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ICT adoption, competition and innovation of informal firms in West Africa: a comparative study of Ghana and Nigeria

ICT adoption, competition and innovation of informal firms in West Africa: a comparative study of... This study aims to investigate how ICT adoption enhances the innovativeness of informal firms in West Africa, using the cases of Ghana and Nigeria.Design/methodology/approachThe study used the World Bank Enterprise Survey data 2014 for Ghana and Nigeria with binary logistic regression analysis to achieve this. Four different innovations are modelled. They include: first, whether a firm has innovated based on producing a new product or significantly improved product; second, whether a firm has innovated in its methods of production or services; third, whether a firm has innovated in terms of its organisational structure; and fourth, whether a firm has introduced a new and improved marketing method.FindingsThe results show that the use of email, cellphone and website has a positive impact on the four types of innovations modelled. However, these effects varied markedly between Ghana and Nigeria. Firms’ spending on research and development (R&D), firm giving its employees the chance to develop their ideas and when firm competes with others; all positively impact the four types of innovations. Thus, the study recommends that policies should be geared towards making firms have more access to ICTs to enable them to be more innovative to serve clients and the economy.Originality/valueThis study differs by concentrating on how the adoption of ICTs could help firms to introduce innovations into their companies in two West African countries, namely, Ghana and Nigeria. Thus, it complements literature on informal firms’ innovation efforts in West Africa. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Enterprising Communities: People and Places in the Global Economy Emerald Publishing

ICT adoption, competition and innovation of informal firms in West Africa: a comparative study of Ghana and Nigeria

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1750-6204
DOI
10.1108/jec-03-2020-0022
Publisher site
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Abstract

This study aims to investigate how ICT adoption enhances the innovativeness of informal firms in West Africa, using the cases of Ghana and Nigeria.Design/methodology/approachThe study used the World Bank Enterprise Survey data 2014 for Ghana and Nigeria with binary logistic regression analysis to achieve this. Four different innovations are modelled. They include: first, whether a firm has innovated based on producing a new product or significantly improved product; second, whether a firm has innovated in its methods of production or services; third, whether a firm has innovated in terms of its organisational structure; and fourth, whether a firm has introduced a new and improved marketing method.FindingsThe results show that the use of email, cellphone and website has a positive impact on the four types of innovations modelled. However, these effects varied markedly between Ghana and Nigeria. Firms’ spending on research and development (R&D), firm giving its employees the chance to develop their ideas and when firm competes with others; all positively impact the four types of innovations. Thus, the study recommends that policies should be geared towards making firms have more access to ICTs to enable them to be more innovative to serve clients and the economy.Originality/valueThis study differs by concentrating on how the adoption of ICTs could help firms to introduce innovations into their companies in two West African countries, namely, Ghana and Nigeria. Thus, it complements literature on informal firms’ innovation efforts in West Africa.

Journal

Journal of Enterprising Communities: People and Places in the Global Economy – Emerald Publishing

Published: Jul 14, 2020

Keywords: Innovation; Firms; West africa; ICT adoption

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