What is the biggest fear of enterprises? Bank credit access: a cross-cultural exploration based on the perspective of sustainability and innovation performance

Abstract

The majority of businesses have a negative perception of their access to bank credit processes. The main reason for this problem is information asymmetry between lenders and borrowers. In this regard, the innovation performance of firms based on the innovation ability of Resource-Based View (RBV) can minimise their negative perception since implementing sustainable activities regarding innovation performance can send quality signals that reduce credit impediments. However, due to various political, legal, and economic systems of countries (Institution-based View formal factors), innovation performance and the access to bank credit of these businesses might differ. For this reason, this research aims to investigate whether the effects of product, service, marketing, and organisational innovation (the components of innovation performance) on access to bank credit differ depending on the firms’ country of origin. The results show that while innovation performance has a positive impact on the access to bank credit of Czech and Polish firms, it does not influence Slovak firms’ access to finance. Except for the marketing innovation, other innovations also do not affect the access to credit of Hungarian firms. The reason for these results may be related to Institution-Based View factors, including an informal factor, and cultural differences.