Fostering Sustainable Technological Development in SMES from Developing Nations Within the Framework of the Digital Economy and Resource-Constrained Environments

Abstract

This research examines the direct influence of Digital Orientation (DO), the Internet of Things (IoT), and Digital Platforms (DP) on sustained Digital Innovation (DI) within the Digital Marketplace (DM) and resource-constrained environments. This study examined the mediating function of DP in these relationships. The study employed a quantitative approach, collecting data from 397 CEOs and managing executives of Small and Medium Enterprises (SMEs) in developing nations. Correlations and Structural Equation Modelling (SEM) methods were utilized for hypothesis analysis and testing. The findings indicated that DO, IoT, and Digital Platforms (DP) are significant precursors to sustained DI. The findings suggest that DP serves as an intermediary in the relationship between DO and sustained DI and the connection between IoT and sustained DI. Technological advancements have compelled company organizations to adopt innovative thinking and adjust their operational frameworks correspondingly. Sustainable DI (SDI) is a vital requirement of the current decade to address society's escalating expectations sustainably. Organizations, particularly SMEs, must navigate these obstacles and swift technology changes by employing cost-effective business strategies. Frugal innovation is a crucial component of SDI that allows SMEs to minimize resource consumption and waste while promoting sustainable economic activity. Thus, they cultivate and acquire benefits in this very competitive digital landscape. This inaugural research demonstrates the synergistic integration of DO, IoT, and digital mediums in fostering SDI within the rapidly growing digital industry.