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Impact of ICTs on Innovation and Performance of Firms: Do Start-ups, Regional Proximity and Skills Matter?

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  • Khorshed Alam

    (School of Business, Faculty of Business, Education and Law and Arts, University of Southern Queensland, Toowoomba, QLD 4350, Australia)

  • Mohammad Afshar Ali

    (School of Business, Faculty of Business, Education and Law and Arts, University of Southern Queensland, Toowoomba, QLD 4350, Australia
    Allied Health and Human Performance, University of South Australia, Adelaide, SA 5000, Australia)

  • Michael Erdiaw-Kwasie

    (Sustainable Enterprise, Asia Pacific College of Business and Law, Charles Darwin University, Darwin, NT 0800, Australia)

  • Md Shahiduzzaman

    (Discipline of Finance, The University of Queensland, Brisbane, QLD 4072, Australia)

  • Eswaran Velayutham

    (School of Business, Faculty of Business, Education and Law and Arts, University of Southern Queensland, Toowoomba, QLD 4350, Australia)

  • Peter A. Murray

    (School of Business, Faculty of Business, Education and Law and Arts, University of Southern Queensland, Toowoomba, QLD 4350, Australia)

  • Retha Wiesner

    (School of Business, Faculty of Business, Education and Law and Arts, University of Southern Queensland, Springfield Central, QLD 4300, Australia)

Abstract

Managers need to better understand how information and communication technologies (ICTs) lead to informed decisions about the investment and advantages of such technologies. However, at best, the empirical evidence on the business value of technology is mixed in relation to small firms. A total of 43 firms satisfied the study’s definition of start-ups. The final survey included 54 questions on access to and use of ICTs, innovation, firm characteristics, as well as the participants’ demographics, of which 11 factors were analyzed as part of this study. We found compelling evidence to support the positive effects of ICTs on firm-level innovation and performance based on the primary survey data of 270 small and medium enterprises (SMEs) operating in an Australian regional area. Moreover, we found that ICT strategies and skills are important factors that drive innovation and the overall performance of SMEs. In addition, various conditions, such as an agile workplace culture and international trade, can help firms improve their performance. Young businesses, particularly start-ups with ICT skills, show an improved innovation capability. However, remoteness appears to influence innovation negatively for nascent firms. Thus, managers should focus on improving ICT skills, strategies, and networking that help facilitate tangible ICT investments to foster innovation and growth.

Suggested Citation

  • Khorshed Alam & Mohammad Afshar Ali & Michael Erdiaw-Kwasie & Md Shahiduzzaman & Eswaran Velayutham & Peter A. Murray & Retha Wiesner, 2022. "Impact of ICTs on Innovation and Performance of Firms: Do Start-ups, Regional Proximity and Skills Matter?," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:10:p:5801-:d:812965
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