Do political connections have a double-edged sword effect on firm level innovation? Evidence from emerging economies
Tracks
Crystal 1
| Tuesday, July 2, 2024 |
| 9:00 AM - 9:15 AM |
Presenter
Dr Sujani Thrikawala
Principal Lecturer
Waikato Institute Of Technology
Do political connections have a double-edged sword effect on firm level innovation? Evidence from emerging economies
Abstract
This study investigates the effect of firm level political connections on product and process (core) innovations in emerging economies using an instrumental probit model based on World Bank Enterprise Surveys data. We find that formal political connections have a favourable impact on firm level core innovation whilst informal political connections have detrimental effects. These effects are more significant for product innovations compared to process innovations. The results also suggest that a weak business environment moderates formal and informal political connections and innovation relationships. Our results are robust to adjustments for several biases in the World Bank Enterprise Surveys dataset. This study shows the importance of strategically engaging in political connections to reap the benefits and avoid the potential pitfalls of political ties.
Biography
Dr. Sujani Thrikawala serves as the Principal Academic Staff Member (PASM) at the Centre for Business and Enterprise (CBE) at Waikato Institute of Technology (Wintec | Te Pūkenga) in New Zealand. Her research focuses primarily on corporate governance, financial reporting, and financial disclosures, with additional interests in corruption, innovation, and the sustainability of micro, small, and medium-sized enterprises in emerging economies. Dr. Thrikawala has published more than 15 peer-reviewed research articles in international journals and has participated in many international conferences. Among her notable publications are studies on financial inclusion and bank profitability, the impact of political connections on bank credit access, and the role of gender in corruption and innovation in private firms. Her expertise is further highlighted by her ranking as the sixth most cited author in New Zealand within the "Firm; Bribes; Anti-corruption Measures" category on Elsevier SciVal. According to Google Scholar, her research has received over 650 citations. Additionally, Dr. Sujani is a member of the Certified Practising Accountants (CPA) in Australia.
Chair
Lai Kuen Wong
Senior Lecturer
The Hong Kong Polytechnic University
