Effects of the use of digital technologies on the performance of firms in a developing country: are there differences between creative and manufacturing industries?

Abstract

This paper aims to analyse the effects of the use of digital technologies on firms’ net sales and productivity. The technology adoption approach is applied in empirical research using data from the National Enterprise Survey in Peru. Using the OLS method on a sample of 2,970 firms from creative and manufacturing industries in Peru, the effects of digital technologies on net sales and productivity are determined. Findings indicate that there is a positive relationship. However, these relationships can be different depending on the type of digital technology, the size of the firm and the manager’s gender proportion. We found that most of these technologies are more commonly related to creative industries than manufacturing firms. These relationships have greater statistical significance to net sales in large companies within both types of industry. However, SMEs have greater statistical significance with respect to productivity in both types of industries. Lastly, given the positive effect on these relationships, we conclude by highlighting the importance of managers crafting their technology portfolio and digital capabilities properly and the need for further research to determine the performance of companies in the context of developing countries.

The Impact of ICT Capital on Firm Output and Productivity: Evidence for Ecuadorian firms

“…In Latin America, Garcia-Carpio (2022) estimates the effect of ICT use and R&D investment on TFP in the manufacturing sector in Peru and finds that the latter has a significant effect on TFP of larger firms, but mixed results regarding ICT usage. In contrast, Seclen-Luna et al (2022) find a positive effect of utilization of digital technologies with differences according to firm size, the type of digital technology, and the share of women in management. In Colombia, Gallego et al (in press) also find positive effects of ICT capital on output and TFP in a panel of manufacturing firms for the period 2013-2018, controlling for different firm heterogeneities.…”

Exploring Dimensions in Digital Economy and Manufacturing Integration: Analyzing with DEA-Malmquist Model and Emphasizing the Role of ERP Systems in Enhancing Collaboration and Efficiency

“…Regional technical, legal, and economic systems may impact integration. Researchers (Ivanović & Marić, 2021;Pavlović, Marjanović, Rakić, Tasić, & Lalić, 2020;Pierre, Vergara, & Hellen, 2022) complicate regional digital technology adoption and manufacturing effects research. Finally, the digital economy, manufacturing integration, DEA-Malmquist model, and ERP systems literature analysis show how they may improve production collaboration and efficiency.…”

Executives' role in digital transformation

“…Second, TMS includes shaping the organizational context to make it more adaptive or facilitating the adapting of the digital technology to organizational characteristics [15]. Past research has shown that TMS is a critical organizational factor for successful information systems (IS) planning [23,24], successful IS implementation [25,26], and generally to take full advantage of digital technologies [6,7,27,28]. In particular, with respect to project success, TMS was shown to be the most critical success factor [10,11].…”