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The impact of regional institutional quality on firm innovation

Evidence from Africa

Bibliographic Data

ID13040604
AuthorsMohammed Seid Hussen (0000-0002-2733-3521, Marmara University), Murat Çokgezen (0000-0003-4329-2093, Marmara University, corresponding author)
Year2020
Volume11
Issue1
Pages69-90
Publication date2020-04-06
Open AccessNo
TypeARTICLE
VenueInnovation and Development (JOURNAL)
Journal identifiersISSN: 2157-9318 • E-ISSN: 2157-930X
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/2157930x.2020.1750143
OpenAlexW3016188420
LanguageEN
Citations received3
References cited66

The main aim of this study is to empirically examine the role of regional institutional quality, and compare the relative importance of three different institutional arrangements, namely regulatory quality, rule of law, and corruption, on propensity of firm innovation in African countries. To this end, we used the most recent World Bank Enterprise Survey (WBES) of firms from 19 African countries. Our empirical investigation using multilevel logistic regression has drawn three important conclusions. First, there is no significant relationship between firm-specific factors, such as age, ownership, and exporting, and firm innovation. Nonetheless, firms’ propensity to innovate is significantly determined by the size of the firm, R&D expenditures, on-the-job training (OJT), and capability of managers/owners to adopt new technologies. Second, the innovation performance of firms is significantly affected by regional institutional quality. Third, among different regional institutional arrangements, reducing corruption and maintaining rule of law appeared to matter the most for firm innovation. © 2020 Informa UK Limited, trading as Taylor & Francis Group

Business · Empirical evidence · Industrial organization · Language change · Logistic regression · Multilevel model · Political science · Politics · Propensity score matching · Quality (philosophy · Rule of law · Survey data collection · Corporate Finance and Governance · Economic Growth and Development · Economic Growth and Productivity

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Citations per year1
Citation span2023 - 2024 (2)
Highly citedNo

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