THE RELATIONSHIP BETWEEN INNOVATION AND FIRM PERFORMANCE: A SURVEY ON AUDITING FIRMS IN TURKEY

Year 2017, , 237 - 244, 30.09.2017

Eymen Gurel

https://doi.org/10.17261/Pressacademia.2017.691

Abstract

Purpose -    The purpose of this study is to
examine whether there is a statistically significant relationship between
innovation and firm performance of auditing firms.

Methodology -The study
was carried out with 66 accountants working in the auditing firms and assigned
with audit mandate by The Public Oversight, Accounting & Auditing Standards
Authority. The scale developed by Calantone and et al. (2002) and consisting of
6 items was used in the study to measure innovation. The firm performance scale
developed by Khandwalla (1977), consisting of 5 items, was used to measure
performance. Proposed relations were tested through factor analysis,
correlation analysis and regression analyses.

Findings- As a result
of the research, it has been detected a significant and positive relationship
between innovation and firm performance in the auditing firms.

Conclusion- It has become clear that
auditing firms have focused on innovation, especially in service and process
inovation, and that their solution offers have been welcomed by customers and
firms’ performance. Accordingly, service quality will increase thanks to the
ersistent innovation orientations of the auditing firms and their proactive
measures against the first time encountered business tricks.

Keywords

Innovation, firm performance, audit, accounting, auditing firms

References

• Akal, Z., (2003). İşletmelerde Performans Ölçüm ve Denetimi Çok Yönlü Performans Göstergeleri, MPM Yayınları No: 473, Ankara.
• Akman, G. and Yilmaz, C., (2008). Innovative Capability, Innovation Strategy and Market Orientation: an Empirical Analysis in Turkish Software Industry. International Journal of Innovation Management, 12(01), 69-111.
• Amabile, T. M., Conti, R., Coon, H., Lazenby, J. and Herron, M., (1996). Assessing the Work Environment for Creativity. Academy of Management Journal, 39(5), 1154-1184.
• Atalay, M., Anafarta, N. and 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.
• Avcı, U. (2009). Öğrenme Yönelimliliğin Yenilik Performansı Üzerine Etkisi: Muğla Mermer Sektöründe Bir Inceleme. ZKÜ Sosyal Bilimler Dergisi, 5 (10), 121–138
• Bakar, L. J. A. and Ahmad, H. (2010). Assessing the relationship between firm resources and product innovation performance: A resource-based view. Business Process Management Journal, 16(3), 420-435.
• Beaver, G. and Prince, C. (2002). Innovation, entrepreneurship and competitive advantage in the entrepreneurial venture. Journal of Small Business and Enterprise Development, 9(1), 28-37.
• Bezirci, M. and Karasioğlu, F., (2011), Türkiye’de Denetimin Tarihsel Gelişimi, Sosyal Ekonomik Araştırmalar Dergisi, 21, pp.571-592.
• Biçkes, D. M. and Özdevecioğlu, M. (2016). İşletmelerde Örgütsel Öğrenmenin Finansal Performans Üzerindeki Etkisi Ve İnovasyonun Aracılık Rolü. Akademik Sosyal Araştırmalar Dergisi, 4(25), 8-28.
• Calantone, R. J., Cavusgil, S. T. and Zhao, Y. (2002). Learning orientation, firm innovation capability, and firm performance. Industrial marketing management, 31(6), 515-524.
• Cheveerug, A. ve Ussahawanitchakit, P. (2008). Learning Orientation, Innovation Capability, and Organizational Performance in Thai Audit Firms: Moderating Effects of Organization Climate and Uncertainty Environment. Review of Business Research.
• Çiçek, H. and Onat, O. K. (2013). 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. Academy of Management Journal, 34(3), 555-590.
• Damanpour, F. and Gopalakrishnan, S. (2001). The Dynamics of the Adoption of Product and Process Innovations in Organizations, Journal of Management Studies, 38(1), 45-65.
• Damanpour, F., Walker, R. M. and Avellaneda, C. N. (2009). Combinative effects of innovation types and organizational performance: A longitudinal study of service organizations. Journal of management studies, 46(4), 650-675.
• De Jong, J. P., & Vermeulen, P. A. (2003). Organizing successful new service development: a literature review. Management decision, 41(9), 844-858.
• Erdem, B.,Gökdeniz, A. and 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. and Kitapçı, H., (2007). TKY Araçlarının Kullanımı ve Firma Yenilikçiliğinin Yeni Ürün Geliştirme Hızı ve İşletme Performansına Etkisi, Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 21(1) 233-245.
• Güredin, E., (2010). Denetim ve Güvence Hizmetleri. Türkmen Kitabevi, İstanbul.
• Han, J. K., Kim N. and Srivastava, R.K. (1998). Market Orientation and Organizational Performance: Is Innovation a Missing Link? Journal of Marketing, 62(4): 30-45.
• Hassan, M., U., Shaukat, S., Nawaz, M. S. and Naz, S., (2013). Effects of Innovation Types on Firm Performance: an Empirical Study on Pakistan's Manufacturing Sector. Pakistan Journal of Commerce & Social Sciences, 7(2).
• Hitt, M.A., Hoskisson, R.E., Ireland, R.D. and Harrison, J.S., (1991). Effects of Acquisitions on R&D Inputs and Outputs. Academy of Management Journal 34(3): 693–706.
• Hoq, Z ve Ha, N. C. (2009). Innovativeness: Its Antecedents and Impact on SME Business Performance. International Journal of Business and Management 4 (11): 100–110.
• Jansen, J. J., Van Den Bosch, F. A. and Volberda, H. W., (2006). Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators. Management Science, 52(11), 1661-1674.
• Küçük, O. and Kocaman, G., (2014). Müşteri Yönlülük, İnovasyon Yönlülük ve İşletme Performans İlişkisi: Bir Uygulama. The Journal of Academic Social Science Studies, 29, 37-52.
• OECD (2005). Oslo Manual: Proposed Guidelines for Collecting and Interpreting Tecnological Innovation Data. Paris.
• Özşahin, M., Ciğerim, E. and Gök, M. Ş., (2005). Rekabet Edebilirlik Ve Firma Performansi Ilişkisi Üzerine Bir Saha Araştirmasi. İktisadi ve İdari Bilimler Fakültesi Dergisi, 7(1), 143-155.
• Per, H., P., (2012). Girişimcilik ve Yenilikçilik Kavramlarinin Iktisadi Düşüncedeki Yeri: Joseph A. Schumpeter, Selçuk Üniversitesi, SBE, Master Thesis.
• Roberts, P. W., (1999). Product Innovation, Product-Market Competition and Persistent Profitability in the US Pharmaceutical Industry. Strategic Management Journal, 655-670.
• Rosli, M.M. and Sidek S., (2013). The Impact of Innovation on the Performance of Small and Medium Manufacturing Enterprises: Evidence from Malaysia, Journal of Innovation Management in Small & Medium Enterprise, DOI: 10.5171/2013.885666.
• Thompson, V.,A., (1965). Bureaucracy and Innovation Administrative Science Quarterly, 10(1), Special Issue on Professionals in Organizations, 1-20
• Thornhill, S., (2006). Knowledge, Innovation and Firm Performance in High-and Low-Technology Regimes. Journal of Business Venturing, 21(5), 687-703.
• Tuan, N., Nhan, N., Giang, P. and Ngoc, N., (2016). The Effects of Innovation on Firm Performance of Supporting Industries in Hanoi, Vietnam. Journal of Industrial Engineering and Management, 9(2), 413-431.
• Tutar, F., Kocabay, M. and Arıç, H. (2007). Firmaların Yenilik (Inovasyon) Yaratma Sürecinde Serbest Bölgelerin Rolü: Kayseri Serbest Bölgesi Örneği. Selçuk Üniversitesi Karaman İİ BF Dergisi, Yerel Ekonomiler Özel Sayısı, 195-203.
• Vincent, L. H., Bharadwaj, S. G., & Challagalla, G. N. (2004). Does innovation mediate firm performance?: a meta-analysis of determinants and consequences of organizational innovation.
• Wang, Z. and Wang, N., (2012). Knowledge Sharing, Innovation and Firm Performance. Expert Systems with Applications, 39(10), 8899-8908.
• Zehir, C. and Özşahin, M., (2006). Stratejik Karar Verme Hizini Etkileyen Örgütsel, Çevresel Faktörler Ve Firma Performansi Ilişkisi: Imalat Sektöründe Bir Saha Çalişmasi. Gazi Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 9(1), 1-21.
• Zehir, C. and Özşahin, M., (2011). Takım yönetimi ve takım etkinliğini belirleyen faktörler: Savunma Sanayinde AR-GE Yapan Takımlar Üzerinde bir Saha Araştırması Doğuş Üniversitesi Dergisi, 9(2), 266-279.