The Evaluation of Influence of Different Types of Innovations on Financial Performance of Enlisted Companies of Tehran Stock Exchange, Case Study: Pharmaceutical Industry

Abstract

The objective of present study is to evaluate the effect of different types of innovation on financial performance of enlisted companies of Tehran Stock Exchange. The statistical population of present study covers enlisted companies of Tehran Stock Exchange (i.e. pharmaceutical industry) and the statistical sample includes 139 experts, managers and top managers. In this study, correlative-descriptive methodology is applied and questionnaire distribution is used to collect data. For data analysis, SPSS Software is employed. In the present study, the financial performance is defined as dependent variable. Innovation is the independent variable which is identified through the following 4 items: Organizational Innovation, Innovation in Product, Innovation in Process, and Innovation in Marketing. The findings of present study suggest that there is a significant association between types of innovation and financial performance of enlisted pharmaceutical companies of Tehran Stock Exchange. Among the underlying items of innovation, only innovation in marketing lacks significant association with financial performance but the significant associations of other items with financial performance is confirmed.

DOI: 10.5901/ajis.2016.v5n2p69