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<p>This paper aims to evaluate the effect of adopting non-technological innovations on price competitiveness in the manufacturing and service sectors. The methodological approach is based on the recursive bivariate probit model, which uses microdata from a sample of 723 firms in Senegal. This model helps to resolve the endogeneity problem associated with innovation adoption. The results strongly suggest that any increase in the adoption of non-technological innovations reinforces firms’ competitiveness through a new business model that includes promotion, new sales methods, and new product and service pricing strategies. The study confirms the hypothesis that non-technological innovation leverages price competitiveness and enhances market share gains for firms. So, it recommends a large adoption of innovation-based dynamic business models for Senegalese firms.</p>

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Do Non-technological Innovations Enhance Competitive Advantage? Evidence from the Manufacturing and Service Sectors in Senegal

  • 期刊论文

  • 发表日期：

    2025年6月6日

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  • André Dumas Tsambou,
  • Yannick Fosso Djoumessi

摘要

This paper aims to evaluate the effect of adopting non-technological innovations on price competitiveness in the manufacturing and service sectors. The methodological approach is based on the recursive bivariate probit model, which uses microdata from a sample of 723 firms in Senegal. This model helps to resolve the endogeneity problem associated with innovation adoption. The results strongly suggest that any increase in the adoption of non-technological innovations reinforces firms’ competitiveness through a new business model that includes promotion, new sales methods, and new product and service pricing strategies. The study confirms the hypothesis that non-technological innovation leverages price competitiveness and enhances market share gains for firms. So, it recommends a large adoption of innovation-based dynamic business models for Senegalese firms.