Innovation and the performance of informal enterprises in developing countries: a gender perspective

Abstract

Purpose Examining the impact of gender on various aspects of business performance has gained research and policy traction, although the empirical evidence remains inconclusive. This paper aims to focus on one type of business, namely, informal enterprises and one dimension of business performance, namely, product innovation, to better understand how product innovations affect employment in both female- and male-owned informal enterprises. Design/methodology/approach This paper relies on a unique data set of 513 informal enterprises located in two urban centres in Ghana (Accra and Tema), covering the period between 2013 and 2015 and the Dose-Response Model to examine the effect of product innovations on employment in informal enterprises in urban Ghana. Findings The findings suggest that product innovation has considerable beneficial impacts on the creation of employment in informal enterprises. The results do not show systematic differences in the factors affecting product innovation in female- and male-owned enterprises. However, they suggest that although female-owned enterprises are less likely to introduce product innovations, they do sell more innovative products. Originality/value These findings support the view that innovation is “gendered”, and therefore, requires a “gendered” policy lens.

The role of universities in scaling up informal entrepreneurship

“…Contrary to the assertion of Bu and Cuervo-Caurra (2020) that informally created firms engage more in imitative and less in innovative product development, our findings support those of Soni (2017), who found that entrepreneurship in informal economies was increasing in innovativeness. The exploitation of innovative ideas among these informal players is an indication of growth possibilities (Avenyo and Kraemer-Mbula, 2021).…”

The Innovation Dilemma and Operating Efficiency of Manufacturing Enterprises: Evidence from China

“…Based on the experience of Dickinson [38], this paper divides the life cycle of an enterprise into start-up stage, growth stage, maturity stage and decline stage according to the positive and negative cash flow data classified by different economic activities. As shown in columns ( 5)- (8) in Error! Reference source not found., the innovation dilemma faced by enterprises in the growth period or the development period has the most significant negative effect on the operating efficiency, which passes the significance test of 1%.…”

“…At the micro level, the main focus is on exploring internal factors within the enterprise, including the characteristics and environment of the firm, the education level of the workers [5], the financial capital, technology information of the firm [6], and the executive characteristics of the firm [7], etc. In addition, some scholars have found that there is a difference in the impact of female-owned companies and male-owned companies on corporate innovation from a gender perspective [8]. The factors on macro level involves legal environment, government 2 effectiveness [9], the diversity of supplier and customer, regional innovation environment [10], and business environment of the society [11], etc.…”

Impact of business innovation on future employment in Nigeria

“…Avenyo and Kraemer‐Mbula (2021), using data of 513 informal enterprises located in two urban centres in Ghana, found that product innovation has substantial impacts on the creation of employment in informal enterprises. In another study, Emera (2021) found that innovation shocks negatively affect a firm's employment capacity.…”

“…As per the study of Aloisi and de Stefano (2020), labour regulation can keep enhancing innovation, offering the employment correlation as a flexible mechanism and standard forms of employment as the avenue of achieving efficiencies and cost advantages. Avenyo and Kraemer-Mbula (2021), using data of 513 informal enterprises located in two urban centres in Ghana, found that product innovation has substantial impacts on the creation of employment in informal enterprises. In another study, Emera (2021) found that innovation shocks negatively affect a firm's employment capacity.…”