ICT Adoption, Competition and Innovation of Informal Firms in West Africa: Comparative Study of Ghana and Nigeria

Alhassan Karakara and Evans Osabuohien ()
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Evans Osabuohien: CEPDeR, Covenant University, Ota, Nigeria

No 20/023, Research Africa Network Working Papers from Research Africa Network (RAN)

Abstract: Purpose – This study investigates how ICT adoption enhances the innovativeness of informal firms in West Africa, using the cases of Ghana and Nigeria. Design/methods/approach – The study used the World Bank Enterprise Survey data 2014 for Ghana and Nigeria with binary logistic regression analysis to achieve this. Four different innovations are modelled. They include: first, whether a firm has innovated based on producing a new product or significantly improved product; second, whether a firm has innovated in its methods of production or services; third, whether a firm has innovated in terms of its organisational structure; and fourth, whether a firm has introduced a new and improved marketing method. Findings – The results show that the use of email, cellphone and website has a positive impact on the four types of innovations modelled. However, these effects varied markedly between Ghana and Nigeria. Firms’ spending on R&D, firm giving its employees the chance to develop their ideas and when firm competes with others; all positively impact on the four types of innovations. Thus, the study recommends that policies should be geared towards making firm have more access to ICTs to enable them to be more innovative to serve clients and the economy. Originality/value – This study differs by concentrating on how the adoption of ICTs could help firms to introduce innovations into their companies in two West African countries, namely: Ghana and Nigeria. Thus, it complements literature on informal firms’ innovation efforts in West Africa.

Keywords: Firms; ICT adoption; Innovation; West Africa; World Bank Enterprise Survey data; Ghana; Nigeria (search for similar items in EconPapers)
JEL-codes: D21 L60 L80 O14 O30 (search for similar items in EconPapers)
Pages: 27
Date: 2020-01
New Economics Papers: this item is included in nep-cse and nep-ict
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Citations: View citations in EconPapers (18)

Forthcoming in Journal of Enterprising Communities: People and Places in the Global Economy

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http://publications.resanet.org/RePEc/abh/abh-wpap ... hana-and-Nigeria.pdf Revised version, 2020 (application/pdf)

Related works:
Journal Article: ICT adoption, competition and innovation of informal firms in West Africa: a comparative study of Ghana and Nigeria (2020)
Working Paper: ICT Adoption, Competition and Innovation of Informal Firms in West Africa: Comparative Study of Ghana and Nigeria (2020)
Working Paper: ICT Adoption, Competition and Innovation of Informal Firms in West Africa: Comparative Study of Ghana and Nigeria (2020)
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