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Innovation in Times of Crisis: An Analysis of Firm Performance During the Financial Crisis

Corsman, Erik LU (2015) NEKP01 20151
Department of Economics
Abstract
This thesis examines how innovation affects firm performance in the United States
during the financial crisis in 2008. A difference-in-difference estimation combined
with Coarsened Exact Matching is applied on a panel data set of 4,928 U.S. firms
between 2004 and 2011. Two opposing theoretical frameworks concerning the
outcome are used to state hypotheses regarding if innovative firms perform better
or worse than non-innovative firms after the crisis. The result indicates that
innovative firms perform better and the result is supported by the theories of
market power, dynamic capabilities and absorptive captivity. The result
encourages firms to engage in innovation to enhance firm performance and to
become more adaptive to changes... (More)
This thesis examines how innovation affects firm performance in the United States
during the financial crisis in 2008. A difference-in-difference estimation combined
with Coarsened Exact Matching is applied on a panel data set of 4,928 U.S. firms
between 2004 and 2011. Two opposing theoretical frameworks concerning the
outcome are used to state hypotheses regarding if innovative firms perform better
or worse than non-innovative firms after the crisis. The result indicates that
innovative firms perform better and the result is supported by the theories of
market power, dynamic capabilities and absorptive captivity. The result
encourages firms to engage in innovation to enhance firm performance and to
become more adaptive to changes in the market. (Less)
Please use this url to cite or link to this publication:
author
Corsman, Erik LU
supervisor
organization
course
NEKP01 20151
year
type
H2 - Master's Degree (Two Years)
subject
language
English
id
7860390
date added to LUP
2015-09-15 11:23:44
date last changed
2015-09-15 11:23:44
@misc{7860390,
  abstract     = {This thesis examines how innovation affects firm performance in the United States
during the financial crisis in 2008. A difference-in-difference estimation combined
with Coarsened Exact Matching is applied on a panel data set of 4,928 U.S. firms
between 2004 and 2011. Two opposing theoretical frameworks concerning the
outcome are used to state hypotheses regarding if innovative firms perform better
or worse than non-innovative firms after the crisis. The result indicates that
innovative firms perform better and the result is supported by the theories of
market power, dynamic capabilities and absorptive captivity. The result
encourages firms to engage in innovation to enhance firm performance and to
become more adaptive to changes in the market.},
  author       = {Corsman, Erik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Innovation in Times of Crisis: An Analysis of Firm Performance During the Financial Crisis},
  year         = {2015},
}