Factors That Affect Digital Innovation Sustainability among SMEs in the Middle East Region

Laith T. Khrais and Abdullah M. Alghamdi
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Laith T. Khrais: Department of Business Administration, College of Applied Studies and Community Services, Imam Abdulrahman Bin Faisal University, Dammam 34212, Saudi Arabia
Abdullah M. Alghamdi: Department of Management Information Systems, College of Applied Studies and Community Service, Imam Abdulrahman Bin Faisal University, Dammam 34212, Saudi Arabia

Sustainability, 2022, vol. 14, issue 14, 1-13

Abstract: Digital innovation in small and medium-sized enterprises (SMEs) has been studied extensively over the past quarter-century. The products, processes, and/or model innovation in businesses that are viewed as novel necessitate significant alterations from consumers and are represented in or facilitated by IT; this is what it means when digital innovation is mentioned. Nonetheless, despite the unique application of digital innovation in different organizations, the factors that lead to its success are still uncertain. Therefore, this study aims at evaluating the various factors that affect the digital innovation of SMEs in the Middle East region. This research used a descriptive research design in which primary data from the SME owners and employees were used to evaluate the research objectives. Descriptive statistics, such as frequencies and structural equation models conducted through SPSS, were used to evaluate the research objectives in showing how various factors such as the Internet of Things (IoT; physical objects and things with sensors, software, and other technological techniques integrated into them for the purpose of exchanging data and connecting with other systems and devices), digital platforms, and digital orientation have influenced digital innovation sustainability in SMEs. Results showed a positive and substantial impact on digital innovation sustainability as a result of the IoT, digital platforms, and digital orientation. In conclusion, the research shows that SMEs should use digital platforms, the IoT, and digital orientation to be digitally stable.

Keywords: digital innovation sustainability; digital platforms; IoT; digital orientation; digital economy; SMEs (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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