Table 1 Variables and their measurement... | Emerald Publishing

Table 1

Variables and their measurement¹

Dependent variable $R & D d e c$ ⁠: Whether the firm reported to have invested in R&D investment; and/or reported to have provided formal training or gave time to employees for development or introduction of new products or processes: 1 = Invested in R&D; 0 = Did not invest in R&D Explanatory variables $c r e d i t$ ⁠: Whether the firm reported to have a line of credit or loan from a financial institution at the time of the survey: 1 = Has a line of credit or loan; 0 = Don't have a line of credit or loan $i n f o r m a l c o m p$ : Whether the firm reported it competes against unregistered (informal) enterprises:1 = Competes against informal enterprises; 0 = Don't compete against informal enterprises $f s i z e_e m p l o y$ ⁠: Firm size by employment:1 = Micro enterprises (1–9 employees) 2 = Small enterprises (10–49 employees); 3 = Medium and large enterprises (≥50 employees) $f s i z e_l n s a l e s$ ⁠: Firm size as measured by natural log of annual sales $f s i z e_l n s a l e s s q$ ⁠: Firm size as measured by natural log of annual sales squared $l n e x p o r t$ ⁠: Natural log of % of the firm’s export in its total sales $l n f o r e i g n$ ⁠: Natural log of % of firm’s foreign ownership $lnproductdivers$ ⁠: Natural log of % of the firm’s main product in its total sales $j u d i c i a l$ ⁠: Firm’s perception on fairness and impartiality of courts: 1 = Agree courts are fair and impartial; 0 = Disagree courts are fair and impartial $l n f i r m a g e$ ⁠: Natural log of the firm age. Firm age is calculated as the number of years since its establishment $l n f i r m a g e s q$ ⁠: Natural log of the firm age squared $l e g a l$ ⁠: Registration form of the firm: 1 = Sole proprietorship; 2 = Partnership; 3 = Company $p o l i t i c a l$ ⁠: Perceptions on whether political instability is an obstacle to the performance of the establishment: 1 = Political instability is an obstacle; 0 = Political instability is not an obstacle tax: Perception of whether taxation (tax rates) in the country is an obstacle to business operations: 1 = Taxation is an obstacle; 0 = Taxation is not an obstacle $s u b s e c t o r$ ⁠: Firms’ technological intensity based on UNIDO classification: 1 = Medium-high and high technology; 2 = Medium-Low technology; 3 = Low technology

Note(s): ¹Taking logs for the continuous variables was necessary to rescale the values, minimise the variances and mitigate against outliers

Source(s): Author’s compilations