership Concentration − Innovation Nexus: Evidence From SMEs Around The World

Author

Listed:
  • Duc Nguyen Nguyen
  • Quynh-Nhu Tran
  • Quang-Thai Truong

Abstract

This study investigates whether ownership concentration improves or impedes firm innovation using a sample of small and medium-sized enterprises (SMEs) spanning 95 countries worldwide. We find that higher ownership concentration is associated with a lower likelihood of introducing innovative activities. Further, results reveal that concentrated ownership has detrimental impacts on innovation for firms with a higher degree of asymmetric information and firms led by less experienced managers. We also show that the negative association between ownership concentration and innovation only exists for financially constrained firms (i.e., younger enterprises and SMEs with high financing obstacles) and those with the highly concentrated ownership structure. Lastly, evidence suggests that institutional development alleviates the negative impact of ownership concentration on innovation.

Suggested Citation

  • Duc Nguyen Nguyen & Quynh-Nhu Tran & Quang-Thai Truong, 2022. "The Ownership Concentration − Innovation Nexus: Evidence From SMEs Around The World," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(5), pages 1288-1307, April.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:5:p:1288-1307
    DOI: 10.1080/1540496X.2020.1870954
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2020.1870954
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2020.1870954?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Sualeh Khattak & Rizwan Ullah, 2021. "The role of entrepreneurial orientation in tangible and intangible resource acquisition and new venture growth," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1619-1637, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:58:y:2022:i:5:p:1288-1307. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.