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Innovation among entrepreneurial SMEs during the COVID-19 crisis in Iran

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Abstract

COVID-19 is affecting the development of the global economy and threatening the survival of SMEs worldwide. In light of the current situation, this paper examines the factors affecting product and process innovation in SMEs during the COVID-19 crisis. We carried out a simple random sample of 185 SME entrepreneurs in Ardakan, Iran, using a multivariate regression analysis. The results showed that experience is one of the most important factors affecting innovation. Organization size and age were negatively associated with process innovation during the current crisis. Moreover, the findings reveal that training to facilitate cooperation as well as higher commitment to R&D can lead to greater innovation. An important conclusion is that, during the COVID-19 pandemic, government efforts to encourage SMEs to create new products helped them to withstand the crisis. The study suggests that, during the COVID-19 crisis, embracing innovation as a core organizational value helped SMEs to remain competitive.

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  • Van Auken, Howard E. & Fotouhi Ardakani, Mohammad & Carraher, Shawn & Khojasteh Avorgani, Razieh, 2021. "Innovation among entrepreneurial SMEs during the COVID-19 crisis in Iran," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 5(2), pages 395-395, September.
    • Handle: RePEc:aaz:sbir01:v:5:y:2021:i:2:p:e395
    DOI: 10.26784/sbir.v5i2.395
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    1. Huang, Yi-Fen & Lin, Hung-Chun & Lee, Hsu-Mei, 2023. "Innovation in manufacturing SMEs during the COVID-19 pandemic: How does environmental dynamism reinforce employee proactive behavior?," Technological Forecasting and Social Change, Elsevier, vol. 187(C).

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    More about this item

    Keywords

    innovation; entrepreneur; small and medium-sized enterprises; SMEs; COVID-19;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O36 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Open Innovation

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