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Exploring the Link between Innovation and Firm Performance

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  • Yannis Hatzikian

Abstract

In the context of this paper, we examine the relationship between innovation and firm performance for Greece. We test the hypothesis that there is a U-shaped relationship between innovation and firm performance, in the short-term period. We apply the method for examining nonlinearities, that is, the introduction of squared terms as independent variables. The collected variables are used in a multiple linear model formulation to evaluate the relative performance associated with them. For this reason, a number of variables are used, like the innovation intensity, the squared term of innovation intensity, the R&D personnel, and the productivity, as well as the firm size as control variable. We rely on the final results of a research project on women in innovation, technology, and science, based on 372 questionnaires selected on a 2-year time period (2004–2006). Copyright Springer Science+Business Media New York 2015

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  • Yannis Hatzikian, 2015. "Exploring the Link between Innovation and Firm Performance," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 749-768, December.
    • Handle: RePEc:spr:jknowl:v:6:y:2015:i:4:p:749-768
    DOI: 10.1007/s13132-012-0143-2
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    4. Deepak Chandrashekar & M. H. Bala Subrahmanya & Kshitija Joshi & Tathagat Priyadarshi, 2019. "Effect of Innovation on Firm Performance — The Case of a Technology Intensive Manufacturing Cluster in India," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(07), pages 1-31, November.
    5. Steven W. Bayighomog Likoum & Mohamed Dawood Shamout & Ibrahim Harazneh & A. Mohammed Abubakar, 2020. "Market-Sensing Capability, Innovativeness, Brand Management Systems, Market Dynamism, Competitive Intensity, and Performance: an Integrative Review," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 593-613, June.
    6. Ecartin Koutoua Bosson & Mehraz Boolaky & Mridula Gungaphul, 2016. "The Influence of National Culture on Marketing Strategies in Africa," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 5(2), pages 83-100, October.
    7. Timo Busch & Maximilian Schnippering, 2022. "Corporate social and financial performance: Revisiting the role of innovation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 635-645, May.
    8. Gezim Jusufi & Donat Rexha & Besime Ziberi, 2024. "Innovations and Entreprises Performance in Transition Countries, with Special Emphasis on Kosovo: CDM Model Approach," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 77-91.

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    Keywords

    Innovation; R&D; Productivity; Policy;
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