Innovation In SMEs Research Articles

Innovativeness of the European economies in the context of the modified European Innovation Scoreboard

Research background: Innovation is an important determinant of economic development, and its importance is growing with the advancement of digitization and the development of the Fourth Industrial Revolution. In turn, the assessment of the innovativeness of a country’s economy affects its investment attractiveness and international image. Purpose of this study: Given the factors presented above, the main aim of this study is to explore and compare the innovativeness of European economies in the context of the modified European Innovation Scoreboard. Methods: To achieve this goal, the authors propose two key modifications of the existing innovation assessment methodology contained in the European Innovation Scoreboard. The first concerns the principles of the normalization of assessment indicators and aims to eliminate extreme assessment values. The second proposes to remove the indicators which are difficult to measure, subjective, and not always useful: (1) those related to sustainable development (resource productivity; emissions of fine particulates; and environment-related technologies) and (2) those that take into account only small and medium-sized enterprises (SMEs introducing product innovations; SMEs introducing business process innovations; and innovative SMEs collaborating with others). Findings & value added: An alternative approach to assessing the innovativeness of the analyzed countries — as proposed by the authors — resulted in changes in the ranking of countries in relation to the European Innovation Scoreboard, but the changes were not significant. The major changes concerned Serbia (down four places), Belgium (down two places), Hungary (up three places), and Poland (up two places). In addition, five countries moved up one place in the ranking (the UK, the Netherlands, Luxembourg, Estonia, Slovenia, Spain, and Slovakia), and five lost one place in the ranking (Norway, Italy, Portugal, Greece, and Croatia). Thirteen countries had no changes. The obtained results allowed us to conclude that the countries with the best and the worst innovativeness maintained the assessment level regardless of changes in the methodology of its implementation. The objectification of rules had the strongest impact on the countries in the middle of the ranking. This study draws attention to the problem of the subjectivity of the innovation rankings. It has also been documented that modifying the selection of evaluation criteria may change the final position in the ranking, which, in the case of emerging and developing economies, may affect investor assessment and economic growth opportunities. Such considerations are important because they are outside the often uncritical mainstream approach to the assessment of the innovativeness of economies. The conclusions imply the need for a multisource analysis of innovation and a critical look at the proposed methodologies.

Moderating role of technological turbulence between green product innovation, green process innovation and performance of SMEs

Innovation in green technologies is a key factor propelling Jordanian sustainable development in the small and medium enterprises for achieving sustainability. Jordan is considered as a hub of small and medium enterprises, however, despite technological advancements and the efforts of the government, small and medium enterprises in Jordan are scarcely catering the aspect of green activities and researchers have paid less attention towards the same. Green product and green process innovation mode choices have drawn enough attention recently, but limited researchers have thoroughly examined the pathways through which green innovation is transmitted to small and medium enterprises’ performance. Green product and process innovation are the two main streams of green innovation that can enhance small and medium enterprises’ performance. The current research builds the framework for SMEs performance based on green product innovation and green process innovation following earlier research that have been conducted in the context of developed countries. It conducts an empirical analysis using responses of 384 manufacturing sector small and medium enterprises in Jordan. The findings demonstrate that small and medium enterprises can perform better when green products and processes are innovated. One significant moderating variable over the performance paths of small and medium enterprises is technological turbulence. The findings of the research contribute to a better understanding of green innovation and have implications for designing policies that promote green development.

FDI and product and process innovation of SMEs in Vietnam: The role of institutions

AbstractConceptually, institutional arrangements in the host economy are likely to moderate the effect of inward FDI on domestic firms' product and process innovation, which is however not well explored empirically. Filling the gap, this research investigates how such FDI impacts are contingent upon local institutional arrangements, using survey data of 2690 manufacturing SMEs in Vietnam in 2011, 2013 and 2015. We find that institutional quality exerts positive moderating effects on FDI spillovers. That is, higher institutional quality leads to a higher marginal effect of FDI presence on the innovation performance of domestic SMEs. The moderating effects are stronger for developed‐country FDI than for developing‐country FDI. We also distinguish different institutional components and find that seven out of nine institutional sub‐indices have significant moderating effects, of which the control of corruption is the most important factor in promoting FDI spillovers, whilst the effects of business support and labour training policies are negligible.

Do training and development, internal communication and information sharing, and job design boost the innovation of SMEs?

Do training and development, internal communication and information sharing, and job design boost the innovation of SMEs?

Funding the Future: Venture Capital’s Role in Environmental Technological Innovations in Chinese Manufacturing SMEs

Funding the Future: Venture Capital’s Role in Environmental Technological Innovations in Chinese Manufacturing SMEs

Human Resource Management Practices and Firm Innovation: An Empirical Study in Sri Lankan SMEs

In the modern business world, organisations are confronting a severe competitive and unceasingly changing condition. In this context, innovation has gained significant popularity in management and entrepreneurship literature as vital in reaping competitive advantage. Thus, organisational practitioners are in the quest to better encourage and organise innovation within their firms to warrant sustainable competitive advantage. However, how to promote innovation within organisations remains obscure and paradoxical. The past literature shows that human resource management practices are the antecedents of firm innovation. Therefore, studies are investigating the role of human resource management in facilitating firm innovation. Nevertheless, empirical evidence remains inconsistent, and theory is fragmented. Notably, the link between human resource management and innovation in Sri Lanka echoes several unresolved aspects. Since scant empirical research has addressed those relationships in developing country contexts, this study explicitly investigates the relationship between human resource management practices and firm innovation in Sri Lankan SMEs. Data were marshalled through a self-reported questionnaire with 214 Sri Lankan SMEs. As a caveat, the reliability and validity of the variables were confirmed. The hypotheses were tested with statistical software, PLS-SEM (Partial Least Squares Structural Equation Modeling). The study revealed that recruitment and selection, training and development, and performance appraisal significantly impact firm innovation. However, compensation and reward systems positively impact product innovation, not process innovation, and this study found a negative impact of compensation and reward systems on administrative innovation. The study contributed to the extant human resource management and innovation literature in many ways discussed at the end of the paper. On an equal footing, practical implications for HR managers, practitioners and employees were lucidly discussed. The present becomes a springboard for future scholarly works.

THE INNOVATION PERFORMANCE OF SMES IN CHINA

In the context of innovation and development of SMEs, improving innovation performance has become the key to the future breakthrough of SMEs. The article describes the definition of innovation performance by Chinese scholars, the existing dimensions of innovation performance, and the factors affecting it. It has been found, however, that there are fewer existing studies on the innovation performance of SMEs. This paper concludes that Chinese SMEs innovation behavior can increase their innovation performance, hence increasing their competitiveness. Breakthrough innovation focuses on revolutionary invention, whereas progressive innovation focuses on improvement. As a result, adequate emphasis should be given to the study of SMEs innovative behavior.

Identification of Driving Factors of Sustainable Innovation in MSMEs in the Food, Beverage, and Service Sectors in West Java

This research aims to explore sustainable innovation within MSMEs in West Java, focusing on understanding, and driving factors. Utilizing a qualitative approach, we conducted interviews with 11 MSMEs from the food, beverage, and service sectors. Our findings indicate varying levels of awareness of sustainable innovation, with primary external drivers being market competition and consumer demand, while the internal driver is MSMEs decision. The study highlights the need for targeted support to enhance SME innovation capabilities, and emphasizing the role of continuous learning. These insights contribute to the broader knowledge of sustainable practices in MSMEs.

Government policy towards small and medium tourism enterprises in Indonesia: Proposal for development and increasing regional revenue

The small and medium tourism enterprises sector has experienced a decline in Indonesia’s economic conditions in recent years. This research aims to advise stakeholders regarding factors that must be considered and included in future policy formulation. The research methodology is a mixed method supported by the N-Vivo computer program, interview studies, and FGD. This research focuses on four tourism provinces in Indonesia. The research results using thematic analysis identified 133 codes, 19 categories, nine core themes, and one impact theme. This research’s novelty highlights that government policy’s effects on tourism SME marketing are not significant due to weak support. Apart from that, partnerships and collaboration between the central regional government and tourism SMEs are the main factors determining their development at the regional level. This research concludes that government intervention and support in encouraging the growth and sustainability of tourism SMEs are necessary. The Government must promote collaboration between tourism SMEs because increasing the number of tourists is crucial, as well as encouraging sustainable marketing practices and simplifying regulations. The recommendation is that the Government immediately simplify regulations, expand partnerships and collaboration, and promote innovation in tourism SMEs. By implementing these recommendations, policymakers can create an environment that supports the development of tourism SMEs, allowing the tourism sector to increase GRDP.

Artificial Intelligence and the Great Reset: Impacts and Perspectives for Italian SMEs Business Model Innovation

The rise of artificial intelligence is fundamentally transforming the competitive landscape across various sectors, offering visionary enterprises new pathways to innovation development and to get a competitive edge. AI leverages data, analysis, and observations to perform tasks without hard coding, and benefits from self-learning and continuous improvement. We use Systems Thinking to frame how managers may adopt and integrate AI in business activities. We also investigate the motivations driving entrepreneurs to adopt AI solutions, and how they may impact on sustainable business model innovation, by administering a questionnaire to a sample of innovative Italian SMEs to get a comprehensive overview of the dynamics influencing AI adoption in business. This study sheds light on the intricate relationship between technology, sustainability, and corporate innovation. It offers both valuable insights for future research and for strategic managerial decisions on AI integration. Furthermore, it helps the development of innovative, sustainable business models in the evolving landscape of the Great Reset.

Enhancing operational scale in SMEs through coopetition: Insights from the Portuguese ornamental stone industry

This study explores whether coopetition enhances scale determinants for SMEs, focusing on a case study in the Portuguese Ornamental Stone sector. The findings show that transitioning to coopetition networks positively impacts scale determinants in this sector. These improvements highlight coopetition's potential to drive operational efficiency, resource optimization, and market responsiveness, aligning with Sustainable Development Goals (SDGs) 8, 9, and 12. However, the study's limitations include a specific focus on Portuguese SMEs and a limited data collection period, indicating the need for broader and longer-term research. Future research should extend to different sectors and regions, incorporate a broader range of KPIs, and consider external factors affecting coopetition outcomes. This would provide a more comprehensive understanding of coopetition's role in fostering sustainable growth and innovation in SMEs. This research contributes to theory by leveraging S-D Logic and open innovation to enhance coopetition, showcasing their practical application in SMEs.

Exploring mediating and moderating factors of FinTech adoption for innovations in SMEs

Exploring mediating and moderating factors of FinTech adoption for innovations in SMEs

Global Markets: The Moderating Impact of Entry Mode Experience on SME Innovation in Foreign Sales

Global Markets: The Moderating Impact of Entry Mode Experience on SME Innovation in Foreign Sales

Sanctions and opportunities: Factors affecting China's high-tech SMEs adoption of artificial intelligence computing leasing business

Due to sanctions, more Chinese high-tech SMEs are turning to rent AI computing power through cloud service providers. Therefore, it is necessary to give a variety of suggestions for China's high-tech SMEs to better develop AI applications through computing power leasing. Because traditional theories are difficult to explain this new technology adoption behavior, this research combines and extends TTF and UTAUT2 theories to take an empirical research. A total of 387 questionnaires were received, of which incomplete questionnaires and invalid questionnaires were issued, leaving 281 valid questionnaires. The results indicate that SME innovativeness, perceived risk, performance expectancy, price value and task technology fit are all significantly related to usage, whereas task technology fit moderates the other relationships significantly. Results give a variety of suggestions for China's high-tech SMEs to better develop AI applications through computing power leasing in the context of sanctions. This study not only suggests ways to increase the competitiveness of SMEs by optimizing leasing services but also give directions in investors' investment decisions. The findings are also applicable to the large-scale application of China's domestic AI chips in computing power leasing scenarios in the future.

Family Commitment and Product Innovation in Family SMEs. Do Management Control Systems Have an Influence?

Family Commitment and Product Innovation in Family SMEs. Do Management Control Systems Have an Influence?

Digital Transformation in SMEs Emerging Technological Tools and Technologies for Enhancing the SME's Strategies and Outcomes

This study aims to conduct a comprehensive analysis of digital transformation which involves the integration of digital technology into all sectors of SMEs, resulting in increased efficiency and enhanced customer service, enables SMEs to reduce overall expenditure by optimizing operational and marketing costs, thereby allowing to focus on value-adding activities, supports SMEs' technology innovation development models and strategies for fostering technological innovation within SMEs. The research identifies the difficulties encountered by SMEs during the implementation of digital transformation initiatives. Additionally, it seeks to acknowledge emerging trends in digital transformation that may affect SMEs and offer advice on proactively embracing technological advancements to sustain competitiveness. This is a mixed-method research project utilizing systematic review and deductive methods to gather qualitative data.Top of FormBottom of Form SMEs currently employing digital transformation were purposefully selected based on criteria such as authorship, publication date, sample size, and variables for this study. Furthermore, this research involved conducting thorough interviews and observations to delve into the technological innovations pursued by the participants. It was found that there are some factors of digital transformation in SMEs' technology innovation: Enhanced Operational Efficiency, Improved Customer Engagement, Global Market Access, Data driven decision making. Hence, Digital transformation in SMEs contribute autonomously to the expenses of technological innovation to foster business sustainability. This necessitates a strategic focus on enhancing consumer services and fostering a favorable attitude toward innovation in SMEs' business practices and development through technology. This study examines obstacles to SME technology innovation in production, business models, technology adoption, and strategic approaches, without analyzing costs related to SME-driven digital transformation. Future studies could investigate obstacles across various SME sectors to enhance digital tools, underscore the significance of SMEs adopting technology, integrating strategic supply chain management, and broadening their business strategies to attain sustainable development.

Current Status and Future Prospects of Business Technology Research: A Multidimensional Bibliometric Review

In the rapidly evolving field of business technology, understanding its current status and prospects is crucial for fostering innovation and achieving competitive advantage. This study aims to dissect business technology research's intellectual and influential dynamics, offering quantitative insights and a comprehensive review of its literature. Employing a multidimensional bibliometric approach, this research scrutinizes 177 articles published in the Scopus database from 1985 to 2024. Utilizing advanced analytical tools such as RStudio and VOSviewer, the study meticulously analyzes the data, applying sophisticated bibliometric tests to decode the complex dynamics of business technology research. The results highlight the leading journals, authors, and collaborative networks shaping the domain. Notably, the Journal of Information Technology Research emerges as a central hub of scholarly activity. The research delineates several major thematic streams within business technology: Digital Transformation and Industrial Management, Technology Innovation in SMEs, Information Technology and E-Commerce, E-Business Strategies and Profitability, Information Systems and Business Processes, and Supply Chain Management and Social Responsibility. The study also uncovers significant research gaps in the current literature and proposes future research directions, setting a foundation for further empirical exploration. This research represents a pioneering effort in applying a bibliometric approach to business technology. The findings and proposed future research avenues provide both researchers and practitioners with a robust quantitative foundation for understanding the scientific development of business technology, paving the way for further scholarly inquiry and practical application in this vital field.

Innovative strategies for overcoming barriers to technology adoption in small and medium-sized enterprises

ABSTRACT This study introduces the SME [small and medium-sized enterprise] innovation acceleration framework, a novel approach to addressing technology adoption barriers in Malaysia’s manufacturing and related services SMEs. Integrating Lewin’s three-stage model, Kotter’s eight-step change management framework, and Parasuraman’s technology readiness index, the research presents a comprehensive, culturally sensitive roadmap designed for the unique challenges SMEs face. Employing a Delphi study methodology with industry experts, the article identifies critical barriers to technology adoption and offers actionable strategies for enhancing technological readiness and innovation. The framework distinguishes itself by providing a mechanism to improve global competitiveness and economic contributions of SMEs, offering a replicable model for similar contexts internationally. This contribution enriches the literature with a practical, culturally attuned model for advancing SME innovation and technology adoption, which is of significant interest to scholars, policy makers, and practitioners worldwide.

Innovación organizacional en la estrategia de internacionalización en pymes vitivinícolas: El caso chileno

This investigation aims to determine the components of the organizational innovation in Chilean bottled wine SMEs, to strengthen the internationalization strategy in global markets, concerning the leading countries with international recognition. These results should help enhance competitiveness in cosmopolitan markets with wine tradition. In operational terms, it includes five stages: data collection from wine SMEs, instrument design (questionnaire), application of this instrument in companies through personalized field work, processing, analysis, and systematization of the collected data through office automation instruments—mainly the SPSS statistical program for a validation—and delivery of these results to each of the participant companies. As one of the primary outcomes, wine SMEs are gaining legitimacy through organization innovation as a corporate strategy to have opportunities to stay in national and international markets.

Innovative SMEs in Italy. Explaining profitability patterns in inner areas

PurposeThis paper investigates whether and to what extent operating in inner areas affects the profitability of innovative Italian small and medium-sized enterprises (SMEs) over 2012–2018.Design/methodology/approachGuided by the National Strategy for Inner Areas and the “Investment Compact,” this study distinguishes between inner and core innovative SMEs. It employs various econometric models to estimate a regression for the return on assets of SMEs, differentiating between firms operating in inner and non-inner areas of northwest, northeast, centre and south Italy.FindingsFindings reveal that innovative SMEs in inner areas generally exhibit lower profitability compared to those in non-inner municipalities. However, huge heterogeneity in results is observed across the country. Specifically, innovative SMEs in the inner areas of the south register lower profitability than those operating in non-inner zones. Conversely, innovative SMEs located in the inner municipalities of northwest and northeast Italy show higher profitability than their peers in non-inner areas. The results imply that targeted policies for inner areas are crucial. However, due to the diversity of local impacts, a differentiated approach, depending on the geographic context, is necessary.Originality/valueThe study aims to explore the relationship between inner areas and the performance of innovative SMEs in Italy. More precisely, it examines the effect of operating in a municipality located within an inner area on the profitability of innovative SMEs. This issue has been overlooked in existing literature. Importantly, we aim to determine whether there is a heterogeneous impact based on geographical localisation, specifically in the Northwest, the Northeast, the Centre and the South of the country. Therefore, this paper contributes to the literature by investigating the factors influencing the performance of innovative SMEs and suggesting new policy recommendations for developing inner areas in Italy.