IDEAS home Printed from https://ideas.repec.org/a/gam/jscscx/v10y2021i11p430-d675178.html
   My bibliography  Save this article

Barriers to Adopting New Technologies within Rural Small and Medium Enterprises (SMEs)

Author

Listed:
  • Rosa Maria Fanelli

    (Department of Economics, University of Molise, 86100 Campobasso, Italy)

Abstract

The adoption of technologies by small and medium enterprises (SMEs) that operate in several business sectors in rural areas is a crucial issue because they often need financial and technical incentives and support from public and local authorities. The question of whether and how innovation can be replicated and applied in a wider context is strictly connected to the understanding of those factors and mechanisms capable of determining the success or failure of the introduction of innovation itself. In this paper, the attention is focused on the impact of new technologies in order to increase SMEs’ competitiveness and productivity among the firms. For this purpose, only recent resources, research and studies that have been implemented during the last twenty years are taken into account. Firstly, based on these studies, the main disruptive technologies were selected. Secondly, the evidence is drawn from stakeholder data discussions of the Interreg Europe project “Regional policies for innovation driven competitiveness and growth of rural SMEs—INNOGROW”, covering eight European countries (Bulgaria, Czech Republic, Greece, Hungary, Italy, Latvia, Slovenia and the United Kingdom). Descriptive statistics were applied to describe the case identities. The cases’ needs, enablers and barriers in different groups were analyzed using a chi-square test and Mann–Whitney U Test. The results of this study are important for both researchers as well as small business practitioners (including government agencies and owners/managers) in order to provided policy recommendations, concerning how to establish favourable conditions and offer incentives to SMEs to integrate innovative solutions into their business models.

Suggested Citation

  • Rosa Maria Fanelli, 2021. "Barriers to Adopting New Technologies within Rural Small and Medium Enterprises (SMEs)," Social Sciences, MDPI, vol. 10(11), pages 1-15, November.
  • Handle: RePEc:gam:jscscx:v:10:y:2021:i:11:p:430-:d:675178
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-0760/10/11/430/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2076-0760/10/11/430/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stočes, Michal & Vaněk, Jiří & Masner, Jan & Pavlík, J., 2016. "Internet of Things (IoT) in Agriculture - Selected Aspects," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(1), pages 1-6, March.
    2. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    3. M. H. Bala Subrahmanya & M. Mathirajan & K. N. Krishnaswamy, 2010. "Importance of Technological Innovation for SME Growth: Evidence from India," WIDER Working Paper Series wp-2010-003, World Institute for Development Economic Research (UNU-WIDER).
    4. Romijn, Henny & Albaladejo, Manuel, 2002. "Determinants of innovation capability in small electronics and software firms in southeast England," Research Policy, Elsevier, vol. 31(7), pages 1053-1067, September.
    5. Pretty, J. N. & Brett, C. & Gee, D. & Hine, R. E. & Mason, C. F. & Morison, J. I. L. & Raven, H. & Rayment, M. D. & van der Bijl, G., 2000. "An assessment of the total external costs of UK agriculture," Agricultural Systems, Elsevier, vol. 65(2), pages 113-136, August.
    6. Philipp Koellinger, 2008. "Why are some entrepreneurs more innovative than others?," Small Business Economics, Springer, vol. 31(1), pages 21-37, June.
    7. Gerke J. Hoogstra & Jouke van Dijk, 2004. "Explaining Firm Employment Growth: Does Location Matter?," Small Business Economics, Springer, vol. 22(3_4), pages 179-192, April.
    8. Mendonca, Sandro & Pereira, Tiago Santos & Godinho, Manuel Mira, 2004. "Trademarks as an indicator of innovation and industrial change," Research Policy, Elsevier, vol. 33(9), pages 1385-1404, November.
    9. Branzei, Oana & Vertinsky, Ilan, 2006. "Strategic pathways to product innovation capabilities in SMEs," Journal of Business Venturing, Elsevier, vol. 21(1), pages 75-105, January.
    10. Gordon Kingsley & Edward J. Malecki, 2004. "Networking for Competitiveness," Small Business Economics, Springer, vol. 23(1), pages 71-84, August.
    11. Zoltán J. Ács & Pamela Mueller, 2015. "Employment effects of business dynamics: Mice, Gazelles and Elephants," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 16, pages 304-319, Edward Elgar Publishing.
    12. Michailidis, Anastasios & Partalidou, Maria & Nastis, Stefanos A. & Papadaki-Klavdianou, Aphrodite & Charatsari, Chrysanthi, 2011. "Who goes online? Evidence of internet use patterns from rural Greece," Telecommunications Policy, Elsevier, vol. 35(4), pages 333-343, May.
    13. Matthias Almus, 2002. "What characterizes a fast-growing firm?," Applied Economics, Taylor & Francis Journals, vol. 34(12), pages 1497-1508.
    14. North, David & Smallbone, David & Vickers, Ian, 2001. "Public Sector Support for Innovating SMEs," Small Business Economics, Springer, vol. 16(4), pages 303-317, June.
    15. Henny Romijn & Mike Albu, 2002. "Innovation, Networking and Proximity: Lessons from Small High Technology Firms in the UK," Regional Studies, Taylor & Francis Journals, vol. 36(1), pages 81-86.
    16. Bergmann, Ariel & Hanley, Nick & Wright, Robert, 2006. "Valuing the attributes of renewable energy investments," Energy Policy, Elsevier, vol. 34(9), pages 1004-1014, June.
    17. David Smallbone & Friederike Welter, 2006. "Conceptualising entrepreneurship in a transition context," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 3(2), pages 190-206.
    18. Sima, Elena, 2009. "Impact of Organic Farming Promotion upon the Sustainable Rural Development," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 6(2), pages 217-234.
    19. Bala Subrahmanya, M. H. & Mathirajan, M. & Krishnaswamy, K. N., 2010. "Importance of Technological Innovation for SME Growth - Evidence from India," MERIT Working Papers 007, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    20. Simon Parker & David Storey & Arjen Witteloostuijn, 2010. "What happens to gazelles? The importance of dynamic management strategy," Small Business Economics, Springer, vol. 35(2), pages 203-226, September.
    21. Padel, Susanne & Vaarst, Mette & Zaralis, Konstantinos, 2015. "Supporting Innovation in Organic Agriculture: A European Perspective Using Experience from the SOLID Project," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 4(3 Special).
    22. Mita Bhattacharya & Harry Bloch, 2004. "Determinants of Innovation," Small Business Economics, Springer, vol. 22(2), pages 155-162, March.
    23. Tong-Yu Lu & Wai-Yin Poon & Siu Cheung, 2014. "A Unified Framework for the Comparison of Treatments with Ordinal Responses," Psychometrika, Springer;The Psychometric Society, vol. 79(4), pages 605-620, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ramona Rupeika-Apoga & Kristine Petrovska, 2022. "Barriers to Sustainable Digital Transformation in Micro-, Small-, and Medium-Sized Enterprises," Sustainability, MDPI, vol. 14(20), pages 1-19, October.
    2. Ramona Rupeika-Apoga & Larisa Bule & Kristine Petrovska, 2022. "Digital Transformation of Small and Medium Enterprises: Aspects of Public Support," JRFM, MDPI, vol. 15(2), pages 1-21, January.
    3. Salem Ahmed Alabdali & Salvatore Flavio Pileggi & Dilek Cetindamar, 2023. "Influential Factors, Enablers, and Barriers to Adopting Smart Technology in Rural Regions: A Literature Review," Sustainability, MDPI, vol. 15(10), pages 1-38, May.
    4. Rosa Maria Fanelli, 2023. "Barriers and Drivers Underpinning Newcomers in Agriculture: Evidence from Italian Census Data," Sustainability, MDPI, vol. 15(14), pages 1-17, July.
    5. Abdalwali Lutfi & Akif Lutfi Al-Khasawneh & Mohammed Amin Almaiah & Adi Alsyouf & Mahmaod Alrawad, 2022. "Business Sustainability of Small and Medium Enterprises during the COVID-19 Pandemic: The Role of AIS Implementation," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    6. Xiaoxue Du & Hernan Tejeda & Zhengliang Yang & Liang Lu, 2022. "A General-Equilibrium Model of Labor-Saving Technology Adoption: Theory and Evidences from Robotic Milking Systems in Idaho," Sustainability, MDPI, vol. 14(13), pages 1-17, June.
    7. Thomä, Jörg, 2022. "An urban-rural divide (or not?): Small firm location and the use of digital technologies," ifh Working Papers 37/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).

    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. Krafft Jackie & Quatraro Francesco & Colombelli Alessandra, 2011. "High Growth Firms and Technological Knowledge: Do gazelles follow exploration or exploitation strategies?," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201114, University of Turin.
    2. Besnik A. Krasniqi & Muhamet Mustafa, 2016. "Small firm growth in a post-conflict environment: the role of human capital, institutional quality, and managerial capacities," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1165-1207, December.
    3. Fanelli Rosa Maria, 2018. "Rural Small and Medium Enterprises Development in Molise (Italy)," European Countryside, Sciendo, vol. 10(4), pages 566-589, December.
    4. Ramos Ruiz, José & Polo Otero, José & Arrieta Barcasnegras, Aquiles & Vega Cárcamo, Jean, 2018. "Impacto de la innovación en marketing sobre la conducta exportadora de las empresas del sector agroindustrial español || Impact of Marketing Innovation on Exporting Behavior for Spanish Agro-Industry ," 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 54-71, Junio.
    5. Panagiotis Ganotakis, 2012. "Founders’ human capital and the performance of UK new technology based firms," Small Business Economics, Springer, vol. 39(2), pages 495-515, September.
    6. Erhardt, Eva, 2017. "Who persistently creates jobs? Absolute versus relative high-growth firms," MPRA Paper 79307, University Library of Munich, Germany.
    7. Yannis Caloghirou & Ioannis Giotopoulos & Alexandra Kontolaimou & Aggelos Tsakanikas, 2022. "Inside the black box of high-growth firms in a crisis-hit economy: corporate strategy, employee human capital and R&D capabilities," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1319-1345, September.
    8. Erhardt, Eva, 2018. "Does high growth persist? A focus on growth formulas and the influence of firm exits," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181595, Verein für Socialpolitik / German Economic Association.
    9. Agustí Segarra & Mercedes Teruel, 2014. "High-growth firms and innovation: an empirical analysis for Spanish firms," Small Business Economics, Springer, vol. 43(4), pages 805-821, December.
    10. Erhardt, Eva Christine, 2018. "Firm performance after high growth: A comparison of absolute and relative growth measures," MPRA Paper 88077, University Library of Munich, Germany.
    11. Jorge Juliao Rossi, Julia Pineda Acero, Fernando Barrios Aguirre, 2016. "Contraste entre los determinantes de la inversión en I&D y del registro de patentes en sectores industriales de Colombia," Revista CIFE, Universidad Santo Tomás, March.
    12. Šarlija, Nataša & Bilandžić, Ana, 2018. "Does Innovation Matter for SMEs' growth in Croatia?," 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disruptive Change (Dubrovnik, 2018), in: 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disrupt, pages 356-375, Governance Research and Development Centre (CIRU), Zagreb.
    13. Robert Huggins & Andrew Johnston, 2009. "Knowledge Networks in an Uncompetitive Region: SME Innovation and Growth," Growth and Change, Wiley Blackwell, vol. 40(2), pages 227-259, June.
    14. Eva Christine Erhardt, 2021. "Measuring the persistence of high firm growth: choices and consequences," Small Business Economics, Springer, vol. 56(1), pages 451-478, January.
    15. Andres Jung & Cecilia Plottier, 2011. "Firm growth in a regional trade integration context," ERSA conference papers ersa11p1502, European Regional Science Association.
    16. Stefano Bianchini & Giulio Bottazzi & Federico Tamagni, 2017. "What does (not) characterize persistent corporate high-growth?," Small Business Economics, Springer, vol. 48(3), pages 633-656, March.
    17. Nanditha Mathew & George Paily, 2022. "STI-DUI innovation modes and firm performance in the Indian capital goods industry: Do small firms differ from large ones?," The Journal of Technology Transfer, Springer, vol. 47(2), pages 435-458, April.
    18. Dziallas, Marisa & Blind, Knut, 2019. "Innovation indicators throughout the innovation process: An extensive literature analysis," Technovation, Elsevier, vol. 80, pages 3-29.
    19. Derya Fındık & Aysıt Tansel, 2013. "Intangible investment and Technical efficiency: The case of software-intensive manufacturing firms in Turkey," EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey 235, Ekonomik Yaklasim Association.
    20. Yunjeong Kim & Hannah Jun, 2022. "Exploring Technology Innovation Factors, Government Support and Performance of Development-Related Social Enterprises: Evidence from South Korea," Sustainability, MDPI, vol. 14(22), pages 1-18, November.

    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:gam:jscscx:v:10:y:2021:i:11:p:430-:d:675178. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.