IDEAS home Printed from https://ideas.repec.org/a/beo/journl/v65y2020i224p53-82.html
   My bibliography  Save this article

Digital Technologies And The Financial Performance Of Female Smes In Serbia: The Mediating Role Of Innovation

Author

Listed:
  • Sanja Popović-Pantić
  • Dušica Semenčenko
  • Nikola Vasilić

Abstract

Digital technologies that cre-ate innovation have the capacity to leverage economic development. The integration of digital technologies in daily operations has become a key success factor in sustainable development, market positioning, and ad-vancement. This is particulary challenging for female companies in developing coun-tries, which face numerous biases on their entrepreneurial path, including in innova-tion. This specific group of entrepreneurs faces additional barriers in implementing digital technologies and digital transfor-mation, which are considered part of their innovation capacity. However, some com-panies perform well according to finan-cial parameters, regardless of the level of digitization and innovation potential. This research paper explores the correlation be-tween financial performance and the inno-vative implementation of digital technolo-gies. The main assumption in this research is that companies that do not use digital technologies to innovate can not expect to improve their financial performance. We focus on the impact of digital technology on the financial performance of female compa-nies. We also consider the indirect impact of digital technology use on financial per-formance, with product innovation as the mediator variable. The sample consists of 46 female companies. The results of the analy-sis confirm the hypotheses that digital tech-nology has no direct influence on financial performance, and that product innovation mediates the relationship between digital technology and financial performance.

Suggested Citation

  • Sanja Popović-Pantić & Dušica Semenčenko & Nikola Vasilić, 2020. "Digital Technologies And The Financial Performance Of Female Smes In Serbia: The Mediating Role Of Innovation," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 65(224), pages 53-82, January –.
    • Handle: RePEc:beo:journl:v:65:y:2020:i:224:p:53-82
    as

    Download full text from publisher

    File URL: http://www.ekof.bg.ac.rs/wp-content/uploads/2014/04/628_NOVO-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christian R. Østergaard & Bram Timmermans & Kari Kristinsson, 2009. "Beyond Technological Diversification: The Impact of Employee Diversity on Innovation," DRUID Working Papers 09-03, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    2. Verheul, Ingrid & Thurik, Roy, 2001. "Start-Up Capital: "Does Gender Matter?"," Small Business Economics, Springer, vol. 16(4), pages 329-345, June.
    3. SherRhonda Gibbs & Jennifer Sequeira & Mary M. White, 2007. "Social networks and technology adoption in small business," International Journal of Globalisation and Small Business, Inderscience Enterprises Ltd, vol. 2(1), pages 66-87.
    4. -, 2011. "ICT in Latin America: a microdata analysis," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 35290, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Patrick Piget & Mohamed Kossaï, 2013. "The Relationship between Information and Communication Technology Use and Firm Performance in Developing Countries: A Case Study of Electrical and Electronic Goods Manufacturing SMEs in Tunisia," African Development Review, African Development Bank, vol. 25(3), pages 330-343.
    6. Thomas Schøtt & Maryam Cheraghi, 2015. "Gendering pursuits of innovation: embeddedness in networks and culture," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 24(1), pages 83-116.
    7. Vergara, Sebastián & Rovira, Sebastián & Balboni, Mariana, 2011. "ICT in Latin America: A Microdata Analysis," MPRA Paper 34598, University Library of Munich, Germany.
    8. Alsop, Ruth & Heinsohn, Nina, 2005. "Measuring empowerment in practice: structuring analysis and framing indicators," Policy Research Working Paper Series 3510, The World Bank.
    9. Samwel Macharia Chege & Daoping Wang & Shaldon Leparan Suntu, 2020. "Impact of information technology innovation on firm performance in Kenya," Information Technology for Development, Taylor & Francis Journals, vol. 26(2), pages 316-345, April.
    10. Steve Esselaar & Christoph Stork & Ali Ndiwalana & Mariama Deen-Swarray, 2007. "ICT Usage and Its Impact on Profitability of SMEs in 13 African Countries," Information Technologies and International Development, MIT Press, vol. 4(1), pages 87-100, October.
    11. Koski, Heli, 2010. "Firm Growth and Profitability:The Role of Mobile IT and Organizational Practices," Discussion Papers 1222, The Research Institute of the Finnish Economy.
    12. Dawn R. DeTienne & Gaylen N. Chandler, 2007. "The Role of Gender in Opportunity Identification," Entrepreneurship Theory and Practice, , vol. 31(3), pages 365-386, May.
    13. Benavente H., José Miguel & Lillo, Nicolás & Turén, Javier, 2011. "ICT in Chilean firms," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 35296, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    14. Indiran Poobalan Naidoo & Muhammad Hoque, 2018. "Impact of information technology on innovation in determining firm performance," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 10(6), pages 643-653, September.
    15. Yu, Yan & Dong, Xiao-Ying & Shen, Kathy Ning & Khalifa, Mohamed & Hao, Jin-Xing, 2013. "Strategies, technologies, and organizational learning for developing organizational innovativeness in emerging economies," Journal of Business Research, Elsevier, vol. 66(12), pages 2507-2514.
    16. Patrick Piget & Mohamed Kossaï, 2013. "The Relationship between Information and Communication Technology Use and Firm Performance in Developing Countries: A Case Study of Electrical and Electronic Goods Manufacturing SMEs in Tunisia," African Development Review, African Development Bank, vol. 25(3), pages 330-343, September.
    17. Strohmeyer, Robert & Tonoyan, Vartuhi & Jennings, Jennifer E., 2017. "Jacks-(and Jills)-of-all-trades: On whether, how and why gender influences firm innovativeness," Journal of Business Venturing, Elsevier, vol. 32(5), pages 498-518.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohamed Kossaï & Patrick Piget, 2012. "Utilisation des technologies de l'information et des communications (TIC) et performance économique des PME Tunisiennes :une étude économétrique," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(3), pages 305-328.
    2. Azeem, Muhammad Masood & Sheridan, Alison & Adapa, Sujana, 2022. "Women to women: Enabling innovation and firm performance in developing countries," Emerging Markets Review, Elsevier, vol. 51(PA).
    3. Hüseyin Taştan & Feride Gönel, 2020. "ICT labor, software usage, and productivity: firm-level evidence from Turkey," Journal of Productivity Analysis, Springer, vol. 53(2), pages 265-285, April.
    4. Aboal D. & Tacsir E., 2015. "Innovation and productivity in services and manufacturing : The role of ICT investment," MERIT Working Papers 2015-012, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Isabel Martínez-Rodríguez & Consolación Quintana-Rojo & Pedro Gento & Fernando-Evaristo Callejas-Albiñana, 2022. "Public policy recommendations for promoting female entrepreneurship in Europe," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1235-1262, September.
    6. Hmieleski, Keith M. & Sheppard, Leah D., 2019. "The Yin and Yang of entrepreneurship: Gender differences in the importance of communal and agentic characteristics for entrepreneurs' subjective well-being and performance," Journal of Business Venturing, Elsevier, vol. 34(4), pages 709-730.
    7. Farid Shirazi & Nick Hajli, 2021. "IT-Enabled Sustainable Innovation and the Global Digital Divides," Sustainability, MDPI, vol. 13(17), pages 1-24, August.
    8. Grazzi, Matteo & Vergara, Sebastián, 2012. "ICT in developing countries: Are language barriers relevant? Evidence from Paraguay," Information Economics and Policy, Elsevier, vol. 24(2), pages 161-171.
    9. María Verónica Alderete, 2017. "An approach to the broadband effect on Latin American growth: A structural model," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 36(71), pages 549-569, July.
    10. Fairlie, Robert W., 2012. "The effects of home access to technology on computer skills: Evidence from a field experiment," Information Economics and Policy, Elsevier, vol. 24(3), pages 243-253.
    11. Díaz Rodríguez, Héctor Eduardo & Aroche Reyes, Fidel, 2020. "Determinants of labour productivity in Mexico: an approach from the endogenous growth theory using artificial neural networks," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    12. Ariel Herbert FAMBEU, 2016. "Déterminants De L’Adoption Des Tic Dans Un Pays En Développement : Une Analyse Économétrique Sur Les Entreprises Industrielles Au Cameroun," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 43, pages 159-186.
    13. Jain, Rekha, 2016. "Factors Influencing Outcome Expectations and Self-Efficacy in Driving Internet Use in Rural India," IIMA Working Papers WP2016-03-62, Indian Institute of Management Ahmedabad, Research and Publication Department.
    14. Sunkel, Guillermo & Ullmann, Heidi, 2019. "Older adults in the digital age in Latin America: bridging the digital age divide," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    15. Grant, Delvin & Yeo, Benjamin, 2018. "A global perspective on tech investment, financing, and ICT on manufacturing and service industry performance," International Journal of Information Management, Elsevier, vol. 43(C), pages 130-145.
    16. Díaz Rodríguez, Héctor Eduardo & Sosa Castro, Magnolia Miriam & Cabello Rosales, Alejandra, 2018. "Uso de TIC y productividad en México: un análisis subsectorial || Productivity and ICT Use in Mexico: A Subsectorial Approach," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 25(1), pages 156-185, Junio.
    17. Hofman, André & Aravena, Claudio & Aliaga, Vianka, 2016. "Information and communication technologies and their impact in the economic growth of Latin America, 1990–2013," Telecommunications Policy, Elsevier, vol. 40(5), pages 485-501.
    18. Massa, Isabella, 2015. "Technological change in developing countries: Trade-offs between economic, social, and environmental sustainability," MERIT Working Papers 2015-051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    19. Thi-Hanh Vu & Van-Duy Nguyen & Manh-Tung Ho & Quan-Hoang Vuong, 2019. "Determinants of Vietnamese Listed Firm Performance: Competition, Wage, CEO, Firm Size, Age, and International Trade," JRFM, MDPI, vol. 12(2), pages 1-19, April.
    20. Abidemi C. Adegboye & Samuel Iweriebor, 2018. "Does Access to Finance Enhance SME Innovation and Productivity in Nigeria? Evidence from the World Bank Enterprise Survey," African Development Review, African Development Bank, vol. 30(4), pages 449-461, December.

    More about this item

    Keywords

    digital technology; innova-tion; product innovation; female compa-nies; SME; financial performance; media-tion;
    All these keywords.

    JEL classification:

    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:beo:journl:v:65:y:2020:i:224:p:53-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Goran Petrić (email available below). General contact details of provider: https://edirc.repec.org/data/efbeoyu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.