Market environment and competition strategies shape innovation and digitalisation in small and medium-sized enterprises

The market environment and SME’s corresponding competition strategies influence their approach to innovation and digitalisation. Innovative companies operate in particularly challenging markets. Short product life cycles, technological uncertainty and competitors from abroad mean that the affected enterprises focus heavily on developing new products. In markets served by companies with digitalisation activities, on the other hand, demand is very responsive to price. An enterprise’s strategic orientation plays a less important role for digitalisation than for innovation. Innovators and businesses with digitalisation activities both operate more successfully than businesses without such activities.

Market environment and competition strategies shape innovation and digitalisation in small and medium-sized enterprises(PDF, 193 KB, non-accessible)