Impact of ICTs on Innovation and Performance of Firms: Do Start-ups, Regional Proximity and Skills Matter?

Alam, Khorshed ORCID: and Ali, Mohammad Afshar ORCID: and Erdiaw-Kwasie, Michael and Shahiduzzaman, Md and Velayutham, Eswaran ORCID: and Murray, Peter A. ORCID: and Wiesner, Retha ORCID: (2022) Impact of ICTs on Innovation and Performance of Firms: Do Start-ups, Regional Proximity and Skills Matter? Sustainability, 14 (10):5801. pp. 1-18.

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Managers need to better understand how information and communication technologies (ICTs) lead to informed decisions about the investment and advantages of such technologies. However, at best, the empirical evidence on the business value of technology is mixed in relation to small firms. A total of 43 firms satisfied the study’s definition of start-ups. The final survey included 54 questions on access to and use of ICTs, innovation, firm characteristics, as well as the participants’ demographics, of which 11 factors were analyzed as part of this study. We found compelling evidence to support the positive effects of ICTs on firm-level innovation and performance based on the primary survey data of 270 small and medium enterprises (SMEs) operating in an Australian regional area. Moreover, we found that ICT strategies and skills are important factors that drive innovation and the overall performance of SMEs. In addition, various conditions, such as an agile workplace culture and international trade, can help firms improve their performance. Young businesses, particularly start-ups with ICT skills, show an improved innovation capability. However, remoteness appears to influence innovation negatively for nascent firms. Thus, managers should focus on improving ICT skills, strategies, and networking that help facilitate tangible ICT investments to foster innovation and growth.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Faculty/School / Institute/Centre: Current - College for Indigenous Studies, Education and Research (1 Nov 2014 -)
Date Deposited: 13 May 2022 00:33
Last Modified: 26 Oct 2022 03:55
Uncontrolled Keywords: information and communication technology; innovation; regional Australia; small and medium enterprises; start-ups
Fields of Research (2020): 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350716 Small business organisation and management
38 ECONOMICS > 3801 Applied economics > 380199 Applied economics not elsewhere classified
38 ECONOMICS > 3802 Econometrics > 380201 Cross-sectional analysis
Socio-Economic Objectives (2020): 22 INFORMATION AND COMMUNICATION SERVICES > 2299 Other information and communication services > 229999 Other information and communication services not elsewhere classified
15 ECONOMIC FRAMEWORK > 1505 Microeconomics > 150599 Microeconomics not elsewhere classified
15 ECONOMIC FRAMEWORK > 1503 Management and productivity > 150306 Technological and organisational innovation
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