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ICT Adoption, Competition and Innovation of Informal Firms in West Africa: Comparative Study of Ghana and Nigeria

Author

Listed:
  • Alhassan A. Karakara

    (University of Cape Coast, Ghana)

  • Evans S. Osabuohien

    (CEPDeR, Covenant University, Ota, Nigeria)

Abstract
Purpose – This study investigates how ICT adoption enhances the innovativeness of informal firms in West Africa, using the cases of Ghana and Nigeria. Design/methods/approach – The 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. Findings – The 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 R&D, firm giving its employees the chance to develop their ideas and when firm competes with others; all positively impact on the four types of innovations. Thus, the study recommends that policies should be geared towards making firm have more access to ICTs to enable them to be more innovative to serve clients and the economy. Originality/value – This 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.

Suggested Citation

  • Alhassan A. Karakara & Evans S. Osabuohien, 2020. "ICT Adoption, Competition and Innovation of Informal Firms in West Africa: Comparative Study of Ghana and Nigeria," Working Papers of the African Governance and Development Institute. 20/023, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:20/023
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    References listed on IDEAS

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    Cited by:

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    2. Isaiah Olurinola & Romanus Osabohien & Bosede Ngozi Adeleye & Ifeoluwa Ogunrinola & Jacob Isaac Omosimua & Tyrone De Alwis, 2021. "Digitalization and Innovation in Nigerian Firms," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(3), pages 263-277, March.
    3. Aamir Aijaz Syed & Farhan Ahmed & Muhammad Abdul Kamal & Juan E. Trinidad Segovia, 2021. "Assessing the Role of Digital Finance on Shadow Economy and Financial Instability: An Empirical Analysis of Selected South Asian Countries," Mathematics, MDPI, vol. 9(23), pages 1-15, November.
    4. Alhassan Abdul-Wakeel Karakara & Evans S. Osabuohien, 2022. "Threshold effects of ICT access and usage in Burkinabe and Ghanaian households," Information Technology for Development, Taylor & Francis Journals, vol. 28(3), pages 511-531, July.
    5. Nwaobi, Godwin, 2024. "Productive Sectors and Digital Diffusion(Adoption) in Nigeria: Empirical Evidence," MPRA Paper 122392, University Library of Munich, Germany.
    6. Amar Johri & Mohammad Asif & Preeti Tarkar & Waseem Khan & Rahisha & Mohammad Wasiq, 2024. "Digital financial inclusion in micro enterprises: understanding the determinants and impact on ease of doing business from World Bank survey," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    7. José Manuel Santos-Jaén & Ana León-Gómez & Daniel Ruiz-Palomo & Francisca García-Lopera & María del Carmen Valls Martínez, 2022. "Exploring Information and Communication Technologies as Driving Forces in Hotel SMEs Performance: Influence of Corporate Social Responsibility," Mathematics, MDPI, vol. 10(19), pages 1-15, October.
    8. Nawab Khan & Ram L. Ray & Hazem S. Kassem & Muhammad Ihtisham & Badar Naseem Siddiqui & Shemei Zhang, 2022. "Can Cooperative Supports and Adoption of Improved Technologies Help Increase Agricultural Income? Evidence from a Recent Study," Land, MDPI, vol. 11(3), pages 1-18, March.
    9. Deli Yuan & Muhammad Khalilur Rahman & Md. Abu Issa Gazi & Md. Atikur Rahaman & Mohammad Mainul Hossain & Shaharin Akter, 2021. "Analyzing of User Attitudes Toward Intention to Use Social Media for Learning," SAGE Open, , vol. 11(4), pages 21582440211, November.
    10. Khan, Nawab & Ray, Ram L. & Zhang, Shemei & Osabuohien, Evans & Ihtisham, Muhammad, 2022. "Influence of mobile phone and internet technology on income of rural farmers: Evidence from Khyber Pakhtunkhwa Province, Pakistan," Technology in Society, Elsevier, vol. 68(C).
    11. Juma Buhimila Mabula & Han Dong Ping & Moshi James, 2023. "The Impact of African Firms’ Utilization of Financial and Technology Resource on Innovation: A Simple Mediation," SAGE Open, , vol. 13(1), pages 21582440231, February.
    12. Alhassan A. Karakara & Evans S. Osabuohien, 2020. "Clean versus Dirty Energy: Empirical Evidence from Fuel Adoption and Usage by Households in Ghana," Working Papers 20/075, European Xtramile Centre of African Studies (EXCAS).
    13. Sharma, Gautam & Dahlstrand, Åsa Lindholm, 2023. "Innovations, informality, and the global south: A thematic analysis of past research and future directions," Technology in Society, Elsevier, vol. 75(C).
    14. Xuewei Zhang & Xiaoqing Ai & Xiaoxiang Wang & Gang Zong & Jinghao Zhang, 2023. "A Study on the Effects of Digital Finance on Green Low-Carbon Circular Development Based on Machine Learning Models," Mathematics, MDPI, vol. 11(18), pages 1-16, September.
    15. Kalaj, Ermira & Merko, Flora, 2021. "How Digital Are Albanian Enterprises: A Microeconomic Analyses," EconStor Conference Papers 251755, ZBW - Leibniz Information Centre for Economics.
    16. Romanus Osabohien & Haoma Worgwu & Syed Kashif Rafi & Oluwasogo Adediran & Oluwatoyin Matthew & Busayo Aderounmu, 2022. "Impact of business innovation on future employment in Nigeria," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3795-3806, December.

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    More about this item

    Keywords

    Firms; ICT adoption; Innovation; West Africa; World Bank Enterprise Survey data; Ghana; Nigeria;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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