Determinants of Innovation in Selected Manufacturing Firms in India: Role of R&D and Exports

2018 ◽  
Vol 23 (1) ◽  
pp. 65-84 ◽  
Author(s):  
K. Seenaiah ◽  
Badri Narayan Rath
Keyword(s):  
Manufacturing Sector ◽  
Capital Intensity ◽  
Probit Model ◽  
Manufacturing Firms ◽  
Firm Age ◽  
Key Factors ◽  
Firm Level ◽  
Export Orientation ◽  
Innovation Activities

This article examines the determinants of innovation using selected manufacturing firms in India. Our study is based on 190 manufacturing firms which were surveyed from Bengaluru and Hyderabad cities in India. The results based on panel probit model reveal that exports and R&D expenditure positively and significantly affect the innovation in case of manufacturing sector. Other key factors such as import intensity, manager’s prior experience, and conducting training sessions to the employee at firm level do positively affect the innovation activities. However, firm age and capital intensity negatively affect innovation. The results suggest the policymakers to concentrate more on export orientation policies and investing in R&D through subsidising or creating more R&D incentive projects which would significantly boost innovations in India.

Innovation drivers in Ecuadorian manufacturing

2019 ◽  
Vol 17 (4) ◽  
pp. 510-539
Author(s):  
María Engracia Rochina-Barrachina ◽  
Jorge Antonio Rodríguez
Keyword(s):  
Design Methodology ◽  
Organizational Innovation ◽  
Probit Model ◽  
Manufacturing Firms ◽  
Content Type ◽  
Innovation Activities ◽  
Different Types ◽  
Innovation Strategies ◽  
Over Time

Purpose The purpose of this paper is to study which are the drivers of different types of innovations for manufacturing firms. The considered innovation types are product, process, organizational and marketing innovations. In addition, this study also aims to understand why most types of innovation (with the exception of organizational innovation) have decreased over time. Design/methodology/approach The two non-overlapping waves of the Ecuadorian National Innovation Activities Survey 2013 and 2015 (NIAS) are used. To identify the determinants of the different types of innovations and to check whether the decisions to innovate are correlated, a tetravariate probit model is used. Findings The results obtained point to some relevant differences in terms of the drivers of the different types of innovation. In addition, it is also evident that with the passage of time, certain problems that may be reducing the incentives to innovate have become more acute. Originality/value The study adds new empirical evidence to the literature on the role of investments in incorporated technology in innovation in developing countries. In particular, for Ecuadorian firms, the acquisition of incorporated technology in capital goods seems to be very relevant. This highlights the existence of a supply-driven innovation strategy. However, there is also room for innovation strategies driven by demand conditions.

scholarly journals Innovation and Firm-level Labour Productivity: A Comparison of Chinese and Indian Manufacturing Based on Enterprise Surveys

2020 ◽  
Vol 25 (3) ◽  
pp. 465-481
Author(s):  
Poulomi Bhattacharya ◽  
Badri Narayan Rath
Keyword(s):  
World Bank ◽  
Manufacturing Sector ◽  
Labour Productivity ◽  
Ordinary Least Squares ◽  
Manufacturing Firms ◽  
Firm Level ◽  
China And India ◽  
Innovation Activities ◽  
Enterprise Surveys ◽  
The Impact

This article examines the impact of innovation on labour productivity by using latest World Bank Enterprise Surveys data and compares the results between Chinese and Indian manufacturing sector. The article uses cross-section data based on two surveys that were conducted by the World Bank in 2012 and 2014 for China and India, respectively. By employing simple ordinary least squares (OLS) regression technique, we find that innovation affects the labour productivity positively for Chinese as well as Indian manufacturing firms, but its impact on firm productivity is relatively weak in case of India as compared to China. Second, other factors such as average wage of the workers, education of production workers and training do significantly boost the labour productivity of Chinese manufacturing firms as well as for Indian firms. Third, our results based on firm size also indicate that the impact of innovation activities on labour productivity is higher in case of large firms as compared to medium firms. However, innovation does not affect the labour productivity of small manufacturing firms for both China and India. In terms of policy, it is important for both Chinese and Indian manufacturing firms to keep pursuing innovation activities, in order to spur productivity, which would strengthen firms’ growth.

scholarly journals Strengthening the Innovation Resilience of Polish Manufacturing Firms in Unstable Environments

2021 ◽  
Author(s):  
Anna Wziątek-Kubiak ◽  
Marek Pęczkowski
Keyword(s):  
Public Support ◽  
Probit Model ◽  
Manufacturing Firms ◽  
Community Innovation Survey ◽  
Innovation Activities ◽  
Turbulent Times ◽  
Unstable Environment ◽  
Innovative Resources ◽  
Accuracy Of Prediction ◽  
Second Period

AbstractThis study examines factors that increase resilience in innovation of Polish manufacturing firms in an unstable environment. Organizational resilience in innovation is the ability to continuously perform innovation in a turbulent environment and increase knowledge accumulation. In 2008–2012, Poland did not have crisis itself. Short-term slowdown of the economy was accompanied by a breakdown of innovation activities, with a medium-term effect. Based on the Polish Community Innovation Survey panel data for two periods: the innovation crisis (2008–2010), and the innovation pessimism period (2010–2012), this study shows which innovative resources change the probability of innovation continuity in the second period. In our probit model, we explore 42 factors of innovations. We found that financing, R&D and marketing increased the probability of continuity of innovation, but the influence of financing was the strongest. Persistence in innovation in turbulent times hence requires a change in the structure of innovation resources used. Due to the fact that public support on innovation did not increase the likelihood of the continuity of the innovation, a policy change is required. Reliability of our estimation is confirmed by accuracy of prediction of firms, which was 78.2%.

scholarly journals Are the determinants of markup size industry-specific? The case of Slovenian manufacturing firms

2011 ◽  
Vol 58 (2) ◽  
pp. 229-244 ◽  
Author(s):  
Nina Ponikvar ◽  
Maks Tajnikar
Keyword(s):  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Manufacturing Industries ◽  
Dynamic Panel ◽  
Pricing Policy ◽  
Large Variability ◽  
Oligopoly Theory ◽  
Determination Process ◽  
Precise Role

The aim of this paper is to identify factors that affect the pricing policy in Slovenian manufacturing firms in terms of the markup size and, most of all, to explicitly account for the possibility of differences in pricing procedures among manufacturing industries. Accordingly, the analysis of the dynamic panel is carried out on an industry-by-industry basis, allowing the coefficients on the markup determinants to vary across industries. We find that the oligopoly theory of markup determination for the most part holds for the manufacturing sector as a whole, although large variability in markup determinants exists across industries within the Slovenian manufacturing. Our main conclusion is that each industry should be investigated separately in detail in order to assess the precise role of markup factors in the markup-determination process.

scholarly journals IMPACT OF DIVIDEND PAYOUT ON FIRM’S PERFORMANCE UNDER LOW GROWTH OPPORTUNITIES

2021 ◽  
Vol 9 (3) ◽  
pp. 1156-1165
Author(s):  
Taymoor Ali ◽  
Muhammad Kashif Khurshid ◽  
Adnan Ali Chaudhary
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Secondary Data ◽  
Financial Statements ◽  
Manufacturing Firms ◽  
Growth Opportunities ◽  
Dividend Payout ◽  
Relationship Of ◽  
The Relationship

Purpose of the study: The objective of the study was to investigate the relationship of the dividend payout on a firm's performance under low growth opportunities from the manufacturing sector of Pakistan. Methodology: A sample of 251 firms out of 378 manufacturing firms listed at the Pakistan Stock Exchange (PSX), have been carefully chosen for the era of ten years from 2006 to 2015. The secondary data was obtained from the firm’s web financials and analysis of financial statements, published by the statistics department of the State Bank of Pakistan. For the persistence of investigation panel data (fixed effect) analyses were employed in this study. Main Findings: The fallouts of the analysis revealed that the dividend payout ratio has an insignificant relationship with the firm's performance in the low growth perspectives of the study. Applications of this study: The findings of the study are helpful for the financial managers of the firms facing low growth opportunities. Furthermore, the investors in capital markets can use the findings of this while investing. The originality of this study: The study focussed on the role of low growth opportunities while studying the nexus of dividend pay-out and the firm’s financial performance which inherits the novelty and originality of the study.

Services Outsourcing and Productivity Growth

2018 ◽  
Vol 19 (2) ◽  
pp. 192-209 ◽  
Author(s):  
Sonia Mukherjee
Keyword(s):  
Productivity Growth ◽  
Manufacturing Sector ◽  
Core Competencies ◽  
Marketing Research ◽  
Manufacturing Firms ◽  
Professional Services ◽  
Business Services ◽  
Positive Role ◽  
Firm Level ◽  
The Impact

The article studies the impact of outsourcing services on the productivity growth of the Indian manufacturing firms. By the term services we mean different expenses on services incurred by the manufacturing firms, such as, advertising, marketing, research and development, consultancy, auditing, business services, knowledge-based services, technical, legal and other professional services (including information communication and technology services). With further expansion in newer services, a higher demand has come from the Indian manufacturing sector. With intensive usage of services in the manufacturing production process, the performance and the manufacturing can focus on the core competencies with outsourced and cheaper services from expert service provider. For this purpose, the firm-level data have been collected from the annual financial statements of the Centre for Monitoring of the Indian Economy’s Prowess database. The econometric results conclude that services have played a positive role in improving the productivity growth of the aggregate Indian manufacturing firms and at the disaggregated level, especially for industrial groups such as food, beverage and tobacco; textiles, gems and jewellery; transport; machinery; metal, rubber and plastic; leather and footwear; and chemicals, services have played a favourable role in boosting the productivity growth. JEL: D24, L80, L60

Bangladeshi clothing manufacturers' technology adoption in the global free trade environment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haesun Park-Poaps ◽  
Md Sadaqul Bari ◽  
Zafar Waziha Sarker
Keyword(s):  
Sustainable Development ◽  
Technology Adoption ◽  
Online Survey ◽  
Manufacturing Sector ◽  
Global Market ◽  
Firm Level ◽  
Middle Income ◽  
Content Type ◽  
Differentiation Strategy ◽  
Export Orientation

PurposeThe purpose of this study was to investigate the status of technology adoption (TA) among clothing manufacturers in Bangladesh and examine the influences of contextual factors on their TA level. Particularly, the authors examined the effects of export orientation, top management commitment (TMC), competitive pressure (CP), cost of capital (CC) and technical skills (TS).Design/methodology/approachThe data were collected from Bangladeshi clothing manufacturer through an online survey. A firm was treated as a unit of analysis.FindingsThe results revealed that the most common technologies adopted were information technology and software related and the least common were automation related. Export orientation negatively influenced while TS and CP positively influenced the level of TA.Research limitations/implicationsDue to the difficulty in obtaining firm level data, data collection did not utilize a random sampling. Only firms that agree to participate were included in the data.Practical implicationsThe authors suggest the Bangladeshi clothing manufacturers to adopt selective technologies that complement the cost leadership strategy rather than immediate differentiation strategy or technology innovations.Social implicationsFocused investment in human capitals and knowledge transfer in Bangladesh, one of the newly classified developing country, should sustain their competitiveness in the global market. Further discussions provide various stakeholders with insights related to trade policies, international aids and the UN's sustainable development agenda.Originality/valueThis study tackles a void that exists in TA research within the labor intensive clothing manufacturing sector, especially in a lower-middle income country, which surprisingly became the second largest clothing supplier today. Unique nature of the sector as an entry to economic development process in connection to the sustainable development concept is discussed to generate implications for practitioners as well as policy makers.

scholarly journals DETERMINANTS OF ENERGY AND CO2 EMISSION INTENSITIES: A STUDY OF MANUFACTURING FIRMS IN INDIA

2018 ◽  
Vol 63 (02) ◽  
pp. 389-407
Author(s):  
SANTOSH K. SAHU ◽  
DEEPANJALI MEHTA
Keyword(s):  
Carbon Dioxide ◽  
Regression Analysis ◽  
Co2 Emission ◽  
Manufacturing Sector ◽  
Carbon Dioxide Emission ◽  
Business Environment ◽  
Manufacturing Firms ◽  
Primary Sources ◽  
Firm Level ◽  
Indian Manufacturing Sector

This paper investigates determinants of energy and emission intensities of manufacturing firms in India, from 2000 to 2014. Given that Indian manufacturing sector is one of the world’s most polluting sectors in terms of CO2 emissions; we arrive at firm level determinants of energy and carbon dioxide emission intensities from consumption of three primary sources of energy, namely (1) Coal, (2) Natural Gas and (3) Petroleum. The results of the regression analysis suggest that there are inter-firm differences in energy and emission intensity. The results indicate that smaller and larger firms are both energy and emission intensive compared to medium sized firms. Similarly, firms spending more in research and development activities are found to be energy and emission efficient, compare to others. Hence, in the global competitive business environment, Government of India should carefully formulate policies suitable for the medium sized firms to make them energy and emission efficient.

The Ethiopian Manufacturing Sector Productivity, Export, and Competitiveness

2019 ◽  
pp. 650-668
Author(s):  
Admasu Shiferaw ◽  
Måns Söderbom
Keyword(s):  
Productivity Growth ◽  
Manufacturing Sector ◽  
Rapid Expansion ◽  
Three Dimensions ◽  
Resource Reallocation ◽  
Firm Level ◽  
Global Context ◽  
Central Statistical ◽  
Statistical Agency

Over the last two decades the Ethiopian manufacturing sector has experienced rapid expansion in terms of the number of firms, sales, and employment. This chapter examines the performance of the manufacturing sector using aggregate data and firm-level panel data compiled by the Central Statistical Agency (CSA) of Ethiopia. The focus is on three dimensions of performance: productivity growth, the extent of export orientation, and the competitiveness of domestic firms in the global context. Manufacturing remains a relatively small sector in terms of contribution to GDP and employment, and it has yet to become export oriented even by African standards. In examining productivity growth, the analysis addresses within-firm productivity growth and its heterogeneity across firms, as well as the role of resource reallocation from less efficient firms to more efficient ones.

Influences of technological attributes on sourcing of manufacturing technologies in developing countries

2019 ◽  
Vol 17 (4) ◽  
pp. 359-378
Author(s):  
Rony Cabrera ◽  
Domingo González
Keyword(s):  
Developing Countries ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Manufacturing Technology ◽  
Content Type ◽  
Innovation Activities ◽  
External Sources ◽  
Technology Sourcing ◽  
Manufacturing Technologies ◽  
The Impact

Purpose As part of a new focus on a better balance of investment in innovation activities in developing countries, this study aims to understand the effects of technological attributes (technological complexity and type of technology) on manufacturing technology sourcing (whether firms choose either internal development or external sources). Design/methodology/approach Multiple-case studies were conducted in the Peruvian manufacturing sector. Findings The authors found that, across Peruvian manufacturing firms, they develop a certain manufacturing technology related to their capabilities. However, when the total cost of acquisition is lower than internal costs of developing technologies, they will choose external sources, regardless of their capabilities and complexity of the technology. In addition, analysis of the type of technology indicated that the pursuit of simultaneous exploration and exploitation occurs when firms use external sources rather than internal. Research limitations/implications This study has the limitation that data have been collected years after the decision-making process; the results are based solely on the authors’ analysis using the case of Peruvian industry, and they do not track the impact on the performance of manufacturing technology decisions. Practical implications The findings have important implications for technology managers of South American manufacturing firms that are decision makers in the sourcing of new manufacturing technologies. Originality/value The results of this study provide literature with insights into technology sourcing strategy in developing countries and the importance of progress in transitioning to technological innovation and catchup.

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