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Can Islamic finance enhance the innovation capacity of Cameroonian SMEs? Empirical evidence based on a multivariate probit approach
Open accessAbstract
This study examines the effects of the Islamic mode of financing on the innovation capacity of SMEs in Cameroon using a sample of 1358 SMEs. Results of the multivariate probit model indicate that Islamic finance enhances process innovation, product innovation, and marketing innovation. While the effects on organizational innovation are positive, they are statistically insignificant. Our main results equally indicate that the effects of Islamic finance on the innovation capacity of SMEs are more pronounced on technological innovation (process and product) than non-technological innovation (marketing and organizational). Policymakers are encouraged to put in place the necessary mechanisms for the promotion of Islamic finance such as the enacting of laws that ensure the creation of full-fledged Islamic banks, and raising awareness about the benefits and specificities of this mode of finance for the financing of SME innovation.
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“Islamic finance has a positive impact on the innovation capacity of SMEs in Cameroon by increasing innovation in processes, products, and marketing, especially in technological innovation.”
From Innovation as A Driver of SMEs Sustainability: A Systematic Review of the Literature (2025) · cites this paper as Haruna et al., 2024
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“digitalization and financial technology (fintech), which play a crucial role in supporting the sustainability of SMEs by changing the way they operate, interact with customers, and manage finances.”
From Innovation as A Driver of SMEs Sustainability: A Systematic Review of the Literature (2025) · cites this paper as Haruna et al., 2024
In the citing paper
“digitalization allows SMEs to utilize e-commerce platforms, expand market reach globally, and increase the accessibility of their products and services to a wider range of consumers.”
From Innovation as A Driver of SMEs Sustainability: A Systematic Review of the Literature (2025) · cites this paper as Haruna et al., 2024
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Metadata
- Authors
- Haruna, A., Oumbé, H. T., Kountchou, A. M., & Pilag Kakeu, C. B.
- Affiliations
- Université de Dschang (CM)
- Corresponding author
- Haruna, Ali
- Venue
- Borsa Istanbul Review
- Publisher
- Elsevier BV
- Published
- 2024-01
- Volume
- 24
- Issue
- 1
- Pages
- 187-200
- ISSN
- 2214-8450 (ISSN-L)
- OpenAlex
- W4389522644
- Cited by
- 18
- References
- 77
- Citations by year
- 2026: 3 · 2025: 8 · 2024: 6
- FWCI
- 10.48
- Type
- journal article
- Language
- en
- Open access
- gold
- doi.org
- Licence
- cc-by-nc-nd
- www.elsevier.com/tdm/userlicense/1.0/ (tdm)
- www.elsevier.com/legal/tdmrep-license (tdm)
- creativecommons.org/licenses/by-nc-nd/4.0/ (vor)
- Locations
- Borsa Istanbul Review (publishedVersion, cc-by-nc-nd)
- Econstor (Econstor) (submittedVersion, cc-by-nc-nd)
- DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
- Topics
- Social Sciences › Business, Management and Accounting › Accounting › Islamic Finance and Banking Studies
- Social Sciences › Business, Management and Accounting › Management Information Systems › FinTech, Crowdfunding, Digital Finance
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Microfinance and Financial Inclusion
- Keywords
- Islamic finance, SME innovation, innovation ability, process innovation, product innovation, marketing innovation, organizational innovation, technological innovation, Islamic banking, Cameroon
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