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Innovation decision of Tunisian service firms: an empirical analysis

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  • Sdiri, Hanen
  • Ayadi, Mohamed

Abstract

Innovation is widely recognised as a key driver of economic growth and competitiveness. But, some works focus especially on analyzing the determinants and the effects of innovation while distinguishing between its various types (product innovation, process innovation, radical innovation and incremental innovation). The analysis of the determinants is certainly important, but few research efforts testing the way in which firms make the decision to innovate. Based on a sample of 108 Tunisian service firms, the purpose of the paper is to explain the way in which firms make the decision to innovate: simultaneous (one-stage model) or sequential (two-stage model). We find that the two-stage model has a statistically-significant advantage in predicting the innovation. In practice, the sequential model illustrates well the innovation making-decision procedures.

Suggested Citation

  • Sdiri, Hanen & Ayadi, Mohamed, 2011. "Innovation decision of Tunisian service firms: an empirical analysis," MPRA Paper 30898, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:30898
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    Cited by:

    1. Hanen Sdiri & Mohamed Ayadi, 2016. "Innovation and service outsourcing: an empirical analysis based on data from Tunisian firms," Journal of Innovation and Entrepreneurship, Springer, vol. 5(1), pages 1-13, December.

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    More about this item

    Keywords

    Innovation; Decision making; Service sector.;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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