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Digitalization, Innovation and Productivity in South African Micro and Small Enterprises

Author

Listed:
  • Cyrielle Gaglio

    (University of Helsinki
    Sciences Po, OFCE, France)

  • Erika Kraemer-Mbula

    (University of Johannesburg)

  • Edward Lorenz

    (Université Côte d'Azur, France
    GREDEG CNRS)

Abstract

This paper aims to study 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 relations sequentially, first estimating the relation between digitalization and innovation, and secondly the relation between innovation and productivity. Our results show that selected digital communication technologies including the use of social media and the use of a business mobile phone for browsing the internet have a positive effect on innovation, and that innovation conditional on the use of these technologies has a positive impact on labor productivity.

Suggested Citation

  • Cyrielle Gaglio & Erika Kraemer-Mbula & Edward Lorenz, 2022. "Digitalization, Innovation and Productivity in South African Micro and Small Enterprises," GREDEG Working Papers 2022-19, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2022-19
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    References listed on IDEAS

    as
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    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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