Innovation among entrepreneurial SMEs during the COVID-19 crisis in Iran

Howard E. Van Auken (), Mohammad Fotouhi Ardakani, Shawn Carraher () and Razieh Khojasteh Avorgani ()
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Howard E. Van Auken: Department of Management and Entrepreneurship, Iowa State University - Ames, Iowa, https://orcid.org/0000-0001-7316-299X
Shawn Carraher: Naveen Jindal School of Management, University of Texas - Texas, https://orcid.org/0000-0003-0763-7699
Razieh Khojasteh Avorgani: Department of Management, Ardakan University - Ardakan, Yazd, https://orcid.org/0000-0003-4379-7892

Small Business International Review, 2021, vol. 5, issue 2, e395

Abstract: COVID-19 is affecting the development of the global economy and threatening the survival of SMEs worldwide. In light of the current situation, this paper examines the factors affecting product and process innovation in SMEs during the COVID-19 crisis. We carried out a simple random sample of 185 SME entrepreneurs in Ardakan, Iran, using a multivariate regression analysis. The results showed that experience is one of the most important factors affecting innovation. Organization size and age were negatively associated with process innovation during the current crisis. Moreover, the findings reveal that training to facilitate cooperation as well as higher commitment to R&D can lead to greater innovation. An important conclusion is that, during the COVID-19 pandemic, government efforts to encourage SMEs to create new products helped them to withstand the crisis. The study suggests that, during the COVID-19 crisis, embracing innovation as a core organizational value helped SMEs to remain competitive.

Keywords: innovation; entrepreneur; small and medium-sized enterprises; SMEs; COVID-19 (search for similar items in EconPapers)
JEL-codes: L26 M10 O31 O36 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:aaz:sbir01:v:5:y:2021:i:2:p:e395

DOI: 10.26784/sbir.v5i2.395

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