Mursalim Nohong



This research was based on the strategic role of firm innovation. For a pharmaceutical company, innovation drives the firm to expand new product which responsive to the needs of public health. The purpose of this study was to explain the innovation role on growth, size, and the value of pharmaceuticalcompany in Indonesia. Secondary data with a period of 2011 - 2014 of ten sample used were pharmaceutical companies listed on the Indonesia Stock Exchange.Data were analyzed using Structural Equation Modeling with PLS. The research results show that innovation were able to increase growth, size and companyvalue.


Innovation, Growth, Size, company value

Full Text:




Belenzon, Sharon., Patacconi, Andrea. 2013. Innovation and firm value: An investigation of the changing role of patents, 19852007. Research Policy.42, 8.

Berzkalne, Irina and Zelgalve, Elvira. 2014. Innovation And Company Value: Evidence From The Baltic Countries. Regional Formation and Development Studies, 3,11.

Bishop, K., Mason, G., Robinson, C., 2009. Firm growth and its effects on economic and social outcomes. National Institute of Economic and Social Research,London.

Bosma, Niels and de Wit, Gerrit. 2004. The influence of innovation on firmsizeSCALES-paper N200318.

Cainelli, G., R. Evangelista and M. Savona. 2006. Innovation and Economic Performance inServices: A Firm Level Analysis.

Cambridge Journal of Economics. 30, 435-458.

Cameron,Gavin. 1998. Innovation and Growth: A Survey of the Empirical Evidence. Thesis.TheUniversity of Oxford.

Cefis E and Ciccarelli M. 2005.Profit differentials and innovation.Economics of Innovation and New Technology, 14, 43-61.

Coase, R.H. 1937. The nature of the firm.Economica, 4, 386-405.

Damijan, J.P., Kostevc, C., Rojec, M., 2012. Does innovation help the good or the poor performing firms?.Economics Letters. 115, 2, 190-195.

Drucker, P.F. 1985. The Practice of Innovation, Innovation and Entrepreneurship Practiceand Principles, Harper & Row, New York, pp. 19-33.

Erlangga, Enggar dan Suryandari, Erni. 2009. Pengaruh Kinerja Keuangan terhadap Nilai Perusahaan dengan Pengungkapan CSR, Good Corporate Governance dan Kebijakan Dividen Sebagai Variabel Pemoderasi. Jurnal Akuntansi dan Investasi, 10,1.

Geroski P, Van Reenen J and Walters C F. 1997. How persistently do firms innovate? Research Policy, 26, 33-48.

Leiponen A. 2000. Competencies, innovation and profitability of firms.Economics of Innovation and New Technology, 9, 1-24.

Love, James H and Roper, Stephen. 2013. SME innovation, exporting and Growth: A review of existing evidence.

Mason, Geoff, Bishop, Kate and Robinson, Catherine. 2009. Business Growth and Innovation; The wider impact of rapidly-growingfirms in UK city-regions. Research report NESTA, October.

Moore, G. 2004. Darwin and the demon: Innovating within established enterprises.Harvard Business Review, 82(7/8), 86-91.

Mursalim, Hendragunawan, Nur Alamzah, dan Abdullah Sanusi. 2015. Financial Decision, Innovation, Profitability and Company Value: Study on Manufacturing Company Listed in Indonesian Stock Exchange. Information Management and Business Review, Vol. 7, No. 2, pp. 72-78

Nicolau, Juan Luis and Mara Jess Santa-Mara. 2013. Communicating Excellence In Innovation. Economics Letters. Volume 118, Issue 1, 8790.

Rafinda, Ascariena and Noveria, Ana. 2014. Examining the Relationship between Innovation And Company Values of Apple Inc. International Conference on Trends in Economics, Humanities and Management (ICTEHM'14).

Safrida, Eli. 2008. Pengaruh Struktur Modal dan Pertumbuhan Perusahaan Terhadap Nilai Perusahaan pada Perusahaan Manufaktur di Bursa Efek Jakarta.Tesis tidak dipublikasikan

Schumpeter, J. 1949. Economic Theory and Entrepreneurial History, Change and the Entrepreneur, pp. 63-84, reprinted in

Schumpeter, J. 1989. Essays on Entrepreneurs, Innovations, Business Cycles and the Evolution of Capitalism, edited by Richard V. Clemence, New Brunswick, N.J.: Transaction Publishers, pp. 253- 231.

Shin, Hyun-Han and Stulz, Rene. 2000. Firm Value, Risk, and Growth Opportunities. Working Paper 7808.

Soliha, E dan Taswan.2002.PengaruhKebijakan Hutang Terhadap NilaiPerusahaan Serta Beberpa Faktor yangMempengaruhinya.Jurnal Bisnis danEkonomi. (online), (

Sundbo, J. 1997. Management of innovation in services.The Service Industries Journal, 17(3), 432-455.

Swan, J., Newel, H., Scarbrought, and Hislop. 1999. Knowledge Management and Innovations: Networks and Networking. Journal of Knowledge Management, 3(4): 262?275.

Treacy, Michael. 2013. Management: A Global Innovative, Innovation and Entrepreneurial Perspective, 14/e, McGraw Hill Education (India).

Williamson, O.E. 1975. Markets and Hierarchies: Analysis and Antitrust Implications. New York, Free Press.

Zemplinerov, Alena and Hromdkov, Eva. 2012. Determinants of Firms Innovation, Prague Economic Papers, 4.



  • There are currently no refbacks.

Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

Published by University of Merdeka Malang

Mailing Address:
2nd floor Finance and Banking Building, Jl. Terusan Raya Dieng No. 57 Malang, East Java, Indonesia
Phone: +62 813-3180-1534

This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0