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Exploring the Interplay Between Capital Structure, Information and Communication Technologies Adoption, and Business Innovation: A Mediation Model Analysis

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New Perspectives in Software Engineering

Part of the book series: Studies in Computational Intelligence ((SCI,volume 1135))

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Abstract

Small and medium-sized enterprises often face challenges in accessing and utilizing information and communication technologies (ICT) and managing their capital structure effectively. This research aims to provide empirical evidence on the interplay between capital structure, innovation, and ICT adoption. Our model investigates whether capital structure decisions promote innovative actions and enhance understanding of ICT decisions. Moreover, we examine the mediating effect of ICT on the relationship between capital structure and innovation. The findings indicate a positive influence of capital structure on the adoption of ICT and innovation. The results also demonstrate that ICT adoption significantly impacts innovation. Furthermore, the adoption of ICT plays a partial mediating role in the relationship between capital structure and innovation. Thus, our study contributes to both theoretical and empirical implications.

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Author information

Authors and Affiliations

  1. Universidad Tecnológica del Suroeste de Guanajuato, Guanajuato, Mexico

    Héctor Cuevas-Vargas & Enrique Cossio-Vargas

  2. Universidad Autónoma de Aguascalientes, Aguascalientes, Mexico

    Héctor A. Cortés-Palacios & Neftalí Parga-Montoya

Authors
  1. Héctor Cuevas-Vargas
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  2. Héctor A. Cortés-Palacios
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  3. Neftalí Parga-Montoya
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  4. Enrique Cossio-Vargas
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Corresponding author

Correspondence to Héctor Cuevas-Vargas .

Editor information

Editors and Affiliations

  1. Quantum Park Zacatecas, Zacatecas, Mexico

    Jezreel Mejía

  2. Quantum Park Zacatecas, Zacatecas, Mexico

    Mirna Muñoz

  3. Lisbon, Portugal

    Alvaro Rocha

  4. Interior Internado Palmira S/N, Cuernavaca, Morelos, Mexico

    Yasmin Hernández Pérez

  5. Ameca, Jalisco, Mexico

    Himer Avila-George

Appendix

Appendix

Capital structure

Internal sources of financing

FFI1: Profit Investment

FFI2: Partner contributions

FFI3: Incorporation of new partners

External sources of financing

*FFE1: Loans from relatives

*FFE2: Private lenders or unregulated lending houses

*FFE3: Government loans

FFE4: Supplier credits

FFE5: Commercial banks

*FFE6: Savings banks

FFE7: Credit cards

*FFE8: Leasing

*FFE9: Financial factoring

ICT adoption

ICT Infrastructure

ITI1: Setting up IT hardware

ITI2: Procurement and upkeep of IT software

ITI3: IT personnel recruitment

ITI4: Integration of novel IT applications

Strategic alignment

SA1: Aligning IT strategies with corporate strategies

SA2: Creating IT initiatives to bolster business strategies

SA3: Enhancing IT applications to align with strategic business objectives

SA4: Rolling out IT tactics for optimizing business workflows

Organizational structure

OS1: Empowering employees

OS2: Integrating business functions

OS3: Coordinating work tasks

OS4: Enabling mobility in departmental operations

OS5: Facilitating prompt decision-making

Individual learning

IL1: Offering training related to IT

IL2: Having a grasp of IT software

IL3: Adjusting to the utilization of IT applications

IL4: Possessing expertise in IT concepts and abilities

IL5: Reduced opposition to employing IT applications

Innovation

Product innovation

P1: Development of products and services

P2: New product specifications

P3: Improvements to existing products

P4: Design modifications

Process innovation

PR1: Process automation

PR2: Software in product logistics

PR3: New techniques in service provision

PR4: Software in service provision

PR5: Software in business administration

Marketing innovation

MK1: Marketing methods

MK2: New product designs for marketing

MK3: Packaging presentation changes

*MK4: Product flavour adjustments

*MK5: Distribution systems

MK6: Promotional activities

MK7: Brand image enhancement

*MK8: Sales strategies

MK9: Pricing adjustments

Organizational innovation

OR1: Work organization methods

OR2: Knowledge distribution techniques

OR3: Personnel training practices

OR4: Production process systems

OR5: Personnel organization methods

OR6: Interactions with other entities

OR7: Collaboration with research organizations

OR8: Supplier collaboration

OR9: Utilization of subcontracting

  1. Note *Item removed

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Cuevas-Vargas, H., Cortés-Palacios, H.A., Parga-Montoya, N., Cossio-Vargas, E. (2024). Exploring the Interplay Between Capital Structure, Information and Communication Technologies Adoption, and Business Innovation: A Mediation Model Analysis. In: Mejía, J., Muñoz, M., Rocha, A., Hernández Pérez, Y., Avila-George, H. (eds) New Perspectives in Software Engineering. Studies in Computational Intelligence, vol 1135. Springer, Cham. https://doi.org/10.1007/978-3-031-50590-4_22

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