Today, in the IT industry, where a paradigm shift occurs frequently,an understanding of the main variables that affect technological innovation and the technological innovation based on that are very important from the companies’ strategic perspective. Also, since it is judged that innovative SMEs based on IT are very likely to develop new markets and lead the creative economy with the IT Revolution, in the present situation, an analysis of the factors affecting innovative IT SMEs’ technological innovation and the process leading to the technological innovation is very necessary research. Therefore, the main objective of this study is to identify and analyze the factors affecting technology innovation of the innovative IT SMEs. A research model is established based on the previous studies on the technology innovation of SMEs. The model is consisted of independent variables (Adhocracy culture, R&D capability, IT capability, Leadership, and Appraisal & Reward), an intermediate variable (Knowledge management activities), and dependent variables (Product/Service innovation and Process innovation).
The subjects of this research included the employees in IT innovation activities centered companies, that is, the innovative IT SMEs that carried out innovations in product/service or process, utilizing the management of technology and ICT (Big data analytics, cloud computing, smart device, Internet, mobile service, open-type OS platform and IoT, etc.), of the domestic SMEs. Empirical analysis of this study have been analyzed with the help of
SPSS 23.0 and AMOS 22.0 programs, the sample for the study was verified by analyzing 330 questionnaires among 365 questionnaires collected by distributing approximately 2,000 questionnaires to target the Innovative IT SMEs employees. As a result of data analysis, it turned out that adhocracy culture, IT capability and leadership suggested as the key variables of the technological innovation had significant impacts on the knowledge management activities and the technological innovation in the companies. In addition, the technological innovation through the knowledge management activities in the companies are affected by how effectively the knowledge is created and accumulated, shared and utilized properly in the organization, and it turned out that when adhocracy culture, IT capability and leadership are prepared in the companies, there are great influences on the companies’ technological innovation.
Major research results can be summarized as follows: IT SMEs pursuing technology innovation should: First, pay attention to Adhocracy culture, IT capability, and Appraisal & Reward systems of the company; Second, recognize that knowledge management is an essential activity performed by the company; Third, strenthen the R&D capabilities of the company by not only exerting internal efforts but establishing cooperative network with various parties; and Finally, resolve the decoupling problem of the appraisal & reward system.