Research Article
BibTex RIS Cite

THE IMPACT OF INNOVATION ON FINANCIAL PERFORMANCE OF ORGANIZATIONS

Year 2017, ICMEB17 Özel Sayısı, 213 - 226, 01.12.2017

Abstract

The one of the common ideas in business literature is to innovation is the important piece of financial performance of organizations. Accordingly, we could claim that there is linear relationship between innovation and financial performance. The purpose of the study is to test whether innovation has any impact on financial performance of organizations. The degree of innovation is measured from annual reports of firms using content analysis and return on assets represents financial performance of organizations. The relationship between innovation and financial performance has been investigated by panel data analysis for the period 2012-2016 over 20 companies listed in the Istanbul Stock Exchange Corporate Governance Index. The results of the study indicate the existence of a statistically significant linear relationship between innovation and financial performance

References

  • Ağca, V., & Kandemir, T. (2008). Aile İşletmelerinde İç Girişimcilik Finansal Performans İlişkisi: Afyonkarahisar’da Bir Araştırma. Afyon Kocatepe Üniversitesi Sosyal Bilimler Dergisi, 10(3), 209-230.
  • Akal, Z. (2000). İşletmelerde Performans Ölçüm ve Denetimi. Ankara: Milli Prodüktivite Merkezi Yayınları.
  • Atalay, M., Anafarta, N., & Sarvan, F. (2013).The relationship between innovation and firm performance: An empirical evidence from Turkish automotive supplier industry. Procedia - Social and Behavioral Sciences, 75, 226-235.
  • Bigliardi, B. (2013).The effect of innovation on financial performance: A research study involving SMEs. Innovation, 15(2), 245-255.
  • Breusch, T., & Pagan, A. (1980). The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics. Review of Economic Studies, 47, 239-253.
  • Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002).Learning orientation, firm innovation capability, and firm performance.Industrial Marketing Management, 31, 515-524.
  • Cho, H.-J., & Pucik, V. (2005).Relationship Between Innovativeness, Quality, Growth, Profitability, and Market Value.Strategic Management Journal, 26, 555-575.
  • Covin, J. G., & Lumpkin, G. T. (2011). Entrepreneurial Orientation Theory and Research: Reflections on a Needed Construct. Entrepreneurship Theory and Practice, 35(5), 855-872.
  • Çiçek, H., & Onat, O.K. (2012).İnovasyon Odaklı Faaliyetlerin Firma Performansına Etkisinin Veri Zarflama Analizi İle Belirlenmesi; İMKB Üzerine Bir Araştırma. Mehmet Akif Ersoy Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 4(7), 46-53.
  • Damanpour, F. (1991).Organizational Innovation: A Meta-Analysis of Effects of Determinants and Moderators. The Academy of Management Journal, 34(3), 555-590.
  • Erdem, B., Gökdeniz, A., & Met, Ö. (2011).Yenilikçilik ve İşletme Performansı İlişkisi: Antalya’da Etkinlik Gösteren 5 Yıldızlı Otel İşletmeleri Örneği.Dokuz Eylül Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 26(2), 77-112.
  • Erdil, O., & Kitapçı, H. (2007).TKY Araçlarının Kullanımı ve Firma Yenilikçiliğinin Yeni Ürün Geliştirme Hızı ve İşletme Performansına Etkisi.İktisadi ve İdari Bilimler Dergisi, 21(1), 233-245.
  • Eren, Ş., Yücel, R., & Eren, S. S. (2010). Firma Performansına Etkileri Kapsamında Çevresel Olumsuzluk Pazar Dinamizmi Journal of Yasar University, 18(5), 3102‐3116. Odaklılık ve Yenilikçilik Arasındaki İlişkilerin İncelenmesi.
  • Fu, G., & Zeng, P. (2015). The relationship between corporate social performance and corporate financial performance: a literatüre review of twenty years. (Der: Dawei Zheng), Tianjin, China: Education Management and Management Science.
  • Han, J. K., Kim, N., & Srivastava, R. K. (1998).Market Orientation and Organizational Performance: Is Innovation a Missing Link?. Journal of Marketing, 62(4), 30-45.
  • Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004).Innovativeness: Its antecedents and impact on business performance.Industrial Marketing Management, 33, 429-438.
  • Jimenez-Jimenez, D., & Sanz-Valle, R. (2011). Innovation, organizational learning, and performance. Journal of Business Research, 64, 408-417.
  • Jong, J. P.J., & Vermeulen, P. A.M. (2003).Organizing successful new service development: a literature review. Management Decision, 41(9), 844-858.
  • KAP. (2017). http://www.kap.gov.tr/yay/ek/index.aspx, Erişim Tarihi: 04.09.2017.
  • Kitapçı, H., & Çömez, P. (2016).The Effect of Innovation and Organizational Learning on Firm Performance: An Emprical Study in Quality Oriented Firms.International Journal of Research in Commerce & Management, 7(3), 28-34.
  • Kreiser, P. M., Marino, L. D., Kuratko, D. F., & Weaver, K. M. (2013). Disaggregating Entrepreneurial Orientation: The Non-Linear Impact of Innovativeness, Proactiveness and Risk-Taking on SME Performance. Small Business Economics, 40(2), 273-291.
  • Lööf, H., & Heshmati, A. (2006).On the relationship between innovation and performance: A sensitivity analysis. Economics of Innovation and New Technology, 15(4/5), 317-344.
  • Lumpkin, G. T., & Gregory, G. D. (1996). Clarifying The Entrepreneurial Orientation Construct and Linking it to Performance. The Academy of Management Review, 21(1), 135-172.
  • Matsuo, M. (2006).Customer orientation, conflict, and innovativeness in Japanese sales departments.Journal of Business Research, (59), 242-250.
  • Muiruri, J. K., & Ngari, J. M. (2014).Effects of Financial Innovations on the Financial Performance of Commercial Banks in Kenya.International Journal of Humanities and Social Science, 4(7), 51-57.
  • Orfila-Sintes, F., & Mattsson, J. (2009).Innovation behavior in the hotel industry.Omega The International Journal of Management Science, 37, 380-394.
  • Öncü, M. A., Bayat, M., Kethüda, Ö., & Zengin, E. (2015).Yenilik ve Müşteri Performansının Finansal Performans Üzerindeki Etkisi: Orta Ölçekli Sanayi İşletmelerinde Bir Araştırma.Marmara Üniversitesi İ.İ.B.F. Dergisi, XXXVII(I), 149-164.
  • Prajogo, D. I. (2006).The Relationship between Innovation and Business Performance-A Comparative Study between Manufacturing and Service Firms.Knowledge and Process Management, 13(3), 218-225.
  • Rhee, J., Park, T., & Lee, D. H. (2010). Drivers of innovativeness and performance for innovative SMEs in South Korea: Mediation of learning orientation.Technovation, 30, 65-75.
  • Short, J. C., Broberg, J. C., Cogliser, C. C., & Brigham, K. H. (2010). Construct Validation Using Computer- Aided Text Analysis (CATA)- An Illustration Using Entrepreneurial Orientation. Organizational Research Methods, 13(2), 320-347.
  • Short, J. C., & Palmer, T. B. (2008). The Application of Diction to Content Analysis Research in Strategic Management. Organizational Research Methods, 11(4), 727-752.
  • Slevin, D. P., & Terjesen, S. A. (2011). Entrepreneurial Orientation: Reviewing Three Papers and Implications for Further Theoretical and Methodological Development. Entrepreneurship Theory and Practice, 35(5), 973- 987.
  • Standing, C., & Kiniti, S. (2011). How can organizations use wikis for innovation?. Technovation, 31, 287-295.
  • Şişmanoğlu, E., & Akçalı, B. Y. (2016).The Effect of Innovation on Financial Performance of Some Information and Technology Companies in Turkey.İstanbul Üniversitesi İktisat Fakültesi Ekonometri ve İstatistik Dergisi, 24, 82-93.
  • Tarı, R. (2012). Ekonometri. Kocaeli: Umuttepe Yayınları.
  • Wooldridge, J. (2002). Econometric Analysis of Cross Section and Panel Data. London: The MIT Press.
  • Zehir, C., & Özşahin, M. (2006).Stratejik Karar Verme Hızını Etkileyen Örgütsel, Çevresel Faktörler Ve Firma Performansı İlişkisi: İmalat Sektöründe Bir Saha Çalışması.Gazi Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 9(1), 137-157.

YENİLİKÇİLİK KAVRAMININ İŞLETMELERİN FİNANSAL PERFORMANSI ÜZERİNDEKİ ETKİSİ

Year 2017, ICMEB17 Özel Sayısı, 213 - 226, 01.12.2017

Abstract

İşletmenin yenilik yapabilme yeteneğinin işletme performansının önemli bir parçası olduğu literatürde kabul gören bir görüştür. Bu görüş doğrultusunda işletmenin yenilikçilik düzeyi ile işletmenin finansal performansı arasında doğrusal bir ilişki bulunduğunu öne sürülebilir. Çalışmanın amacı, işletmelerin yenilikçilik düzeyinin işletmelerin finansal performansı üzerinde etkisinin olup olmadığının incelenmesi olarak belirlenmiştir. Çalışmada işletmelerin yenilikçilik düzeyi, işletmelerin faaliyet raporlarından içerik analizi yöntemi kullanılarak ölçülmüş; işletmenin finansal performansı ise aktif karlılık oranı ile temsil edilmiştir. Yenilikçilik düzeyi ile işletmelerin finansal performansı arasındaki ilişki panel veri analizi yöntemi kullanılarak, 2012–2016 dönemi arasındaki 5 yıllık periyod için Borsa İstanbul Kurumsal Yönetim Endeksi’nde işlem gören 20 adet şirket üzerinden araştırılmıştır. Çalışmanın sonuçları, işletmelerin yenilikçilik düzeyi ile finansal performansları arasında doğru yönlü ve istatiksel olarak anlamlı bir ilişki olduğunu ortaya koymaktadır.

References

  • Ağca, V., & Kandemir, T. (2008). Aile İşletmelerinde İç Girişimcilik Finansal Performans İlişkisi: Afyonkarahisar’da Bir Araştırma. Afyon Kocatepe Üniversitesi Sosyal Bilimler Dergisi, 10(3), 209-230.
  • Akal, Z. (2000). İşletmelerde Performans Ölçüm ve Denetimi. Ankara: Milli Prodüktivite Merkezi Yayınları.
  • Atalay, M., Anafarta, N., & Sarvan, F. (2013).The relationship between innovation and firm performance: An empirical evidence from Turkish automotive supplier industry. Procedia - Social and Behavioral Sciences, 75, 226-235.
  • Bigliardi, B. (2013).The effect of innovation on financial performance: A research study involving SMEs. Innovation, 15(2), 245-255.
  • Breusch, T., & Pagan, A. (1980). The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics. Review of Economic Studies, 47, 239-253.
  • Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002).Learning orientation, firm innovation capability, and firm performance.Industrial Marketing Management, 31, 515-524.
  • Cho, H.-J., & Pucik, V. (2005).Relationship Between Innovativeness, Quality, Growth, Profitability, and Market Value.Strategic Management Journal, 26, 555-575.
  • Covin, J. G., & Lumpkin, G. T. (2011). Entrepreneurial Orientation Theory and Research: Reflections on a Needed Construct. Entrepreneurship Theory and Practice, 35(5), 855-872.
  • Çiçek, H., & Onat, O.K. (2012).İnovasyon Odaklı Faaliyetlerin Firma Performansına Etkisinin Veri Zarflama Analizi İle Belirlenmesi; İMKB Üzerine Bir Araştırma. Mehmet Akif Ersoy Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 4(7), 46-53.
  • Damanpour, F. (1991).Organizational Innovation: A Meta-Analysis of Effects of Determinants and Moderators. The Academy of Management Journal, 34(3), 555-590.
  • Erdem, B., Gökdeniz, A., & Met, Ö. (2011).Yenilikçilik ve İşletme Performansı İlişkisi: Antalya’da Etkinlik Gösteren 5 Yıldızlı Otel İşletmeleri Örneği.Dokuz Eylül Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 26(2), 77-112.
  • Erdil, O., & Kitapçı, H. (2007).TKY Araçlarının Kullanımı ve Firma Yenilikçiliğinin Yeni Ürün Geliştirme Hızı ve İşletme Performansına Etkisi.İktisadi ve İdari Bilimler Dergisi, 21(1), 233-245.
  • Eren, Ş., Yücel, R., & Eren, S. S. (2010). Firma Performansına Etkileri Kapsamında Çevresel Olumsuzluk Pazar Dinamizmi Journal of Yasar University, 18(5), 3102‐3116. Odaklılık ve Yenilikçilik Arasındaki İlişkilerin İncelenmesi.
  • Fu, G., & Zeng, P. (2015). The relationship between corporate social performance and corporate financial performance: a literatüre review of twenty years. (Der: Dawei Zheng), Tianjin, China: Education Management and Management Science.
  • Han, J. K., Kim, N., & Srivastava, R. K. (1998).Market Orientation and Organizational Performance: Is Innovation a Missing Link?. Journal of Marketing, 62(4), 30-45.
  • Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004).Innovativeness: Its antecedents and impact on business performance.Industrial Marketing Management, 33, 429-438.
  • Jimenez-Jimenez, D., & Sanz-Valle, R. (2011). Innovation, organizational learning, and performance. Journal of Business Research, 64, 408-417.
  • Jong, J. P.J., & Vermeulen, P. A.M. (2003).Organizing successful new service development: a literature review. Management Decision, 41(9), 844-858.
  • KAP. (2017). http://www.kap.gov.tr/yay/ek/index.aspx, Erişim Tarihi: 04.09.2017.
  • Kitapçı, H., & Çömez, P. (2016).The Effect of Innovation and Organizational Learning on Firm Performance: An Emprical Study in Quality Oriented Firms.International Journal of Research in Commerce & Management, 7(3), 28-34.
  • Kreiser, P. M., Marino, L. D., Kuratko, D. F., & Weaver, K. M. (2013). Disaggregating Entrepreneurial Orientation: The Non-Linear Impact of Innovativeness, Proactiveness and Risk-Taking on SME Performance. Small Business Economics, 40(2), 273-291.
  • Lööf, H., & Heshmati, A. (2006).On the relationship between innovation and performance: A sensitivity analysis. Economics of Innovation and New Technology, 15(4/5), 317-344.
  • Lumpkin, G. T., & Gregory, G. D. (1996). Clarifying The Entrepreneurial Orientation Construct and Linking it to Performance. The Academy of Management Review, 21(1), 135-172.
  • Matsuo, M. (2006).Customer orientation, conflict, and innovativeness in Japanese sales departments.Journal of Business Research, (59), 242-250.
  • Muiruri, J. K., & Ngari, J. M. (2014).Effects of Financial Innovations on the Financial Performance of Commercial Banks in Kenya.International Journal of Humanities and Social Science, 4(7), 51-57.
  • Orfila-Sintes, F., & Mattsson, J. (2009).Innovation behavior in the hotel industry.Omega The International Journal of Management Science, 37, 380-394.
  • Öncü, M. A., Bayat, M., Kethüda, Ö., & Zengin, E. (2015).Yenilik ve Müşteri Performansının Finansal Performans Üzerindeki Etkisi: Orta Ölçekli Sanayi İşletmelerinde Bir Araştırma.Marmara Üniversitesi İ.İ.B.F. Dergisi, XXXVII(I), 149-164.
  • Prajogo, D. I. (2006).The Relationship between Innovation and Business Performance-A Comparative Study between Manufacturing and Service Firms.Knowledge and Process Management, 13(3), 218-225.
  • Rhee, J., Park, T., & Lee, D. H. (2010). Drivers of innovativeness and performance for innovative SMEs in South Korea: Mediation of learning orientation.Technovation, 30, 65-75.
  • Short, J. C., Broberg, J. C., Cogliser, C. C., & Brigham, K. H. (2010). Construct Validation Using Computer- Aided Text Analysis (CATA)- An Illustration Using Entrepreneurial Orientation. Organizational Research Methods, 13(2), 320-347.
  • Short, J. C., & Palmer, T. B. (2008). The Application of Diction to Content Analysis Research in Strategic Management. Organizational Research Methods, 11(4), 727-752.
  • Slevin, D. P., & Terjesen, S. A. (2011). Entrepreneurial Orientation: Reviewing Three Papers and Implications for Further Theoretical and Methodological Development. Entrepreneurship Theory and Practice, 35(5), 973- 987.
  • Standing, C., & Kiniti, S. (2011). How can organizations use wikis for innovation?. Technovation, 31, 287-295.
  • Şişmanoğlu, E., & Akçalı, B. Y. (2016).The Effect of Innovation on Financial Performance of Some Information and Technology Companies in Turkey.İstanbul Üniversitesi İktisat Fakültesi Ekonometri ve İstatistik Dergisi, 24, 82-93.
  • Tarı, R. (2012). Ekonometri. Kocaeli: Umuttepe Yayınları.
  • Wooldridge, J. (2002). Econometric Analysis of Cross Section and Panel Data. London: The MIT Press.
  • Zehir, C., & Özşahin, M. (2006).Stratejik Karar Verme Hızını Etkileyen Örgütsel, Çevresel Faktörler Ve Firma Performansı İlişkisi: İmalat Sektöründe Bir Saha Çalışması.Gazi Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 9(1), 137-157.
There are 37 citations in total.

Details

Primary Language Turkish
Subjects Business Administration
Journal Section Research Article
Authors

Nurdan Gürkan This is me

Serhan Gürkan This is me

Publication Date December 1, 2017
Submission Date October 8, 2017
Published in Issue Year 2017 ICMEB17 Özel Sayısı

Cite

APA Gürkan, N., & Gürkan, S. (2017). YENİLİKÇİLİK KAVRAMININ İŞLETMELERİN FİNANSAL PERFORMANSI ÜZERİNDEKİ ETKİSİ. Uluslararası Yönetim İktisat Ve İşletme Dergisi, 13(13), 213-226.