The influence of institutional conditions on firms’ process innovation – evidence from firms based on a multi-country analysis

Purpose Our understanding of the influence institutional conditions on process innovation is still limited, despite managers’ need to know which factors should be considered in decision-making and governments aware how foster through provision attractive institutions. Therefore, this paper aims examine dimensions such as workforce, political instability, labor regulation, corruption, tax administration transportation smaller firms located emerging countries other than BRICS (Brazil, Russia, India, China South Africa). Design/methodology/approach A data set from World Bank Enterprise Surveys questioning over 20,000 companies 41 supplemented by gross domestic product (GDP) per capita for each country was used analyzed means general linear mixed models. The analysis emphasized small- medium-sized enterprises (SMEs) excluded countries. Findings findings demonstrate matter depending company size GDP. Research limitations/implications This advances research institutions firm – institution–process relationship particular. By considering role GDP relationship, offers more nuanced insights compared with prior studies thus makes a strong contribution theory. are not suitable longitudinal study same refers capturing variety found even those coming geographic area. Practical implications results provide practitioners, e.g. managers SMEs, concrete ideas improve their companies. Other actors policymakers too can benefit they will allow design target group-oriented measures, aspects that ultimately lead sustainable businesses. Originality/value focusing countries, contributes growing efforts beyond BRICS. Thus, add diversity its influencing external (institutional) factors. emphasis SMEs also allows us highlight differences between different categories SMEs.