Dataset for Determinants of Firm Innovation Strategy

The objective of this study is to examine the determinants of firm innovation strategy in low-resource settings. Consequently, the gaps in the literature highlighted the need to address the following questions: what strategies do product-innovating firms adopt? and what are the key determinants for these strategies? The study hypothesis include: Hypothesis 1a: Research and Development is positively associated with the probability of adopting the (a) make, and (b) ally innovation strategy. Hypothesis 1b: Replacement of outdated products is positively associated with the probability of adopting the (a) make, (b) buy, and (c) imitate innovation strategy. Hypothesis 2a: Firm age is negatively associated with the probability of adopting the (a) make, and (b) imitate innovation strategy. Hypothesis 2b: Firm export status is positively associated with the probability of adopting the make innovation strategy. Hypothesis 2c: Firm size is positively associated with the probability of adopting the (i) make, (ii) buy, and (iii) ally innovation strategies Hypothesis 3: Lack of absorptive capacity is negatively associated with the probability to adopt the (a) make, and (b) imitate innovation strategy. The results indicate that the strategies firms adopt in low-resource settings vary with expenditures on innovation activities, firm characteristics, and the objectives of product innovation. Specifically, firms are likely to adopt the “Make” innovation strategy when expenditure is channeled to external R&D and the acquisition of machinery. Internal R&D has no significant observable effect on any of the strategies adopted by product-innovating firms. However, older firms are less likely to adopt the "Make" innovation strategy, while firms lacking internal technical expertise rely on the "Buy" and "Imitate" innovation strategies. Moreover, firms are less likely to adopt the “Ally” and “Imitate” innovation strategies if their close competitors are sources of information for innovation.