nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2018‒04‒09
one paper chosen by

  1. The impact of financial management on innovation By Marcus Illmeyer; Dietmar Grosch; Maria Kittler; Pamela Priess

  1. By: Marcus Illmeyer (Pan-European University); Dietmar Grosch (Pan-European University); Maria Kittler (Pan-European University); Pamela Priess (Pan-European University)
    Abstract: 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.
    Keywords: innovation capacity,financial management,financial controlling,liquidity,financial literacy,innovativeness
    Date: 2017–09–29

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