Innovation and the performance of informal enterprises in developing countries: a gender perspective

Abstract

Purpose Examining the impact of gender on various aspects of business performance has gained research and policy traction, although the empirical evidence remains inconclusive. This paper aims to focus on one type of business, namely, informal enterprises and one dimension of business performance, namely, product innovation, to better understand how product innovations affect employment in both female- and male-owned informal enterprises. Design/methodology/approach This paper relies on a unique data set of 513 informal enterprises located in two urban centres in Ghana (Accra and Tema), covering the period between 2013 and 2015 and the Dose-Response Model to examine the effect of product innovations on employment in informal enterprises in urban Ghana. Findings The findings suggest that product innovation has considerable beneficial impacts on the creation of employment in informal enterprises. The results do not show systematic differences in the factors affecting product innovation in female- and male-owned enterprises. However, they suggest that although female-owned enterprises are less likely to introduce product innovations, they do sell more innovative products. Originality/value These findings support the view that innovation is “gendered”, and therefore, requires a “gendered” policy lens.