Exploring funding channels and innovation in Colombian SMEs: Insights from the service sector

Autores
Romero Alvarez, Yaneth Patricia; Martinez, Lisana Belén; Pasciaroni, Carolina; Salas Navarro, Katherinne; Zamora Musa, Ronald
Año de publicación
2025
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
This paper examines how financing channels, capital structures, and asset investments influence innovation outcomes in service-sector SMEs in Colombia. Despite extensive research on innovation finance, most studies focus on manufacturing firms in OECD economies, leaving a gap regarding the dynamics of service-sector SMEs in emerging markets. Using data from the national EDITS 2020–2021 survey, we analyze a sample of 384 innovative firms through ordered logit models. The results show that internal financing is the most frequently used channel but primarily sustains low levels of innovation, with limited effects on high-level outcomes. Public funding is positively associated with medium innovation but negatively linked to high innovation, while private external funding follows a similar pattern. Cooperative financing has the strongest negative impact on advanced innovation, highlighting the risks of informal financial mechanisms. Regarding asset composition, tangible investments foster incremental and medium-level innovation, whereas intangible investments—such as R&D, skills development, and organizational knowledge—significantly increase the probability of high innovation. These findings contribute to the literature on innovation finance in emerging economies by demonstrating that resource composition and institutional context critically condition SMEs’ innovation trajectories. From a policy perspective, the results suggest that supporting intangible assets, strengthening absorptive capacities, and diversifying financial ecosystems beyond traditional credit lines are essential to enable SMEs in Colombia and similar contexts to transition from incremental to high-level innovation.
Fil: Romero Alvarez, Yaneth Patricia. Universidad de Sucre.; Colombia
Fil: Martinez, Lisana Belén. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Instituto de Investigaciones Económicas y Sociales del Sur. Universidad Nacional del Sur. Departamento de Economía. Instituto de Investigaciones Económicas y Sociales del Sur; Argentina
Fil: Pasciaroni, Carolina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Instituto de Investigaciones Económicas y Sociales del Sur. Universidad Nacional del Sur. Departamento de Economía. Instituto de Investigaciones Económicas y Sociales del Sur; Argentina
Fil: Salas Navarro, Katherinne. Universidad de la Costa.; Colombia
Fil: Zamora Musa, Ronald. Universidad Industrial Santander; Colombia
Materia
SMES
INNOVATION
FUNDING CHANNELS
CAPITAL STRUCTURE
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/290796
Acceder
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oai_identifier_str oai:ri.conicet.gov.ar:11336/290796
network_acronym_str CONICETDig
repository_id_str 3498
network_name_str CONICET Digital (CONICET)
spelling Exploring funding channels and innovation in Colombian SMEs: Insights from the service sectorRomero Alvarez, Yaneth PatriciaMartinez, Lisana BelénPasciaroni, CarolinaSalas Navarro, KatherinneZamora Musa, RonaldSMESINNOVATIONFUNDING CHANNELSCAPITAL STRUCTUREhttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5This paper examines how financing channels, capital structures, and asset investments influence innovation outcomes in service-sector SMEs in Colombia. Despite extensive research on innovation finance, most studies focus on manufacturing firms in OECD economies, leaving a gap regarding the dynamics of service-sector SMEs in emerging markets. Using data from the national EDITS 2020–2021 survey, we analyze a sample of 384 innovative firms through ordered logit models. The results show that internal financing is the most frequently used channel but primarily sustains low levels of innovation, with limited effects on high-level outcomes. Public funding is positively associated with medium innovation but negatively linked to high innovation, while private external funding follows a similar pattern. Cooperative financing has the strongest negative impact on advanced innovation, highlighting the risks of informal financial mechanisms. Regarding asset composition, tangible investments foster incremental and medium-level innovation, whereas intangible investments—such as R&D, skills development, and organizational knowledge—significantly increase the probability of high innovation. These findings contribute to the literature on innovation finance in emerging economies by demonstrating that resource composition and institutional context critically condition SMEs’ innovation trajectories. From a policy perspective, the results suggest that supporting intangible assets, strengthening absorptive capacities, and diversifying financial ecosystems beyond traditional credit lines are essential to enable SMEs in Colombia and similar contexts to transition from incremental to high-level innovation.Fil: Romero Alvarez, Yaneth Patricia. Universidad de Sucre.; ColombiaFil: Martinez, Lisana Belén. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Instituto de Investigaciones Económicas y Sociales del Sur. Universidad Nacional del Sur. Departamento de Economía. Instituto de Investigaciones Económicas y Sociales del Sur; ArgentinaFil: Pasciaroni, Carolina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Instituto de Investigaciones Económicas y Sociales del Sur. Universidad Nacional del Sur. Departamento de Economía. Instituto de Investigaciones Económicas y Sociales del Sur; ArgentinaFil: Salas Navarro, Katherinne. Universidad de la Costa.; ColombiaFil: Zamora Musa, Ronald. Universidad Industrial Santander; ColombiaElsevier2025-12info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/290796Romero Alvarez, Yaneth Patricia; Martinez, Lisana Belén; Pasciaroni, Carolina; Salas Navarro, Katherinne; Zamora Musa, Ronald; Exploring funding channels and innovation in Colombian SMEs: Insights from the service sector; Elsevier; Journal of Open Innovation: Technology, Market, and Complexity; 11; 4; 12-2025; 1-162199-8531CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/https://linkinghub.elsevier.com/retrieve/pii/S2199853125002264info:eu-repo/semantics/altIdentifier/doi/10.1016/j.joitmc.2025.100691info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2026-08-25T15:10:11Zoai:ri.conicet.gov.ar:11336/290796instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982026-08-25 15:10:11.355CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv Exploring funding channels and innovation in Colombian SMEs: Insights from the service sector
title Exploring funding channels and innovation in Colombian SMEs: Insights from the service sector
spellingShingle Exploring funding channels and innovation in Colombian SMEs: Insights from the service sector
Romero Alvarez, Yaneth Patricia
SMES
INNOVATION
FUNDING CHANNELS
CAPITAL STRUCTURE
title_short Exploring funding channels and innovation in Colombian SMEs: Insights from the service sector
title_full Exploring funding channels and innovation in Colombian SMEs: Insights from the service sector
title_fullStr Exploring funding channels and innovation in Colombian SMEs: Insights from the service sector
title_full_unstemmed Exploring funding channels and innovation in Colombian SMEs: Insights from the service sector
title_sort Exploring funding channels and innovation in Colombian SMEs: Insights from the service sector
dc.creator.none.fl_str_mv Romero Alvarez, Yaneth Patricia
Martinez, Lisana Belén
Pasciaroni, Carolina
Salas Navarro, Katherinne
Zamora Musa, Ronald
author Romero Alvarez, Yaneth Patricia
author_facet Romero Alvarez, Yaneth Patricia
Martinez, Lisana Belén
Pasciaroni, Carolina
Salas Navarro, Katherinne
Zamora Musa, Ronald
author_role author
author2 Martinez, Lisana Belén
Pasciaroni, Carolina
Salas Navarro, Katherinne
Zamora Musa, Ronald
author2_role author
author
author
author
dc.subject.none.fl_str_mv SMES
INNOVATION
FUNDING CHANNELS
CAPITAL STRUCTURE
topic SMES
INNOVATION
FUNDING CHANNELS
CAPITAL STRUCTURE
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
dc.description.none.fl_txt_mv This paper examines how financing channels, capital structures, and asset investments influence innovation outcomes in service-sector SMEs in Colombia. Despite extensive research on innovation finance, most studies focus on manufacturing firms in OECD economies, leaving a gap regarding the dynamics of service-sector SMEs in emerging markets. Using data from the national EDITS 2020–2021 survey, we analyze a sample of 384 innovative firms through ordered logit models. The results show that internal financing is the most frequently used channel but primarily sustains low levels of innovation, with limited effects on high-level outcomes. Public funding is positively associated with medium innovation but negatively linked to high innovation, while private external funding follows a similar pattern. Cooperative financing has the strongest negative impact on advanced innovation, highlighting the risks of informal financial mechanisms. Regarding asset composition, tangible investments foster incremental and medium-level innovation, whereas intangible investments—such as R&D, skills development, and organizational knowledge—significantly increase the probability of high innovation. These findings contribute to the literature on innovation finance in emerging economies by demonstrating that resource composition and institutional context critically condition SMEs’ innovation trajectories. From a policy perspective, the results suggest that supporting intangible assets, strengthening absorptive capacities, and diversifying financial ecosystems beyond traditional credit lines are essential to enable SMEs in Colombia and similar contexts to transition from incremental to high-level innovation.
Fil: Romero Alvarez, Yaneth Patricia. Universidad de Sucre.; Colombia
Fil: Martinez, Lisana Belén. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Instituto de Investigaciones Económicas y Sociales del Sur. Universidad Nacional del Sur. Departamento de Economía. Instituto de Investigaciones Económicas y Sociales del Sur; Argentina
Fil: Pasciaroni, Carolina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Instituto de Investigaciones Económicas y Sociales del Sur. Universidad Nacional del Sur. Departamento de Economía. Instituto de Investigaciones Económicas y Sociales del Sur; Argentina
Fil: Salas Navarro, Katherinne. Universidad de la Costa.; Colombia
Fil: Zamora Musa, Ronald. Universidad Industrial Santander; Colombia
description This paper examines how financing channels, capital structures, and asset investments influence innovation outcomes in service-sector SMEs in Colombia. Despite extensive research on innovation finance, most studies focus on manufacturing firms in OECD economies, leaving a gap regarding the dynamics of service-sector SMEs in emerging markets. Using data from the national EDITS 2020–2021 survey, we analyze a sample of 384 innovative firms through ordered logit models. The results show that internal financing is the most frequently used channel but primarily sustains low levels of innovation, with limited effects on high-level outcomes. Public funding is positively associated with medium innovation but negatively linked to high innovation, while private external funding follows a similar pattern. Cooperative financing has the strongest negative impact on advanced innovation, highlighting the risks of informal financial mechanisms. Regarding asset composition, tangible investments foster incremental and medium-level innovation, whereas intangible investments—such as R&D, skills development, and organizational knowledge—significantly increase the probability of high innovation. These findings contribute to the literature on innovation finance in emerging economies by demonstrating that resource composition and institutional context critically condition SMEs’ innovation trajectories. From a policy perspective, the results suggest that supporting intangible assets, strengthening absorptive capacities, and diversifying financial ecosystems beyond traditional credit lines are essential to enable SMEs in Colombia and similar contexts to transition from incremental to high-level innovation.
publishDate 2025
dc.date.none.fl_str_mv 2025-12
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/290796
Romero Alvarez, Yaneth Patricia; Martinez, Lisana Belén; Pasciaroni, Carolina; Salas Navarro, Katherinne; Zamora Musa, Ronald; Exploring funding channels and innovation in Colombian SMEs: Insights from the service sector; Elsevier; Journal of Open Innovation: Technology, Market, and Complexity; 11; 4; 12-2025; 1-16
2199-8531
CONICET Digital
CONICET
url http://hdl.handle.net/11336/290796
identifier_str_mv Romero Alvarez, Yaneth Patricia; Martinez, Lisana Belén; Pasciaroni, Carolina; Salas Navarro, Katherinne; Zamora Musa, Ronald; Exploring funding channels and innovation in Colombian SMEs: Insights from the service sector; Elsevier; Journal of Open Innovation: Technology, Market, and Complexity; 11; 4; 12-2025; 1-16
2199-8531
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/https://linkinghub.elsevier.com/retrieve/pii/S2199853125002264
info:eu-repo/semantics/altIdentifier/doi/10.1016/j.joitmc.2025.100691
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
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