TY - JOUR
T1 - A spatio-temporal analysis of non-farm enterprise performance in Uganda
T2 - 2010-2012
AU - Owoo, Nkechi Srodah
N1 - Publisher Copyright:
© 2016, © Emerald Group Publishing Limited.
PY - 2016
Y1 - 2016
N2 - Purpose: Recent research into enterprise performance has focussed on the importance of firm proximity to total productivity. Using spatial correlation of firm performance as a proxy for knowledge transfers and diffusion, the purpose of this paper is to examine the evidence for these spatial effects in non-farm enterprise performance in Uganda, across space and time. Design/methodology/approach: The author uses data from the geo-referenced Uganda National Panel Survey from 2010 to 2012, and employs explicit spatial techniques in the analysis of rural non-farm enterprise performance. Spatial autocorrelation of firm performance are used as proxies for knowledge transfers and information flows among enterprises across space and over time. Findings: The study finds evidence of spatial spillover effects across space and time in Uganda. This implies that, as existing studies of developed countries have found, social infrastructure and firm proximity contribute significantly to the performance of rural economies, through information exchange and knowledge transfers. Practical implications: Given the communal nature of rural households in the African setting, knowledge exchange and transfers among neighbouring firms should be encouraged as studies have found they have strong effects on business performance. Additionally, business “leaders” could also be useful in disseminating useful new technologies and applications to neighbouring enterprises in order to boost performance and productivity. Social implications: There should be better targeting of policy interventions to clusters of particularly needy enterprises. Originality/value: To the best of the author’s knowledge, this is the first time that spatio-temporal effects of business performance have been explored. While spatial analyses of business performance have been carried out in developed countries, studies using explicit spatial techniques in the developing country setting have been conspicuously absent.
AB - Purpose: Recent research into enterprise performance has focussed on the importance of firm proximity to total productivity. Using spatial correlation of firm performance as a proxy for knowledge transfers and diffusion, the purpose of this paper is to examine the evidence for these spatial effects in non-farm enterprise performance in Uganda, across space and time. Design/methodology/approach: The author uses data from the geo-referenced Uganda National Panel Survey from 2010 to 2012, and employs explicit spatial techniques in the analysis of rural non-farm enterprise performance. Spatial autocorrelation of firm performance are used as proxies for knowledge transfers and information flows among enterprises across space and over time. Findings: The study finds evidence of spatial spillover effects across space and time in Uganda. This implies that, as existing studies of developed countries have found, social infrastructure and firm proximity contribute significantly to the performance of rural economies, through information exchange and knowledge transfers. Practical implications: Given the communal nature of rural households in the African setting, knowledge exchange and transfers among neighbouring firms should be encouraged as studies have found they have strong effects on business performance. Additionally, business “leaders” could also be useful in disseminating useful new technologies and applications to neighbouring enterprises in order to boost performance and productivity. Social implications: There should be better targeting of policy interventions to clusters of particularly needy enterprises. Originality/value: To the best of the author’s knowledge, this is the first time that spatio-temporal effects of business performance have been explored. While spatial analyses of business performance have been carried out in developed countries, studies using explicit spatial techniques in the developing country setting have been conspicuously absent.
KW - Rural development
KW - Spatio-temporal effects
UR - http://www.scopus.com/inward/record.url?scp=84994462666&partnerID=8YFLogxK
U2 - 10.1108/AJEMS-12-2014-0094
DO - 10.1108/AJEMS-12-2014-0094
M3 - Article
AN - SCOPUS:84994462666
SN - 2040-0705
VL - 7
SP - 535
EP - 546
JO - African Journal of Economic and Management Studies
JF - African Journal of Economic and Management Studies
IS - 4
ER -