Shaping innovation pathways: Metaverse application configurations in high-technology small- and medium-sized enterprises

Abstract

The emergence of Industry 4.0, characterized by rapid technological change and fierce competition, challenges technology firms to make strategic innovation decisions. Central to this is the metaverse, a hybrid virtual space combining virtual reality, augmented reality, and the internet. Recognizing that the implications of metaverse applications extend beyond individual organizations, this research examines its adoption configurations. Using the Technology Acceptance Model (TAM) and the Technology-Organization-Environment (TOE) framework, we analyze survey data from 116 high-technology small and medium-sized enterprises in China using fuzzy-set qualitative comparative analysis (fsQCA). Our research reveals that no isolated factor within the TAM-TOE framework solely affects innovation decision-making. Instead, we identify three configurations that enhance decision-making quality and three that increase its speed, leading to improved innovation performance. In this way, this research advances the understanding of technology adoption configurations in the innovation processes of young tech firms.