Rijanto, Arief Additional Author mixed material bibliography Bandung Institut Teknologi Bandung 2018 en English

Hal. 10-25 Innovation should be followed by profitable commercialization to have a sustainable business. Teece (1986) identifiedrnthat it is often not the innovator who introduces a new process, product or service who profits the most from an innovation, butrninstead suppliers, cooperators, customers and competitors. In emerging markets, especially in Indonesia, it is challenging to dorninnovation due to the lack of infrastructure. This study explores innovation-driven enterprise relationships with firm financialrnperformance measures by firm profitability. To identify the innovation-driven enterprise financing capabilities and innovation,rnthe study used company age, R&D expense, sales, sales growth, debt ratio and retained earnings as independent variables.rnFirm profitability performance was measured by return on assets (ROA). R&D expenses of innovation-driven enterprisesrnhad a positive correlation with firm financial performance. Sales and retained earnings had a positive correlation with R&Drnexpense. However, company age, debt ratio and sales growth had a weak negative correlation with corporate innovation activities.rnRetained earnings had a positive correlation and was the biggest determinant of firm profitability. It was shown that innovationdrivenrnenterprises in Indonesia are financing their innovation with retained earnings (internal financing) and not debt (externalrnfinancing). Innovation Sustainable Business Financial Performance R&D Expense Internal Financing NONE Perpustakaan - Sekolah Tinggi Manajemen PPM Pusat Informasi Manajemen 48852 2019-05-15 00:15:29 2019-05-15 00:15:29 machine generated