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The financial structure of innovative SMEs in Germany

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Abstract

In politics and business the special role of innovative businesses whose research and development activities expedite technological progress has received steady attention. Especially small and medium sized businesses (SMEs) have initiated promising innovation projects. However, when analysing these projects our research must take into account that SMEs cannot be viewed as a homogeneous business category. Moreover, financing their innovations, SMEs are subject to unique issues. To shed light on these problems, this study will develop an index measuring degrees of innovation. It allows the 171 sample companies to be categorised into three groups: non-innovative, moderately innovative or highly innovative. A multinomial logistic regression is used to examine the quality of this typology. In addition, group-specific differences in the financing mix are demonstrated. Finally, from a theoretical point of view, the implications of the pecking order theory are basically validated. On the other hand, the concept of the financial growth cycle does not deliver satisfactory results.

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Authors and Affiliations

  1. Lehrstuhl für Betriebswirtschaftslehre mit Schwerpunkt Finanzierung und Banken, Universität Potsdam, August-Bebel-Straße 89, 14482, Potsdam, Germany

    Detlev Hummel & Boris Karcher

  2. Lehrstuhl für Innovationsmanagement und Entrepreneurship, Universität Potsdam, August-Bebel-Straße 89, 14482, Potsdam, Germany

    Christian Schultz

Authors
  1. Detlev Hummel
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  2. Boris Karcher
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  3. Christian Schultz
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Corresponding author

Correspondence to Detlev Hummel.

Appendix

Appendix

See Tables 10, 11, 12, 13, 14

Table 10 Parameter estimates
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Table 11 t test in paired samples: highly innovative enterprises
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Table 12 t test in paired samples: moderately innovative enterprises
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Table 13 t test in paired samples: non-innovative enterprises
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Table 14 t test in independent samples
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Hummel, D., Karcher, B. & Schultz, C. The financial structure of innovative SMEs in Germany. J Bus Econ 83, 471–503 (2013). https://doi.org/10.1007/s11573-013-0662-8

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