The integrative role of it in product and process innovation: Growth and productivity outcomes for manufacturing

Abstract

The assimilation of IT for business process integration plays an integrative role by providing an organization with the ability to exploit innovation opportunities with the purpose of increasing their growth and productivity. Based on survey data obtained from 309 Canadian manufacturing SMEs, this study aims at a deeper understanding of the assimilation of IT for business process integration with regard to product and process innovation. The first objective is to identify the effect of the assimilation of IT for business process integration on growth and productivity. The second objective is to verify if the assimilation of IT for business process integration varies amongst low, medium and high-tech SMEs. Results indicate that the assimilation of IT for business process integration depends upon the type of innovation. It also varies as per the technological intensity of the firms. The assimilation of IT for business process integration has two effects: it increases the growth of manufacturing SMEs by enabling product innovation; but it decreases their productivity by impeding the process innovation. © 2009 Springer Berlin Heidelberg.