A Time-Lag Study of the Effect of Organisational Capital on Innovation in Australia SMEs

Abstract

This study explores the strategic links between organisational capital and innovation performance in Australian SMEs. This study classified organisational capital as information technology as per hardware and software; and equipment or machinery that was applied in the firm. A sample involving SME from various industries was adapted from the Business Longitudinal Database\xa0(BLD) from the Australian Bureau of Statistics (ABS). The analyses validate that information technology capabilities is essential for achieving innovation performance. However the relationship decline over time for different type of innovation. Thus, SME managers should be carefully in investing in appropriate information technology in order to facilitate innovation in their firm. \n\xa0Key Words: SMEs, Organisational capital, Innovation, Australia