The Role of Digitalisation in SME Performance in Emerging Economies
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2023-06-29
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en
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This thesis studies the relationship between digitalisation and firm performance for small-medium enterprises in emerging economies. Additionally, this thesis negatively moderates the mentioned relationship for effect of weak formal institutions. To test the expected relationships, data from the GESIS Flash Eurobarometer survey data of the European Commission was utilised. Following a binary logistic regression, the results indicate that the role of digitalisation has a positive effect in the firm performance of SMEs in EEs. This result proves to be robust even when the cut-off value for firm performance is increased from 0.50 to 0.75. Additionally, the original model shows that the relationship between digitalisation and firm performance is positively moderated by weak formal institutions, which is in contrast with the current body of literature. The robustness check with the increased cut-off value of firm performance provides a different perspective, as the interaction effect demonstrates an insignificant negative effect. The model of the robustness check provided a better model fit, leading to an intriguing discussion on the appropriate cut-off value for firm performance for future research.
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Faculteit der Managementwetenschappen