Financial constraints and firms’ innovation activities in post-communist economies

Wu, Ruohan

doi:10.1080/14631377.2021.2006497

Cited by 5 publications

(5 citation statements)

References 47 publications

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“…Besides that, our findings confirmed the work of Lv and Xiong [93] which demonstrated the positive influences of FIN on INO because it reduces financial constraints and increases the absorptive abilities of new ventures. Moreover, our study supported the previous literature line [ [90][91][92] which illustrated that financial constraints hinder INO since they impede innovative activities through declining the quality of inputs and outputs.…”

Section: Discussionsupporting

confidence: 90%

“…FIN illustrated by the existence of monetary organizations possesses a positive influence on enterprises' INO in the EU by organizing capital to stimulate organizational patenting actions [89]. In a similar viewpoint, financial constraints, which include financial barriers and the region and fund structure of firms, negatively influence the likelihood of improving enterprises' INO in various nations because they significantly impede firms' innovation input and output [90][91][92]. Moreover, Lv and Xiong [93] found that FIN positively affects the INO of Chinese firms since it eases financial constraints and enhances absorptive competencies.…”

Section: H1 Entrepreneurial Financial Support (H1a) and Entrepreneuri...mentioning

confidence: 99%

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Do Entrepreneurial Financial Support and Entrepreneurial Culture Stimulate New Venture Performance through Organizational Creativity and Firm Innovation? Empirical Findings from Ho Chi Minh City Region, Vietnam

Thai,

Mai

2024

Sustainability

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In the COVID-19 pandemic phase, entrepreneurial financial support and entrepreneurial culture play a major part in stimulating entrepreneurship. However, it is still unclear how entrepreneurial financial support and entrepreneurial culture affect organizational creativity and firm innovation, and whether they enhance new venture performance. To answer these timely inquiries, this study adopted the resource-based view (RBV) theory to investigate the influences of entrepreneurial financial support and entrepreneurial culture on new venture performance through organizational creativity and firm innovation. Based on 315 responses collected from the entrepreneurs of new ventures operating in the Ho Chi Minh City region, Vietnam, a quantitative approach and the partial least squares structural equation modeling (PLS-SEM) were employed for data analysis. The findings illustrated that all the proposed hypotheses were completely supported, except the effect of entrepreneurial financial support on new venture performance through organizational creativity. Moreover, firm innovation had the strongest direct effect on new venture performance, while organizational creativity and firm innovation partially mediated associations between entrepreneurial financial support, entrepreneurial culture, and new venture performance. Therefore, this study solved existing debates in the literature, while developing the resource-based view (RBV) theory in the context of entrepreneurship. In the post-COVID-19 epidemic stage, it provides a new understanding for administrators and other participants to create and promote effective financial support systems and national cultures which stimulate entrepreneurship, concurrently offering new ventures with rational approaches to utilize those external resources to develop their organizational creativity and firm innovation for improving their performance.

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Section: Discussionsupporting

confidence: 90%

Section: H1 Entrepreneurial Financial Support (H1a) and Entrepreneuri...mentioning

confidence: 99%

Do Entrepreneurial Financial Support and Entrepreneurial Culture Stimulate New Venture Performance through Organizational Creativity and Firm Innovation? Empirical Findings from Ho Chi Minh City Region, Vietnam

Thai,

Mai

2024

Sustainability

View full text Add to dashboard Cite

show abstract

“…This means that after receiving the same degree of government subsidy, the higher the financial constraint, the lesser the improvement of innovation performance. Alvarez and Crespi (2015) and Wu (2021) asserted that R&D investment is the premise for enterprises to implement innovation and financial constraint has a restraining effect on enterprises' R&D investment to some extent. Enterprises with greater financial constraints have less R&D investment intention, which ultimately leads to lower innovation output.…”

Section: Further Discussionmentioning

confidence: 99%

Research on the impact of digital finance on the innovation performance of enterprises

Jiang

Zhu

2022

EJIM

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PurposeThe purposes of this paper are to analyze whether digital finance can contribute to enterprises' innovation performance and to determine the mediating effect of government subsidies.Design/methodology/approachThis paper empirically examines the impacts of digital finance on enterprises' innovation performance by looking at Chinese companies listed on the SME and GEM boards from 2011 to 2018 to build an econometric model to test our hypotheses. The mediating effect of government subsidies, the moderating effect of financial constraints are examined, as well as shareholding of the largest shareholders in each selected company and the asset-liability ratio.FindingsThe results show that digital finance has a significant promotional effect on firms' innovation performance and that government subsidies play a partial mediating role in digital finance's contribution to firms' innovation performance. In addition, financial constraints and the shareholding of the largest shareholders in each selected company have a negative moderating effect on the relationship between government subsidies and firms' innovation performance. On the contrary, the asset-liability ratio is found to positively affect the relationship.Originality/valueThere has been limited research to date on the relationship between digital finance and firms' innovation performance, particularly with regard to the extent to which digital finance can influence innovation performance and the mechanisms for doing so. Therefore, it is of great significance to examine the relationship between digital finance and enterprises' innovation performance, which can also provide guidance for both the Chinese government and enterprises.

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“…Innovation factor input is an important resource for corporate innovation, while the financial and human capital input are the most basic factors for innovation activities (Yang et al, 2020). R&D fund is a necessary condition for innovation because financial constraints will significantly affect firms' innovation output (Wu, 2022). Meanwhile, corporate innovation depends on high‐quality human input, through mastering and applying knowledge and technology, to achieve product upgrading and technological progress (Sun et al, 2020).…”

Section: Policy Background and Theoretical Analysismentioning

confidence: 99%

“…Similarly, the estimated result in column (2) shows that the coefficient of Court is significant at the 1% level, demonstrating that the establishment of IP courts is conducive to enhancing human capital input. On this basis, as the most fundamental innovation factors, the increase in financial and human investment will further enhance the innovation level of enterprises (Sun et al, 2020; Wu, 2022). Therefore, the establishment of IP courts is conducive to increasing the financial and human capital input, thus promoting corporate innovation, which confirms hypotheses 2a and 2b.…”

Section: Further Analysesmentioning

confidence: 99%

Intellectual property judicial protection, innovation factor input, and corporate innovation: Evidence from the establishment of intellectual property courts in China

Nie,

Qi,

Feng

2024

Manage Decis Econ

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Based on the establishment of China's intellectual property (IP) courts, this article examines the impact of intellectual property judicial protection (IPJP) on corporate innovation using the sample of China's A‐shared listed firms from 2013 to 2021 by the time‐varying difference‐in‐differences (DID) model. The result shows that IP courts have a significant positive effect on corporate innovation, mainly by increasing innovation factor input, including expenditure of R&D funds and R&D personnel quantity. Additionally, the effect is stronger for invention patents and in non‐state‐owned firms, small firms, high‐tech firms, and firms with low financing constraints.

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Financial constraints and firms’ innovation activities in post-communist economies

Cited by 5 publications

References 47 publications

Do Entrepreneurial Financial Support and Entrepreneurial Culture Stimulate New Venture Performance through Organizational Creativity and Firm Innovation? Empirical Findings from Ho Chi Minh City Region, Vietnam

Do Entrepreneurial Financial Support and Entrepreneurial Culture Stimulate New Venture Performance through Organizational Creativity and Firm Innovation? Empirical Findings from Ho Chi Minh City Region, Vietnam

Research on the impact of digital finance on the innovation performance of enterprises

Intellectual property judicial protection, innovation factor input, and corporate innovation: Evidence from the establishment of intellectual property courts in China

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