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Digitalisation, Innovation and Productivity in South African Micro- and Small Enterprises

Author

Listed:
  • Cyrielle Gaglio

    (University of Helsinki, Department of Economics and Management, Finland and Sciences Po, OFCE, France. Email:)

  • Erika Kraemer-Mbula

    (DSI/NRF/Newton Fund Trilateral Chair in Transformative Innovation, the Fourth Industrial Revolution and Sustainable Development, University of Johannesburg, South Africa.)

  • Edward Lorenz

    (University of Côte d’Azur, France, University of Johannesburg, South Africa and Aalborg University, Denmark)

Abstract

This paper studies the links between the use of digital communication technologies, innovation performance and productivity for a sample of micro- and small enterprises (MSEs) in a middle-income country, South Africa. Based on the results of an original survey carried out in 2019, we investigate these links for a sample of 711 manufacturing MSEs located in Johannesburg. We estimate the relationships sequentially, firstly estimating the relationship between digitalisation and innovation, and secondly the relationship between innovation and productivity. Our results show that selected digital communication technologies, including the use of social media and a business mobile phone for surfing the internet, have a positive effect on innovation, and that innovation conditional on the use of these technologies has a positive effect on labour productivity.

Suggested Citation

  • Cyrielle Gaglio & Erika Kraemer-Mbula & Edward Lorenz, 2022. "Digitalisation, Innovation and Productivity in South African Micro- and Small Enterprises," SARChI-ID Working Papers 2022-09, SARChI Industrial Development (SARChI-ID), University of Johannesburg (UJ), revised Jun 2022.
    • Handle: RePEc:adz:wpaper:202209
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    More about this item

    Keywords

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    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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