IDEAS home Printed from https://ideas.repec.org/a/spr/joiaen/v11y2022i1d10.1186_s13731-022-00256-x.html
   My bibliography  Save this article

Exploring firm-specific deterrents of innovation in micro and small enterprises in Ethiopia

Author

Listed:
  • Samuel Godadaw Ayinaddis

    (Woldia University)

Abstract

The paper aims to analyze firm-specific deterrents of innovation in Bahirdar city MSEs in Ethiopia. In order to attain the objective of the study, both descriptive and explanatory research method is used. In this paper, the data were drawn from 310 MSEs firms which were selected by using a simple random sampling technique. The data were analyzed using descriptive and inferential statistics which include mean, standard deviation, and binary logistic regression model. From the model summary, independent variables that were incorporated under the current study, contributed 69.6% of the deterrents of innovation in MSEs as represented by the Nagelkerke R-square. This means that those variables explain about 69.6% of the deterrents of innovation of MSEs, whereas other factors not covered in this study contributed 30.4% to the deterrents of innovation. The results have revealed that research and development are the most critical deterrent factor affecting technological innovation of MSEs at a 1% level of significance. Besides, cost of innovation and firm size factors are the next important deterrent factors affecting technological innovation of the enterprises, followed by human resource factors. Contrarily, variables such as organizational culture and perceived risk factors have not been statistically significant and less likely to affect innovation of MSEs in the current study. The government and other stakeholders need to work hard to encourage innovation among MSEs by providing support, including an increased supply of credit, training, technology support, and provision of micro and small enterprise information services.

Suggested Citation

  • Samuel Godadaw Ayinaddis, 2022. "Exploring firm-specific deterrents of innovation in micro and small enterprises in Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-13, December.
    • Handle: RePEc:spr:joiaen:v:11:y:2022:i:1:d:10.1186_s13731-022-00256-x
    DOI: 10.1186/s13731-022-00256-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s13731-022-00256-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s13731-022-00256-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wondifraw Mihret Dessie & Gojjam Ademe Mengistu & Tigist Abera Mulualem, 2022. "Communication and innovation in the performance of weaving and pottery crafts in Gojjam, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-22, December.
    2. Nawal Abdalla Adam & Ghadah Alarifi, 2021. "Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: the role of external support," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-22, December.
    3. Bronwyn Hall, 2004. "The financing of research and development," Chapters, in: Anthony Bartzokas & Sunil Mani (ed.), Financial Systems, Corporate Investment in Innovation, and Venture Capital, chapter 2, Edward Elgar Publishing.
    4. Poh Wong & Yuen Ho & Erkko Autio, 2005. "Entrepreneurship, Innovation and Economic Growth: Evidence from GEM data," Small Business Economics, Springer, vol. 24(3), pages 335-350, January.
    5. Erstu Tarko Kassa & Tilahun Getnet Mirete, 2022. "Exploring factors that determine the innovation of micro and small enterprises: the role of entrepreneurial attitude towards innovation in Woldia, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-16, December.
    6. World Bank, 2010. "Innovation Policy : A Guide for Developing Countries," World Bank Publications - Books, The World Bank Group, number 2460, December.
    7. Dominique Tourigny & Can Le, 2004. "Impediments to innovation faced by Canadian manufacturing firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(3), pages 217-250.
    8. Alessandra Canepa & Paul Stoneman, 2008. "Financial constraints to innovation in the UK: evidence from CIS2 and CIS3," Oxford Economic Papers, Oxford University Press, vol. 60(4), pages 711-730, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adisu Fanta Bate & Esther Wanjiru Wachira & Sándor Danka, 2023. "The determinants of innovation performance: an income-based cross-country comparative analysis using the Global Innovation Index (GII)," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-27, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pellegrino, Gabriele & Savona, Maria, 2013. "Is money all? Financing versus knowledge and demand constraints to innovation," MERIT Working Papers 029, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Pellegrino, Gabriele & Savona, Maria, 2013. "Is money all? Financing versus knowledge and demand constraints to innovation," MERIT Working Papers 2013-029, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Pellegrino, Gabriele & Savona, Maria, 2017. "No money, no honey? Financial versus knowledge and demand constraints on innovation," Research Policy, Elsevier, vol. 46(2), pages 510-521.
    4. Brancati, Emanuele, 2013. "Innovation, financial constraints and relationship lending: evidence from Italy during the recent crises," MPRA Paper 50329, University Library of Munich, Germany.
    5. Filipe Silva & Carlos Carreira, 2012. "Do financial constraints threat the innovation process? Evidence from Portuguese firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(8), pages 701-736, November.
    6. Yuriy Gorodnichenko & Monika Schnitzer, 2013. "Financial Constraints And Innovation: Why Poor Countries Don'T Catch Up," Journal of the European Economic Association, European Economic Association, vol. 11(5), pages 1115-1152, October.
    7. Hölzl, Werner & Janger, Jürgen, 2014. "Distance to the frontier and the perception of innovation barriers across European countries," Research Policy, Elsevier, vol. 43(4), pages 707-725.
    8. José García-Quevedo & Gabriele Pellegrino & Maria Savona, 2017. "Reviving demand-pull perspectives: The effect of demand uncertainty and stagnancy on R&D strategy," Cambridge Journal of Economics, Oxford University Press, vol. 41(4), pages 1087-1122.
    9. Simona Mateut, 2018. "Subsidies, financial constraints and firm innovative activities in emerging economies," Small Business Economics, Springer, vol. 50(1), pages 131-162, January.
    10. Vicente Salas-Fumás & Javier Ortiz, 2019. "Innovations’ Success and Failure in the Business Cycle," Sustainability, MDPI, vol. 11(15), pages 1-22, August.
    11. de-Oliveira, Fernando & Rodil-Marzábal, Óscar, 2019. "Structural characteristics and organizational determinants as obstacles to innovation in small developing countries," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 306-314.
    12. Pragati Priya & Chandan Sharma, 2023. "Do financial constraints and corruption limit firms' innovation capability? Evidence from developing economies," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 1935-1961, June.
    13. García-Quevedo, José & Segarra-Blasco, Agustí & Teruel, Mercedes, 2018. "Financial constraints and the failure of innovation projects," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 127-140.
    14. Priya, Pragati & Sharma, Chandan, 2023. "Reinforcing the effects of corruption and financial constraints on firm performance: Normal versus crisis period in developing economies," Economic Modelling, Elsevier, vol. 127(C).
    15. Anabela Marques Santos & Michele Cincera, 2017. "Access to finance as a pressing problem: Evidence from innovative European firms," Working Papers TIMES² 2017-022, ULB -- Universite Libre de Bruxelles.
    16. Samuel Godadaw Ayinaddis, 2023. "The effect of innovation orientation on firm performance: evidence from micro and small manufacturing firms in selected towns of Awi Zone, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-19, December.
    17. Eleonora Bartoloni, 2013. "Capital structure and innovation: causality and determinants," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(1), pages 111-151, February.
    18. Driver, Ciaran & Guedes, Maria João Coelho, 2012. "Research and development, cash flow, agency and governance: UK large companies," Research Policy, Elsevier, vol. 41(9), pages 1565-1577.
    19. Lee, Neil & Sameen, Hiba & Cowling, Marc, 2015. "Access to finance for innovative SMEs since the financial crisis," Research Policy, Elsevier, vol. 44(2), pages 370-380.
    20. Emanuele Brancati, 2014. "Innovation, financial constraints and relationship lending: firm-level evidence in times of crisis," Working Papers CASMEF 1403, Dipartimento di Economia e Finanza, LUISS Guido Carli.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joiaen:v:11:y:2022:i:1:d:10.1186_s13731-022-00256-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.