6533b861fe1ef96bd12c5aea

RESEARCH PRODUCT

A dynamic panel study on digitalization and firm's agility: What drives agility in advanced economies 2009–2018

Marinko ŠKareDomingo Riberio Soriano

subject

Digitalization Agility Family firms Non-family firms Dynamic panel Arellano-Bond020209 energy05 social sciences02 engineering and technologyInvestment (macroeconomics)Human capitalManagement of Technology and InnovationCapital (economics)0502 economics and business0202 electrical engineering electronic engineering information engineeringBusinessTechnological advanceBusiness and International ManagementElasticity coefficientDeveloped country050203 business & managementApplied PsychologyDigitizationIndustrial organizationPanel data

description

Abstract Firm agility today is not a factor of competitiveness or success but a survival instrument on the market. Disruptive innovations and technological advancement, together with digitalization, change the role of firm agility. We show that the link between the national/industry level of digitalization and firm agility is statistically robust and essential. We study the link on data from 2009 to 2018 in fifteen EU advanced economies using dynamic panel data modeling. The digitalization impact level differs across firms by ownership type (family to non-family firms). Agility in family firms is strongly influenced by the national/industry level of digitization and investments in intangible assets (particularly the creation of own-organizational capital). Non-family firms' agility depends on investment in human capital, design, and creation of new products and minorly on national/industry digitalization level. Digitalization and gross investments in intangible assets can increase family firm agility exponentially (elasticity coefficient of 85 for-profit margins). Policymakers using policy supporting national/industry digitalization can boost economic growth significantly. Managers and practitioners targeting specific investments in intangible assets can improve and increase firm agility to large extents.

yearjournalcountryeditionlanguage
2021-02-01Technological Forecasting and Social Change
https://doi.org/10.1016/j.techfore.2020.120418