Innovation, manager's tenure and employees' involvement in decision-making in firms in a developing country

Dorgyles Kouakou ()
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Dorgyles Kouakou: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper fills a gap in the literature by using a unique dataset from Côte d'Ivoire to compare formal and informal firms as to their innovation practices, and to investigate the degree to which the manager's tenure and employees' involvement in decision-making impact innovation in firms in a developing country. We find an inverted-U relationship between the manager's tenure and both technological and non-technological innovations. The threshold value of manager's tenure beyond which an increase in the manager's tenure decreases innovation is higher for non-technological innovation. Employees' involvement in decision-making influences positively both technological and non-technological innovations. However, the effect is stronger for technological innovation. Formality status is found to exert positive effects on both technological and non-technological innovations. We conclude with policy recommendations.

Keywords: Innovation; Developing countries; Manager's tenure; Employees' involvement in decision-making; Participative management (search for similar items in EconPapers)
Date: 2021-06-03
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Published in 37èmes Journées de Microéconomie Appliquée (JMA), IREGE, Université Savoie Mont Blanc, Jun 2021, Annecy, France

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03259231

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