The
Internet has contributed to globalization while small and medium (SME)
businesses are finding the ability to connect with worldwide customers and
increase revenues. Research by Vanyushyn, et. al. (2011) discussed the
implementation of Internet technology for either structural improvements or
marketing enhancements. SME adoption of new technology is important for their
overall growth and innovative contribution to economic development.
The
Internet is reducing borders and spreading new technologies that create shifts
in global structure (Kemeny, 2011). As information spreads, cultures change,
businesses connect together, and commerce adjusts it develops a wider marketplace.
A small business can be located in the U.S. but have customers from nearly any
other place on the globe. Such changes were not possible a few decades ago.
New
information technology increases interaction between local governments, large
corporations, and international organizations while SMEs improve upon their
international competitiveness (Ruzzier at. al., 2006). Because business is less restricted to
geography than it was in the past small businesses can find ways of filling
gaps and services in an international market while still being grounded in
their local communities.
SMEs are also a major catalyst to
local and national economic growth. A report by the European Commission (2011)
found that “European SMEs are a major source of
job creation: More than 50% of new jobs derive from a group of fast growing
companies representing 4% of the total number of European SMEs. In addition,
almost half of the two million industrial SMEs have recently introduced
innovations to the markets.” Such businesses improve upon the employment
market and develop new technologies.
To be successful in an ever
changing market businesses must innovate and continue to innovate when new
challenges present themselves. Innovative behavior is directly related to the
performance of innovation by the adaption or creation of new technology,
products and/or processes. The adoption and integration process becomes a new source
of competitive advantage for both the business and the nation.
Innovation is not only within the
realm of technology but also includes the gathering of knowledge to create
change. Innovative change comprises proposing new questions, developing new
skills, creating technological advantages, or finding new ways of resolving
problems (Comison-Zornoza, et. al., 2004). Innovation is a process of learning
about new competencies and technologies that enhance performance and then
integrating them into processes for higher organizational effectiveness.
The authors studied 1.) the
sequence of steps in the adoptive process, and 2.) the evaluation of the
contribution of the Internet on international competitiveness. They found that
over time new technologies reduce cost, develop skilled specialists and improve
productivity. Small firm innovation takes on more of a refinement, production,
implementation, and execution of new online channels. SME can integrate new
technologies through refinement of process that are realized in more effective
production and performance.
Camison-Zornoza, C., et. al. (2004).
A Meta-Analysis of Innovation and Organizational Size. Organization Studies,
25, 331–361.
European Commission (2011). Assessing
the performance of European SMEs. Enterprise & Industry
Online Magazine.
http://ec.europa.eu/enterprise/magazine/articles/smesentrepreneurship/article_10581_en.htm
Kemeny, T. (2011). Are
International Technology Gaps Growing or Shrinking in the Age of Globalization?. Journal of
Economic Geography, 11, 1-35.
Ruzzier, M., et. al. (2006). SME
Internationalization Research: Past, Present, and Future. Journal of Small
Business and Enterprise Development, 13, 476-497.
Vanyushyn, V. et. al. (2011). New business models for
international performance-a longitudinal study of Internet and marketing. ICSB
World Conference Proceedings: 1-17. Washington: International Council for Small
Business (ICSB).
