The Impact of Innovation on Financial Performance: A Comparison of Multiple Regression and Structural Equation Modeling Approaches

Abstract

In today’s organisations, due to the scarcity of resources, the efficient use of these resources is of great importance for both the organisation and its members. In this context, according to agency theory, there is a conflict of interest between the management of organisations and their shareholders. Therefore, shareholders examine the financial performance of the company to ensure that scarce resources are used in a way that benefits the entire company. Consequently, analysing the factors that affect financial performance is of great importance for organisations. The aim of this research is to examine the impact of innovation on financial performance. For this purpose, two approaches were applied by using multiple regression and structural equation modelling methods to test the relationship between the variables. To achieve the research objectives, 37 manufacturing companies from the BIST 100 index listed on Borsa Istanbul were examined between 2017 and 2022. The test results indicate that both the multiple regression and structural equation modelling approaches show a positive and significant effect of innovation on financial performance. In other words, innovation improves the financial performance of companies.

Keywords

• Financial Performance
• Innovation
• Multiple Regression Modelling Method
• Structural Equation Modelling Method

Finansal Performans Üzerinde İnovasyonun Etkisi: Çoklu Regresyon ve Yapısal Eşitlik Modelleme Yöntemlerinin Karşılaştırılması

Abstract

Günümüzde, kurumlarda kaynakların kıtlığı nedeniyle bu kaynakların verimli kullanılması hem kurum hem de kurum üyeleri tarafından büyük önem taşımaktadır. Bu bağlamda, vekalet teorisine göre, kurumların yönetimi ve hissedarları arasında çıkar çatışması bulunmaktadır. Bu nedenle; hissedarlar, kıt kaynakların tüm işletmenin menfaattarını sağlamak şekilde kullanıldığından emin olmak için işletmenin finansal performansını incelemektedir. Dolayısıyla finansal performansı etkileyen faktörlerin incelenmesi kurum için büyük önem taşımaktadır. Bu araştırmanın amacı, finansal performans üzerinde inovasyonun etkisini incelemektir. Bu amaçla, değişkenler arasında ilişkiyi test etmek için çoklu regresyon ve yapısal eşitlik modelleme yöntemleri sağlanarak, iki yaklaşım kullanılmıştır. Araştırma amaçlarına ulaşmak için, Borsa İstanbul’da BIST 100 işletmeden 37 imalat işletmesi, 2017-2022 yılları arasında incelemeye alınmıştır. Test sonuçları, çoklu regresyon ve yapısal eşitlik modelleme yaklaşımlarının her ikisi de finansal performans üzerinde inovasyonun pozitif ve anlamlı bir etkisi olduğunu göstermektedir. Diğer bir ifade ile, inovasyon işletmelerin finansal performansını artırmaktadır.

Keywords

• Finansal Performans
• İnovasyon
• Çoklu Regresyon Modelleme Yöntemi
• Yapısal Eşitlik Modelleme Yöntemi

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