The Determinants of Innovation at Female-Owned Small and Medium Enterprises and Relevance in International Trade Dynamics: Evidence from Afghanistan

Aimaq, Hasina and Rasa, Mohammad Mirwais and Islam, InamUl (2024): The Determinants of Innovation at Female-Owned Small and Medium Enterprises and Relevance in International Trade Dynamics: Evidence from Afghanistan.

Abstract

The purpose of this study is to explore determinants of innovation in female-owned small and medium enterprises in Kabul city, Afghanistan, and in turn contribute to entrepreneurship-related literature mainly in developing countries. The study employed an explanatory research design with agreement of primary data collection via a cross-sectional survey questionnaire, followed by OLS linear regression as a quantitative research approach. The sample of this study was 303 women entrepreneurs and was selected using a random sampling technique. Being mindful of such importance of innovation, this study inferred that knowledge improvement and transfer, technology, and owner-manager qualification behaviour significantly influence the innovation performance and as such regarded as the strong determinants of innovation. The study didn’t account for the determinants like level of education, previous working experience, age, and profitability of the enterprise. Thus, due to frequent changes in such variables, the study may not reflect the dynamics of the data, which would have a convincing influence on the conclusion. In addition, the research has only consisted of 303 samples. Moreover, such a number may not represent the whole population of the entrepreneurs of women-led Afghan SME. The study might help women entrepreneurs in addressing the factors affecting innovation level to take actions towards improving their innovative behaviour and, in turn, contribute to job creation, wealth, and poverty alleviation.

• Item Type: MPRA Paper
• Language: English
• Keywords: SMES, Afghanistan, International Trade, Innovation, Trade Dynamics
• Subjects: F - International Economics > F1 - Trade; F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation; F - International Economics > F1 - Trade > F18 - Trade and Environment; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics

References

Adams, R., Bessant, J., & Phelps, R. (2006). Innovation management measurement: A review. International journal of management reviews, 8(1), 21-47.

Adeyeye, A. D., Jegede, O. O., Oluwadare, A. J., & Aremu, F. S. (2016). Micro-level determinants of innovation: analysis of the Nigerian manufacturing sector. Innovation and Development, 6(1), 1-14.

Afuah, A. (2020). Innovation management-strategies, implementation, and profits.

Ahmad, S. S., & Wani, N. U. H. (2018). Trade potential of Afghanistan against SAARC: An application of gravity model approach. Kardan Journal of Economics and Management Sciences, 1(4), 1-19.

Ali, S., & Azimi, M. N. (2018). The role of female entrepreneurs in the economic development of Afghanistan. Journal of Global Business and Technology Readings Book, 7-25.

Avermaete, T., Viaene, J., Morgan, E. J., & Crawford, N. (2003). Determinants of innovation in small food firms. European journal of innovation management.

Awoke, F. (2019). Determinants of women entrepreneurs ’ performance in Ethiopia (evidence from Hawassa City Administration). European Journal of Business and Management, 11(22), 18–30.

Barata, J. M., & Fontainha, E. (2017). Determinants of innovation in European construction firms. Technological and Economic Development of Economy, 23(6), 915-936.

Bazgar, S.& Wani, N. U. H. (2022). Enhancing Entrepreneurial Education and Self-Efficacy through Technical Vocational Education and Training- Authority of Afghanistan (TVET-AVI): Evaluation and Way Forward. Kardan Journal of Economics and Management Sciences (KJEMS). Management, 5(3), 1-21. DOI: 10.31841/KJEMS.2022.121

Burhani, G., & Wani, N. U. H. (2019). Afghanistan-India Trade Linkage: Collaboration and Future Prospects. Kardan Journal of Economics and Management Sciences, 2(1), 88-103.

Chandran, A. B., Wani, N. U. H., & Kumar, S. (2014). Economic Latent and Emerging Pattern of Merchandise Trade in SAARC Countries. International Journal of Trade & Global Business Perspectives, 3(1), 759.

Dhami, J. K., Wani, N. U. H., & Sidana, N. (2020). Trade Potential of India against BRCS Economies: An Empirical Analysis based on Gravity Model. Kardan Journal of Economics ad and Management Sciences, 3(2), 13-26.

Divisekera, S., & Nguyen, V. K. (2018). Determinants of innovation in tourism evidence from Australia. Tourism Management, 67, 157-167.

Fleuren, M., Wiefferink, K., & Paulussen, T. (2004). Determinants of innovation within health care organizations: literature review and Delphi study. International journal for quality in health care, 16(2), 107-123.

Grover, V., Pal, P., Bishnoi, V., & Wani, N. U. H. (2024). Artificial Intelligence Applications for Demand Forecasting and Optimization. In Blockchain, IoT, and AI Technologies for Supply Chain Management: Apply Emerging Technologies to Address and Improve Supply Chain Management (pp. 107-122). Berkeley, CA: Apple Press.

Hadhri, W., Arvanitis, R., & M’Henni, H. (2016). Determinants of innovation activities in small and open economies: the Lebanese business sector. Journal of Innovation Economics Management, (3), 77-107.

Holmén, M., Min, T. T., & Saarelainen, E. (2011). Female entrepreneurship in Afghanistan. Journal of Developmental Entrepreneurship, 16(03), 307-331.

Hotak, K., & Wani, N. U. H. (2019). Impact of Trade Liberalization on the Environment: The Case of Afghanistan. Kardan Journal of Economics and Management Sciences, 2(1), 1-16.

Hue, T. T. (2019). The determinants of innovation in Vietnamese manufacturing firms: an empirical analysis using a technology–organization–environment framework. Eurasian Business Review, 9(3), 247-267.

Jabeen, F., Faisal, M. N., Al Matroushi, H., & Farouk, S. (2019). Determinants of innovation decisions among Emirati female-owned small and medium enterprises. International Journal of Gender and Entrepreneurship.

Jones, G. G., & Tzemach, G. (2012). Kaweyan: Female Entrepreneurship and the Past and Future of Afghanistan. Harvard Business School Entrepreneurial Management Case, 811-823.

Kakar, M., & Wani, N. U. H. (2016). Nexus between foreign direct investment (FDI) and economic growth in Afghanistan: An econometric analysis. Kardan Journal of Economics and Management Sciences, 1(2), 148-156.

Laeeque, S. H., Babar, S. F., & Ahmad, H. M. (2017). The integrative determinants of innovation performance: The role of learning organization and knowledge creation. Pakistan Journal of Commerce and Social Sciences (PJCSS), 11(1), 167-184.

Latan, H., Jabbour, C. J. C., de Sousa Jabbour, A. B. L., de Camargo Fiorini, P., & Foropon, C. (2020). Innovative efforts of ISO 9001-certified manufacturing firms: Evidence of links between determinants of innovation, continuous innovation and firm performance. International Journal of Production Economics, 223, 107526.

Le, P. B., & Lei, H. (2019). Determinants of innovation capability: the roles of transformational leadership, knowledge sharing and perceived organizational support. Journal of knowledge management.

Meresa, M. (2018). Factors affecting the performance of small-scale enterprise (restaurant and hotels) Inraya Azebo Wereda: The case of Mohoni, Maychew and Korem. International Journal of Managerial Studies and Research (IJMSR), 6(1), 68–92.

Meressa, H. A. (2020). Growth of micro and small scale enterprises and its driving factors: Empirical evidence from entrepreneurs in emerging region of Ethiopia. Journal of Innovation and Entrepreneurship, 9(11), 1–22.

Mozumdar, L., Van Der Velde, G., & Omta, S. W. F. (2020). Determinants of the business performance of women entrepreneurs in the developing world context. MDPI, J Multidisciplinary Scientific Journal, 3, 215–235.

Muram, S., & Wani, N. U. H. (2020). Linkage between International political relations and foreign direct investment: A case study of Afghanistan. Kardan Journal of Social Sciences and Humanities, 3(1), 1-32.

Muram, S., & Wani, N. U. H. Nexus between International Political Relations and Foreign Direct Investment for Sustainable Trade: A Case Study of Afghanistan. Munich Personal RePEc Archive

Naseri, M. E., & Wani, N. U. H. (2020). Export Competitiveness of Afghanistan with Pakistan: An Economic Evaluation. Kardan Journal of Economics and Management Sciences, 3(2), 1-12.

Naseri, M. E., Wani, N. U. H., & Sidana, N. (2018). Determinants of Exports in SAARC Countries: An Empirical Evaluation. Kardan Journal of Economics and Management Sciences, 4(3), 38-57.

Nazary, P. W., Wani, N. U. H., & Hatam, A. K. (2020). Women in Peace Process in Afghanistan: Meaningful Participation and its Impact. Kardan Journal of Social Sciences and Humanities, 3(2), 17-34.

Nieves, J., Quintana, A., & Osorio, J. (2016). Organizational knowledge and collaborative human resource practices as determinants of innovation. Knowledge Management Research & Practice, 14(3), 237-245.

Pippel, G. (2018). Types of strategic allience as determinants of innovation failures. Technology Analysis & Strategic Management, 28(4), 462-476.

Qazizada, Y., & Wani, N. U. H. (2020). Terrorism as a Challenge to Good Governance in Afghanistan: An Evaluation. Kardan Journal of Social Sciences and Humanities, 3(2), 1-13.

Qazizada, Y., Afghan, M. W., & Wani, N. U. H. Challenges of Good Governance in Afghanistan: An Introspection for Sustainable Development. Munich Personal RePEc Archive

Roffeei, S. H. M., Yusop, F. D., & Kamarulzaman, Y. (2018). Determinants of Innovation Culture amongst Higher Education Students. Turkish Online Journal of Educational Technology-TOJET, 17(1), 37-50.

Sadiqi, M. K., & Wani, N. U. H. (2018). Latency of Afghanistan-SAARC Merchandise Trade Relation: An Economic Evaluation. Kardan Journal of Economics and Management Sciences, 1(2), 101-20.

Seenaiah, K., & Rath, B. N. (2018). Determinants of innovation in selected manufacturing firms in India: Role of R&D and exports. Science, Technology and Society, 23(1), 65-84.

Shakeel, M., Yaokuang, L., & Gohar, A. (2020). Identifying the entrepreneurial success factors and the performance of women-owned businesses in Pakistan: The moderating role of national culture. SAGE Open Journal, 1(1), 1–17.

Shams, M. S., & Nasri, N. (2018). Factors affecting female entrepreneurial intentions in Kabul, Afghanistan. Kardan Journal of Economics and Management Sciences, 1(1), 9-19.

Solomon, D. (2010). Desk review of studies conducted on women entrepreneurs in Ethiopia. Produced and distributed by the Addis Ababa Chamber of Commerce and Sectoral Associations with financial support from the Swedish Agency for International Development Cooperation, Sida, Addis Ababa, Ethiopia.

Taj, Z., & Wani, N. U. H. (2019). Evaluation of Afghanistan export performance: a constant-market-share analysis approach. Kardan Journal of Economics and Management Sciences, 2(2), 16-40.

Taneja, K., & Wani, N. U. H. (2014). Economic performance of Indo-China merchandise trade: An analysis of RCA and RID approaches. Journal of International Economics, 5(1), 88.

Tidd, J. (2001). Innovation management in context: environment, organization and performance. International journal of management reviews, 3(3), 169-183.

Wani, N. U. H. (2018). Performance and Prospects of India’s Trade Linkage With BRCS Economies. At Lovely Faculty of Business and Arts. Lovely Professional University. (PhD Thesis)http://dspace.lpu.in:8080/jspui/bitstream/123456789/4141/1/Nassir%20Ul%20Haq%20Wani%20Ph.D%20thesis.pdf

Wani, N. U. H. (2018). Trade compatibility between Afghanistan and India: An empirical evaluation. Munich Personal RePEc Archive

Wani, N. U. H. (2018). Trade compatibility between Afghanistan and India: An empirical evaluation. Kardan Journal of Economics and Management Sciences, 1(1), 11-12.

Wani, N. U. H. (2019). Nexus between openness to trade and economic growth: an empirical investigation of Afghanistan. South Asia Economic Journal, 20(2), 205-223.

Wani, N. U. H. (2022). The Trade-Conflict Nexus in SAARC Region: A Gravity Model Approach. Kardan Journal of Social Sciences and Humanities. 4 (2) 56-74. DOI:10.31841/KJSSH.2021.45

Wani, N. U. H. (2023). Decoding Social Media’s Role in the Resurgence of the Taliban: A Literature Review. Munich Personal RePEc Archive.

Wani, N. U. H. (2024). Trade Potential of Afghanistan With SAARC Region and European Union: A Gravity Model Approach. In Policy Solutions for Economic Growth in a Developing Country: Perspectives on Afghanistan's Trade and Development (pp. 41-57). Emerald Publishing Limited.

Wani, N. U. H. Performance and Prospects of India’s Trade Linkage with BRCS Economies. Munich Personal RePEc Archive.

Wani, N. U. H., & Dhami, D. J. K. (2016). Ecopreneurship: The reality cultured for today and tomorrow? Munich Personal RePEc Archive

Wani, N. U. H., & Dhami, J. K. (2013). Indo-China trade: intensity and potential for future trade. International Journal of Enhanced Research in Management and Computer Applications, 2319-7471.

Wani, N. U. H., & Dhami, J. K. (2014). Economic Concert, Collaboration and Prospective of Trade between India and Brazil. Foreign Trade Review, 49(4), 359-372.

Wani, N. U. H., & Dhami, J. K. (2016). Indo-ASEAN Trade: A Study with Reference to Agriculture Sector. Asian Journal of Research in Social Sciences and Humanities, 6(2), 1-21.

Wani, N. U. H., & Dhami, J. K. (2017). India's Trade Linkage with BRCS Economies: Trends, Patterns and Future Potentialities. Journal of International Economics (0976-0792), 8(1).

Wani, N. U. H., & Dhami, J. K. (2018). Trade Prospective of India against BRCS Economies: An Empirical Evaluation Based on RCA and RID Approaches, American Journal of Economics, 8(1): 31-46, doi:10.5923/j.economics.20180801.06

Wani, N. U. H., & Dhami, J. K. (2021). An empirical investigation of the effects of health and education on income distribution and poverty in SAARC Countries. Kardan Journal of Economics and Management Sciences, 4(3), 1-15.

Wani, N. U. H., & Hatam, A. K. (2022). Afghanistan's Regulatory Business Environment: Exploring the Impact on Trade. Munich Personal RePEc Archive

Wani, N. U. H., & Kabir, H. (2016). An evaluation of the relationship between public debt and economic growth: A study of Afghanistan.

Wani, N. U. H., & Latif, L. (2022). India’s Security Strategy in South Asia: Visualizing Afghanistan’s Past, Present, and Future. Kardan Journal of Social Sciences and Humanities,(2022), 5(2), 11-25.

Wani, N. U. H., & Latif, L. (2022). India’s Security Strategy in South Asia: Visualizing Afghanistan’s Past, Present, and Future. Kardan Journal of Social Sciences and Humanities,(2022), 5(2), 11-25.

Wani, N. U. H., & Rasa, M. M. (2023). Dynamics of Trade Specialization and Performance of SAFTA: A Case Study of Afghanistan. South Asia Economic Journal, 24(2), 153-179. Wani, N. U. H., Dhami, J. K., & Rehman, A. U. (2016). The determinants of India’s imports: a gravity model approach.

Wani, N. U. H., Dhami, J. K., & Sidana, N. (2020). Indo-Russia Trade: An Evaluation of Symmetry, Complementarity, Intensity and Similarity. Kardan Journal of Economics and Management Sciences, 3(1), 14.

Wani, N. U. H., Khan, F. N., & Paruthi, R. (2022). International Trade in Services and FDI: A Review and Bibliometric Analysis (2000-2020). Management, 5(1), 1-14.

Wani, N. U. H., Mir, A. S., & Dhami, J. K. (2013). The experience and future potentialities of BRICS as a trading bloc. Asian Journal of Research in Business Economics and Management, 3(7), 271-289.

Wani, N. U. H., Rahman, A., Grover, V., Mirzakhidova, S., & Mirwais Rasa, M. (2024). Regional trade expansion opportunities in Central and South Asia: exploring trade complementarity, diversification and similarity. Cogent Economics & Finance, 12(1). https://doi.org/10.1080/23322039.2024.2363461

Wani, N. U. H., Taneja, K., & Adlakha, N. (2013). India and Pakistan: Economic Recital, Collaboration and Prospective of Trade. International Journal of Trade & Global Business Perspectives, 2(2), 412.

Wani, N.H., Dhami, J.K., and Sidana, N. (2022), Impact of education on poverty alleviation in Afghanistan: An empirical evaluation, Kardan Journal of Social Sciences and Humanities, 5 (1), 1-14. DOI: 10.31841/KJSSH.2022.47

Wani, N.U., Khan, F.N. & Naderi, F. Electricity consumption and economic growth nexus in Afghanistan: impact, causality, projections, and policy implications. SN Bus Econ 4, 113 (2024). https://doi.org/10.1007/s43546-024-00671-0

Wani, N.U.H. (2024), "Drivers of Export Supply in SAARC: Investigating the Cross Evidence From Afghanistan", Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 61-82. https://doi.org/10.1108/978-1-83753-430-220241004

Wani, N.U.H. (2024), "Impact of Non-Tariff Measures on Trade Within the SAARC Region: An Empirical Investigation of Afghanistan", Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 181-200. https://doi.org/10.1108/978-1-83753-430-220241009

Wani, N.U.H. (2024), "Incidence of Reverse Capital Flight to Afghanistan: An Empirical Examination", Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 131-154. https://doi.org/10.1108/978-1-83753-430-220241007

Wani, N.U.H. (2024), Afghanistan's Regional and Bilateral Free Trade Agreements: An Evaluation of Trade Effects, Diversion and Creation, Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 155-179. https://doi.org/10.1108/978-1-83753-430-220241008

Wani, N.U.H. (2024), Afghanistan's Regional Integration With Central Asia: Identifying Trade Linkages, Economic Recital and Future Latency, Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 13-39. https://doi.org/10.1108/978-1-83753-430-220241002

Wani, N.U.H. (2024), Export Diversification in ASEAN and SAARC Regions: Exploring Trends Patterns and Determinants Through Empirical Investigation, Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 83-103. https://doi.org/10.1108/978-1-83753-430-220241005

Wani, N.U.H. (2024), Glossary of Afghan Expressions, Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 201-201. https://doi.org/10.1108/978-1-83753-430-220241016

Wani, N.U.H. (2024), Index, Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 203-209. https://doi.org/10.1108/978-1-83753-430-220241010

Wani, N.U.H. (2024), Introduction to the Book, Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 3-9. https://doi.org/10.1108/978-1-83753-430-220241001

Wani, N.U.H. (2024), Prelims, Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. i-xxii. https://doi.org/10.1108/978-1-83753-430-220241011

Wani, N.U.H. (2024), Trade Costs of Afghanistan With Its Major Trading Partners: Measurement and Its Determinants, Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 105-127. https://doi.org/10.1108/978-1-83753-430-220241006

Wani, N.U.H. (2024), Trade Potential of Afghanistan With SAARC Region and European Union: A Gravity Model Approach, Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 41-57. https://doi.org/10.1108/978-1-83753-430-220241003

Wani, N.U.H. and Rasa, M.M. (2024), Mapping trade opportunities in Central and South Asia: an exploration through trade indices and metrics, Competitiveness Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CR-02-2024-0023

Wani, N.U.H., (2018). Terrorism and foreign direct investment: An empirical analysis of Afghanistan. Kardan Journal of Economics and Management Sciences, 1(3), 40-59.

Wani, N.U.H., Dhami, J.K., and Sidana, N. (2022), Impact of education on poverty alleviation in Afghanistan: An empirical evaluation, Kardan Journal of Social Sciences and Humanities, 5 (1), 1-14. DOI:10.31841/KJSSH.2022.47

Wani, N.U.H., Majidi, B.S., Sidana, N. and Goel, R. (2024), Self-Help Groups in Afghanistan: A Ploy of Economic and Social Empowerment of Women for Sustainable Development, Goel, R., Singh, T., Rahman, M.M., Islam, Q.T. and Baral, S.K. (Ed.) Understanding the Multi-Dimensional Nature of Poverty, Emerald Publishing Limited, Leeds, pp. 147-170. https://doi.org/10.1108/978-1-83753-292-620241008

Wyll, H., & Pippel, G. (2016). Types of cooperation partners as determinants of innovation failures. Technology Analysis & Strategic Management, 28(4), 462-476.

Yama, M., & Wani, N. U. H. (2021). Nexus between export diversification and economic growth: A case study of Afghanistan. Kardan Journal of Economics and Management Sciences 4 (1) 1–24, 10.31841/KJEMS.2021.8 https://kardan.edu.af/Research/CurrentIss

Yildiz, H. E., Murtic, A., Klofsten, M., Zander, U., & Richtnér, A. (2020). Individual and contextual determinants of innovation performance: A micro-foundations perspective. Technovation, 102130.