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Fueling Innovation through Information Technology in SMEs

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  • Clay Dibrell
  • Peter S. Davis
  • Justin Craig

Abstract

This paper describes a study that investigates the mediating effects of information technology (IT) on the relationships among product and process innovations and firm performance (measured in multiple profitability and growth rate metrics). Using structural equation modeling on a sample of 397 small and medium‐sized enterprises (SMEs), we find evidence that (1) increases on the strategic emphasis placed on innovation, both product and process, positively impact the prominence managers place on IT; (2) the impact of innovation (both product and process) on performance (both profitability and growth) is primarily indirect, felt via the mechanism of the importance managers place on IT; and (3) an increased emphasis on IT abets managers' perception of their firms' performance, as compared with that observed among peer firms (other SMEs).

Suggested Citation

  • Clay Dibrell & Peter S. Davis & Justin Craig, 2008. "Fueling Innovation through Information Technology in SMEs," Journal of Small Business Management, Taylor & Francis Journals, vol. 46(2), pages 203-218, April.
    • Handle: RePEc:taf:ujbmxx:v:46:y:2008:i:2:p:203-218
    DOI: 10.1111/j.1540-627X.2008.00240.x
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    Citations

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    Cited by:

    1. Mina Nasiri & Minna Saunila & Tero Rantala & Juhani Ukko, 2022. "Sustainable innovation among small businesses: The role of digital orientation, the external environment, and company characteristics," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 703-712, August.
    2. Jefferson Leandro Schmidt & Simone Sehnem & Juliano Danilo Spuldaro, 2024. "Blockchain and the transition to the circular economy: A literature review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2010-2032, May.
    3. Tomasz Norek, 2023. "Impact of Selected Regional Characteristics on Innovation Effectiveness of the SME Sector," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 873-884.
    4. Sohaib S. Hassan & Konrad Meisner & Kevin Krause & Levan Bzhalava & Petra Moog, 2024. "Is digitalization a source of innovation? Exploring the role of digital diffusion in SME innovation performance," Small Business Economics, Springer, vol. 62(4), pages 1469-1491, April.
    5. Tomasz Norek, 2023. "Impact of the Covid-19 Pandemic on the Innovativeness of SME Enterprises in Poland: A Regional Perspective," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 573-584.
    6. Juma Buhimila Mabula & Han Dong Ping & Moshi James, 2023. "The Impact of African Firms’ Utilization of Financial and Technology Resource on Innovation: A Simple Mediation," SAGE Open, , vol. 13(1), pages 21582440231, February.
    7. Satı, Zümrüt Ecevit, 2024. "Comparison of the criteria affecting the digital innovation performance of the European Union (EU) member and candidate countries with the entropy weight-TOPSIS method and investigation of its importa," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    8. ROMAN Angela & RUSU Valentina Diana, 2022. "Digital Technologies And The Performance Of Small And Medium Enterprises," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(3), pages 190-203, December.
    9. Istipliler, Baris & Bort, Suleika & Woywode, Michael, 2023. "Flowers of adversity: Institutional constraints and innovative SMEs in transition economies," Journal of Business Research, Elsevier, vol. 154(C).
    10. Luis Javier Garcia-Martinez & Sascha Kraus & Matthias Breier & Andreas Kallmuenzer, 2023. "Untangling the relationship between small and medium-sized enterprises and growth: a review of extant literature," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 455-479, June.

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