Analyzing the Effects of Innovation Strategies on Financial Performance Mediated by Contingency Variables

According to the contingency theory, the success of any organization depends on the implementation of designs tailored to the capabilities and infrastructure of that organization. Paying attention to the capabilities and infrastructure in the process of designing innovation strategies can improve the financial performance of any organization. Therefore, the purpose of this study is to analyze the effects of innovation strategies on financial performance mediated by contingency variables such as human capital, structural capital, customer capital, management accounting information systems, internal process performance and customer performance.

The present study is practical in nature and is considered as a descriptive-exploratory correlation study. The required data were collected through questionnaire. The statistical population of the present study is manufacturing companies of Hamadan. Regression analysis and structural equation modeling were used to test the hypotheses and analyze the data. SPSS and SmartPLS software were also used to analyze the data.

According to the research findings, Innovation strategies have a positive and significant effect on financial performance. Contingency variables (human capital, structural capital, customer capital, management accounting information systems, internal process performance and customer performance) have a positive and significant effect on the relationship between innovation strategies and financial performance. This means that part of this relationship is explained and mediated by these variables. The research findings indicate the demographic variables of gender, age, education, field of study, years of service and type of industry do not have a significant effect on financial performance.

Originality/Value:

 Since the companies' going concern depends on their successful financial performance, so, innovation strategies through improving financial performance can play a significant role in the companies' going concern.