Barriers to technological innovation in SMEs : quantitative analysis of investment barriers and strategic decisions

This research paper investigates which factors constrain SMEs from investing in technological innovations, addressing the research question: what factors constrain SMEs from investing in technological innovation? The aim of this study is to identify which factors prevent SMEs from investing in technological innovations. This was done using a quantitative research method in the form of a survey in which 80 SMEs participated. Whether SMEs have encountered barriers to investing in technological innovations in the past was used as a benchmark for the dependent variable, the extent to which SMEs invest in technological innovations. The dependent variable was analysed against six independent variables: skilled workers, financial capabilities/resources, lack of information, recognition to innovate, support and cooperation, and policies and regulations. To explore the relationships between these factors and the extent of perceived barriers a statistical analysis has been performed, using both a univariate Spearman rank test and a multivariate test in the form of a logistic regression analysis. Results reveal that while none of the factors in this study demonstrated a statistically significant effect on the extent to which SMEs invest in technological innovations.