The Impact of Amazon Global Selling on Innovation Performance of SMEs

Abstract

Small and medium-sized businesses (SMEs) make up the vast majority of the world's businesses, yet they are underrepresented in international trade while accounting for a larger share of employment and economic activity than large multinational companies. The advent of the platform-economy, on the other hand, may offer up a range of new possibilities for small businesses to play a more prominent part in global economic activities. With Amazon and other platforms, SMEs continue to grow and reach beyond boundaries.  Through its relationship with Amazon, a small start-up situated locally may reach clients in more than 200 nations and regions well beyond the boundaries of their regional sales location. Amazon assist SMEs with digitizing their conventional businesses or in offering first-time on the internet. Over the past year, they have collaborated with local organizations in many developing and developed countries to provide digital education and training to businesses. They also focus on providing SMEs with the technology, skills, and assistance they need to market their goods globally. This research hypothesizes that selling on Amazon boosts the innovation performance of of small businesses.  It can significantly influence innovation. It can accelerate technical advancement and enabled businesses to have access to diverse markets and resources. We empirically investigated how the selling on Amazon impacts the innovation KPIs of SMEs. We applied correlation, and multivariate regression analysis using the data of 234 SMEs worldwide. The results showed that businesses that are selling on Amazon are more innovative than the businesses not selling on Amazon. The empirical findings also suggested that government support, education level of owners and employees, infrastructure, and entrepreneurial leadership have positive impacts on innovation performance of SMEs.  The formation new and the innovation of current small and medium-sized firms (SMEs) are key components of today's innovation process and should be prioritized in government innovation plans around the world.