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

Year 2017, Volume: 4 Issue: 3, 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

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