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

Khorshed Alam, Mohammad Afshar Ali, Michael Erdiaw-Kwasie, Md Shahiduzzaman, Eswaran Velayutham, Peter A. Murray and Retha Wiesner
Additional contact information
Khorshed Alam: School of Business, Faculty of Business, Education and Law and Arts, University of Southern Queensland, Toowoomba, QLD 4350, Australia
Mohammad Afshar Ali: School of Business, Faculty of Business, Education and Law and Arts, University of Southern Queensland, Toowoomba, QLD 4350, Australia
Michael Erdiaw-Kwasie: Sustainable Enterprise, Asia Pacific College of Business and Law, Charles Darwin University, Darwin, NT 0800, Australia
Md Shahiduzzaman: Discipline of Finance, The University of Queensland, Brisbane, QLD 4072, Australia
Eswaran Velayutham: School of Business, Faculty of Business, Education and Law and Arts, University of Southern Queensland, Toowoomba, QLD 4350, Australia
Peter A. Murray: School of Business, Faculty of Business, Education and Law and Arts, University of Southern Queensland, Toowoomba, QLD 4350, Australia
Retha Wiesner: School of Business, Faculty of Business, Education and Law and Arts, University of Southern Queensland, Springfield Central, QLD 4300, Australia

Sustainability, 2022, vol. 14, issue 10, 1-18

Abstract: 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.

Keywords: information and communication technology; innovation; regional Australia; small and medium enterprises; start-ups (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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