IDEAS home Printed from https://ideas.repec.org/a/gam/jscscx/v11y2022i2p63-d744582.html
   My bibliography  Save this article

Barriers to Innovations and Innovative Performance of Companies: A Study from Ecuador

Author

Listed:
  • Orly Carvache-Franco

    (Facultad de Especialidades Empresariales, Universidad Católica de Santiago de Guayaquil, Guayaquil 090615, Ecuador)

  • Mauricio Carvache-Franco

    (Facultad de Turismo y Hotelería, Universidad Espíritu Santo, Samborondón 092301, Ecuador)

  • Wilmer Carvache-Franco

    (Facultad de Ciencias Sociales y Humanísticas, Escuela Superior Politécnica del Litoral, ESPOL, Guayaquil 09015863, Ecuador)

Abstract

This research aimed to examine the relationship between the barriers to the development of innovation and innovative performance. This is a quantitative, not experimental, cross-sectional research, and the National Survey of Innovation Activities of Ecuador is used. Bivariate Probit regression was used to process the data. The results show empirical evidence that Ecuadorian companies have a great number of barriers to innovation. The main barriers to product innovation and process innovation are as follows: lack of company funds, high costs of innovation, and lack of qualified personnel in the company and the country. In addition product innovation is affected by the lack of market information, and process innovation is affected by the lack of financing from external sources, lack of information on technology, and a market dominated by established companies. The research has theoretical implications because it contributes empirical evidence on the relationship between innovation barriers and innovative performance in developing countries where evidence is scarce. The research has practical implications because it serves as a basis for forming public policies. Business managers and administrators can improve innovative performance by minimizing the impact of the main barriers to innovation.

Suggested Citation

  • Orly Carvache-Franco & Mauricio Carvache-Franco & Wilmer Carvache-Franco, 2022. "Barriers to Innovations and Innovative Performance of Companies: A Study from Ecuador," Social Sciences, MDPI, vol. 11(2), pages 1-17, February.
    • Handle: RePEc:gam:jscscx:v:11:y:2022:i:2:p:63-:d:744582
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-0760/11/2/63/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-0760/11/2/63/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dawid, Herbert & Pellegrino, Gabriele & Vivarelli, Marco, 2017. "Demand and innovation: theory and evidence," GLO Discussion Paper Series 92, Global Labor Organization (GLO).
    2. Tran Thi Bach Yen & Le Binh Minh & Tran Thu Huong, 2019. "Analyzing the Barriers to Innovation Development in Emerging Economies: Vietnamese Small and Medium Enterprises (SMEs) as an Empirical Case," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(1), pages 64-77.
    3. 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.
    4. Giacomo Zanello & Xiaolan Fu & Pierre Mohnen & Marc Ventresca, 2016. "The Creation And Diffusion Of Innovation In Developing Countries: A Systematic Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 30(5), pages 884-912, December.
    5. 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.
    6. Aleknavičiūtė Rasa & Skvarciany Viktorija & Survilaitė Simona, 2016. "The Role of Human Capital for National Innovation Capability in Eu Countries," Economics and Culture, Sciendo, vol. 13(1), pages 114-125, June.
    7. Amara, Nabil & D'Este, Pablo & Landry, Réjean & Doloreux, David, 2016. "Impacts of obstacles on innovation patterns in KIBS firms," Journal of Business Research, Elsevier, vol. 69(10), pages 4065-4073.
    8. Tran Thi Bach Yen & Le Binh Minh & Tran Thu Huong, 2019. "Analyzing the Barriers to Innovation Development in Emerging Economies: Vietnamese Small and Medium Enterprises (SMEs) as an Empirical Case," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(1), pages 64-77, January.
    9. Rodriguez, Mercedes & Doloreux, David & Shearmur, Richard, 2017. "Variety in external knowledge sourcing and innovation novelty: Evidence from the KIBS sector in Spain," Technovation, Elsevier, vol. 68(C), pages 35-43.
    10. Valerija Botrić & Ljiljana Božić, 2018. "Human Capital as Barrier to Innovation: Post-Transition Experience," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 1-17, August.
    11. Bach Mirjana Pejić & Lojpur Andjelko & Peković Sanja & Stanovčić Tatjana, 2015. "The Influence Of Different Information Sources On Innovation Performance: Evidence From France, The Netherlands And Croatia," South East European Journal of Economics and Business, Sciendo, vol. 10(2), pages 89-101, December.
    12. Galia, Fabrice & Legros, Diego, 2004. "Complementarities between obstacles to innovation: evidence from France," Research Policy, Elsevier, vol. 33(8), pages 1185-1199, October.
    13. Gabriele Pellegrino, 2018. "Barriers to innovation in young and mature firms," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 181-206, January.
    Full references (including those not matched with items on IDEAS)

    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. Zahler, Andrés & Goya, Daniel & Caamaño, Matías, 2022. "The primacy of demand and financial obstacles in hindering innovation," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    2. 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.
    3. Ortiz, Rodrigo & Fernandez, Viviana, 2022. "Business perception of obstacles to innovate: Evidence from Chile with pseudo-panel data analysis," Research in International Business and Finance, Elsevier, vol. 59(C).
    4. Castaneda, Monica & Herrera, Milton M. & Méndez-Morales, Alberto, 2023. "A simulation-based approach for assessing the innovation barriers in the manufacturing firms," Technology in Society, Elsevier, vol. 75(C).
    5. Sandro Montresor & Antonio Vezzani, 2019. "Financial constraints and intangible investments. Do innovative and non-innovative firms differ?," JRC Working Papers on Corporate R&D and Innovation 2019-07, Joint Research Centre.
    6. Rajeev K. Goel & James W. Saunoris, 2022. "Foreign direct investment (FDI): friend or foe of non-innovating firms?," The Journal of Technology Transfer, Springer, vol. 47(4), pages 1162-1178, August.
    7. Caloffi, Annalisa & Colovic, Ana & Rizzoli, Valentina & Rossi, Federica, 2023. "Innovation intermediaries' types and functions: A computational analysis of the literature," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    8. Pereira Cabral, Bernardo & Lage de Sousa, Filipe & Canêdo-Pinheiro, Mauricio, 2020. "Assessing the impacts of innovation barriers: a qualitative analysis of Brazil's natural resources industry," Resources Policy, Elsevier, vol. 68(C).
    9. Jose García‐Quevedo & Elisenda Jové‐Llopis & Ester Martínez‐Ros, 2020. "Barriers to the circular economy in European small and medium‐sized firms," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2450-2464, September.
    10. Dragana Radicic, 2021. "Financial and Non-Financial Barriers to Innovation and the Degree of Radicalness," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    11. Claudia Fuentes & Fernando Santiago & Serdal Temel, 2020. "Perception of innovation barriers by successful and unsuccessful innovators in emerging economies," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1283-1307, August.
    12. Pavla Matulova & Petra Maresova & Mohammad Ali Tareq & Kamil Kuča, 2018. "Open Innovation Session as a Tool Supporting Innovativeness in Strategies for High-Tech Companies in the Czech Republic," Economies, MDPI, vol. 6(4), pages 1-13, December.
    13. Freisinger, Elena & McCarthy, Ian P., 2024. "What fails and when? A process view of innovation failure," Technovation, Elsevier, vol. 133(C).
    14. Muhammad Zeeshan Younas & Muhammad Iftikhar Husnain, 2022. "Role of market structure in firm-level innovation: an extended CDM model for a developing economy," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 49(1), pages 91-104, March.
    15. Ferreira, João J.M. & Fernandes, Cristina I. & Ferreira, Fernando A.F., 2020. "Wearing failure as a path to innovation," Journal of Business Research, Elsevier, vol. 120(C), pages 195-202.
    16. 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.
    17. Jose García-Quevedo & Francisco Mas-Verdú & Gabriele Pellegrino, 2017. "What firms don’t know can hurt them: Overcoming a lack of information on technology," Working Papers 2017/19, Institut d'Economia de Barcelona (IEB).
    18. Jaureguy, Micaela Vidal & Bianchi, Carlos & Blanchard, Pablo, 2023. "Financial and knowledge barriers to innovation: Complementary and substitution effects on innovative effort," Research Policy, Elsevier, vol. 52(7).
    19. Zahler, Andrés & Goya, Daniel & Caamaño, Matías, 2018. "The Role of Obstacles to Innovation on Innovative Activities: An Empirical Analysis," IDB Publications (Working Papers) 73, Inter-American Development Bank.
    20. Arza, Valeria & López, Emanuel, 2021. "Obstacles affecting innovation in small and medium enterprises: Quantitative analysis of the Argentinean manufacturing sector," Research Policy, Elsevier, vol. 50(9).

    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:gam:jscscx:v:11:y:2022:i:2:p:63-:d:744582. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.