Influence of technological innovation on performance of small manufacturing companies

Abstract

PurposeThe purpose of this paper is to examine various technological innovation influencers (TIIs) in small manufacturing firms. It introduces a study framework of technological innovation and evaluates the relevance of four TIIs to building and sustaining the competitiveness of Indian firms.Design/methodology/approachThis research is based on an in-depth survey of 135 firms located in India’s Northern region. Multiple regression analysis was employed to examine the correlation between TIIs and manufacturing firm performance (MFP) for these firms.FindingsThe findings verify that entrepreneurial capability, technology infrastructure capability and government initiatives are the most important TIIs for small firms. The findings are also validated by using statistical t-test and canonical correlation analysis.Research limitations/implicationsThis study uses a single informant as the source of information on each firm. The study is limited to small-scale firms in the Northern region of India. Also, the study has been conducted excluding the service sector.Originality/valueRecent studies have advocated various TIIs and discussed their impact on MFP. This paper examines the determinants of technological innovation in small manufacturing firms. It introduces a study framework of technological innovation and examines the relevance of four TIIs to building and sustaining the competitiveness of Indian firms.