A1 Journal article (refereed), original research

How do firm- and industry-specific factors affect innovation and financial performance?

Publication Details
Authors: Kyläheiko Kalevi, Puumalainen Kaisu, Pätäri Satu, Jantunen Ari
Publisher: Inderscience
Publication year: 2017
Language: English
Related Journal or Series Information: International Journal of Technology Intelligence and Planning
Volume number: 11
Issue number: 3
Start page: 230
End page: 251
Number of pages: 22
ISSN: 1740-2832
eISSN: 1740-2840
JUFO-Level of this publication: 1
Open Access: Not an Open Access publication


Despite intensive research on competition
and innovation, the relationship between firm-external industry
conditions and the internal organisation of the firms as determinants of
innovative outcomes and financial performance is still ambiguous. This
paper empirically explores the interplay between the firm-specific and
industry-specific sources of market imperfections as determinants of
firms' innovation and financial performance. The basic research question
is whether firm performance is determined primarily by firm internal or
external explainers. The data are drawn from an extensive innovation
survey, and we will also use data for measuring the competitiveness and
profitability of the industries under scrutiny. We will empirically test
our model with a sample of nearly 200 medium- and large-sized Finnish
companies representing several industries. Our results indicate that
firm-specific internal factors, especially appropriability-related
intellectual property rights, partly explain innovation performance and
also firm growth, whereas the market power-related external factors have
low explanatory power.

Last updated on 2018-19-10 at 07:55