Technology Innovations toward Sustainable Growth of Small Medium Enterprise (SMEs): Aftermath COVID-19 Pandemic

Abstract

Small and medium enterprises (SMEs) are vital to the economic growth of developing nations, due to the major segment of commercial activities that are conducted by such SMEs. However, the spread of the COVID-19 pandemic has severely affected supply and demand for SMEs as a result of worldwide lockdowns and restriction policies implemented in the effort to cull the outbreak of the virus. These restrictions, including the temporary closure of physical businesses and limited travel, have significant consequences towards sustainability in the growth of SMEs. SMEs must contend with challenges including decreased commercial opportunities, interruptions in the supply chain and human resources issues. In the face of these barriers, the evolution of the existing business models by adopting technology innovation can assist SMEs in establishing novel strategies to lay a foundation for future sustainable growth. Thus, the current study proposes a conceptual framework for a new business model which adopts technology innovation tools, namely the internet and web, big data analysis and artificial intelligence (AI). All these tools are adopted in alignment with the Technology Acceptance Model (TAM). This framework is vital in raising awareness regarding the role of technology innovation in rejuvenating the business operations of SMEs in order to ensure sustainable growth and survival in the wake of the COVID-19 pandemic.