IMPLEMENTATION OF INNOVATIONS BY MICRO-, SMALL- AND MEDIUM-SIZED BUSINESSES IN CRISIS SITUATIONS – IN THE LIGHT OF THE COVID-19 PANDEMIC

Abstract

Crisis situations vary in their underlying causes and scope of impact. The crisis triggered by the COVID-19 pandemic has led to numerous changes in the economies and businesses operating within them. This paper presents findings from a study conducted among Polish businesses in the SMB sector. The study comprised a survey of 1090 micro-, small, and medium-sized enterprises, spanning the first two years of the COVID-19 pandemic. The discussion primarily centers on analyzing the study results related to the implementation of innovations in businesses. The main objective of the paper was to identify the specific characteristics of the innovative activities undertaken by micro-, small, and medium-sized entities amidst the COVID-19 pandemic crisis and the associated restrictions. The analysis focused on the goals of innovation implementation, the planning process, as well as the types and scope of impact of the innovations. The research aimed to discern variations based on organizational size, the duration of operation in the market, the education of the person managing the organization, and the level of revenue obtained. The survey findings indicate that over half of the businesses surveyed implemented innovations, primarily in the form of product and process innovations relevant to their respective organizations. The majority of businesses reported long-term planning of innovations. However, the proportion of innovative businesses decreased with the size of the business. Regardless of organizational size, the primary aim of innovation implementation was to introduce new products. The proportion of entities implementing innovations was higher in businesses that achieved revenue at a similar or lower level compared to the previous year and operated in the market for a shorter period.