THE RELATIONSHIP BETWEEN INNOVATION COMPETENCE AND PERFORMANCE AS AN EFFECT ON THE SUSTAINABILITY OF SMEs

Overcoming the failures of SMEs worldwide in the aftermath of COVID-19 in 2020 is an essential issue for countries and SMEs. A research question was raised that there will be variables that affect the sustainable growth of SMEs. This study aims to find out the relationship between performance and necessary competencies according to industry classification for sustainable growth of SMEs. 205 CEOs of SMEs in Korea were surveyed and verified using Smart PLS. The findings are, first, the difference in the performance of SMEs by industry through the mediating effect of technological capabilities. Second, variables that influence the performance of SMEs were management and technology, technology marketing and technical competence in technology innovation. Third, variables affecting the industry's performance were different, with the most significant increase in the IT/SW industry.