Hasan Dinçer - Strategic Outlook in Business and Finance Innovation: Multidimensional Policies for Emerging Economies

Innovation is all new ideas and inventions. Companies aim to develop new products or services to increase their competitive powers. In this way, companies increase their performance and values. Accordingly, companies should pay attention to innovation efforts. In the literature, this issue has been emphasized by many researchers. For example, ) investigated the relationship between innovations and firm performance. The insurance companies in Sri Lanka were included in the study. Finally, it was stated that there is a strong and important relationship between innovative practices and firms performance.

Innovative studies carried out within the company are of different types. Depending on this situation, the effect of innovative studies on company value also changes. There are many studies on this subject in the literature. ) researched technological and marketing-oriented innovation studies. It is stated that the innovations made in the technological field have a positive effect on the companys performance.

In addition, it was stated that there is a significant relationship between the innovative studies in the field of marketing and the value of the company. Innovative studies carried out by companies in the environmental and organizational field affect the performance of the company in the long run. However, the value of companies increases in the eyes of customers () examined the types of innovation in service companies. In the study, UK companies were included in the review. The relevant study has been tested with the survey method. As a result, service sectors need to focus on product innovation. These innovations need to progress radically and increasingly.

) investigated the impact of innovations on small and medium enterprises (SMEs) in Malaysia. However, the study has been tested with a survey method. As a result, it has been stated that the performance of companies without innovative studies is low. However, it was emphasized that SMEs should improve their applications in technology and innovation enhancement. It has been determined that the performance of companies has been positively affected.

In addition to these studies, ).

Innovative works have a positive effect on companys performance. For this reason, companies and employees should give importance to innovative studies. In the literature, this issue has been emphasized by many researchers. ) investigated the performance of companies with innovation in their study. In the study, public companies in Poland and Hungary in the period 20062013 were included. They reached a conclusion that the return of equity of firms that innovate is high.

Companies need to pay attention to the innovative efforts in order to increase their share and market values. For this, it must make R&D investments. R&D has an important share in increasing the profitability of companies. There are many studies on this subject in the literature. However, while there is a positive relationship between innovation and financial and social dimensions, it has been stated that there is an environmentally negative relationship.

Furthermore, ) focused on R&D in innovation. This study was supported by a literature review. However, the model was established in the study. As a result, it was emphasized that R&D studies are important for companies to increase their performance.

Innovative studies increase the profitability of the companies. The companies that make a profit have a lot of buyers. There are many studies on innovation and profitability in the literature. ) examined the relationship between innovation strategy and revenue growth of firms. Innovation strategies were determined to affect the performance of companies. Also, it was emphasized that the innovation strategies determined for human resources policy increased the income of the companies.

Another important point is that innovations attract investors. Therefore, investors are interested in innovative companies. In the literature, this issue has been emphasized by many researchers. Dumitrescu Hurlin panel causality analysis. It is determined that countries with high export volume spend more on R&D to improve themselves.

According to the results of the literature review, the topic of innovation has been handled by many researchers. However, most of the studies were tried to be tested with structural equation model and causality analysis. In general, it is seen that innovation studies increase the performance of the company. Therefore, there is a need for studies that will determine the effect of innovation studies on the share value of companies. In this study, it is aimed to determine the effect of innovation on companys share value.