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Does Market Digitalization Always Benefit Firms? The Latin American Case, Angelica M. Sanchez-Riofrio, Nathaniel C. Lupton, John Gabriel Rodríguez-Vásquez
Does Market Digitalization Always Benefit Firms? The Latin American Case, Angelica M. Sanchez-Riofrio, Nathaniel C. Lupton, John Gabriel Rodríguez-Vásquez
Faculty Research, Scholarly, and Creative Activity
Purpose
Prior research has found that firms' adoption of digital technologies (i.e. digitalization) enhances transaction efficiency and improves firm performance. However, this finding is based on the assumption that firms respond to consumers' adoption of digital technology (market digitalization) in a timely fashion. The study investigates the impact of market digitalization on firm performance in Latin America, where resistance to change is often higher, despite the positive impact on performance when companies respond to the environmental shock of digitalization by restructuring.
Design/methodology/approach
Using data from seven Latin American countries from 1997 to 2018 (Argentina, Brazil, Chile, Colombia, Peru, Venezuela and …