Proceedings of the 1st Business & Management Conference, Vienna

EXPLORING THE LINK BETWEEN INNOVATION CAPABILITY AND FINANCIAL PERFORMANCE

SALIH YEŞIL, AHMET KAYA

Abstract:

Today’s global and uncertain business world transform the way business is conducted. Companies need to pay attention to the innovation and innovation capabilities for the survival, success and growth. Innovation provides several strategic advantages (e.g., better performance outcomes, efficiency, productivity and competitive advantages) to all types of organisations. This study focuses on innovation capability and explores its effect on firm financial performance. The hypothesis is drawn from existent related literature. Data is collected from fifty four SMEs operating in Gaziantep city of Turkey and tested through correlation and regression analyses. The results reveal that innovation capability is positively related to sales growth but not to the return on assets. The findings and implications are discussed in relation to theory and previous empirical studies.

Keywords: Innovation, Innovation Capability, Performance, Financial Performance, SMEs

DOI: 10.20472/BMC.2015.001.024

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