From research: How do entrepreneurial behavior and innovation performance of company influence access to bank credit?

Access to bank credit is a key issue for many businesses with challenges often arising from a lack of collateral and information asymmetry. Václav Kupec and Natálie Bruder Badie, on behalf of VŠE, analysed this topic in the article published in International Entrepreneurship and Management Journal. The study analysed 1,367 SMEs and large companies from the Czech Republic, Slovakia, Hungary, and Poland.

This research focuses on the TPB and RBV theoretical frameworks and demonstrates that entrepreneurial and innovation capabilities can positively influence access to bank credit.  This study reveals that entrepreneurial behavior (as defined in the Theory of Planned Behavior – TPB) and innovation capabilities (as defined in the Resource-Based View – RBV) can address the credit access problems. The research finds that enterpreneurs with positive personal attitudes, perceived behavioral control and appropriate subjective norms can improve access to financing, with innovation performance further supporting this process as a mediator between TPB and bank credit access.

Practial implications suggest that businesses should develop stronger innovation and entrepreneurial strategies, and banks should consider firms’ innovation capabilities when assessing creditworthiness.

Read more about this novelty approach and factors contributing to those results at: https://link.springer.com/article/10.1007/s11365-024-01025-w