IT Usage and Innovation Performance of SMEs in China: A New Perspective

Xiaohong Wang,Shilei Hu,Marcelo A Savi

doi:10.1155/2021/5512933

Abstract

Existing studies on the information technology (IT) usage of firms are constrained within the perspective of “IT tool” or “IT investment.” Few studies have analyzed the IT usage of firms from a new perspective. This study aims to fill this gap by examining the impact of IT usage on the innovation performance of small- and medium-sized enterprises (SMEs) from the perspective of the product value chain (PVC). A research model integrating IT usage width, IT usage frequency, manufacturing flexibility, human capital quality, and firm innovation performance was proposed for this analysis. Furthermore, a quantitative analysis was performed on a sample of more than 1300 Chinese manufacturing firms using the newest data provided by the World Bank. Results validate that IT usage width and IT usage frequency have a significantly positive impact on the innovation performance of SMEs. Manufacturing flexibility plays a partially mediating role between IT usage frequency and the innovation performance of SMEs. Moreover, human capital quality has a significantly positive moderating effect on IT usage width and the innovation performance of SMEs. IT usage width and IT usage frequency appear to be important predictors of the innovation performance of SMEs, whereas there are substantial differences in the influencing mechanism of IT usage width and IT usage frequency on the innovation performance of SMEs.

Highlights

The new generation of information technology (IT) represented by artificial intelligence has profoundly changed the daily lives of people and has made increasing contributions to productivity improvement and economic growth
Multicollinearity diagnosis was performed for the variables, and the variance inflation factor (VIF) of each variable was calculated. e results validate that the VIF values of all variables are less than 3 (Table 1), far lower than the critical value of 10 [48]. erefore, there is no multicollinearity among variables in this study
In light of the fact that firms increasingly use IT as a facilitator of innovation, this study proposes a new perspective (PVC) that offers a basis for interpreting the difference of IT usage among firms

Summary

Introduction

The new generation of information technology (IT) represented by artificial intelligence has profoundly changed the daily lives of people and has made increasing contributions to productivity improvement and economic growth. Against this background, countries around the world, especially advanced manufacturing powers such as Germany and Japan, are scrambling to develop the new generation of IT [1]. Discrete Dynamics in Nature and Society provide a relatively limited understanding of the relationship between IT usage and the innovation performance of firms, which can be problematic for business managers to develop appropriate IT strategies and for policy makers to formulate effective policies to support the development of the IT industry. This study analyzes the nexus between IT usage and the innovation performance of SMEs in emerging economies, thereby enriching the existing studies that have mainly targeted at developed economies. is is especially important given the fact that SMEs have contributed more than half of the technological innovation, tax revenue, and urban employment of China [12]. e findings provide key managerial implications for business managers

Research Design

Empirical Results

Conclusions and Discussion