Menu
College of Business & Finance

Journal of Business and Socio-economic Development

About the Journal
Submit your paper

Determinants of manufacturing firms’ Research and Development investments: evidence from Kenya

License

Published in Journal of Business and Socio-economic Development. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

Download PDF

Abstract

Purpose

This study investigates effects of firm-level, sector-level and business environment factors on manufacturing firms’ Research and Development (R&D) investment decisions in Kenya.

Design/methodology/approach

Panel Probit regression model is employed to analyse effects of the explanatory variables on manufacturing firms R&D investment decisions.

Findings

Access to external finance, lower informal sector competition, exports market participation, larger firm size and firms in high technology subsectors increase probabilities of undertaking R&D investment decisions.

Research limitations/implications

The findings underscore the need to consider institutional framework, aimed at easing business environment constraints related to access to finance, export promotion and competition from informal sector enterprises. Future research should consider cross-country analysis within the Sub-Saharan African (SSA) region to understand implications of institutional contexts that prove to be a challenge to address in a study based within a single country.

Practical implications

Policymakers need to consider addressing business environment constraints that impede R&D investments by private sector enterprises in developing countries. Formal private sector firms should design R&D investment strategies and lobby for policy interventions targeted at business environment constraints.

Originality/value

This study considers effects of variables underexplored in existing literature, notably competition from informal sector firms, R&D-intensity technological classification and an objective measure of access to finance. The study also utilises a panel survey data, which was underexplored in prior studies within SSA economies.

  • ISSN: 2635-1374
  • e-ISSN: 2635-1692
  • Online date, start – end: 2021
  • Copyright Holder: Ahlia University
  • Open Access: open access
  • Editor: Professor Allam Hamdan

Further Information

COME AND SEE FOR YOURSELF HOW AHLIA CAN SET YOU ON THE PATH TO YOUR GLOBAL FUTURE.​

Apply Now
Get to know Ahlia
Find a programme

HEC ACCREDITED | MET BQA REQUIREMENTS

close-link
Live

19th Graduation Ceremony
Date: 07/12/2024 | Time: 06:30 PM (UTC+03:30)

Watch the Ahlia University 19th Graduation Ceremony live on YouTube by clicking on the button below.
 
close-link
See Event Details