Seeking Finance, Perceived Financial Constraints and R & D Engagement
The International Journal of Business Management and Technology, Volume 1 Issue 1 September 2017
8 Pages Posted: 3 Oct 2019
Date Written: September 30, 2017
This study empirically examines the association among R&D engagement, seeking finance and perceived financial constraints in high-tech SMEs. R&D engagement includes the decision of R&D engagement (whether a firm was engaged in R&D) and the degree of R&D engagement (actual R&D expenditure). I take into account both financial constraints and the former process, seeking finance. This paper proposes two sequential hypotheses. Firstly, I postulate that the decision of R&D engagement has a positive relationship with seeking finance in high-tech SMEs. Next, for those high-tech SMEs that applied for fund, I presume that perceived financial constraints are negatively related with the degree of R&D engagement. The empirical results are consistent with my expectations and thus the hypotheses are supported.
Keywords: Seeking Finance, Perceived Financial Constraints and R&D Engagement
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