Fueling Innovation Through Information Technology in SMEs

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Provided by: Oregon State University
Topic: Software
Format: PDF
In this paper, the authors describe a study that investigates the mediating effects of information technology (IT) on the relationships among product and process innovations and firm performance. Using structural equation modeling on a sample of 397 Small- and Medium-sized businesses (SMEs), they find evidence that increases in the emphasis placed on innovation, both product and process, positively impacts the emphasis managers place on information technology; the impact of innovation (both product and process) on performance (both profitability and growth) is primarily indirect, felt via the mechanism of the emphasis managers place on information technology; and an increased emphasis on information technology abets managers' perception of their firms' performance, as compared to that observed among peer firms (other SMEs).
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