Can Islamic finance enhance the innovation capacity of Cameroonian SMEs? Empirical evidence based on a multivariate probit approach
This study examines the effects of the Islamic mode of financing on the innovation capacity of SMEs in Cameroon using a sample of 1358 SMEs. Results of the multivariate probit model indicate that Islamic finance enhances process innovation, product innovation, and marketing innovation. While the eff...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2024-01-01
|
| Series: | Borsa Istanbul Review |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2214845023001485 |
| _version_ | 1797320958965448704 |
|---|---|
| author | Ali Haruna Honoré Tekam Oumbé Armand Mboutchouang Kountchou Charles Bertin Pilag Kakeu |
| author_facet | Ali Haruna Honoré Tekam Oumbé Armand Mboutchouang Kountchou Charles Bertin Pilag Kakeu |
| author_sort | Ali Haruna |
| collection | DOAJ |
| description | This study examines the effects of the Islamic mode of financing on the innovation capacity of SMEs in Cameroon using a sample of 1358 SMEs. Results of the multivariate probit model indicate that Islamic finance enhances process innovation, product innovation, and marketing innovation. While the effects on organizational innovation are positive, they are statistically insignificant. Our main results equally indicate that the effects of Islamic finance on the innovation capacity of SMEs are more pronounced on technological innovation (process and product) than non-technological innovation (marketing and organizational). Policymakers are encouraged to put in place the necessary mechanisms for the promotion of Islamic finance such as the enacting of laws that ensure the creation of full-fledged Islamic banks, and raising awareness about the benefits and specificities of this mode of finance for the financing of SME innovation. |
| first_indexed | 2024-03-08T04:50:37Z |
| format | Article |
| id | doaj.art-610ca924664048888cbbd898f6e76042 |
| institution | Directory Open Access Journal |
| issn | 2214-8450 |
| language | English |
| last_indexed | 2024-03-08T04:50:37Z |
| publishDate | 2024-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Borsa Istanbul Review |
| spelling | doaj.art-610ca924664048888cbbd898f6e760422024-02-08T05:09:02ZengElsevierBorsa Istanbul Review2214-84502024-01-01241187200Can Islamic finance enhance the innovation capacity of Cameroonian SMEs? Empirical evidence based on a multivariate probit approachAli Haruna0Honoré Tekam Oumbé1Armand Mboutchouang Kountchou2Charles Bertin Pilag Kakeu3Faculty of Economics and Management, University of Dschang, Dschang, Cameroon; Corresponding author.Faculty of Economics and Management, University of Dschang, Dschang, CameroonFaculty of Economics and Management, University of Dschang, Dschang, CameroonFaculty of Economics and Management Sciences, University of Bamenda, Bamenda, CameroonThis study examines the effects of the Islamic mode of financing on the innovation capacity of SMEs in Cameroon using a sample of 1358 SMEs. Results of the multivariate probit model indicate that Islamic finance enhances process innovation, product innovation, and marketing innovation. While the effects on organizational innovation are positive, they are statistically insignificant. Our main results equally indicate that the effects of Islamic finance on the innovation capacity of SMEs are more pronounced on technological innovation (process and product) than non-technological innovation (marketing and organizational). Policymakers are encouraged to put in place the necessary mechanisms for the promotion of Islamic finance such as the enacting of laws that ensure the creation of full-fledged Islamic banks, and raising awareness about the benefits and specificities of this mode of finance for the financing of SME innovation.http://www.sciencedirect.com/science/article/pii/S2214845023001485CameroonIslamic financeInnovationSMEs |
| spellingShingle | Ali Haruna Honoré Tekam Oumbé Armand Mboutchouang Kountchou Charles Bertin Pilag Kakeu Can Islamic finance enhance the innovation capacity of Cameroonian SMEs? Empirical evidence based on a multivariate probit approach Borsa Istanbul Review Cameroon Islamic finance Innovation SMEs |
| title | Can Islamic finance enhance the innovation capacity of Cameroonian SMEs? Empirical evidence based on a multivariate probit approach |
| title_full | Can Islamic finance enhance the innovation capacity of Cameroonian SMEs? Empirical evidence based on a multivariate probit approach |
| title_fullStr | Can Islamic finance enhance the innovation capacity of Cameroonian SMEs? Empirical evidence based on a multivariate probit approach |
| title_full_unstemmed | Can Islamic finance enhance the innovation capacity of Cameroonian SMEs? Empirical evidence based on a multivariate probit approach |
| title_short | Can Islamic finance enhance the innovation capacity of Cameroonian SMEs? Empirical evidence based on a multivariate probit approach |
| title_sort | can islamic finance enhance the innovation capacity of cameroonian smes empirical evidence based on a multivariate probit approach |
| topic | Cameroon Islamic finance Innovation SMEs |
| url | http://www.sciencedirect.com/science/article/pii/S2214845023001485 |
| work_keys_str_mv | AT aliharuna canislamicfinanceenhancetheinnovationcapacityofcamerooniansmesempiricalevidencebasedonamultivariateprobitapproach AT honoretekamoumbe canislamicfinanceenhancetheinnovationcapacityofcamerooniansmesempiricalevidencebasedonamultivariateprobitapproach AT armandmboutchouangkountchou canislamicfinanceenhancetheinnovationcapacityofcamerooniansmesempiricalevidencebasedonamultivariateprobitapproach AT charlesbertinpilagkakeu canislamicfinanceenhancetheinnovationcapacityofcamerooniansmesempiricalevidencebasedonamultivariateprobitapproach |