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The interplay between innovation adoption and pricing competitiveness in Sub-Saharan Africa

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Bibliographic Details
Title: The interplay between innovation adoption and pricing competitiveness in Sub-Saharan Africa
Authors: André Dumas Tsambou, Yannick Fosso Djoumessi, Benjamin Fomba Kamga, Simplice A. Asongu
Source: International Journal of Innovation Studies, Vol 9, Iss 3, Pp 262-283 (2025)
Publisher Information: Elsevier BV, 2025.
Publication Year: 2025
Subject Terms: HF5001-6182, Business, D41, P12, Q55
Description: The objective of this work is to evaluate the effects of adopting technological innovation, non-technological innovation, and their complementarity on price competitiveness. This work employs a recursive bivariate probit model applied to microdata from 1897 firms in three Sub-Saharan countries: Cameroon, Côte d'Ivoire, and Senegal. This model allows us to solve the endogeneity problem by assessing the complementarity relationship between technological and non-technological innovation practices and their effects on firm competitiveness. The results confirm that technological and non-technological innovations are complementary and have significant effects on firms' competitive advantage in terms of price. This complementarity constitutes evidence that their simultaneous adoption contributes more to firms' competitiveness than the individual adoption of each type of innovation. Non-technological innovations facilitate the effectiveness of technological innovations, which leads to a competitive advantage of about 26 % when both types of innovations are adopted together. However, firms can also suffer significant losses in market share as a result of the non-adoption of innovations. Indeed, firms that do not adopt any innovations deteriorate their competitive advantage in terms of price by 4 % on average.
Document Type: Article
Language: English
ISSN: 2096-2487
DOI: 10.1016/j.ijis.2025.07.002
Access URL: https://doaj.org/article/059c4c3b01cf44a4877dd402692ee485
Rights: CC BY NC ND
Accession Number: edsair.doi.dedup.....e77b1b51d6695112f4e60f07e52e0eba
Database: OpenAIRE
Description
Abstract:The objective of this work is to evaluate the effects of adopting technological innovation, non-technological innovation, and their complementarity on price competitiveness. This work employs a recursive bivariate probit model applied to microdata from 1897 firms in three Sub-Saharan countries: Cameroon, Côte d'Ivoire, and Senegal. This model allows us to solve the endogeneity problem by assessing the complementarity relationship between technological and non-technological innovation practices and their effects on firm competitiveness. The results confirm that technological and non-technological innovations are complementary and have significant effects on firms' competitive advantage in terms of price. This complementarity constitutes evidence that their simultaneous adoption contributes more to firms' competitiveness than the individual adoption of each type of innovation. Non-technological innovations facilitate the effectiveness of technological innovations, which leads to a competitive advantage of about 26 % when both types of innovations are adopted together. However, firms can also suffer significant losses in market share as a result of the non-adoption of innovations. Indeed, firms that do not adopt any innovations deteriorate their competitive advantage in terms of price by 4 % on average.
ISSN:20962487
DOI:10.1016/j.ijis.2025.07.002