Smaller businesses and e-innovation: a winning combination in Australia

Alam, Khorshed and Adeyinka, Adewuyi Ayodele and Wiesner, Retha (2019) Smaller businesses and e-innovation: a winning combination in Australia. Journal of Business Strategy. ISSN 0275-6668


Purpose: The purpose of this paper is to understand whether or not factors that impact the performance–innovation nexus differ from one percentage level of performance to another among small- and medium-sized enterprises in regional Australia, with a specific focus on e-innovation by strategic and non-strategic firms in the agricultural sector and in other industries.

Design/methodology/approach: Researchers implicitly assumed that the performance–innovation relationship is uniform across high-level, mid-level and low-level performing small- and medium-sized enterprises. In this study, the authors analysed performance at different percentage levels.

Findings: The findings indicate that the levels of small- and medium-sized enterprises performance have a significant difference in terms of the factors influencing their performance. The industry may be a determinant of performance, which is similar in the case of the topmost performers in the non-agricultural sector. The major findings of this study are as follows: the performance–innovation relationship differs by the percentage level of small- and medium-sized enterprises performance; and Solow’s productivity paradox exists at the firm level.

Practical implications: The authors recommend that rural policies should target low-performing firms. Moreover, researchers should adopt methodologies that shed light on the differences in the performance–innovation nexus across performance levels rather than one-size-fits-all methodologies that are often adopted.

Originality/value: The major contributions of this study are that the performance–innovation relationship differs by the level of small- and medium-sized enterprises performance, and Solow’s productivity paradox exists at the firm level.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Published online: 6 May 2019. Permanent restricted access to ArticleFirst version, in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
Faculty/School / Institute/Centre: Current - Institute for Resilient Regions - Centre for Health, Informatics and Economic Research (1 Aug 2018 -)
Date Deposited: 27 Nov 2019 02:35
Last Modified: 17 Jan 2020 03:14
Uncontrolled Keywords: small and medium size enterprise, quantile regression, eCommerce, performance-innovation nexus, regional Australia, Solow productivity paradox
Fields of Research : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140301 Cross-Sectional Analysis
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150307 Innovation and Technology Management
Socio-Economic Objective: B Economic Development > 89 Information and Communication Services > 8901 Communication Networks and Services > 890199 Communication Networks and Services not elsewhere classified
B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910205 Industry Policy
Identification Number or DOI: 10.1108/JBS-11-2018-0186

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