The Effect of Innovation on Growth Aspirations and Internationalization in Firms: Africa Compared to the Protestant Europe

The aim of the current study was to investigate if and how context accounts for differences in the innovation, growth and export in African firms compared to firms in protestant Europe. Data extracted and recoded from a sample of firms in 20 countries (7 Protestant Europe and 13 African countries) participated in Global Entrepreneurship Monitor (GEM) surveys from 2001 to 2013 and this yielded a sample of 10981 firms. Analyses were done applying hierarchical linear modelling (HLM) due to the use of variables in different levels of analysis (firm level and regional level). Interestingly, the results showed that African firms don't differ in terms of their innovation, growth and internationalization level with the Protestant world but, if innovate, African companies expect less growth and internationalization from their innovation. Indeed, the results indicated that innovation exerts a significant positive influence on growth expectations and internationalization of the firms. The paper contributes to the existing literature by contextualizing the interplay of firm innovation, growth and internationalization.