An Overview of Technological Innovation on SME Survival: A Conceptual Paper

Abstract This paper explores the theoretical review of technological innovation on SME survival by looking at literature review with SME studies. Previous reference on survival is still scarce even it is the key benchmark to measure business performance. It has been demonstrated within the literature that the practice of technological innovation is significantly associated with business performance but its effect towards SME survival is underexplored. SME survival refers to the year of business operation, availability of future plans and diversity of product/service range. According to social scientists and management experts, among the main technological innovations highlighted in literatures are namely sophisticated machines and equipments, fusion of different technologies, gadgets machines and equipments, fusion of different technologies, and gadgets as tools of innovation. By looking at the technological innovation scope by Diaconu (2011) ; social networking, computerized record, online marketing can be categorized under the current technological innovation as these mediums are based on technology and influence the development intensity with new or improved process or products. Apart from this justification, among other approaches, these three mediums are close to the business and its potentials are yet to be optimized. In short, the critical discussion provided in this paper would help to strengthen the body of knowledge on SME studies, besides to act as a reference for research in other countries. Findings from this review shed some lights on the potential of social networking as part of online marketing; as the online customers are greater than the typical offline customers. Also, the effect of online marketing via social media is more powerful and diverse due to its ability to reach customers regardless of geographical locations.

[1]  T. Ramayah,et al.  SME e-readiness in Malaysia: Implications for Planning and Implementation , 2007 .

[2]  Nelson Maseko,et al.  Accounting practices of SMEs in Zimbabwe: An investigative study of record keeping for performance measurement (A case study of Bindura) , 2011 .

[3]  Mahmoud Khalid Almsafir,et al.  The Determinants of SME Succession in Malaysia, From Entrepreneurship Perspective , 2014 .

[4]  Minna Saunila,et al.  The relationship between innovation capability and performance : The moderating effect of measurement , 2014 .

[5]  G. Hult,et al.  Innovativeness: Its antecedents and impact on business performance , 2004 .

[6]  Eta Wahab,et al.  Preliminary qualitative findings on technology adoption of Malaysian SMEs , 2012, 2012 IEEE Colloquium on Humanities, Science and Engineering (CHUSER).

[7]  Chun-Yao Tseng,et al.  Technological innovation capability, knowledge sourcing and collaborative innovation in Gulf Cooperation Council countries , 2013 .

[8]  W. Chong.  Critical Success Factors for Small and Medium Enterprises: Perceptions of Entrepreneurs in Urban Malaysia , 2012 .

[9]  Arasu Raman,et al.  Web Services and e-Shopping Decisions: A Study on Malaysian e-Consumer , 2011 .

[10]  P. Ahmed,et al.  Relationships between Innovation Stimulus, Innovation Capacity, and Innovation Performance , 2006 .

[11]  Alan Brown,et al.  New Product Development Processes in Small and Medium‐Sized Enterprises: Some Australian Evidence , 2002 .

[12]  A. Peluso,et al.  The role of SME entrepreneurs’ innovativeness and personality in the adoption of innovations , 2008 .

[13]  Germán Aníbal Narváez Vásquez,et al.  Best Practice in the Use of Social Networks Marketing Strategy as in SMEs , 2014 .

[14]  Pi-Shen Seet,et al.  Dissecting Behaviours Associated with Business Failure: A Qualitative Study of SME Owners in Malaysia and Australia , 2009 .

[15]  Sabina Baniya Chhetri.  Predictors and Outcomes of Employee Engagement: Empirical Study of Nepali Employees , 2017 .

[16]  Justin Iorakpen Iorun.  Evaluation of Survival Strategies of Small and Medium Enterprises in Benue State, Nigeria , 2014 .

[17]  Peter L. Jennings,et al.  Competitive advantage and entrepreneurial power: The dark side of entrepreneurship , 2005 .

[18]  J. Lemmink,et al.  High‐Technology Service Innovation Success: A Decision‐Making Perspective , 2004 .

[19]  Dinesh A. Mirchandani,et al.  Successful implementation of ERP projects: Evidence from two case studies , 2002 .

[20]  K. Padachi.  Factors Affecting the Adoption of Formal Accounting Systems by SMEs , 2012 .

[21]  Mihaela Diaconu,et al.  Technological Innovation: Concept, Process, Typology and Implications in the Economy , 2011 .

[22]  Asikhia Olalekan,et al.  On Entrepreneurial Success of Small and Medium Enterprises (SMEs): A Conceptual and Theoretical Framework , 2014 .

[23]  Yongtae Park,et al.  The changing pattern of SME's innovativeness through business model globalization , 2012 .

[24]  L. Hooi.  Implementing e-HRM: The Readiness of Small and Medium Sized Manufacturing Companies in Malaysia , 2006 .

[25]  L. V. Scheers.  SMEs' marketing skills challenges in South Africa , 2011 .

[26]  Zafir Mohd Makhbul,et al.  Entrepreneurial Success: An Exploratory Study among Entrepreneurs , 2010 .

[27]  Robert Cull,et al.  Historical Financing of Small- and Medium-Sized Enterprises , 2005 .

[28]  O. Adeoti,et al.  Is Customer Satisfaction an Indicator of Customer Loyalty , 2012 .

[29]  W. Naudé,et al.  Technological Innovation, Entrepreneurship, and Development , 2013 .

[30]  The Impact of Leadership on Organisational Innovation Performance Among Malaysia’s Multimedia Super Corridor (MSC) SME , 2010 .

[31]  B. Inyang,et al.  Entrepreneurial Competencies: The Missing Links to Successful Entrepreneurship in Nigeria , 2009 .

[32]  Dayang Hasliza Muhd Yusuf,et al.  Factors Affecting Business Success of Small & Medium Enterprises (SMEs) in Thailand , 2011 .

[33]  Alias Radam,et al.  Technical Efficiency of Small and Medium Enterprise in Malaysia: A Stochastic Frontier Production Model , 2008 .

[34]  John Bessant,et al.  Managing Innovation: Integrating Technological, Market, and Organizational Change, 2nd Edition , 2001 .

[35]  Haibo Zhou,et al.  Knowledge management and innovation : An empirical study of Dutch SMEs , 2007 .

[36]  Rafisah Mat Radzi,et al.  DETERMINANTS OF SUCCESSFUL FINANCIAL MANAGEMENT AMONG MICRO ENTREPRENEUR IN MALAYSIA , 2014 .

[37]  Miika Varis,et al.  Types of innovation, sources of information and performance in entrepreneurial SMEs , 2010 .

[38]  L. Soltow.  Evidence on Income Inequality in the United States, 1866–1965 , 1969, The Journal of Economic History.

[39]  Maimunah Ismail,et al.  THE BACKGROUND AND CHALLENGES FACED BY THE SMALL MEDIUM ENTERPRISES: A HUMAN RESOURCE DEVELOPMENT PERSPECTIVE , 2009 .

[40]  Jenő Beke,et al.  Review of International Accounting Information Systems , 2010, Asian Accounting and Auditing Advancement.

[41]  C. Tinaztepe,et al.  Effect of Strategic Leadership Styles on Firm Performance: A Study in a Turkish SME , 2014 .

[42]  Helena Nobre,et al.  Social Network Marketing Strategy and SME Strategy Benefits , 2014 .

[43]  Rosanna Garcia,et al.  A critical look at technological innovation typology and innovativeness terminology: a literature review , 2002 .

[44]  Ali Salman Saleh,et al.  An evaluation of SME development in Malaysia , 2006 .