Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/307490 
Year of Publication: 
2023
Citation: 
[Journal:] Small Business Economics [ISSN:] 1573-0913 [Volume:] 62 [Issue:] 4 [Publisher:] Springer US [Place:] New York, NY [Year:] 2023 [Pages:] 1469-1491
Publisher: 
Springer US, New York, NY
Abstract: 
Drawing on strategic management theory, this study examines the relationship between digitalization and innovation performance in small and medium-sized enterprises (SMEs). We hypothesize that SMEs with higher levels of digital diffusion have higher innovation performance, and that absorptive capacity moderates this relationship. To test this relationship, we use a sample of 1100 German SMEs from the Mannheim Innovation Panel of the Centre for European Economic Research. The results of the multinomial and multivariate probit estimations show that digital diffusion is a significant positive trigger of innovation in SMEs. We also find that absorptive capacity moderates the relationship between digital diffusion and innovation only in the case of product innovation and not for any other type of innovation. Finally, we discuss the implications of our study for research and practice.
Subjects: 
Innovation
Digitalization
Digital transformation
Dynamic capabilities
SMEs
JEL: 
M10
O31
L25
O32
O33
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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