Is digitalization a source of innovation? Exploring the role of digital diffusion in SME innovation performance

Sohaib S. Hassan, Konrad Meisner, Kevin Krause, Levan Bzhalava, Petra Moog · 2023 · Small Business Economics

Summary. Digital adoption significantly boosts innovation performance in small and medium-sized enterprises. The study of 1,100 German SMEs found that higher digital diffusion directly increases innovation output. Absorptive capacity—a firm's ability to learn and apply new knowledge—moderates this effect for product innovation specifically, but not for other innovation types. Digital tools act as a catalyst for SME innovation.

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Hassan, S. S., Meisner, K., Krause, K., Bzhalava, L., & Moog, P.. (2023). Is digitalization a source of innovation? Exploring the role of digital diffusion in SME innovation performance. Small Business Economics. https://doi.org/10.1007/s11187-023-00826-7

@article{hassan-2023-digitalization-source-innovation-exploring-role,
  title   = {Is digitalization a source of innovation? Exploring the role of digital diffusion in SME innovation performance},
  author  = {Sohaib S. Hassan and Konrad Meisner and Kevin Krause and Levan Bzhalava and Petra Moog},
  journal = {Small Business Economics},
  year    = {2023},
  doi     = {10.1007/s11187-023-00826-7},
  url     = {https://doi.org/10.1007/s11187-023-00826-7}
}

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Details

DOI: 10.1007/s11187-023-00826-7
Countries: Germany
Regions: Europe
Categories: broadband-and-digital, entrepreneurship, general-innovation
Added: 2026-04-28