Previous studies report mixed results about the effect of information technology (IT) on product innovation performance in SMEs. We propose that firms’ technological orientation can explain why some SME’s benefit from IT use in innovation processes whereas others do not. Three hypotheses are tested through a study of 246 small- and medium-sized Danish manufacturers. In contrast to previous studies of large firms, our study did not find a significant relationship between IT use in innovation processes and innovation performance. On the other hand, our results showed that this relationship was conditioned by technological orientation.
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