Conference Paper
Innovation Activities and Sustainable Firm Growth in Arab Countries: The Role of Bank Funding, Institutional Quality and Bank Competition
No.
ERF_31_MIC143
Publisher
ERF
Date
March, 2025
Topic
D. Microeconomics
The objective of this study is to explore the curvilinear relationship between innovation and sustainable firm growth, as well as the moderating role of bank funding on R&D, institutional quality and bank market power on this nexus. To do this, we selected a sample of 424 companies over the period 2010-2022. Using a systemic GMM model, the results show that there is a curvilinear (inverted U-shaped) link between innovation and sustainable firm growth. In addition, the outcome shows that bank funding on R&D, institutional quality and bank market power moderate the curvilinear nexus between innovation and sustainable business growth. This study offers valuable insights for strategic innovation planning and elaboration of important implications by highlighting the role of bank funding on R&D, institutional quality and the power of the banking market in promoting firm sustainability.
Authors
Ahmed Chafai
Assistant Professor in Economics, Faculty of Economics...
Authors
Rym Oueslati
Doctor of Finance, University of Picardie Jules...
Authors
Hatem Salah
Doctor of Economics, University of Paris 1