Fueling Innovation through Information Technology in SMEs *

Fueling Innovation through Information Technology in SMEs * 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). http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Small Business Management Wiley

Fueling Innovation through Information Technology in SMEs *

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Publisher
Wiley
Copyright
© 2008 Blackwell Publishing Ltd
ISSN
0047-2778
eISSN
1540-627X
DOI
10.1111/j.1540-627X.2008.00240.x
Publisher site
See Article on Publisher Site

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).

Journal

Journal of Small Business ManagementWiley

Published: Apr 1, 2008

References

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