An Overview of Technological Innovation on SME Survival: A Conceptual Paper

This paper explores the theoretical review of technological innovation on SME survival by looking at literature review with SME studies. Previous reference on survival is still scarce even it is the key benchmark to measure business performance. It has been demonstrated within the literature that the practice of technological innovation is significantly associated with business performance but its effect towards SME survival is underexplored. SME survival refers to the year of business operation, availability of future plans and diversity of product/service range. According to social scientists and management experts, among the main technological innovations highlighted in literatures are namely sophisticated machines and equipments, fusion of different technologies, gadgets machines and equipments, fusion of different technologies, and gadgets as tools of innovation. By looking at the technological innovation scope by Diaconu (2011); social networking, computerized record, online marketing can be categorized under the current technological innovation as these mediums are based on technology and influence the development intensity with new or improved process or products. Apart from this justification, among other approaches, these three mediums are close to the business and its potentials are yet to be optimized. In short, the critical discussion provided in this paper would help to strengthen the body of knowledge on SME studies, besides to act as a reference for research in other countries. Findings from this review shed some lights on the potential of social networking as part of online marketing; as the online customers are greater than the typical offline customers. Also, the effect of online marketing via social media is more powerful and diverse due to its ability to reach customers regardless of geographical locations.