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Digitalisation, Innovation, and Performance of SMEs in Central and Eastern Europe: A Spatial and Distributional Analysis

Author

Listed:
  • Gratiela Georgiana Noja

    (West University of Timisoara, Romania)

  • Mirela Cristea

    (University of Craiova, Craiova, Romania)

  • Miruna Lucia Nachescu

    (West University of Timisoara, Romania)

  • Flavia Mirela Barna

    (West University of Timisoara, Romania)

  • Gheorghe Hurduzeu

    (Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

This research aims to highlight the role of digitalisation and innovation at the level of Small and Medium-sized Enterprises (SMEs) in shaping the business environment and enhancing the economic performance of companies in Central and Eastern Europe (CEE). The methodology is based on two modern econometric modelling techniques, namely spatial analysis, implemented through spatial regression methods founded on Spatial Error Models (SEM), and Quantile-on-Quantile Regression Models (QoQRM) using the bootstrap method, which is employed for the analysis of the conditional distribution of variables. This approach allows the assessment of the impact of digitalisation and innovation within SMEs on firm performance across the entire conditional distribution of results. These models are used at the level of a complex database that includes a set of specific indicators compiled for ten different CEE countries for the 2017-2024 time span. The results show that the economic performance of SMEs in CEE depends on targeted and adapted digitalisation and technological innovation strategies that match the companies capacities, efficient financing and collaboration mechanisms, as well as the alignment of product and process innovation with economic resources and market orientation. This study is an original contribution that highlights the diverse and conditional effects of digitalisation and innovation on SMEs in CEE countries, demonstrating that their impact on investment, turnover, and employment is not uniform, but depends on the initial level of performance and the structural context of the examined economies. This emphasises the need for tailored policies aimed at strengthening the specific capacities of enterprises and reducing regional disparities.

Suggested Citation

  • Gratiela Georgiana Noja & Mirela Cristea & Miruna Lucia Nachescu & Flavia Mirela Barna & Gheorghe Hurduzeu, 2026. "Digitalisation, Innovation, and Performance of SMEs in Central and Eastern Europe: A Spatial and Distributional Analysis," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 28(72), pages 526-526, April.
    • Handle: RePEc:aes:amfeco:v:28:y:2026:i:72:p:526
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    References listed on IDEAS

    as
    1. Roger Koenker, 2017. "Quantile regression 40 years on," CeMMAP working papers 36/17, Institute for Fiscal Studies.
    2. Roger Koenker, 2017. "Quantile Regression: 40 Years On," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 155-176, September.
    3. Irena Mladenova, 2024. "SMEs in a Digital Era: The Role of Management," Administrative Sciences, MDPI, vol. 14(11), pages 1-17, November.
    4. Agustí Segarra-Blasco & Josep Tomàs-Porres & Mercedes Teruel, 2025. "AI, robots and innovation in European SMEs," Small Business Economics, Springer, vol. 65(1), pages 719-745, June.
    5. Roger Koenker, 2017. "Quantile regression 40 years on," CeMMAP working papers CWP36/17, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    6. Luc Anselin, 2022. "Spatial econometrics," Chapters, in: Sergio J. Rey & Rachel S. Franklin (ed.), Handbook of Spatial Analysis in the Social Sciences, chapter 6, pages 101-122, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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