Exploring the Adoption of Augmented and Virtual Reality in Innovation Processes of SMEs

Augmented Reality (AR) and Virtual Reality (VR) are recognized among the most important technologies enabling the digital transformation of companies. In particular, Small- and Medium-sized Enterprises (SME)s can exploit many opportunities of AR/VR solutions, especially in extending their innovative potential and transforming their customer value proposition. Nevertheless, the implications of AR/VR adoption in innovation processes has received little attention to date, with the need to explore the issues facilitating a systematic implementation in SMEs context. Considering the related challenges in terms of resources, skills and commitment, this study explores drivers, innovation sources and organisational issues of AR/VR solutions entailed in the innovation process of a set of Italian SMEs. Results show that SMEs are adopting AR or VR solutions for innovating their product or service offering, a business process or even their business model when integrating these solutions into the value proposition. They all show having a cultural propensity towards innovation, an important top management involvement and a low resistance to adoption of new technologies from employees. Conversely, the engagement of external innovation actors and the perceived need of training vary according to the innovation outcome.