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The impact of quality certification on SME innovation and the role of institutions

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  • Ullah, Barkat

Abstract

We examine the impact of internationally recognized quality certification on innovation for 14,654 mostly small and medium-sized enterprises (SMEs) in 30 transition economies of Eastern Europe and Central Asia. In measuring firm-level innovation, we employ both a narrow, invention-oriented measure and a broader, imitation- and adaptation-oriented measure. We find that firms that implement private quality certification standards are more innovative than similar uncertified firms. We also examine the specific impact of a firm’s size and a country’s institutional quality in the certification-innovation association. The results indicate that the positive association between quality certification and innovation is more pronounced for smaller firms. The positive impact of quality certification in facilitating firm innovation increases as the institutional quality of a country decreases.

Suggested Citation

  • Ullah, Barkat, 2022. "The impact of quality certification on SME innovation and the role of institutions," Research in International Business and Finance, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:riibaf:v:62:y:2022:i:c:s0275531922001350
    DOI: 10.1016/j.ribaf.2022.101748
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    2. Yang, Zhiqing & Liu, Peiyao & Luo, Lianfa, 2023. "Growing exports through ISO 9001 quality certification: Firm-level evidence from Chinese agri-food sectors," Food Policy, Elsevier, vol. 117(C).

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