IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i14p8585-d861961.html
   My bibliography  Save this article

Factors That Affect Digital Innovation Sustainability among SMEs in the Middle East Region

Author

Listed:
  • Laith T. Khrais

    (Department of Business Administration, College of Applied Studies and Community Services, Imam Abdulrahman Bin Faisal University, Dammam 34212, Saudi Arabia)

  • Abdullah M. Alghamdi

    (Department of Management Information Systems, College of Applied Studies and Community Service, Imam Abdulrahman Bin Faisal University, Dammam 34212, Saudi Arabia)

Abstract

Digital innovation in small and medium-sized enterprises (SMEs) has been studied extensively over the past quarter-century. The products, processes, and/or model innovation in businesses that are viewed as novel necessitate significant alterations from consumers and are represented in or facilitated by IT; this is what it means when digital innovation is mentioned. Nonetheless, despite the unique application of digital innovation in different organizations, the factors that lead to its success are still uncertain. Therefore, this study aims at evaluating the various factors that affect the digital innovation of SMEs in the Middle East region. This research used a descriptive research design in which primary data from the SME owners and employees were used to evaluate the research objectives. Descriptive statistics, such as frequencies and structural equation models conducted through SPSS, were used to evaluate the research objectives in showing how various factors such as the Internet of Things (IoT; physical objects and things with sensors, software, and other technological techniques integrated into them for the purpose of exchanging data and connecting with other systems and devices), digital platforms, and digital orientation have influenced digital innovation sustainability in SMEs. Results showed a positive and substantial impact on digital innovation sustainability as a result of the IoT, digital platforms, and digital orientation. In conclusion, the research shows that SMEs should use digital platforms, the IoT, and digital orientation to be digitally stable.

Suggested Citation

  • Laith T. Khrais & Abdullah M. Alghamdi, 2022. "Factors That Affect Digital Innovation Sustainability among SMEs in the Middle East Region," Sustainability, MDPI, vol. 14(14), pages 1-13, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8585-:d:861961
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/14/8585/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/14/8585/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Habib Ntwoku & Solomon Negash & Peter Meso, 2017. "ICT adoption in Cameroon SME: application of Bass diffusion model," Information Technology for Development, Taylor & Francis Journals, vol. 23(2), pages 296-317, April.
    2. Peter M. Bican & Alexander Brem, 2020. "Digital Business Model, Digital Transformation, Digital Entrepreneurship: Is There A Sustainable “Digital”?," Sustainability, MDPI, vol. 12(13), pages 1-15, June.
    3. Barbara Brenner, 2018. "Transformative Sustainable Business Models in the Light of the Digital Imperative—A Global Business Economics Perspective," Sustainability, MDPI, vol. 10(12), pages 1-25, November.
    4. Charles H. Matthews & Diana Hechavarria & Mark T. Schenkel, 2012. "Family Business: A Global Perspective from the Panel Study of Entrepreneurial Dynamics and the Global Entrepreneurship Monitor," International Studies in Entrepreneurship, in: ALAN CARSRUD & Malin Brännback (ed.), Understanding Family Businesses, chapter 0, pages 9-26, Springer.
    5. Zahid Yousaf & Magdalena Radulescu & Crenguta Ileana Sinisi & Luminita Serbanescu & Loredana Maria Păunescu, 2021. "Towards Sustainable Digital Innovation of SMEs from the Developing Countries in the Context of the Digital Economy and Frugal Environment," Sustainability, MDPI, vol. 13(10), pages 1-28, May.
    6. Alejandro Cataldo & Gabriel Pino & Robert J. McQueen, 2020. "Size matters: the impact of combinations of ICT assets on the performance of Chilean micro, small and medium enterprises," Information Technology for Development, Taylor & Francis Journals, vol. 26(2), pages 292-315, April.
    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. Gibson Muridzi, 2023. "Implication of internet of things (IoT) on organisational performance for SMEs in emerging economies – a systematic review," Technology audit and production reserves, PC TECHNOLOGY CENTER, vol. 6(4(74)), pages 27-35, December.
    2. Abhishek Tripathi, 2024. "Mapping the digitalization in SMEs of Middle East region: trends and insights from bibliometric analysis," Future Business Journal, Springer, vol. 10(1), pages 1-16, December.
    3. Albérico Travassos Rosário & Joana Carmo Dias, 2023. "The New Digital Economy and Sustainability: Challenges and Opportunities," Sustainability, MDPI, vol. 15(14), pages 1-23, July.
    4. Buck, Christoph & Heim, Laura & Körner-Wyrtki, Katrin & Krombacher, Anna & Röglinger, Maximilian, 2025. "Making the most of digital social innovation: An exploration into success factors," Journal of Business Research, Elsevier, vol. 190(C).

    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. Zahid Yousaf & Magdalena Radulescu & Crenguta Ileana Sinisi & Luminita Serbanescu & Loredana Maria Păunescu, 2021. "Towards Sustainable Digital Innovation of SMEs from the Developing Countries in the Context of the Digital Economy and Frugal Environment," Sustainability, MDPI, vol. 13(10), pages 1-28, May.
    2. Broccardo, Laura & Zicari, Adrián & Jabeen, Fauzia & Bhatti, Zeeshan A., 2023. "How digitalization supports a sustainable business model: A literature review," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    3. Ziyi Zhao & Yulu Yan, 2023. "The Role of Organizational Unlearning in Manufacturing Firms’ Sustainable Digital Innovation: The Mechanism of Strategic Flexibility and Organizational Slack," Sustainability, MDPI, vol. 15(13), pages 1-23, June.
    4. Chenglei Xu & Shuxin Zhu & Boru Yang & Bin Miao & Yi Duan, 2023. "A Review of Policy Framework Research on Promoting Sustainable Transformation of Digital Innovation," Sustainability, MDPI, vol. 15(9), pages 1-26, April.
    5. Young Won Park & Paul Hong, 2022. "A Research Framework for Sustainable Digital Innovation: Case Studies of Japanese Firms," Sustainability, MDPI, vol. 14(15), pages 1-13, July.
    6. Luis Araya-Castillo & Felipe Hernández-Perlines & Hugo Moraga & Antonio Ariza-Montes, 2021. "Scientometric Analysis of Research on Socioemotional Wealth," Sustainability, MDPI, vol. 13(7), pages 1-26, March.
    7. Yanjie Jiang & Xiaodi Ding, 2025. "Exploring the Nexus Between Ecosystem Services and Economic Sustainability: A Stakeholder Perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(3), pages 3639-3658, May.
    8. Yáñez-Valdés, Claudia & Guerrero, Maribel & Barros-Celume, Sebastián & Ibáñez, María J., 2023. "Winds of change due to global lockdowns: Refreshing digital social entrepreneurship research paradigm," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    9. Young-Gyun Ahn & Taeil Kim & Bo-Ram Kim & Min-Kyu Lee, 2022. "A Study on the Development Priority of Smart Shipping Items—Focusing on the Expert Survey," Sustainability, MDPI, vol. 14(11), pages 1-21, June.
    10. Albérico Travassos Rosário & Joana Carmo Dias, 2023. "The New Digital Economy and Sustainability: Challenges and Opportunities," Sustainability, MDPI, vol. 15(14), pages 1-23, July.
    11. Florian Diener & Miroslav Špaček, 2021. "Digital Transformation in Banking: A Managerial Perspective on Barriers to Change," Sustainability, MDPI, vol. 13(4), pages 1-27, February.
    12. Igor M. Stepnov & Yulia A. Kovalchuk, 2020. "Measuring value created by business models in the sharing economy," Upravlenets, Ural State University of Economics, vol. 11(5), pages 58-69, November.
    13. Di Vaio, Assunta & Palladino, Rosa & Pezzi, Alberto & Kalisz, David E., 2021. "The role of digital innovation in knowledge management systems: A systematic literature review," Journal of Business Research, Elsevier, vol. 123(C), pages 220-231.
    14. Gómez-Bengoechea, Gonzalo & Jung, Juan, 2024. "The Matthew effect: Evidence on firms’ digitalization distributional effects," Technology in Society, Elsevier, vol. 76(C).
    15. Aitor Goti & Alberto De la Calle & María José Gil & Ander Errasti & Pedro R. D. Bom & Pablo García-Bringas, 2018. "Development and Application of an Assessment Complement for Production System Audits Based on Data Quality, IT Infrastructure, and Sustainability," Sustainability, MDPI, vol. 10(12), pages 1-18, December.
    16. Chuanlin Wang & Guowan Yan & Juan Ou, 2023. "Does Digitization Promote Green Innovation? Evidence from China," IJERPH, MDPI, vol. 20(5), pages 1-27, February.
    17. Houda Chkarat & Tarek Abid & Loïc Sauvée, 2023. "Conditions for a Convergence between Digital Platforms and Sustainability in Agriculture," Sustainability, MDPI, vol. 15(19), pages 1-14, September.
    18. Jianing Xu & Weidong Li, 2022. "The Impact of the Digital Economy on Innovation: New Evidence from Panel Threshold Model," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    19. Montero Guerra, José Manuel & Danvila-del-Valle, Ignacio & Méndez Suárez, Mariano, 2023. "The impact of digital transformation on talent management," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    20. Doroteja Vidmar & Marjeta Marolt & Andreja Pucihar, 2021. "Information Technology for Business Sustainability: A Literature Review with Automated Content Analysis," Sustainability, MDPI, vol. 13(3), pages 1-24, January.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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:gam:jsusta:v:14:y:2022:i:14:p:8585-:d:861961. 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.