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.

Keywords

• information technology
• performance
• productivity
• manufacturing industries
• creative industries
• developing country