Fuelling Innovation through Information Technology in SMEs: A Study of Key Determinants and Processes

MSTF- RP
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Table of Contents
Research topic:...........................................................................................................................3
Chapter 1 Introduction...............................................................................................................3
1.0 Introduction.....................................................................................................................3
1.1 Background of the study......................................................................................................3
1.2 Problem Statement...............................................................................................................4
1.3 Rationale of the study...........................................................................................................4
1.4 Research Aim.......................................................................................................................5
1.5 Research Objective...............................................................................................................5
1.6 Research Question................................................................................................................5
Chapter 2 Literature review.......................................................................................................7
2.0 Concept of Innovation..........................................................................................................7
2.1 Current status of IT investments..........................................................................................8
2.2 IT adoption within SMEs......................................................................................................8
2.3 IT Investment, Innovation and organizational Performance...............................................9
2.4 Literature Gap....................................................................................................................10
2.5 Theoretical and conceptual framework.............................................................................10
Chapter 3 Methodology............................................................................................................11
3.0 Research philosophy..........................................................................................................11
3.1 Research approach.............................................................................................................11
3.2 Research design..................................................................................................................11
3.3 Data collection method......................................................................................................12
3.4 Sampling technique and selection......................................................................................12
3.5 Ethical considerations........................................................................................................12
3.6 Limitation of the methods..................................................................................................13
3.7 Timeline of research activities...........................................................................................13
Reference List..........................................................................................................................15
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Research topic:
Fuelling innovation through information technology in SMEs
Chapter 1 Introduction
1.0 Introduction
“Small and medium-sized” organizations currently report for major source of various kinds of
jobs, technical developments and “competitive advantages” for both the developed and
emerging countries. Owing to the increased competition and need for penetrating to
international market undergone by SMEs, these organizations are effectively employing IT
technologies to achieve benefit of its considerable benefits. Most of the previous researches
and studies in this regard have focused on Information Technology adoption in leading
corporations. However, the procedure of IT adoption in SMEs is considerably different. The
aim of this study is to examine and evaluate the mediating influences of IT on the
relationships among process and product innovations as well as organizational performance.
Successful completion of this study would be able to develop an understanding and
knowledge regarding necessity of innovation through IT technologies in SMEs.
1.1 Background of the study
A pledge to innovation has long been measured to be necessary to the achievement of small
and medium-sized ventures. Several researchers have shown the fact that innovation actually
helps to stimulates organizational growth along with useful in providing an important source
of competitive advantage in the deficiency of scale economies. Effective innovation might be
dependent on the attendance of other company-specific competencies and skills. For instance,
substantial evidences have begun to reflect that proper planned employment of “Information
Technology” might be significant in translating organizational strategies to developed
organizational performance. With increasing demand for different information technology
tools mangers now have stated to consider application of IT as a competitive technology in
their organizations. Morgan-Thomas (2016) has opinionated that through information
technology tools, companies could be able to outperform market competitors who do not
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invest in the same area. Study regarding all these areas would be helpful to acknowledge how
and why innovation through IT is necessary within budding SMEs.
1.2 Problem Statement
Precisely, this study is intended to disclose an effective investigation on changing
environment in SMEs because of innovation in the information technology operations.
Though it is an important part of small enterprise and several organizations have realized
necessity of innovation through information technology, several challenges are there within
adaptation and implementation of innovation in this department (Avgerou and Walsham,
2017). Core challenges that have been identified through researchers associated to this field
are insufficient knowledge regarding innovative processes, funding issues, management
barriers and others. These challenges are offering an insight to the current environment of
Information Technology and implementation barriers. Identification of problem statements
related to fuelling innovations with the help of IT operations is helpful to recognize
advantages and disadvantages of this current necessity. On the other hand, problem
statements regarding information technology and innovation would be helpful to recognize
possible methods to overcome difficulties to process innovation swiftly within small and
medium-sized organizations through IT.
1.3 Rationale of the study
The modern financial environment that is dominated by hyper-competition, knowledge and
information uprising and globalization has shaped and transformed the way business is
conducted. Currently keeping pace with the developing efficiency level of SMEs in the
business environment, several organizations are acknowledging importance of innovations in
their organizations (Cavusgil and Knight, 2015). Commercialization of information
technology is becoming an important business necessity in small and medium-sized
organizations. Implementation and adaptation of innovative processes as well as technologies
in this operation is one of the leading issues within SMEs currently.
Increasing business pressure and constant competitive business environment are bestowing
pressure upon organizations to provide most efficient and innovative services and products to
their customers. In order to stand against this market pressure and need of differentiating
organizational image is compelling small and medium-sized to adopt and implement
innovative operations and techniques through information technology.
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