Brunilda Kosta, Nertila Busho
Faculty of Economics, University of Tirana, ‘‘Arben Broci’’ Str, Tirana, Albania.


3rd International Scientific Conference – EMAN 2019 – Economics and Management: How to Cope With Disrupted Times, Ljubljana – Slovenia, March 28, 2019, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Management Koper, Slovenia; Doba Business School – Maribor, Slovenia; Integrated Business Faculty –  Skopje, Macedonia; Faculty of Management – Zajecar, Serbia, ISBN 978-86-80194-17-2, ISSN 2683-4510

Abstract :

This article evaluates the effect of process innovation’s dimensions (new production methods, new logistics and distribution, new supporting activities) into the product innovation, considering a comparable pattern between EU and non-EU countries. To examine this cause-effect chain, 516 interviews with innovative firms, randomly selected using stratified random sampling method, are reported. The sample comprised two sub-samples: four EU countries (Italy, Greece, Slovenia, and Croatia) and four non-EU countries (Albania, Bosnia and Herzegovina, Montenegro and Serbia). The logistic regression analysis reveals a positive association between new or significantly improved methods of manufacturing and product innovation and this causativeness effect is stronger among firms in the EU countries. When it comes to the other process innovation dimensions (new logistics and distribution, new supporting activities), the analysis uncovers no significant association for both sub-samples. Analysing the control variables (firm size, export orientation and governmental support), firm size is not significantly associated with the product innovation. However, export orientation has a significant positive effect on firm’s inclination to engage in product innovation. Similarly, government financial support via tax credits or deductions, grants, subsidised loans, and loan guarantees, has a significant effect on product innovation.


product innovation, process innovation, manufacturing methods innovation, logistic innovation, supporting activities innovation.


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