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SMEs' Innovative and Diversification Capabilities: Leveraging IT to Achieve Sustainable Performance

Author

Listed:
  • Akmal Khudaykulov

    (TEAM University, School of Business)

  • Ibrokhim Ilkhomjonov

    (The International Economics Department, The University of World, Economy and Diplomacy)

  • Dilafruz Murodova

    (Cambridge International University, School of ELT)

Abstract

In this paper we explore SMEs’ innovative and diversification capabilities, and how they contribute to sustained performance. We identify strategies customized exclusively for SMEs to build a resilient strategy by wisely reallocating resources and leveraging new technology for attaining sustainability. SMEs, due to limited resources compared to their larger counterparts, cannot afford to diversify by shifting to entirely new business activities as they lack the assets to be invested. Instead, they should focus on gradually improving existing services and innovating delivery using IT. Diversification should be well-thought, thoroughly planned, discussed among company members, tested and provide expected return on investment. It is a multistage process, and each phase should logically follow from the previous. Identifying characteristics and best practices could help more severely affected sectors to become more innovative and resilient during a time of crisis. To counteract decrease and maintain consistent growth, organizations should focus both on maintaining the existing business and gradually improving existing services and innovating the way services are provided to customers.

Suggested Citation

  • Akmal Khudaykulov & Ibrokhim Ilkhomjonov & Dilafruz Murodova, 2022. "SMEs' Innovative and Diversification Capabilities: Leveraging IT to Achieve Sustainable Performance," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 8(5), pages 7-14, December.
    • Handle: RePEc:mgs:ijoied:v:8:y:2022:i:5:p:7-14
    DOI: 10.18775/ijied.1849-7551-7020.2015.85.2001
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    References listed on IDEAS

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    1. Moses Waiganjo & Danijela Godinic & Bojan Obrenovic, 2021. "Strategic Planning and Sustainable Innovation During the COVID-19 Pandemic: A Literature Review," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 7(5), pages 52-59, December.
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    3. Hussain Zaid H Alsharif & Tong Shu & Bojan Obrenovic & Danijela Godinic & Ashraf Alhujailli & Alisher Makhmudovich Abdullaev, 2021. "Impact of Entrepreneurial Leadership and Bricolage on Job Security and Sustainable Economic Performance: An Empirical Study of Croatian Companies during COVID-19 Pandemic," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
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    More about this item

    Keywords

    SMEs; Sustainable performance; Innovation; Diversification; Crisis management; Sustaining innovation; SMEs diversification; Diversification strategy; Organizational sustainability;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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