Identification and Prioritization of Factors Influencing the Selection of Financing Methods for Startup, Innovative, and Technology-Based Companies

Tobeh, Yaser; Haghighat, Jafar; Naghdi, Sajad

doi:10.48308/jep.2026.240941.1239

Identification and Prioritization of Factors Influencing the Selection of Financing Methods for Startup, Innovative, and Technology-Based Companies

Articles in Press

Document Type : Original Article

Authors

¹ Ph.D Student, Department of Economics, Management and Commerce, University of Tabriz, Tabriz, Iran

² Professor, Department of Economics, Management and Commerce, University of Tabriz, Tabriz, Iran

³ Assistant Professor, Department of Accounting Faculty of Economic and Management, University of Tabriz, Tabriz, Iran

10.48308/jep.2026.240941.1239

Abstract

Financing remains one of the most critical challenges for knowledge-based, startup, and technology-oriented companies, particularly in developing innovation ecosystems such as Iran. These enterprises often face financial constraints due to their high risk, lack of tangible assets, and limited access to traditional credit channels. Consequently, selecting an appropriate financing method plays a decisive role in their survival, growth, and long-term competitiveness. This study aims to identify and prioritize the main factors influencing the choice of financing methods across three categories of knowledge-based firms-startup, innovative, and technology-based companies. Employing a mixed-method research design, the study integrates Structural Equation Modeling (SEM) to validate the conceptual model and the TOPSIS technique to prioritize alternative financing strategies. Through a comprehensive literature review and semi-structured interviews with experts and executives, eight principal dimensions and forty-six sub-factors were identified, encompassing financier-related factors, financial characteristics, macroeconomic conditions, technological features, legal and organizational factors, cultural and social factors, market dynamics, and feasibility study considerations. The results reveal that market and competitive conditions exert the greatest influence on financing decisions in startups, macroeconomic stability is most critical for innovative firms, and legal-organizational structures dominate in technology-based enterprises. The study contributes both theoretically and practically by presenting an integrated analytical framework that links financial behavior with strategic decision-making in knowledge-based firms. The findings provide actionable insights for entrepreneurs, investors, and policymakers seeking to strengthen financing infrastructures and promote innovation-driven economic growth in emerging economies such as Iran

Keywords

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