The role of collaboration and external knowledge for innovation in small food firms

In this study, we use unique purpose-built survey data to show that small food firms are more innovative when externally engaged. To capture this, we apply a broad classification of innovative activities, including new products, processes, markets, organization, and distribution channels, and examine them against types of external interactions. The analysis, an ordered logit estimation, controls for heterogeneity across firms as well as geographic conditions. The results demonstrate a positive relationship between external interaction and firm innovation, though there are differences across types of external engagement and innovation activities. Product innovation benefits from knowledge from extra-regional firms, while several of the other forms of innovation show a positive relationship with support from regional and municipality boards. Additionally, firm collaboration regarding transports and sales enhances most types of innovation, but there are few relationships of benefit with research-intensive organizations. We conclude that, to be effective, innovation strategies of both the firms themselves and policymakers need to consider local context, access to intra- and extra-regional knowledge sources, and what types of innovation activities the firms are engaged in.

Determinants of Household Energy Choice for Cooking in Northern Sudan: A Multinomial Logit Estimation

Traditional biomass utilization is connected with negative environmental and human health impacts. However, its transition to cleaner cooking fuels is still low where the household’s fuels preferences play an important role in the process. To examine the factors that influence the household’s cooking fuel choice in Northern Sudan, a multinomial logit model (MNL) was used to analyze data collected from Kassala state in two selected districts, New Halfa and Nahr Atabara. The findings show that the most utilized fuels are still firewood and charcoal, which are used by 63.4% of all respondents. The results also revealed that socioeconomic factors have an impact on household fuel choice, where one additional unit of credit access may boost the possibility of choosing LPG by 22.7%. Furthermore, one additional level of education would reduce 5.4% of charcoal users while simultaneously raising 10% of current liquefied petroleum gas (LPG) users. Therefore, the study suggests initiating mobilization and training programs to raise awareness and encourage the usage of cleaner fuels. This study will provide policymakers with information on household cooking energy utilization while designing and developing policies related to energy. It will also contribute to the expanding body of literature concerning the transition to clean cooking fuels from traditional biomass.

Information disclosure and credit card repayments: evidence from Malaysia

PurposeThis study analyzes the role of information disclosure in influencing credit card repayments by focusing on three intervention methods for improving repayment decisions among credit cardholders.Design/methodology/approachThis study uses the survey method to collect data. Four questionnaires are designed to identify which types of disclosure elicit better repayment decisions among credit cardholders. The participants were approached using the mall intercept method, and a total of 1,775 responses were obtained.FindingsEstimations using means comparison tests show that not providing minimum payment information improves repayments. The expected benefits are not delivered by the provision of higher minimum payment information or additional information that highlights the negative effects of making the minimum repayment only. Further analysis using logit estimation reconfirms the benefit of not providing minimum payment information. However, when such information is given, low minimum payment information elicits better repayment decisions than high minimum payment information or additional information. Repayment worsens under the additional information condition compared to the high minimum payment condition.Research limitations/implicationsThe findings of this study have a bearing on the decisions of policy makers, credit card issuers and consumers.Originality/valueThis paper clarifies the role of information in improving debt repayment decisions.

Farmers’ agricultural tractor preferences in Ethiopia: a choice experiment approach

Unless supported by agricultural mechanization, achieving sustainable development goals is generally challenging in sub-Saharan African countries, specifically so in Ethiopia. Animal power is the dominant mode for plowing, threshing, and transportation in Ethiopia and yet, at the same time little effort was employed to assess subsistence farmer’s tractor demand in the study area. This study was conducted to understand the preferences of wheat producer subsistence farmers for agricultural tractors in Ethiopia in 2017. A random sample of 79 households participated in either rental or purchase choice experiments. The descriptive statistics revealed that 42% of respondents chose to buy tractors, and 43% preferred to use rental services. The random parameter logit estimation result showed that plowing-and-transporting tractors were preferred by the farmers who participated in the purchase design. They are also willing to pay ETB 149,142 (USD 6516) for transporting-only tractors, ETB 218,253 (USD 9536) for plowing-only tractors, and ETB 367,957 (USD 16,077) for plowing-and-transport-only tractors. However, due to the exclusion of high wheat producers in the rent experiment, the current rental price was found to be far from the 99% confidence interval of the estimated price. The government should promote and encourage the appropriate use of agricultural tractors that are affordable for subsistence farmers through rental or purchase. Conservative agriculture should also be practiced as the over-use of tractors may disrupt biodiversity and natural biological process.

Economic Impact of Crop Diversification in North-East India: Evidence from Household-level Survey

The study used a large farm household level data to assess the economic impact of crop diversification and also identifies the factors influencing the extent of diversification in the north east region of India. The crop sector was found to be skewed towards specialization. The result of instrumental variable technique showed that crop diversification has a positively significant impact on the income among the households. Further, fractional logit estimation found that variables like family members in the working age group, landholding size, crop loss experience, extension contact, participation in training positively affected diversification. Irrigated area, access to institutional credit, etc negatively affected the same. Diversification towards high value crops may accelerate the agricultural growth of the region and improve the wellbeing of the farmers. Measures for improvement of basic infrastructural facilities and extension services for improving backward and forward linkages are required.

Predicting bankruptcy based on the full population of Croatian companies

This paper analyses the bankruptcy prediction based on the population of companies representative of the total business sector in Croatia. The representativity of the sample is achieved through the propensity score matching of the full population of bankrupt and similar non-bankrupt companies. The robust estimation of bankruptcy prediction is carried out through the multiple discriminant analysis (MDA) and logistic regression (logit). The results indicate high classification accuracy of both models, but more favourable performance of the logit estimation. Overall accuracy of the MDA model was 73.7%, while the overall accuracy of the logit model was 76.3%. The results serve as a bankruptcy estimation benchmark for the business sector in Croatia.

Barriers to innovation: experience of Ecuadorian small and medium entreprises

The innovation barriers to small and medium-sized enterprises affect their innovative process and influence their company development. In this empirical work, we analyze the cost, market, and knowledge barriers that impede or delay the development of innovative activities and projects in Ecuadorian SMEs. A logit estimation model uses fixed-effects panel data on a sample of 5,205 SMEs during the period from 2009–2014. The results show that small and young companies are more vulnerable to the perceived barriers of cost and knowledge. This is mainly due to high innovation costs and a lack of skilled staff that restricts organizational growth and market competitiveness.

Does Village Deliberation Forum Effect on The Quality of Road Infrastructure Inter-Village?

Decentralization is expected to improve the provision of public infrastructure by bringing local government closer and more responsive to the community needs. However, based on the theory, decentralization can lead to principal agent problems due to the presence of asymmetric information. Local government potentially want to prioritize their needs more than the needs of the resident. One proposed scheme to mitigate this problem is through participatory government. This study attempts to estimate the impact of decentralization on the provision of the public infrastructure, especially community participation through village deliberation forum on the provision of inter-village road infrastructure in Indonesia. Using a logit estimation approach, this study analyzes the impact of implementing village deliberation forum on the quality of inter-village roads in Indonesia in 2018. The estimation results show that the implementation of village deliberation forum has a positive effect on the probability that the village have good road quality. Thus, this study supports previous researches on the positive impact of public participation on the quality of public infrastructure.

Access to Finance, Indigenous Technology and Food Security in Nigeria: Case Study of Ondo Central Senatorial District

Research purpose: Food security remains a major component of economic development. Many developing nations are facing challenges of food insecurity, which had contributed to starvation and other societal problems. With adequate food intake, human healthy living is assured. This study investigates the impact of access to formal finance and indigenous technology and knowledge on food security in Ondo central senatorial district in Ondo state, Nigeria.Methodology: In total, 216 farmers were sampled, and data were collected through a well-structured questionnaire and focus interviews. Data collected were analysed using descriptive statistics and logit estimation technique.Findings: Descriptive statistics show that there are more male farmers (61.1%) than female counterparts (38.9%), with most of the farmers (42.7%) in their ages 56 years and above and with 51.9% having primary education. Majority of the farmers (65.7%) engage in arable crop farming, while 15.2 and 19.1% engage in cash crop and livestock farming, respectively. The econometric model reveals that age, income, gender, education, marital status, religion, family size, assets owned and distance are major determinants of a farmer’s decision on account ownership, savings and borrowing. Indigenous knowledge of soil fertility, disease-resistant and quickly-growing crops, food storage, local weather, water management, pest and diseases control are significant determinants of food security in Ondo central senatorial district. Likewise, account ownership, savings and borrowing from formal financial institutions are significant determinants of food security.Practical implications: It is, therefore, important that efforts to ease access to formal financial services and improve indigenous technology to serve as complement to modern farming techniques to achieve food security be made a priority by government and private institutions.

Innovation behavior of agri-food small and medium-sized enterprises: the case of Europe’s emerging economies

This paper examines the innovative behavior of agri-food firms located in Central and Eastern Europe. In the literature, empirical analyses on innovation activities of firms focus on various case studies from around the world. However, very few studies explore the innovation of small and medium sized enterprises from Central and Eastern Europe’s agri-food sector. The analysis uses the logit estimation method and firm-level data, which are obtained from ERBD-World Bank Business Environment and Enterprise Performance Survey. Results suggest that firms that spent some proportion of their financial budget on research and development, had workforce training programs, and bought fixed assets are more likely to launch product, process, organizational, and marketing innovations.