Innovation Capacities and Barriers

Abstract

Objective: The purpose of this research is to understand how innovation capacity and barriers affects the financial performance of enterprises, based on an empirical study covering 640 enterprises in Cameroon. Method: This work is a quantitative study based on a hypothetico-deductive approach and data used is secondary, extracted from a database conducted by the International Development Research Center. With a huge sample of enterprises in Cameroon, data is processed using SPSS for Windows 12.0 software package. An explanatory analysis through the cross sorting, the chi-squared test and the binary logistical regression model is used. Results: Findings reveal that some aspects of innovation capacity and barrier like new organizational methods of working and decision-making, new techniques or media for product promotion, foreign licensed production technology and the lack of external funding have a positive and significant impact on the financial performance of enterprises in Cameroon. Original value: In this study, some dimensions of innovation barrier are taken into account, studying how they limit the innovativeness of enterprises and their resultant effects on the financial performance of these enterprises, constituting our major contribution.