Technology Innovations toward Sustainable Growth of Small Medium Enterprise (SMEs): Aftermath COVID-19 Pandemic

Mohd Herry Bahador,Siti Sara Ibrahim

doi:10.6007/ijarbss/v11-i2/9199

Abstract

Small and medium enterprises (SMEs) are vital to the economic growth of developing nations, due to the major segment of commercial activities that are conducted by such SMEs. However, the spread of the COVID-19 pandemic has severely affected supply and demand for SMEs as a result of worldwide lockdowns and restriction policies implemented in the effort to cull the outbreak of the virus. These restrictions, including the temporary closure of physical businesses and limited travel, have significant consequences towards sustainability in the growth of SMEs. SMEs must contend with challenges including decreased commercial opportunities, interruptions in the supply chain and human resources issues. In the face of these barriers, the evolution of the existing business models by adopting technology innovation can assist SMEs in establishing novel strategies to lay a foundation for future sustainable growth. Thus, the current study proposes a conceptual framework for a new business model which adopts technology innovation tools, namely the internet and web, big data analysis and artificial intelligence (AI). All these tools are adopted in alignment with the Technology Acceptance Model (TAM). This framework is vital in raising awareness regarding the role of technology innovation in rejuvenating the business operations of SMEs in order to ensure sustainable growth and survival in the wake of the COVID-19 pandemic.

Highlights

Small Medium Enterprises (SMEs) are growing to become vital players in the growth and evolution of economies in both developing nations as well transitional and developed marketcentric countries
The outbreak has given rise to a highly challenging business environment for the continued sustainability of SMEs, and created circumstances leading to a global economic recession
The current study proposes the adoption of technology innovation in the business operations of new SMEs in order to guarantee sustainability in the growth of these enterprises in an environment impacted severely by the COVID-19 pandemic

Summary

Introduction

Small Medium Enterprises (SMEs) are growing to become vital players in the growth and evolution of economies in both developing nations as well transitional and developed marketcentric countries. Global policies and strategies to tackle the COVID-19 outbreak are typically in the form of various limitations, including national lockdowns, quarantines, and the short-term cessation of physical business operations Such restrictions carry consequences towards the operations and sustained growth of SMEs, resulting from the decreased business opportunities, supply chain disturbances and problems with retaining or hiring staff. The COVID-19 pandemic has triggered severe shifts in the business environment which has forced firms to adapt to extensively digital platforms and cope with stricter time pressures (Priyono, Moin & Putri, 2020) In the wake of the COVID-19 outbreak, research has indicated that adapting to digital technology is vital in weathering the crisis, whether through utilizing the internet and websites, big data analysis, or artificial intelligence (AI) in the new model for business operations, which align with the Technology Acceptance Model (TAM)

Objectives

Conclusion