Examining the engine of growth
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2024-07-09
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en
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This study investigated the relationship between a firm’s level of innovation and its performance, and how this relationship is influenced by the quality of corporate governance. This was done in the context of the Asian Tigers (Hong Kong, Singapore, South Korea, and Taiwan) which is particularly relevant given the recent shift towards knowledge-intensive strategies and policies within these economies. This study explored the direct effect of innovation on firm performance and the moderating role of corporate governance indicators by conducting a multiple regression analysis on 257 firms in the Asian Tigers. The analysis found that while firm innovation generally shows a positive impact on performance, this effect was not statistically significant within the scope of this study. Consequently, the hypothesized positive relationship between innovation and firm performance and the moderating effects of corporate governance, were rejected. Interestingly, the analysis revealed a direct positive effect of board experience on firm performance and revealed the industry context to have a significant influence on firm performance. These results imply that the quality of a firm’s corporate governance does not influence the relationship between innovation and firm performance of firms in the Asian Tigers. The study highlights the direct impact of a policy regarding board experience, the importance the industry context, and offers information that is relevant for examining investment decisions. The study suggests further research should focus on refining measurement methods and further explore policy implications related to corporate governance and innovation in complex economies like the Asian Tigers.
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Faculteit der Managementwetenschappen