Innovativeness, empowerment and IT capability: Evidence from SMEs

Purpose – The purpose of this paper is to explore two basic research questions: what are the effects of information technology (IT) capability and employee empowerment on the innovativeness of small to medium‐sized enterprises (SMEs), and what are the effects of innovativeness and IT capability on firm performance in SMEs?Design/methodology/approach – Data from 109 Polish SMEs were collected. In order to identify empirical dimensions of innovativeness, empowerment and IT capability, a factor analysis was carried out. Multiple regression analysis was employed to examine the effects of IT capability and employee empowerment on innovativeness, and the effects of IT capability and innovativeness on firm performance.Findings – The following results are offered: innovation activity of SMEs is positively related to technological turbulence, climate for innovation, investments in innovation and use of IT in internal communications; innovation activity and IT knowledge have a positive effect on subjective measures...

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