Innovation Activities and Sustainable Firm Growth in Arab Countries: The Role of Bank Funding, Institutional Quality and Bank Competition

Ahmed Chafai, Rym Oueslati and Hatem Salah ()
Additional contact information
Ahmed Chafai: University of Manouba
Rym Oueslati: University of Tunis
Hatem Salah: University of Manouba

No 1819, Working Papers from Economic Research Forum

Abstract: The objective of this study is to explore the curvilinear relationship between innovation and sustainable firm growth, as well as the moderating role of bank funding on research and development (R&D), institutional quality and bank market power on this nexus. To do this, we selected a sample of 424 companies listed in ten Arab countries (Bahrain, Egypt, Jordan, Kuwait, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, and the United Arab Emirates) over the period 2010-2022. Using a systemic GMM model, the results show that there is a curvilinear (inverted U-shaped) link between innovation and sustainable firm growth. In addition, the outcome shows that bank funding on R&D, institutional quality and bank market power moderate the curvilinear nexus between innovation and sustainable firm growth. This study offers valuable insights into strategic innovation planning and elaboration of important implications by highlighting the role of bank funding on R&D, institutional quality and the power of the banking market in promoting firm sustainability.

Pages: 22
Date: 2025-12-20, Revised 2025-12-20
References: Add references at CitEc
Citations:

Published by The Economic Research Forum (ERF)

Downloads: (external link)
https://erf.org.eg/publications/innovation-activit ... -bank-competition-2/ (application/pdf)
https://erf.org.eg/app/uploads/2025/12/1767170283_235_1596943_1819.pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:erg:wpaper:1819

Access Statistics for this paper

More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Namees Nabeel ().