International Journal of Technological Learning, Innovation and Development (13 papers in press)
Research and development investment and firm performance: A developing country perspective
by Hamza Akorede
Abstract: Research and development is a vital source of knowledge generation for innovative companies. Such companies can exploit this knowledge to create new products and services to achieve superior performance. However, R&D requires a significant amount of investment; moreover, it is an uncertain investment. This paper aims to examine the relationship between investment in R&D and firm performance using a fixed-effect method. The findings show a significant positive relationship. In addition, by using a one-year lag of R&D, the results show an insignificant relationship. These findings suggest that the selected companies have benefitted from their investment in R&D but are inadequately investing in this activity. The paper further discusses the implication of the findings for managers and policymakers.
Keywords: R&D investment; research and development; firm performance; sales; operating profit; one-year lag; fixed effect; developing country; low-and-middle-income; Nigeria.
Explaining E-commerce adoption at country level
by Maria Veronica Alderete
Abstract: The objective of this paper was to explain the economic determinants of e-commerce adoption at the country level. This study aimed to expand the empirical literature on the relationship between e-commerce, broadband penetration, and regulatory framework. We estimated a Structural Equation Model mainly composed of three interrelated and endogenous ICT demand functions (e-commerce, mobile broadband, and fixed broadband), which depend on ICT price, income, digital skills, and regulatory framework as exogenous variables. In this paper, official data from international institutions for the year 2018 was used. Results obtained show that income is a significant factor of mobile and fixed broadband penetrations, and indirectly, of e-commerce adoption. Hence, high-income countries are more likely to do e-commerce, as they will have a higher broadband penetration. While broadband penetration becomes a moderator variable, regulatory framework turns into a mediator variable as it determines, both directly and indirectly, e-commerce adoption. Lastly, there seems not to be a price effect on e-commerce adoption.
Keywords: E-commerce; Broadband; Regulatory Framework; SEM.
Capturing Niche Development in Secondary Disease Prevention through a Salutogenesis-Bioeconomy Framework: Trends from Kenya
by Ruth ORIAMA, Robert MUDIDA, Thierry BURGER-HELMCHEN
Abstract: The development of innovation-driven secondary prevention interventions in a niche environment could increase competitiveness in health bioeconomy-related activities. We use trends from Kenya to present a conceptual framework, "the salutogenesis-bioeconomy framework", illustrating how a knowledge-based bioeconomy contributes to health demand conditions. This conceptualisation sheds light on how preventive medicine interventions in a knowledge-based bioeconomy paradigm can contribute to sustainable niche development and, consequently, competitiveness. Four themes are presented: market prototype innovations, ecological fix innovations, technological fix innovations and techno-ecological fix innovations. This framework elucidates the contribution of preventive medicine interventions to sustainable niche development and health demand conditions in a knowledge-based bioeconomy paradigm.
Keywords: health; bioeconomy; knowledge-systems; economic-transitions; innovation.
Information Technology moderation in HR functions of Public Sector Organizations in Pakistan
by Syed Alamdar Ali Shah, Arbab Gul, Muhammad Ali Ahmad, Raditya Sukmana, Nanik Kustiningsih
Abstract: The current study has been conducted to identify key roles played by information technology in all human resource departments of public sector organizations operating in Pakistan. It finds that information technology has changed the operations and functions of HR department. Overall 290 questionnaires returned back with 76.86% response rate. Various data tests and controlled moderation model has been applied to achieve the objectives. The results suggest that information technology significantly moderates the execution of human resource functions in human resource department of Pakistani public sector organizations. The study highlights the increasing importance of IT in the effective functioning of public sector HR departments.
Keywords: Information Technology; Human Resource Department; Public Sector; Regression Analysis.
Reverse engineering as a driver to enhance productivity and technological capability of manufacturing firms in developing countries: a literature review
by Yichalewal Gebremariyam, Daniel Kitaw, Frank Ebinger
Abstract: This research deals with the role of reverse engineering /RE/ in enhancing productivity (product quality and processing time improvements) and technological capability (TC) of manufacturing firms in developing countries (DCs). Using a systematic reviewing approach, the authors investigated several definitions of RE. Besides, they raised novel debating concepts, i.e., the controversy between advocates and opponents concerning the role of RE and the legality issues on the adoption of the practice. The review process revealed the absence of a holistic definition of RE that can address the state-of-the-art, and the negative impact of Intellectual Property Rights (IPRs) to adopt RE practice in DCs manufacturing firms. The researchers believe that the adapted holistic definition of RE is helpful to understand the comprehensive role of the practice in enhancing product quality, processing time, and technical capability improvements, and to fill the knowledge gap on the concepts misunderstandings by convincing opponents about RE not as theft but as a driver to transfer knowledge and technology. The research also recommends how the bottlenecks on the legality issues can be resolved through the revision of IPRs from the context of DCs.
Keywords: reverse engineering; productivity; technological capability; manufacturing firms; developing countries.
Benchmarking the Nigerian private innovation incubators: Analysis of the influence of firm age, firm size, and employee qualification on their innovation activities
by Babasile Daniel Oladele-Emmanuel
Abstract: There is no doubt that innovation is integral to the development and competitiveness of nations and firms. The significance of innovation is partly due to the influence of innovation incubators (IIs). IIs are significant interfacial firms that contribute to the transfer of technologies from inventors to the commercial sector. Existing literature on the contribution of IIs in Nigeria focused on government-funded technology-based incubators, whereas no study has investigated the impact of privately owned IIs. Since this is a novel study in the Nigerian context, we employed a mixed methods research approach. Qualitative data were gathered from private IIs (PIIs), and cross-tabulation analysis was used to test the relationships between the variables. The study reveals that firm size influences the ability of PIIs to generate funds through self-funding and their ability to generate revenue from their innovation expenditure.
Keywords: Innovation Incubators; Private Incubators; Innovation metrics; Firm Age; Firm Size; Employee qualification; Nigeria.
Special Issue on: Green, Innovative and Transformational Entrepreneurship Possibilities for Leapfrogging and Inclusive Growth in Middle and Low Income Economies
Ecosystems of Green Entrepreneurship in Perspective: Evidence from Brazil
by Bruno Fischer, Adriana Bayona-Alsina, Anne Rocha, Gustavo Salati Marcondes De Moraes
Abstract: While our comprehension on the configurations and dynamics of entrepreneurial ecosystems has advanced significantly, there remains a conspicuous gap in how localized phenomena shape transitions towards environmentally sustainable regions - particularly outside the scope of advanced nations. Accordingly, our research explores how entrepreneurial ecosystems affect the emergence of green entrepreneurship within a developing country context. The empirical setting comprises data from the State of S
Keywords: Knowledge-intensive entrepreneurship; green entrepreneurship; ecosystems of entrepreneurship; entrepreneurial ecosystems; bioeconomy; bio-based entrepreneurship; developing countries; Brazil; panel data; negative binomial estimations; generalized estimating equations.
Conceptualising the transformational power of entrepreneurship from an entrepreneurial ecosystems perspective focusing on environmentally and socially inclusive economic growth
by Esin Yoruk, Andrew Johnston, Gideon Maas, Paul Jones
Abstract: This research focuses on the philosophy of transformational entrepreneurship and explores what role entrepreneurial ecosystems fulfil within that to stimulate environmentally and socially inclusive growth. It first examines the past and current contributions in the entrepreneurship literature. Then, it considers the current debate on the transformative power of entrepreneurship and how it can be best utilised for creation of sustainable socio-economic growth via diverse forms of entrepreneurship and interdependencies between entrepreneurial actions and functions at different income levels. From this basis, this research contributes to the recent literature on transformational effects of entrepreneurship by providing novel insights into the role entrepreneurial ecosystems fulfil in transforming societies.
Keywords: Entrepreneurship; Transformation; Transformational entrepreneurship;rnEntrepreneurial Ecosystems; Low-income economies; Middle-income economies.
Revisiting Innovation Practices in Subsistence Farming: The Net Effects of Land Management, Pesticide, Herbicide and Fungicide Practices on Expected Crop Harvest in Ethiopia
by Adah-Kole Onjewu, Vahid Jafari-Sadeghi, Sundas Hussein
Abstract: To settle inconsistent findings in the farming innovation and productivity nexus, this inquiry examines the land management practices of 7,625 households in rural Ethiopia. Specifically, the net effects of (1) improved seeds, (2) mixed cropping and (3) row planting on the use of (4) pesticides, (5) herbicides and (6) fungicides are assessed. Using a structural equation technique, the study probes how these six practices predict households expected harvest. It is found that while improved seeds increase pesticide, herbicide and fungicide use, mixed cropping and row planting generally reduce these practices. Moreover, mixed cropping moderately increases expected harvest while improved seeds and row planting have the reverse effect. The interrelations of these factors increase knowledge in contingency-driven agronomics, and provoke reflection on the sustainability of land management practices. Particularly, opposed to prevailing views, it is demonstrated that sowing traditional seeds will reduce households reliance on pesticides, herbicides and fungicides. The inherent findings speak to policy-makers tasked with supporting peasant life in rural Ethiopia and similar contexts.
Keywords: Improved Seeds; Mixed Cropping; Row Planting; Pesticides; Herbicides; Fungicides; Expected Harvest; Farming Innovation; Subsistence Farming; Structural Equation Modelling; Ethiopia.
The characteristics of a green, innovative and transformational entrepreneur: an example of transformative entrepreneurship in an efficiency-driven economy
by David Kirby, Iman El-Kaffas
Abstract: rnThe article presents and analyses case studies of the Right Livelihood Award winning SEKEM Holding in Egypt and its founder, the transforming social entrepreneur, Professor Ibrahim Abouleish, winner of the Schwab Foundations 2004 Outstanding Social Entrepreneur Award, and holder of the Award for Excellence in Positive Change (2013) of the Global Thinker Forum. Professor Abouleish created a business out of turning a hostile area of desert land into a thriving agricultural community using biodynamic farming methods and by addressing the education, health and well-being of his employees. The study is based on both secondary data and participant observation proposes a new approach to entrepreneurship that harmonises or integrates the four main traditional approaches (economic, eco, humane and social) and identifies the characteristics and competences required of the transformational entrepreneur. The findings have relevance for entrepreneurship scholars, practitioners and policy makers.rn
Keywords: rnGreen Entrepreneurship; Innovation; Transformational Entrepreneur; Factor-driven economyrn.
Environmental Entrepreneurship and Inclusive Growth: A Three-fold Approach to Analysis
by Grigory Aleksin, Simen Christian Kalbakk-Bøhler
Abstract: This article assesses the contribution of entrepreneurs to inclusive growth, and explores both the determinants and impact of environmental entrepreneurs on pollution emissions. In particular, we place emphasis on how economic and institutional development shape these relationships. Firstly, we use a dynamic linear panel model to quantify the impact of various types of entrepreneurship on inclusive growth proxied by real household expenditure growth. Though there is no significant direct effect on inclusive growth, entrepreneurship appears to be more important in developing countries. Secondly, using a random effects model, we consider entrepreneurs role in pollution-reduction efforts. We find that entrepreneurs have contributed positively to carbon dioxide emissions. This effect, however, decreases with level of development, suggesting that improving institutional quality is key to promoting environmental entrepreneurship capable of making a difference to climate change. Finally, we use a hierarchical probit model to identify the key determinants of environmental entrepreneurship for individual entrepreneurs. Surprisingly, we find that high environmental pressure is associated with a lower probability of becoming an environmental entrepreneur. Overall, we argue that these results are best explained by appealing to institutional differences that exist between countries at different levels of development. This means that in less developed countries entrepreneurship is seen as means of providing income and employment, whereas at the technological frontier entrepreneurship is more capable of enhancing innovation and productivity. With respect to ecological issues, then, higher quality institutions are more successful in shaping incentive structures for entrepreneurs, thereby increasing their engagement with environmental market failures.
Keywords: environmental entrepreneurship; inclusive growth; GEM-data; social entrepreneurship; developing nations; low income; middle income; technological learning; innovation and development; probit; dynamic panel model.
Inclusion of universities, enterprises, and regions of Kazakhstan in the process of technological upgrading of the mining industry: A triple helix approach
by Marat Myrzakhmet, Kabira Begimbay
Abstract: This paper investigates universities with educational programs in mining specialties, mining enterprises, and regions with a developed mining industry in developing countries on the example of Kazakhstan. The analysis showed that universities are the weakest link in the chain of universities- enterprises-regions, since their structure is poorly balanced in relation to business: though to a smaller extent, science does cooperate with education, while business in universities remains an alien element and does not generate income on its own. The creation of a mining cluster around a university with mining majors can help multiply collaborative efforts. The involvement of universities in the extraction of mineral resources and the accompanying processes within such a cluster will significantly change the type and role of the regional industry, and, as a result, will become a driver of economic growth in the region.
Keywords: third mission; university; mining; technological upgrading; cluster; region; Kazakhstan; KZ; webometric method; PLS-SEM; WarpPLS.
Manufacturing firms and entrepreneurial dynamics in less developed economies: Kosovo in comparative perspective
by Fadil Sahiti
Abstract: This paper examines patterns of firm dynamics of manufacturing firms in the Kosovos economy over the period 2008 2017. Findings from this economy are described and analysed in the context of comparator countries with different economic level. The evidence shows that although the number of incumbent firms in Kosovo is almost half less than in comparator countries, there is a vibrant entrepreneurial environment which is supported by young and very small sized firms that are able to survive beyond the age of 5. An important pattern which appears to be specific to the country is the rate of exit firms, which is significantly lower than comparator economies. Although these results support the prevalence of subsistence and necessity-driven entrepreneurship in Kosovo, survival analysis results hint that there may be scope for opportunity-driven entrepreneurship if particularly strong sectors are supported using recent advantages of digitalisation and greening agenda in the economy.
Keywords: Firm dynamics; Small business; Entrepreneurship; Duration Analysis; Hazard Function; Manufacturing.