The Innovation - Corporate Performance Relationship in Emergent Countries

Publication date: 2018Source: Procedia - Social and Behavioral Sciences, Volume 238Author(s): Gabriela Lucia Sipos, Alin IonescuAbstractInnovation has become a highly actual topic. The main goal of this study is to identify the existence of any possible impact of innovation on companies’ performances in the case of companies from 115 emergent countries, based on data provided by the World Bank. Thus, using the methodology of principal components analysis, we proposed two composite indexes: a multidimensional composite index measuring the corporate sector's innovation and another composite index measuring the companies’ performances for selected countries.In the case of innovation, four different dimensions were taken into consideration oriented towards the company's endeavor in obtaining the recognition of its products’ quality and accounting practices and also in enhancing its visibility on market and improving communication with business partners using information and communication technologies. Also, corporate performances were described by four measures regarding the dynamics of the annual sales and labor productivity and the company's propensity towards investing in fixed assets or in employee's formal training.The main output of this paper is that, using the generalized linear model in order to identify the relationship between the proposed two composite indexes, the innovation described by the selected dimensions has a significant influence on companies’ perfor...
Source: Procedia Social and Behavioral Sciences - Category: Psychiatry & Psychology Source Type: research