Effect of Research and Development (R&D) on Company Performance in Cameroon: An Application of the Generalized Propensity Score

Mboe Bobo Mathurin Patrick

doi:doi:10.11648/j.ijebo.20251301.13

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Effect of Research and Development (R&D) on Company Performance in Cameroon: An Application of the Generalized Propensity Score

Mboe Bobo Mathurin Patrick^*

Published in International Journal of Economic Behavior and Organization (Volume 13, Issue 1)

Received: 23 December 2024 Accepted: 10 January 2025 Published: 12 February 2025

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Abstract

R&D expenditure is a must for any company wishing to remain competitive and sustainable in this globalized world. However, they need to be controlled to ensure that they do not have a rather unfavorable effect due to market uncertainty. For this reason, this article analyzes the effect of R&D on company performance in Cameroon. The latter is measured by value added on the one hand, and net profit on the other. The study is based on a sample of 162 Cameroonian companies having invested in Research and Development (R&D). This sample is taken from the survey on the determinants of business performance in sub-Saharan Africa carried out in 2014 by the International Development Research Centre (IDRC). The results of the generalized propensity score estimation show that in Cameroon, company performance indicators grow monotonically as R&D expenditure increases These results are confirmed by the robustness analysis performed by applying the Generalized Propensity Score under the generalized linear and quantile approach. Thus, companies in Cameroon need to take advantage of government R&D subsidies and appropriate the results of research carried out in universities and research centers, and train their employees on an ongoing basis to promote R&D within the company and improve performance.

Published in	International Journal of Economic Behavior and Organization (Volume 13, Issue 1)
DOI	10.11648/j.ijebo.20251301.13
Page(s)	20-34
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

R&D, Value Added, Profit, Dose-response, Covariates

References

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Patrick, M. B. M. (2025). Effect of Research and Development (R&D) on Company Performance in Cameroon: An Application of the Generalized Propensity Score. International Journal of Economic Behavior and Organization, 13(1), 20-34. https://doi.org/10.11648/j.ijebo.20251301.13

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Patrick, M. B. M. Effect of Research and Development (R&D) on Company Performance in Cameroon: An Application of the Generalized Propensity Score. Int. J. Econ. Behav. Organ. 2025, 13(1), 20-34. doi: 10.11648/j.ijebo.20251301.13

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Patrick MBM. Effect of Research and Development (R&D) on Company Performance in Cameroon: An Application of the Generalized Propensity Score. Int J Econ Behav Organ. 2025;13(1):20-34. doi: 10.11648/j.ijebo.20251301.13

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@article{10.11648/j.ijebo.20251301.13,
  author = {Mboe Bobo Mathurin Patrick},
  title = {Effect of Research and Development (R&D) on Company Performance in Cameroon: An Application of the Generalized Propensity Score
},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {13},
  number = {1},
  pages = {20-34},
  doi = {10.11648/j.ijebo.20251301.13},
  url = {https://doi.org/10.11648/j.ijebo.20251301.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20251301.13},
  abstract = {R&D expenditure is a must for any company wishing to remain competitive and sustainable in this globalized world. However, they need to be controlled to ensure that they do not have a rather unfavorable effect due to market uncertainty. For this reason, this article analyzes the effect of R&D on company performance in Cameroon. The latter is measured by value added on the one hand, and net profit on the other. The study is based on a sample of 162 Cameroonian companies having invested in Research and Development (R&D). This sample is taken from the survey on the determinants of business performance in sub-Saharan Africa carried out in 2014 by the International Development Research Centre (IDRC). The results of the generalized propensity score estimation show that in Cameroon, company performance indicators grow monotonically as R&D expenditure increases These results are confirmed by the robustness analysis performed by applying the Generalized Propensity Score under the generalized linear and quantile approach. Thus, companies in Cameroon need to take advantage of government R&D subsidies and appropriate the results of research carried out in universities and research centers, and train their employees on an ongoing basis to promote R&D within the company and improve performance.
},
 year = {2025}
}

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TY  - JOUR
T1  - Effect of Research and Development (R&D) on Company Performance in Cameroon: An Application of the Generalized Propensity Score

AU  - Mboe Bobo Mathurin Patrick
Y1  - 2025/02/12
PY  - 2025
N1  - https://doi.org/10.11648/j.ijebo.20251301.13
DO  - 10.11648/j.ijebo.20251301.13
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 20
EP  - 34
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20251301.13
AB  - R&D expenditure is a must for any company wishing to remain competitive and sustainable in this globalized world. However, they need to be controlled to ensure that they do not have a rather unfavorable effect due to market uncertainty. For this reason, this article analyzes the effect of R&D on company performance in Cameroon. The latter is measured by value added on the one hand, and net profit on the other. The study is based on a sample of 162 Cameroonian companies having invested in Research and Development (R&D). This sample is taken from the survey on the determinants of business performance in sub-Saharan Africa carried out in 2014 by the International Development Research Centre (IDRC). The results of the generalized propensity score estimation show that in Cameroon, company performance indicators grow monotonically as R&D expenditure increases These results are confirmed by the robustness analysis performed by applying the Generalized Propensity Score under the generalized linear and quantile approach. Thus, companies in Cameroon need to take advantage of government R&D subsidies and appropriate the results of research carried out in universities and research centers, and train their employees on an ongoing basis to promote R&D within the company and improve performance.

VL  - 13
IS  - 1
ER  -

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Mboe Bobo Mathurin Patrick

Faculty of Economic Sciences and Management, University of Yaoundé II, Yaounde, Cameroon

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http://orcid.org/0009-0001-9697-893X

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Patrick, M. B. M. (2025). Effect of Research and Development (R&D) on Company Performance in Cameroon: An Application of the Generalized Propensity Score. International Journal of Economic Behavior and Organization, 13(1), 20-34. https://doi.org/10.11648/j.ijebo.20251301.13

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Patrick, M. B. M. Effect of Research and Development (R&D) on Company Performance in Cameroon: An Application of the Generalized Propensity Score. Int. J. Econ. Behav. Organ. 2025, 13(1), 20-34. doi: 10.11648/j.ijebo.20251301.13

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Patrick MBM. Effect of Research and Development (R&D) on Company Performance in Cameroon: An Application of the Generalized Propensity Score. Int J Econ Behav Organ. 2025;13(1):20-34. doi: 10.11648/j.ijebo.20251301.13

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@article{10.11648/j.ijebo.20251301.13,
  author = {Mboe Bobo Mathurin Patrick},
  title = {Effect of Research and Development (R&D) on Company Performance in Cameroon: An Application of the Generalized Propensity Score
},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {13},
  number = {1},
  pages = {20-34},
  doi = {10.11648/j.ijebo.20251301.13},
  url = {https://doi.org/10.11648/j.ijebo.20251301.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20251301.13},
  abstract = {R&D expenditure is a must for any company wishing to remain competitive and sustainable in this globalized world. However, they need to be controlled to ensure that they do not have a rather unfavorable effect due to market uncertainty. For this reason, this article analyzes the effect of R&D on company performance in Cameroon. The latter is measured by value added on the one hand, and net profit on the other. The study is based on a sample of 162 Cameroonian companies having invested in Research and Development (R&D). This sample is taken from the survey on the determinants of business performance in sub-Saharan Africa carried out in 2014 by the International Development Research Centre (IDRC). The results of the generalized propensity score estimation show that in Cameroon, company performance indicators grow monotonically as R&D expenditure increases These results are confirmed by the robustness analysis performed by applying the Generalized Propensity Score under the generalized linear and quantile approach. Thus, companies in Cameroon need to take advantage of government R&D subsidies and appropriate the results of research carried out in universities and research centers, and train their employees on an ongoing basis to promote R&D within the company and improve performance.
},
 year = {2025}
}

Copy | Download

TY  - JOUR
T1  - Effect of Research and Development (R&D) on Company Performance in Cameroon: An Application of the Generalized Propensity Score

AU  - Mboe Bobo Mathurin Patrick
Y1  - 2025/02/12
PY  - 2025
N1  - https://doi.org/10.11648/j.ijebo.20251301.13
DO  - 10.11648/j.ijebo.20251301.13
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 20
EP  - 34
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20251301.13
AB  - R&D expenditure is a must for any company wishing to remain competitive and sustainable in this globalized world. However, they need to be controlled to ensure that they do not have a rather unfavorable effect due to market uncertainty. For this reason, this article analyzes the effect of R&D on company performance in Cameroon. The latter is measured by value added on the one hand, and net profit on the other. The study is based on a sample of 162 Cameroonian companies having invested in Research and Development (R&D). This sample is taken from the survey on the determinants of business performance in sub-Saharan Africa carried out in 2014 by the International Development Research Centre (IDRC). The results of the generalized propensity score estimation show that in Cameroon, company performance indicators grow monotonically as R&D expenditure increases These results are confirmed by the robustness analysis performed by applying the Generalized Propensity Score under the generalized linear and quantile approach. Thus, companies in Cameroon need to take advantage of government R&D subsidies and appropriate the results of research carried out in universities and research centers, and train their employees on an ongoing basis to promote R&D within the company and improve performance.

VL  - 13
IS  - 1
ER  -

Copy | Download