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Bridging technology divide to improve business environment: Insights from African nations

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  • You, Kefei
  • Dal Bianco, Silvia
  • Lin, Zhibin
  • Amankwah-Amoah, Joseph

Abstract

Bridging the technology divide remains one of the contemporary business issues, yet limited scholarly attention has been devoted to exploring the gap between regional developing nations. This study examined the state of technological progress in Africa by applying an innovative two-step total factor productivity (TFP) analysis. We first estimated the TFP for 21 African countries with reference to South Africa (regional leader) and the United States (US) (international leader). We then applied the Phillips and Sul (2007) panel convergence tests. We found three convergence clubs with TFP levels relative to South Africa, where only most developed African countries have been able to catch-up. For TFP levels relative to the US, we found two convergence clubs and only a couple of countries have managed to make short-lived progress of catching-up. Our analysis has implications in terms of capitalising on new technology to create platforms for new businesses to flourish in Africa.

Suggested Citation

  • You, Kefei & Dal Bianco, Silvia & Lin, Zhibin & Amankwah-Amoah, Joseph, 2019. "Bridging technology divide to improve business environment: Insights from African nations," Journal of Business Research, Elsevier, vol. 97(C), pages 268-280.
    • Handle: RePEc:eee:jbrese:v:97:y:2019:i:c:p:268-280
    DOI: 10.1016/j.jbusres.2018.01.015
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    1. Ariel Burstein & Javier Cravino, 2015. "Measured Aggregate Gains from International Trade," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(2), pages 181-218, April.
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    2. Adu-Darko, Eunice & You, Kefei, 2025. "Structural breaks, institutional quality and productivity growth in Sub-Saharan Africa," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 40-60.
    3. Uzuegbunam, Ikenna, 2025. "Africa’s historic slave trades and innovation in a connected world," Journal of Business Research, Elsevier, vol. 193(C).
    4. Chanyuan Liu & Long Xin & Jinye Li & Huaping Sun, 2022. "The Impact of Renewable Energy Technology Innovation on Industrial Green Transformation and Upgrading: Beggar Thy Neighbor or Benefiting Thy Neighbor," Sustainability, MDPI, vol. 14(18), pages 1-28, September.
    5. Simplice A. Asongu & Joseph Amankwah‐Amoah & Rexon T. Nting & Godfred Adjapong Afrifa, 2021. "Information Technology and Gender Economic Inclusion in Sub-Saharan Africa," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 24(2), pages 120-133, April.
    6. Zhou, Xiaoxiao & Cai, Ziming & Tan, Kim Hua & Zhang, Linling & Du, Juntao & Song, Malin, 2021. "Technological innovation and structural change for economic development in China as an emerging market," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    7. Chatzistamoulou, Nikos, 2023. "Is digital transformation the Deus ex Machina towards sustainability transition of the European SMEs?," Ecological Economics, Elsevier, vol. 206(C).
    8. You, Kefei & Bianco, Silvia Dal & Amankwah-Amoah, Joseph, 2020. "Closing Technological Gaps to Alleviate Poverty: Evidence from 17 Sub-Saharan African Countries," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    9. Machokoto, Michael & Areneke, Geofry & Ibrahim, Boulis Maher, 2020. "Rising corporate debt and value relevance of supply-side factors in South Africa," Journal of Business Research, Elsevier, vol. 109(C), pages 26-37.
    10. McWalter, Thomas A. & Ritchken, Peter H., 2022. "Black economic empowerment regulation and risk incentives," Journal of Economic Dynamics and Control, Elsevier, vol. 139(C).
    11. Mateusz Tomal, 2024. "A review of Phillips‐Sul approach‐based club convergence tests," Journal of Economic Surveys, Wiley Blackwell, vol. 38(3), pages 899-930, July.
    12. Wan, Qunchao & Chen, Jin & Yao, Zhu & Yuan, Ling, 2022. "Preferential tax policy and R&D personnel flow for technological innovation efficiency of China's high-tech industry in an emerging economy," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    13. Adomako, Samuel & Amankwah-Amoah, Joseph & Chu, Irene, 2020. "Entrepreneurs’ passion, home country’s institutional voids and small firm internationalization," Research in International Business and Finance, Elsevier, vol. 53(C).
    14. Nyame-Asiamah, Frank & Amoako, Isaac Oduro & Amankwah-Amoah, Joseph & Debrah, Yaw A., 2020. "Diaspora entrepreneurs’ push and pull institutional factors for investing in Africa: Insights from African returnees from the United Kingdom," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    15. Lopez-Vega, Henry & Tell, Fredrik, 2021. "Technology strategy and MNE subsidiary upgrading in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    16. Di Vaio, Assunta & Hassan, Rohail & Alavoine, Claude, 2022. "Data intelligence and analytics: A bibliometric analysis of human–Artificial intelligence in public sector decision-making effectiveness," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    17. Amankwah-Amoah, Joseph, 2020. "Talent Management and Global Competition for Top Talent: A Co-Opetition-Based Perspective," MPRA Paper 101113, University Library of Munich, Germany.
    18. Adomako, Samuel & Amankwah-Amoah, Joseph & Tarba, Shlomo Y. & Khan, Zaheer, 2021. "Perceived corruption, business process digitization, and SMEs’ degree of internationalization in sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 123(C), pages 196-207.
    19. Arakpogun, Emmanuel Ogiemwonyi & Elsahn, Ziad & Nyuur, Richard B. & Olan, Femi, 2020. "Threading the needle of the digital divide in Africa: The barriers and mitigations of infrastructure sharing," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    20. Atiase, Victor Yawo & Kolade, Oluwaseun & Liedong, Tahiru Azaaviele, 2020. "The emergence and strategy of tech hubs in Africa: Implications for knowledge production and value creation," Technological Forecasting and Social Change, Elsevier, vol. 161(C).

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