SMEs' Innovative and Diversification Capabilities: Leveraging IT to Achieve Sustainable Performance

Akmal Khudaykulov, Ibrokhim Ilkhomjonov and Dilafruz Murodova
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Akmal Khudaykulov: TEAM University, School of Business
Ibrokhim Ilkhomjonov: The International Economics Department, The University of World, Economy and Diplomacy
Dilafruz Murodova: Cambridge International University, School of ELT

International Journal of Innovation and Economic Development, 2022, vol. 8, issue 5, 7-14

Abstract: In this paper we explore SMEs’ innovative and diversification capabilities, and how they contribute to sustained performance. We identify strategies customized exclusively for SMEs to build a resilient strategy by wisely reallocating resources and leveraging new technology for attaining sustainability. SMEs, due to limited resources compared to their larger counterparts, cannot afford to diversify by shifting to entirely new business activities as they lack the assets to be invested. Instead, they should focus on gradually improving existing services and innovating delivery using IT. Diversification should be well-thought, thoroughly planned, discussed among company members, tested and provide expected return on investment. It is a multistage process, and each phase should logically follow from the previous. Identifying characteristics and best practices could help more severely affected sectors to become more innovative and resilient during a time of crisis. To counteract decrease and maintain consistent growth, organizations should focus both on maintaining the existing business and gradually improving existing services and innovating the way services are provided to customers.

Keywords: SMEs; Sustainable performance; Innovation; Diversification; Crisis management; Sustaining innovation; SMEs diversification; Diversification strategy; Organizational sustainability (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:mgs:ijoied:v:8:y:2022:i:5:p:7-14

DOI: 10.18775/ijied.1849-7551-7020.2015.85.2001

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