The Determinants of Innovation in Emerging Firms in Algeria

By Boukhalfa Benamar, Foued Cheriet

English

This paper analyzes the determinants of innovation in the context of an emerging market. It aims at measuring the relative impact of industry and resource effects on the innovation of firms within an emerging market. The private agro-food sector in Algeria constitutes the empirical framework of the research. A composite conceptual model is proposed, based on the two most influential approaches in the strategic management research field: Porter’s analytical framework and the resource-based view. It is shown that the origin of the innovation of a firm developing in an emerging market is mainly influenced by external factors and tangible resources. A sample of 31 emerging agro-food companies and the partial least squares statistical method are mobilized to test the hypotheses. The results of the statistical analysis are then discussed and relativized in light of the theoretical bases and the empirical specificities of the research.
JEL Codes: L66, L10, L22, O31, P20

Keywords

  • innovation
  • industry
  • resources
  • developing country
  • Algeria
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