Breaching the barriers: The segmented business and innovation system of handicraft exports in Cape Town

Figures & data

Table 1 A model of path dependency.

Table 2. Cluster analysis of the segmented business system.

Element	Indicator		Formal		Informal
		Black	White	Total
		A	B	C	D
Institutions	Strength of application of law^a	Medium	Medium	Medium	Weak
	In informal settlement (%)	0^D	0^D	0^D	60 ^ABC
Government	Strength of coordination^b	2.3^CD*	1.7^BD*	1.9^AD*	1.0^ABC*
	Incorporation of intermediaries^b	3.3^CD	2.2^D	2.4^AD	1.0^0ABC
	Strength education and training system: % higher educated	69^CD	93^AD	89^AD	36^ABC
Firms	Size: staff number (mean)	12	15	14	3
	Race entrepreneur: % black	100^BC	0^AD	18^D	100^BC
	Structure: departments dummy (%)	8^B	56^AD	46^D	9^BC
	Risk-taking propensity^b	4.5^D	3.8^D	3.9^D	2.5^ABC
Coordination	Ties of trust mainly with … .	Many actors	Many actors	Many actors	Buyer
Observations		13	59	72	11

Notes: Variance analysis based on one-way analysis of variance, α = 0.05, with a Bonferroni multiple comparison test.

^ABCDThe indicator differs significantly at α = 0.05 with the mentioned column.

*Significant at α = 0.10.

^aMeasured qualitatively.

^bMeasured on a Likert scale from 1 to 5.

Table 3. Cluster analysis of the segmented innovation system.

Element	Indicator		Formal
		Black	White	Total	Informal
		A	B	C	D
Government	Knowledge exchange with CCDI^a	3.3^BD	2.2^AD	2.4^D	1.0^ABC
	Knowledge exchange with all non-firm actors^a	2.3^BD*	1.7^AD*	1.9^D	1.0^ABC*
	Innovation policies and support	Yes	Yes	Yes	No
Firm	Education entrepreneur: primary (%)	23^BD*	3^AD*	7^D	55^ABC*
	Education: art/design (%)	67	64	65^D	0^C
	Relevant previous experience (%)	24	51^D	45^D	9^BC
	Discuss with staff^b (%)	31^B	66^AD	59^D	9^BC
	Staff training (%)	46^D*	43^D	37^D	0^ABC
	Training entrepreneur	92^BCD	58^AD	62^AD	9^ABC
	Business plans (% firms)	54^D	50^D	51^D	0^ABC
	R&D investments (% firms)	69	93^D	87^D	45^BC
Coordination	Strength of networking^a	4.2^BCD	3.4^AD	3.^5AD	2.2^AB
	Value chain: % subcontractor	0^D	1^D	1^D	91^ABC
	Value chain: % captive	0^D	2^D	2^D	91^ABC
	Finances: borrowing (% firms)	8	24	20	9
Observations		13	59	72	11

Notes: Variance analysis based on one-way analysis of variance, α = 0.05, with a Bonferroni multiple comparison test. CCDI = Cape Craft and Design Institute, R&D = research and development.

^ABCDThe indicator differs significantly at α = 0.05 with the mentioned column.

*Significant at α = 0.10.

^aMeasured on a Likert scale from 1 to 5.

Table 4. Cluster analysis of innovation outcomes.

Element	Indicator		Formal		Informal
		Black	White	Total
		A	B	C	D
Level^a	Perceived innovation level	4.1^D	4.2^D	4.2^D	3.3^ABC
	Process innovation^a	2.2	1.9	1.9	1.6
	Product innovation^b	3.0^D	3.2^D	3.2^D	2.2^ABC
	Market innovation^a	2.6	3.6^D	3.5^D	1.6^BC
Brand	Own brand (at times) (%)	93^D	98^D	97^D	9^ABC
Observations		13	59	72	11

Notes: Variance analysis based on one-way analysis of variance, α = 0.05, with a Bonferroni multiple comparison test.

^ABCD The indicator differs significantly at α = 0.05 with the mentioned column.

^aMeasured on a Likert scale from 1 to 5.

^bMeasured on a scale from 1 to 4.

Table 5. Predictors of the innovation level.

	Minimum	Maximum	Mean	Standard deviation	Regression on innovation level
Innovation level	1	5	3.0	0.841
Black poverty-driven firms	0	1	0.13	0.341	−1.164** (0.515)
Artistic products	0	1	0.17	0.377	1.248*** (0.394)
Education level: primary	0	1	0.13	0.341	−0.847* (0.483)
Observations					83
Adjusted R^2 (Nagelkerke)					0.321

Note: Robust standard errors in parentheses.

*p < 0.1.

**p < 0.05.

***p < 0.01.

Table 6. Predictor of segmentation.

	Minimum	Maximum	Mean	Standard deviation	Regression on segmentation
Subcontractor	0	1	0.14	0.345	6.538*** (1.454)
Observations					81
Adjusted R^2 (Nagelkerke)					0.805

Note: Robust standard errors in parentheses.

***p < 0.01.