The impact of financial management on innovation

Marcus Illmeyer (1) , Dietmar Grosch (1) , Maria Kittler (1) , Pamela Priess (1)

1 Pan-European University

In the current competitive market, innovation has become a crucial element for organizations, willing to grow. Financial management in this regard is playing a significant role in improving firms' innovation capacity. This research paper evaluates the impact of financial management components on innovativeness of Austrian SMEs. Using data of 118 employees from 41 SMEs operating in Austria, the research finds a significant impact of the financial management model on firms' innovation. The three components: liquidity, controlling, and financial literacy are statistically significant is explaining innovativeness at 1% level. The study suggests focus on the three financial management constructs in order to improve their innovation capability and capacity.

Mots clés: innovativeness; financial literacy; liquidity; innovation capacity; financial management; financial controlling

Domaines: Economies et finances; Méthodes et statistiques; Ingénierie, finance et science [cs.CE]; Finance [q-fin.GN]; Econométrie de la finance [q-fin.ST]

Marcus Illmeyer, Dietmar Grosch, Maria Kittler, Pamela Priess. The impact of financial management on innovation. Entrepreneurship and Sustainability Issues, 2017, 5 (1), pp.58 - 71. ⟨10.9770/jesi.2017.5.1(5)⟩. ⟨hal-01724084⟩