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Assessment of Eco-Innovation Drivers within the Informal Sector in Ghana

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  • Agyemang Rama

    (School of Management and Economics, University of Electronic Science and Technology of China (UESTC), No. 2006, Xiyuan Ave., West Hi-Tech Zone, Chengdu 611731, China)

  • Bekolo Ngoa Celestin

    (Department of Economics and Business Administration, Yibin University, No. 8, St. Luke, Wuliangye Yibin, Yibin 644000, China)

  • Shuangying Chen

    (School of Management and Economics, University of Electronic Science and Technology of China (UESTC), No. 2006, Xiyuan Ave., West Hi-Tech Zone, Chengdu 611731, China)

  • Konan Martin

    (School of Data Science, Chengdu University, Chengdu 610106, China)

Abstract

Informal enterprises and their activities dominate the economy of the Sub-Saharan Africa (SSA). However, despise the increasing volume of eco-innovation research in recent years, the drivers of the eco-innovation of small medium enterprises (SMEs) in the informal sector remain largely unknown. Drawing from a triple theoretical anchoring method (entrepreneurship theory, shareholder theory, and resource theory), this study tests the validity of a set of eco-innovation drivers developed around the concept among firms of the informal sector in Ghana. The conceptual framework was tested using structural equation modeling and the data were obtained using the World Bank’s Ghana Informal Enterprise Survey (GIFS) as an area-based frame to survey 285 local entrepreneurs ( n = 285). The results confirmed that informal enterprises do eco-innovate (mainly incremental innovation), and that innovation activities are driven by a government’s incentive regulations, market demand, and local entrepreneurs’ characteristic of hometown identity. This research highlights the contributions of the informal sector to sustainable development and draws the attention of policymakers, non-government agencies, and researchers on the drivers leading eco-innovation activities in the informal sector. The results could be used for future policy formulation.

Suggested Citation

  • Agyemang Rama & Bekolo Ngoa Celestin & Shuangying Chen & Konan Martin, 2022. "Assessment of Eco-Innovation Drivers within the Informal Sector in Ghana," Sustainability, MDPI, vol. 14(11), pages 1-19, June.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:11:p:6903-:d:832211
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    2. Sharma, Gautam & Dahlstrand, Åsa Lindholm, 2023. "Innovations, informality, and the global south: A thematic analysis of past research and future directions," Technology in Society, Elsevier, vol. 75(C).
    3. Torrecillas, Celia & Fernández, Sara & García-García, Claudia, 2023. "Drivers to increase eco-efficiencies in Uruguay, Peru, and Panama," Energy Policy, Elsevier, vol. 183(C).

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