Journal
RESEARCH POLICY
Volume 46, Issue 1, Pages 280-291Publisher
ELSEVIER
DOI: 10.1016/j.respol.2016.11.008
Keywords
Firm-level resources; Regional institutional quality; Innovation; East Africa; Multilevel logistic model
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Funding
- UK's Department for International Development (DFID) [PO5639]
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This study examines how firm-level resources interact with regional institutional quality to explain innovation in East Africa. We hypothesize that the institutional environment within which the firm operates moderates the effect of firm-level resources on innovative output. We examine the moderating role of institutions with regards to the transformation of firm-level resources including internal research and development, human capital and managerial experience into innovative output using firm-level data from the World Bank Enterprise Survey and the Innovation Follow-up Survey for three countries in East Africa including Kenya, Tanzania and Uganda. We test our hypotheses using a clustered robust standard errors logistic model. We find that the effects of firm-level resources vary depending on the institutional environment and that regional institutional quality positively moderates the effects of firm-level resources. (C) 2016 The Authors. Published by Elsevier B.V.
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