Institutions, resources and innovation in East Africa: A firm level approach

Laura Barasa, Joris Knoben, Patrick Vermeulen, Peter Kimuyu and Bethuel Kinyanjui

Research Policy, 2017, vol. 46, issue 1, 280-291

Abstract: This study examines how firm-level resources interact with regional institutional quality to explain innovation in East Africa. We hypothesize that the institutional environment within which the firm operates moderates the effect of firm-level resources on innovative output. We examine the moderating role of institutions with regards to the transformation of firm-level resources including internal research and development, human capital and managerial experience into innovative output using firm-level data from the World Bank Enterprise Survey and the Innovation Follow-up Survey for three countries in East Africa including Kenya, Tanzania and Uganda. We test our hypotheses using a clustered robust standard errors logistic model. We find that the effects of firm-level resources vary depending on the institutional environment and that regional institutional quality positively moderates the effects of the firm-level resources.

Keywords: Firm-level resources; Regional institutional quality; Innovation; East Africa; Multilevel logistic model (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:46:y:2017:i:1:p:280-291

DOI: 10.1016/j.respol.2016.11.008

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