Introduction
Algeria, a nation endowed with a rich cultural heritage and abundant natural resources, stands today at a strategic crossroads in its pursuit of sustainable economic development. In navigating the complexities of the global economic landscape, the interplay between management practices, accounting information systems, marketing strategies, and startup dynamics emerges as a decisive factor in shaping the country’s growth trajectory (Williams, 2017). Despite the progress achieved since the early 2000s, Algeria’s transition towards a diversified and innovation-driven economy remains incomplete.
The economic structure of Algeria has undergone profound transformations, influenced by a combination of internal reforms and external pressures from global markets (World Bank, 2022). While macroeconomic indicators reveal relative stability, they also conceal persistent structural rigidities, particularly in the private sector and entrepreneurial ecosystem. Previous studies on Algeria’s economy have largely concentrated on macroeconomic performance, fiscal policy, and energy dependence (IMF, 2023), leaving a major empirical gap concerning the micro-foundations of development — namely, how management practices, accounting information systems, marketing strategies, and startups collectively contribute to national growth.
The central research problem guiding this study can therefore be stated as follows:
How do managerial, informational, marketing, and entrepreneurial mechanisms interact to influence Algeria’s economic development, and what strategic reforms are necessary to strengthen their collective impact?
The rationale for this research lies in the recognition that Algeria’s economic advancement requires a systemic and integrative perspective on the functioning of its business ecosystem. Existing literature offers only fragmented insights into how management practices shape organizational efficiency within Algerian enterprises (Arabeche, 2022). Likewise, the role of accounting information systems in supporting data-driven decision-making and financial transparency remains underexplored.
Furthermore, the marketing strategies adopted by Algerian firms — particularly in the context of digital transformation, market globalization, and shifting consumer behaviors — represent a critical but insufficiently analyzed dimension (Kartajaya, 2019). As markets become increasingly competitive, the adaptation of marketing approaches to local socio-cultural specificities appears essential. Simultaneously, the emergence of startups as agents of innovation and diversification marks a relatively recent phenomenon, whose institutional, financial, and regulatory determinantsremain only partially understood (UNCTAD, 2021).
Consequently, this study pursues four interrelated objectives:
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to examine the current state of management practices in Algerian enterprises and identify key areas for improvement;
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to assess the contribution of accounting information systems to decision-making and performance management;
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to analyze the effectiveness of both traditional and digital marketing strategies in the Algerian context; and (4) to explore the determinants of startup success and sustainability.
By addressing these objectives, this research aims to fill an identified gap in the literature on Algerian economic modernization and to generate operational insights for policymakers, business leaders, and development stakeholders. Ultimately, the findings are expected to inform evidence-based interventions designed to strengthen management capabilities, enhance information systems, modernize marketing practices, and nurture entrepreneurial ecosystems — all essential levers for propelling Algeria toward sustainable and inclusive economic growth.
2. Research Methodology
2.1. Overall Research Design
To achieve the stated research objectives, this study adopts a mixed-methods research design integrating both quantitative and qualitative approaches. This design enables the triangulation of data and enhances the validity of findings through convergence between numerical trends and experiential insights (Creswell & Plano Clark, 2018). The quantitative component provides measurable evidence of relationships among key variables, while the qualitative component offers contextualized interpretations of managerial and entrepreneurial practices. Such a dual strategy is particularly suitable for exploring the complex, multi-layered processes underpinning Algeria’s economic development.
2.2. Data Collection Procedures
For the qualitative strand, semi-structured interviews were conducted with senior executives, financial managers, marketing directors, and startup founders across several Algerian industries (manufacturing, services, ICT, and energy). Each interview lasted approximately 60 minutes and followed an interview guide covering management practices, accounting information systems, marketing strategies, and startup challenges. Focus-group discussions were also organized to foster collective reflection and identify convergent patterns.
For the quantitative strand, a structured questionnaire was distributed to a representative sample of 500 Algerian enterprises, selected through stratified random sampling by sector and region. The instrument comprised Likert-scale items measuring organizational performance, technological adoption, marketing intensity, and entrepreneurial orientation. The survey achieved a response rate of 62%, considered satisfactory for business research in emerging economies.
Qualitative data were transcribed verbatim and analyzed through thematic content analysis using NVivo software. Coding categories were derived both inductively from the data and deductively from the conceptual framework, allowing for the emergence of new themes while maintaining theoretical alignment.
Quantitative data were processed using SPSS v. 29. Descriptive statistics summarized the characteristics of the surveyed firms; correlation analyses examined associations between variables; and multiple-regression models tested the impact of management practices, accounting information systems, marketing strategies, and startup activities on perceived economic performance. Robustness checks (multicollinearity, heteroskedasticity, and reliability tests – Cronbach’s α > 0.8) ensured analytical consistency.
2.3. Research Scope and Limitations
The dataset covers a two-year period (2021–2023) and includes firms of varying sizes and ownership structures. Despite the comprehensive design, the research is subject to several limitations :
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(1) the cross-sectional nature of data constrains causal inference;
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(2) access to reliable financial indicators remains limited in Algerian enterprises; and
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the qualitative sample, while diverse, cannot claim exhaustive representativeness.
Nevertheless, the mixed-methods approach and data triangulation mitigate these constraints and provide a sound empirical foundation for the subsequent analysis.
3. Results
3.1. Quantitative Findings
3.1.1. Management Practices
The quantitative survey conducted among 300 Algerian firms revealed significant heterogeneity in organizational structures and empowerment models. Company A, characterized by a predominantly hierarchical structure (70%)and limited employee empowerment (45%), exhibited a statistically significant but negative relationship with organizational performance (β= –0.25, p <0.05). Conversely, Company B, organized under a matrix structure (30%)and displaying moderate employee empowerment (55%), demonstrated no significant relationship with overall performance (p> 0.1).
Table 1. Management Practices and Organizational Performance
|
Organization |
Management Structure |
Employee Empowerment |
Organizational Performance |
|
Company A |
Hierarchical (70%) |
Limited (45%) |
Positive (β= –0.25, p <0.05) |
|
Company B |
Matrix (30%) |
Moderate (55%) |
Neutral |
Source: Authors’ survey (2023)
These results highlight that organizational effectiveness in Algeria cannot rely on a “one-size-fits-all” managerial model. While hierarchical structures may provide stability in certain contexts, firms adopting participatory management practices and leadership development programs tend to be more adaptive and resilient. Hence, leadership capacity-building emerges as a strategic lever for improving organizational performance and managing resistance to change.
3.1.2. Accounting Information Systems
Data collected from 250 enterprises revealed considerable variation in the technological maturity of accounting information systems (AIS). Company A, operating with outdated accounting software (60%) and facing high data-security concerns (75%), surprisingly reported positive financial performance (β= 0.35, p <0.01). By contrast, Company B, equipped with up-to-date systems (40%) and minimal security risks (25%), showed a weak negative association with performance (β= –0.15, p <0.1).
Table 2. Accounting Information Systems and Financial Performance
|
Organization |
Software Quality |
Data Security Concerns |
Financial Performance |
|
Company A |
Outdated (60%) |
High (75%) |
Positive (β= 0.35, p <0.01) |
|
Company B |
Up-to-date (40%) |
Low (25%) |
Negative (β= –0.15, p <0.1) |
Source: Authors’ survey (2023)
These findings emphasize that technological modernization alone does not automatically translate into better financial performance. The strategic integration of AIS into managerial decision-making, combined with user training and cybersecurity protocols, is essential to ensure that technology investments yield measurable organizational value.
3.1.3. Marketing Strategies
The survey administered to 500 consumers provided insight into the relative effectiveness of traditional and digital marketing channels in the Algerian marketplace. Company A, emphasizing traditional marketing influence (65%), achieved a strong positive correlation with market share (r= 0.42, p <0.01). In contrast, Company B, adopting a balanced mix of traditional (50%) and digital (50%) marketing, exhibited a weak and statistically insignificant relationship with market share (r= –0.18, p <0.1).
Table 3. Marketing Approaches and Market Performance
|
Organization |
Traditional Influence (%) |
Digital Influence (%) |
Market Share |
|
Company A |
65 |
35 |
Positive (r= 0.42, p <0.01) |
|
Company B |
50 |
50 |
Negative (r= –0.18, p <0.1) |
Source: Authors’ survey (2023)
The findings indicate that traditional marketing channels continue to play a dominant role in shaping consumer behavior in Algeria, although digital strategies are gaining momentum among younger audiences. A hybrid, consumer-oriented marketing model — integrating offline credibility with online engagement — appears to be the most promising avenue for firms seeking sustained competitiveness.
3.1.4. Startup Ecosystem
The analysis of 200 startups sheds light on the main determinants of entrepreneurial growth and resilience in Algeria. Startup A, constrained by funding limitations (40%) and regulatory complexities (60%), nevertheless achieved positive growth outcomes when supported by mentorship programs (β= 0.28, p <0.05). Conversely, Startup B, facing fewer funding issues (20%) but higher bureaucratic constraints (80%), exhibited no statistically significant performance improvements (p> 0.1).
Table 4. Startup Ecosystem and Mentorship Impact
|
Startup |
Funding Challenges (%) |
Regulatory Complexities (%) |
Mentorship Impact |
|
Startup A |
40 |
60 |
Positive (β= 0.28, p <0.05) |
|
Startup B |
20 |
80 |
Neutral |
Source: Authors’ survey (2023)
The results reaffirm the centrality of institutional and financial support in fostering startup viability. In particular, mentorship and incubation mechanisms appear to mitigate resource constraints and regulatory burdens, thereby enhancing entrepreneurial performance and innovation capacity.
Taken together, these quantitative findings reveal the multidimensional complexity of economic performance determinants in Algeria. Sustainable growth requires context-sensitive management structures, technological modernization aligned with human capabilities, marketing strategies responsive to local consumer patterns, and a startup ecosystem supported by coherent public policies.
These insights provide evidence-based recommendations for policymakers and practitioners seeking to build an integrated framework of organizational efficiency, digital transformation, and entrepreneurial development in emerging economies.
3.2. Qualitative Findings (revised and academic version)
3.2.1. Management Practices
The qualitative phase of the study provided an in-depth exploration of managerial dynamics within Algerian enterprises, emphasizing the cultural and behavioral dimensions shaping organizational performance. Interviews with senior executives, middle managers, and employees revealed persistent hierarchical tendencies in corporate governance. This hierarchical preference, deeply rooted in socio-cultural norms and organizational history, was perceived as a mechanism for preserving order and discipline through clear lines of authority.
However, while stability and control were valued, participants consistently reported limited employee empowerment in decision-making processes. The majority recognized the potential advantages of participatory management but cited institutional inertia and leadership resistance as major barriers. This top-down culture was described as constraining innovation, discouraging initiative, and limiting employee engagement.
A recurrent theme was organizational resistance to change, manifested in a reluctance to adopt new managerial methods, technologies, or flatter structures. This conservatism, often justified by the desire to avoid disruption, has entrenched a path-dependent organizational culture characterized by procedural rigidity.
Interviewees unanimously emphasized the critical need for leadership development programs. The data revealed a gap in strategic leadership competencies, particularly regarding adaptive management, digital literacy, and crisis navigation in volatile environments. Participants called for capacity-building initiatives and executive education programs aimed at strengthening strategic thinking, communication, and change management across managerial levels.
3.2.2. Accounting Information Systems
The qualitative investigation into accounting information systems (AIS) highlighted both systemic weaknesses and opportunities for digital transformation. Respondents repeatedly noted the prevalence of obsolete accounting software and expressed concerns regarding data security vulnerabilities and limited interoperability with modern reporting tools. These technological deficits were seen as obstacles to transparency, efficiency, and informed financial decision-making.
Concerns about cybersecurity emerged as a dominant theme. Interviewees stressed the urgency of adopting robust data-protection frameworks, including encryption, access control, and cloud-based backup solutions, to safeguard sensitive information from unauthorized access and breaches.
Another recurring theme was the underutilization of AIS capabilities due to insufficient staff training. Respondents emphasized that many organizations possessed digital tools that remained poorly integrated into daily operations. Hence, continuous professional training in accounting technologies was identified as essential to achieving effective system use and maximizing return on technological investment.
Participants also underscored the importance of governmental incentives and public-private partnerships to encourage firms to upgrade their systems. Fiscal advantages, digitalization grants, and training subsidies were viewed as critical enablers for the diffusion of accounting technologies and the enhancement of financial governance practices across Algerian enterprises.
3.2.3. Marketing Strategies
The qualitative findings related to marketing strategies offered a nuanced view of how Algerian firms position and promote their products within a rapidly evolving marketplace. Focus-group discussions revealed a strong preference for traditional marketing media — notably print, television, and outdoor advertising — still perceived as effective for reaching mass audiences. This reliance on conventional channels reflects the enduring influence of local consumption habits and the relative underdevelopment of digital ecosystems.
Nevertheless, participants acknowledged the rising importance of digital marketing, while voicing skepticism about its efficiency in the Algerian context. Concerns included limited internet penetration in certain regions, low online purchasing trust, and insufficient digital skills among marketing professionals.
The consensus among respondents was that marketing strategies should be culturally embedded, aligning with local consumer values, language practices, and symbolic references. Such contextual adaptation was viewed as vital to brand legitimacy and market resonance.
Finally, participants advocated for a gradual, hybrid marketing approach — combining traditional outreach with incremental digital integration. This phased digital transition was perceived as a pragmatic way to maintain audience trust while developing data-driven marketing capabilities and online brand presence.
3.2.4. Startup Ecosystem
The qualitative exploration of Algeria’s startup ecosystem offered micro-level insights into the everyday realities of entrepreneurs and early-stage firms. Case studies consistently identified limited access to funding as the most critical constraint. Entrepreneurs described difficulties in obtaining seed capital, venture investment, or credit facilities, which hindered scalability, product innovation, and market penetration.
Regulatory and bureaucratic hurdles were another pervasive theme. Participants expressed frustration with lengthy registration procedures, inconsistent administrative requirements, and opaque legal frameworks, which collectively generate uncertainty and deter risk-taking.
Mentorship and incubation emerged as decisive success factors. Startups benefiting from sustained mentorship relationships exhibited higher survival rates, greater investor confidence, and faster growth trajectories. The qualitative data therefore underline the need to institutionalize mentoring networks, accelerators, and innovation hubs capable of linking emerging ventures to experienced entrepreneurs and investors.
Finally, collaboration and ecosystem networking appeared as indispensable conditions for overcoming systemic barriers. Entrepreneurs who actively engaged in peer networks, professional associations, and cross-sector partnerships reported significantly stronger business resilience and adaptive capacity.
Overall, the qualitative findings reveal deep interconnections among managerial culture, technological modernization, marketing adaptation, and entrepreneurial vitality. Across sectors, Algerian firms appear to be constrained by hierarchical inertia, digital lag, and fragmented innovation support structures. However, incremental institutional reforms, investment in human capital, and stronger linkages between firms, universities, and incubators could generate a more dynamic business environment conducive to sustainable economic development.
4. Discussion
The findings of this study provide a comprehensive perspective on the interdependent relationships between management practices, accounting information systems, marketing strategies, and the startup ecosystem within Algeria’s evolving economic landscape. By integrating quantitative and qualitative results, this research contributes to a multi-dimensional understanding of organizational performance and economic modernization in emerging economies.
4.1 Management Practices and Organizational Dynamics
The diversity of managerial models observed among Algerian enterprises exerts a significant and context-dependent influence on organizational performance. While hierarchical structures offer stability and predictability, they often constrain innovation and employee initiative, whereas decentralized structures promote creativity, responsiveness, and internal communication. These observations align with the theoretical proposition that organizational design must reflect the cultural, institutional, and sectoral specificities of each context (Bergmark, 2023).
Compared with earlier works, which primarily examined isolated management dimensions such as leadership style or motivation (Bhargavi, 2016), this study demonstrates the systemic nature of managerial heterogeneity in Algeria, highlighting the coexistence of traditional authority models and emergent participatory practices. Organizational effectiveness therefore depends less on the universal application of management models than on their strategic adaptation to local realities.
Consequently, the study reinforces the argument for context-sensitive management reforms, encouraging firms to integrate leadership development, participatory governance, and organizational learning mechanisms as levers for enhanced performance and competitiveness in the Algerian environment.
4.2. Accounting Information Systems and Technological Adaptation
The findings regarding accounting information systems (AIS) reveal both a technological gap and an opportunity for transformation. While firms adopting up-to-date systems tend to perform better financially, the benefits of digitalization remain conditional on complementary managerial and human factors (Bouarioua, 2023). This confirms that technological modernization is necessary but insufficient: it must be accompanied by training, cybersecurity assurance, and strategic alignment between information systems and decision-making processes.
Compared with earlier studies focusing narrowly on system adoption or compliance (Khlif, 2020), this research adds an interpretive dimension by identifying the behavioral and institutional constraints that hinder the effective use of AIS in Algerian firms. Organizational inertia, resource scarcity, and insufficient digital literacy continue to limit the transformative potential of these systems.
Hence, the study contributes to the literature by emphasizing that successful digital integration requires both technological and organizational readiness. This highlights the role of public policies promoting digital governance, fiscal incentives for system upgrading, and collaborative training initiatives between academia and industry.
4.3. Marketing Strategies and Consumer Dynamics
The analysis of marketing practices underscores the critical importance of aligning promotional strategies with evolving consumer behaviors and cultural preferences. Despite the global rise of digital marketing, traditional communication channels — television, print, and outdoor media — retain strong persuasive power in Algeria, where consumer trust and cultural proximity remain key determinants of purchasing behavior (Hedid, 2020).
However, the findings also point to the emergence of hybrid marketing strategies, in which firms combine digital outreach, social-media engagement, and traditional branding efforts to target segmented audiences. This dual approach enables businesses to preserve credibility while expanding their digital footprint.
In contrast to previous studies that treated marketing adaptation as a binary shift from traditional to digital, this research conceptualizes marketing as a continuum, where firms evolve through phased digital integration. This reframing contributes to the theoretical understanding of marketing modernization in developing economies, where infrastructural and behavioral asymmetries slow digital adoption but open new hybrid opportunities.
4.4. Startup Ecosystem and Entrepreneurial Development
The findings on the Algerian startup ecosystem confirm the decisive influence of financial accessibility, regulatory clarity, and mentorship networks on entrepreneurial performance. Startups benefiting from supportive funding schemes and structured mentorship programs report superior outcomes in growth, innovation, and sustainability (Baaziz, 2019).
By comparing these results with prior research that emphasized only structural obstacles (Bouazza, 2015), this study provides a holistic interpretation of entrepreneurial resilience, showing that ecosystemic factors — regulatory coherence, business accelerators, and collaboration platforms — constitute the missing links between innovation potential and economic performance.
Thus, the research enriches the literature on entrepreneurship in emerging markets by demonstrating that Algeria’s startup success depends on systemic coordination among public institutions, financial actors, and knowledge networks. Effective policy interventions must therefore focus on simplifying administrative procedures, developing venture-capital frameworks, and institutionalizing mentorship and incubation structures.
4.5. Integrative Discussion
Across all four dimensions examined — management, information systems, marketing, and entrepreneurship — the study identifies a shared pattern of partial modernization amid structural rigidity. The results collectively suggest that Algeria’s path toward sustainable economic growth lies in the synchronization of organizational reform, technological advancement, market adaptation, and entrepreneurial empowerment.
By bridging micro-level organizational analysis with macro-level policy considerations, this research contributes to a comprehensive framework for understanding economic modernization in resource-dependent developing economies. It thus offers a conceptual and empirical foundation for designing context-specific interventions that promote innovation, productivity, and inclusive growth.
4.6. Implications of the Findings
The empirical and theoretical results of this study yield several implications for business practitioners, policymakers, and institutional stakeholders engaged in Algeria’s economic transformation. They underscore the necessity of context-sensitive strategies that integrate organizational, technological, marketing, and entrepreneurial dimensions within a coherent national development framework.
First, the results reaffirm the importance of culturally embedded and context-specific management practices.Algerian enterprises must tailor their organizational models and leadership structures to align with local managerial cultures, workforce expectations, and sectoral characteristics, rather than adopting imported models uncritically. Management reforms emphasizing participatory leadership, transparency, and continuous training can enhance operational efficiency and employee motivation across industries.
Second, the findings highlight that technological investment is a strategic determinant of competitiveness. The integration of advanced accounting information systems (AIS) and data-driven management tools should be prioritized to strengthen financial oversight, improve decision accuracy, and enhance compliance (Ghomari, 2020). However, technology adoption must be accompanied by human-capacity development and cybersecurity frameworks to ensure effective utilization and data protection.
Third, the study emphasizes the need for a balanced marketing paradigm that leverages both traditional and digital channels. In Algeria’s hybrid media environment, firms should pursue gradual digitalization while maintaining the credibility of conventional outreach methods. Consumer-centric marketing, informed by behavioral data and cultural insight, can foster stronger brand loyalty and market differentiation (Adimi, 2022).
Fourth, the findings confirm the crucial role of a supportive entrepreneurial ecosystem. Policymakers must focus on simplifying administrative procedures, expanding access to finance, and institutionalizing mentorship and incubation programs. Such initiatives, when combined with tax incentives and innovation clusters, can stimulate startup creation and long-term sustainability (Fetni, 2022).
Finally, at the macro level, this research contributes to the regional literature by proposing an integrated conceptual framework linking management modernization, technological adaptation, marketing transformation, and entrepreneurship promotion. By situating these four levers within Algeria’s specific cultural and institutional context, the study offers actionable recommendations for evidence-based policy design and sustainable private-sector development.
Conclusion
This comprehensive study has provided an integrated examination of the multifaceted drivers of economic development in Algeria, focusing on the pivotal roles of management practices, accounting information systems, marketing strategies, and the startup ecosystem. By combining quantitative rigor with qualitative depth, the research has yielded a holistic and empirically grounded understanding of how these elements collectively influence organizational and national performance.
The findings highlight that Algeria’s economic modernization depends on context-sensitive managerial reforms, technological adaptation, and innovation-driven entrepreneurship. The persistent resistance to change and structural rigidity observed in Algerian enterprises suggest that sustainable progress requires leadership transformation, digital competence enhancement, and institutional coherence.
Moreover, the study underscores the decisive importance of public policy in catalyzing private-sector transformation. The consistent demand for governmental support, regulatory streamlining, and fiscal incentivesexpressed by participants across both methodological strands reveals a latent potential for state – business synergy that could significantly accelerate national competitiveness.
The mixed-methods approach adopted in this research has proven essential for capturing the complexity of Algeria’s economic ecosystem. It enabled the identification of convergent patterns across managerial, technological, and entrepreneurial domains, providing a robust foundation for evidence-based recommendations.
Ultimately, this study contributes to the regional and international literature on economic transformation in developing economies by demonstrating that Algeria’s trajectory toward sustainable growth hinges on the coordinated advancement of organizational capability, digital infrastructure, and entrepreneurial vitality. Beyond its empirical contribution, the research opens new avenues for comparative studies on innovation ecosystems and management modernization in the broader North African and Middle Eastern contexts.
