Bank Loan Application Success of Innovative and Non-Innovative SMEs
Citation:
Peter van der Zwan, 'Bank Loan Application Success of Innovative and Non-Innovative SMEs', Senate Hall, 2016, International Review of Entrepreneurship, 483-502Download Item:
Abstract:
The investigation of the determinants of access to finance is relevant because restricted loan accessibility could hinder firm growth. This paper focuses on small- and medium-sized enterprises (SMEs) and whether their requested loan is granted by the bank. Financial data for SMEs in 29 European countries are used (four waves of the Survey on the Access to Finance of Enterprises during 2009-2014) to test the relationship between innovative behavior and loan application success. The contribution of the present study is that a distinction is made between product, process, and organizational innovation. Also, cross-national evidence on the link between innovation and loan turndown is provided while existing studies usually focus on a single country. The results indicate that SMEs that adopt innovations are less likely to receive the requested loan than SMEs that do not adopt innovations, and this holds for all three types of innovation. Additional analyses reveal the robustness of the results across various firm age and firm size categories, and the majority of countries.
Keywords: credit constraints, SMEs, process innovation, product innovation, organizational innovation
Author: van der Zwan, Peter
Publisher:
Senate HallType of material:
Journal articleCollections
Series/Report no:
International Review of EntrepreneurshipAvailability:
Full text availableISSN:
2009-2822Metadata
Show full item recordLicences:
Related items
Showing items related by title, author, creator and subject.
-
Linking Drivers and Outcomes of Innovation in IT Firms: The Role of Partnerships
Jha, Ashish (2020)A better understanding of the linkage between the objectives and outcomes of innovation will enable firms to plan better for effective utilization of their resources for generation of innovation. The current study enhances ... -
Are UN Innovation Labs effective innovation models to meet the needs of communities in the humanitarian sector - Case Study Kosovo
DARKWA, IMMANUEL (Trinity College Dublin. School of Natural Sciences. Discipline of Geography, 2020)Humanitarian action involves the provision of goods and services such as food, water, sanitation, disasters medical care, shelter and protection, during and soon after natural and human-made disasters (Sphere, 2004, p. 6). ... -
Open Innovation: An Evolving Entrepreneurial Technique
Mercer Reid, Patrick (Senate HallDublin, 2009)As internet penetration continues to grow across the globe, the potential pool of skilled and talented individuals and organizations that can be contacted or engaged in a commercial or professional arrangement expands. ...