scholarly journals Financial and Non-Financial Obstacles to Innovation: Empirical Evidence at the Firm Level in the MENA Region

2021 ◽  
Vol 7 (1) ◽  
pp. 28
Author(s):  
Mohamed Oudgou
Keyword(s):  
Small Firms ◽  
Positive Impact ◽  
Probit Model ◽  
Business Environment ◽  
Probit Regression ◽  
Mena Region ◽  
Firm Level ◽  
Mena Countries ◽  
Product And Process ◽  
The Impact

Innovation, in all its forms, has become a central activity in companies. Moreover, innovation is considered as the engine of growth in several countries. The main objective of this paper is to study the determinants of innovation (product and process) in firms in the Middle East and North Africa (MENA) region via concentrating on the impact of financial and non-financial obstacles. The empirical study refers to row data collected by the World Bank’s Survey of Enterprises (WBES) between 2013 and 2020 in 10 MENA countries. The empirical results of the probit model estimation show that international quality certification, women’s participation in ownership, and investment in research and development (R&D) have a positive impact on all types of innovation. Nevertheless, small firms, sole proprietorships, and firms managed by women are found to be less innovative. The problem of endogeneity between innovation and financial obstacles is controlled thanks to the use of the instrumental regression method (IV-probit). The results confirm that the variable measuring the financial obstacles is endogenous, and it impacts all types of innovation negatively. The results of the IV-probit regression show that the non-financial obstacles related to the business environment which negatively affect innovation are: business licensing and permits, corruption, access to electricity, labor regulations, political instability, and the practices of competitors in the informal sector.

The Impact of the Business Environment on the Formalization of Informal Firms. The Case of Kosovo

Südosteuropa ◽  
2020 ◽  
Vol 68 (4) ◽  
pp. 505-529
Author(s):  
Kujtim Zylfijaj ◽  
Dimitar Nikoloski ◽  
Nadine Tournois
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Business Environment ◽  
Positive Influence ◽  
Policy Implications ◽  
Tax Reforms ◽  
Firm Level ◽  
Characteristics Analysis ◽  
Significant Negative Impact ◽  
The Impact

AbstractThe research presented here investigates the impact of the business environment on the formalization of informal firms, using firm-level data for 243 informal firms in Kosovo. The findings indicate that business-environment variables such as limited access to financing, the cost of financing, the unavailability of subsidies, tax rates, and corruption have a significant negative impact on the formalization of informal firms. In addition, firm-level characteristics analysis suggests that the age of the firm also exercises a significant negative impact, whereas sales volume exerts a significant positive impact on the formalization of informal firms. These findings have important policy implications and suggest that the abolition of barriers preventing access to financing, as well as tax reforms and a consistent struggle against corruption may have a positive influence on the formalization of informal firms. On the other hand, firm owners should consider formalization to be a means to help them have greater opportunities for survival and growth.

A Perceptual Measure of Innovation Performance: Firm-Level Evidence from Turkey

2017 ◽  
Vol 14 (06) ◽  
pp. 1750038 ◽  
Author(s):  
Derya Findik ◽  
Berna Beyhan
Keyword(s):  
Factor Analysis ◽  
Small Firms ◽  
Innovation Performance ◽  
Large Firms ◽  
Firm Level ◽  
Process Innovations ◽  
Significant Difference ◽  
Process Oriented ◽  
Product And Process ◽  
The Impact

This paper aims to introduce a qualitative indicator to measure innovation performance of Turkish firms by using firm-level data collected by Turkish Statistical Institute (TURKSTAT) in 2008 and 2009. We propose a new indicator to measure the innovation performance which is simply based on the perception of firms regarding to the impacts of innovation. In order to create performance indicators, we conduct a factor analysis to group the firms’ perceptions on the impacts of innovation. Factor analysis gives us product and process-oriented impacts of innovation. There are significant differences among product innovators, process innovators and firms engaged in both product and process innovations with respect to their perceptions on product and process-oriented impacts of innovation. Among these three groups, product- and process-oriented impacts provide a highest value for the firms that perform both product and process innovations. As far as the link between firm characteristics and the impact of innovation is considered, there is a significant difference between small and large firms with respect to their perceptions on product-oriented impact of innovation. While product-oriented impact is larger for small firms, large firms focus more on process-oriented impact. Anova results also indicate that perceptions on process-oriented impact significantly differ among exporter firms, domestic market-oriented firms and firms being active in internal and external markets. Process-oriented impact generates results in favor of exporting firms.

scholarly journals Impact of Ownership Structure on Firm Performance in the MENA Region: An Empirical Study

2017 ◽  
Vol 6 (3) ◽  
pp. 105 ◽  
Author(s):  
Neveen Ahmed ◽  
Ola Abdel Hadi
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Positive Impact ◽  
Mena Region ◽  
Positive Role ◽  
Insider Ownership ◽  
Mena Countries ◽  
Ownership Structures ◽  
Firm Financial Performance ◽  
The Impact

This paper investigates the impact of ownership structures on firm financial performance in the MENA region.  The sample covers nine MENA countries (Egypt, Bahrain, Qatar, Kuwait, Tunisia, UAE, Morocco, Oman and Jordan) for the year 2014. We examine the impact of ownership structures on firm performance. Performance is proxied by Tobin-Q, ROE and ROA, while ownership structure is proxied using insider ownership, governmental, and blockholders. We control for risk, size, country effect and industry type. Our results suggest that blockholders, insider ownership and governmental ownership play a crucial role in firm performance measured by Tobin-Q, ROE and ROA respectively. Our results suggest that insider ownership negatively effects firm’s return on equity, while blockholder ownership has a positive impact on a firm’s Tobin-Q. Finally we find that governmental ownership plays a positive role on a firm’s return on assets in the MENA region. 

scholarly journals IMPACT OF INFORMATION AND COMMUNICATIONS TECHNOLOGIES ON WOMEN'S ECONOMIC EMPOWERMENT IN MENA REGION

2021 ◽  
Vol 03 (06) ◽  
pp. 130-144
Author(s):  
Assia CHERIF ◽  
Norhene KOUADRI
Keyword(s):  
Positive Impact ◽  
Rapid Development ◽  
Economic Empowerment ◽  
Information And Communications Technologies ◽  
Mena Region ◽  
Mena Countries ◽  
Internet Users ◽  
Long Run ◽  
Short Run ◽  
The Impact

The focus on ICT as means of empowering women has gained momentum. Their potential is paralleled by their rapid development that extends into all aspects of life. Conducting our analysis on aggregate macroeconomic data taken from the World Bank database, we deploy an econometric panel data approach to capture the impact of ICT on women's economic empowerment in 18 MENA countries between 2000 and 2019, using ARDL panel estimates. The results reveal the existence of a long-term cointegrating relationship between the variables. In addition, the impact of all the variables is significant in the long run, while in the short run their impact is not significant. Mobile phone subscriptions and internet users have a positive impact in the long run; however, fixed telephone subscriptions and fixed broadband subscriptions have a negative impact‎.

Market Structure and Innovation Races / Marktstruktur und Innovationsrennen

2005 ◽  
Vol 225 (4) ◽  
Author(s):  
Martin Kukuk ◽  
Manfred Stadler
Keyword(s):  
Market Power ◽  
Race Model ◽  
Probit Model ◽  
Industrial Sector ◽  
Firm Level ◽  
Process Innovations ◽  
Game Theoretic ◽  
Product And Process ◽  
Technological Opportunities ◽  
The Impact

SummaryBased on an extended game-theoretic innovation-race model, we derive some Schumpeterian hypotheses of the impact of technological rivalry, market power, technological opportunities and demand expectations on the timing of product and process innovations. Using innovation data at the firm level in the German industrial sector, we estimate various versions of an econometric specification of the model with dichotomous innovation data by using a univariate binary probit model with qualitative regressor variables estimated applying indirect inference. Our empirical results are consistent with the derived hypotheses that intense rivalry, favorable technological opportunities and high demand expectations spur innovative activity, while the effect of market power is ambiguous.

Corruption and innovation: the importance of competition

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatma Nur Karaman Kabadurmus ◽  
Kevin Sylwester
Keyword(s):  
Design Methodology ◽  
Process Model ◽  
Business Environment ◽  
Enterprise Performance ◽  
Firm Level ◽  
Content Type ◽  
Level Data ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact

PurposeThe purpose of this study is to examine how corruption affects the prevalence of product and process innovation by firms.Design/methodology/approachThis study uses firm-level data from the 2012–2016 Business Environment Enterprise Performance Surveys and utilizes a conditional mixed process model to address endogeneity concerns, taking bribery as a measure of corruption.FindingsThe study shows that measures of bribery are positively and robustly associated with innovation but mainly for firms reporting many competitors. The results are stronger for firms reporting more obstacles. Both findings support the inference that bribes facilitate innovation by allowing firms to evade regulatory obstacles.Originality/valueThe current research on corruption's effect on innovation restricts the association to be uniform across the sample, but this study shows that the impact depends on the degree of competition faced by a firm. In addition, the data used in this study cover 30 economies in Eastern Europe and Central Asia, and thus contributes to determining the effects of anticorruption practices in emerging countries.

scholarly journals Growth of Micro, Small and Medium Enterprises (MSMEs) in MENA Countries: Constraints and Success Factors

2021 ◽  
Vol 3 (1) ◽  
pp. 1-15
Author(s):  
Rim Ben Ayed Mouelhi ◽  
Monia Ghazali
Keyword(s):  
Firm Growth ◽  
Success Factors ◽  
Small And Medium Enterprises ◽  
Multinomial Logit Model ◽  
Business Environment ◽  
Mena Region ◽  
Mena Countries ◽  
Medium Enterprises ◽  
The Impact

Purpose: This study attempts to contribute to a better understanding of the main constraints/ boosters for MSME growth in selected countries of the MENA region (Tunisia, Egypt, Morocco and Jordan). Design/Methodology/Approach: A multinomial logit model is used to investigate the impact of a three-fold classification of firm growth determinants (company characteristics, manager characteristics and business environment characteristics). The database is provided by the World Bank Enterprise Surveys (MENA ES). Findings: Results give statistically robust evidence that innovative firms are more likely to grow. Implications/Originality/Value: Therefore, the implementation of efficient and well-governed systems of innovation is a priority in the MENA region.  

Impact of Determinants of Industrial Development on Employment and Wages in Indian Manufacturing

2020 ◽  
pp. 18-30
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Technical Change ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Factor Productivity ◽  
Firm Level ◽  
Employment Level ◽  
The Impact ◽  
Level Performance

ABSTRACT The present study was undertaken to explore the evolution of the impact of firm-level performance on employment level and wages in the Indian organized manufacturing sector over the period 1989-90 to 2013-14. One of the major components of the economic reform package was the deregulation and de-licensing in the Indian organized manufacturing sector. The impact of firm-level performance on employment and wages were estimated for Indian organized manufacturing sector in major sub-sectors in India during the period from 1989-90 to 2013-14 of the various variables namely profitability ratio, total factor productivity change, technical change, technical efficiency, openness (export-import), investment intensity, raw material intensity and FECI in total factor productivity index, technical efficiency, and technical change. The study exhibited that all explanatory variables except profitability ratio and technical change cost had a positive impact on the employment level. Out of eight variables, four variables such as net of foreign equity capital, investment intensity, TFPCH, and technical efficiency change showed a positive impact on wages and salary ratio and rest of the four variables such as openness intensity, technology acquisition index, profitability ratio, and technical change had negative impact on wages and salary ratio. In this context, the profit ratio should be distributed as per the marginal rule of economics such as the marginal productivity of labour and capital.

What Drives Banking Profitability During Financial Crisis and Political Turmoil? Evidence from the MENA Region

2021 ◽  
pp. 097491012110311
Author(s):  
Salma Zaiane ◽  
Fatma Ben Moussa
Keyword(s):  
Financial Crisis ◽  
Political Instability ◽  
Generalized Method Of Moments ◽  
Bank Performance ◽  
Net Income ◽  
Mena Region ◽  
Factors Affecting ◽  
Mena Countries ◽  
Conventional Banks ◽  
The Impact

The purpose of the study is to identify bank specific, macroeconomic, and stability determinants of both conventional and Islamic bank performance. We also try to identify evidence on the impact of financial crisis and political instability during the Arab Spring (AS) period. The study covers a sample of 123 banks (34 Islamic banks and 89 conventional banks from 13 Middle East and North Africa [MENA] countries) over the period 2000–2013. We use different proxies of performance as dependent variables: return on asset (ROA), return on equity (ROE), net income margin (NIM), and estimate several regressions using the dynamic generalized method of moments. Our results reveal that bank size, asset quality, specialization, and diversification are the major bank specific factors affecting performance of Islamic and conventional banks. Besides, macroeconomic indicators (GDP and inflation) and regulatory quality influence both types of banks differently. Finally, both the financial crisis and political instability negatively affect bank performance.

scholarly journals A Reference Framework to Combine Model-Based Design and AR to Improve Social Sustainability

2021 ◽  
Vol 13 (4) ◽  
pp. 2031
Author(s):  
Fabio Grandi ◽  
Riccardo Karim Khamaisi ◽  
Margherita Peruzzini ◽  
Roberto Raffaeli ◽  
Marcello Pellicciari
Keyword(s):  
Positive Impact ◽  
Cost Effective ◽  
Digital Models ◽  
Model Based ◽  
Digital Contents ◽  
Recent Developments ◽  
Virtual Simulations ◽  
Product And Process ◽  
The Impact ◽  
Time Information

Product and process digitalization is pervading numerous areas in the industry to improve quality and reduce costs. In particular, digital models enable virtual simulations to predict product and process performances, as well as to generate digital contents to improve the general workflow. Digital models can also contain additional contents (e.g., model-based design (MBD)) to provide online and on-time information about process operations and management, as well as to support operator activities. The recent developments in augmented reality (AR) offer new specific interfaces to promote the great diffusion of digital contents into industrial processes, thanks to flexible and robust applications, as well as cost-effective devices. However, the impact of AR applications on sustainability is still poorly explored in research. In this direction, this paper proposed an innovative approach to exploit MBD and introduce AR interfaces in the industry to support human intensive processes. Indeed, in those processes, the human contribution is still crucial to guaranteeing the expected product quality (e.g., quality inspection). The paper also analyzed how this new concept can benefit sustainability and define a set of metrics to assess the positive impact on sustainability, focusing on social aspects.

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