2020
DOI: 10.3390/su12041355
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Impact of Innovation Culture, Organization Size and Technological Capability on the Performance of SMEs: The Case of China

Abstract: Small and medium-sized enterprises (SMEs) in both the manufacturing and service sectors have been viewed as an important driving force behind the rapid economic growth in China. There are multiple factors that drive the success of SMEs. In this paper, we study the effect of innovation culture, technological capability, and organization size on the performance of SMEs in China. We hypothesize that firm performance is positively affected by each of these factors. We use data from 1124 SMEs in China and apply reg… Show more

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Cited by 48 publications
(41 citation statements)
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References 54 publications
(61 reference statements)
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“…Regarding the sector of SMEs and their innovativeness, manufacturing firms are more innovative than service firms. These findings are consistent with the results of the studies of Coen Rigtering et al (2014) and Tang et al (2020). Operating in international markets might be a reason to explain the differences between the innovativeness of manufacturing and service firms because, according to Kathuria et al (2008), firms in the manufacturing industry operate in international markets, make more exports, and go more globally comparing with service firms.…”
Section: Discussionsupporting
confidence: 89%
See 1 more Smart Citation
“…Regarding the sector of SMEs and their innovativeness, manufacturing firms are more innovative than service firms. These findings are consistent with the results of the studies of Coen Rigtering et al (2014) and Tang et al (2020). Operating in international markets might be a reason to explain the differences between the innovativeness of manufacturing and service firms because, according to Kathuria et al (2008), firms in the manufacturing industry operate in international markets, make more exports, and go more globally comparing with service firms.…”
Section: Discussionsupporting
confidence: 89%
“…Thus, performing innovative actions for firms in the service industry is more effortless than manufacturing firms that need more resource commitments to make innovative actions. In this regard, service firms' more straightforward innovations affect their innovation culture and positively affect these businesses' performance (Tang, 2020). Significant role in this process is also attributed to the role of motivation and ability to retain skilled employees Smolarek & Sułkowski, 2020).…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
“…Thus, strengthening the capacity of human resources and the use of technology will have an impact on increasing the productivity, business diversification, and business sustainability of SMEs. Technology capability has a positive and statistically significant relationship with company performance in the manufacturing industry, but not in the service industry, whereas innovation culture has a positive and statistically significant relationship with firm performance in the service, but not the manufacturing industry [61,62].…”
Section: Human Resources and Productivity Of Smesmentioning
confidence: 99%
“…With fewer people, the number of decision-makers is declining, and everything depends on a certain level of knowledge of the head of the company [5]. Small businesses have fewer financial resources [6]. Factors influencing the views of businesses in ICT deployment are summarised in Table II.…”
Section: Assessing Sme Readiness For Cloud Servicesmentioning
confidence: 99%