Global scaling by SMEs: Role of innovation and technology

Abstract SMEs need to possess the capability to innovate and interact effectively with other firms in connected networks of shared production and innovation in order to effectively scale globally. The study used descriptive and inferential design. Correlations and multiple/multivariate regression analysis was used to determine the functional relationship between the independent variables and the dependent variable. The independent variables relating to innovation and technology are: new technologies, breakthrough/new-to-the market products, new and improved processes, incremental innovation, product replacement, acquisition of new technology, and extensive use of existing technology platforms. The dependent variable was global scaling by SMEs. The senior management of selected 205 firms were surveyed and 175 firms responded. The key findings from the research is that: there is a positive relationship between product replacement, acquisition of new technology, and use of existing technology platforms for and global scaling by SMEs. SMEs require to pursue incremental and radical innovations to stay competitive and scale globally but they have limited resources to undertake R&D and knowledge to protect their intellectual property. The implication for practice is a necessity for building robust entrepreneurial ecosystem to facilitate collaboration/networking and SMEs support to undertake R&D and to pursue incremental and radical innovations to stay competitive and scale globally. The implication for policy is a need for collaboration between industry, universities and government in pursuing policies for provision of resources for R&D and exposure of SMEs to critical technologies, particularly in areas of rapid technological changes, including industry 4.0 technologies, to facilitate global scaling.