REASONS FOR IMPLEMENTING INNOVATION ON THE EXAMPLE OF SMALL AND MEDIUM ENTERPRISES

Purpose: The aim of the article is to determine the factors determining the introduction of innovations in the enterprise, as well as the way the company is perceived as innovative by employees. Design/methodology/approach: In pursuit of this goal, the first one presents the level of innovation of the Polish economy compared to other European Union countries. Then, the results of research on enterprises from the SME sector are presented. The data show that Poland is one of the least of the literature on the subject and research results, the reasons for implementing innovations in enterprises were indicated Findings: Most often, the surveyed respondents did not agree or rather disagreed that legal regulations are the reason for introducing innovations in the company (86.7% of responses), followed by reasons such as: "the desire to reduce costs" (48% of responses) and "the desire to increase the company's efficiency" (29.3% of responses). Most often, the respondents did not have an opinion that reasons such as: "forcing innovations by contractors" (61.3%), "market needs" (52.0%) and "the desire to increase the company's efficiency" (51.3%) are the reasons for introducing innovations in the company. Most often, the respondents agreed or rather agreed with reasons for introducing innovations in the company such as: "the desire to increase profits" (80.7%), "expanding the sales market" (80.0%) and "meeting the competition on the market" (69.3%). Originality/value: Innovation is a tool supporting sustainable development. Only entities operating in a modern and innovative way gain a competitive advantage. The considerations contained in the article concern the perception of the company as innovative by employees and indication of the reasons for implementing innovations. The survey included enterprises representing the group of small and medium-sized enterprises, the so-called SMEs. The article is part of research on innovation in information systems in small and medium-sized enterprises.