Adaption of Digital Technologies: the Case of Latvian Firms

Konstantins Benkovskis, Styliani Christodoulopoulou and Olegs Tkacevs
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Styliani Christodoulopoulou: European Central Bank
Olegs Tkacevs: Latvijas Banka

No 2025/01, Discussion Papers from Latvijas Banka

Abstract: This study examines the adoption of digital technologies by Latvian firms, focusing on the factors influencing adoption decisions and the impact of these technologies on firm performance. Using firm-level responses to the digitalisation survey, the paper covers four technologies: broadband internet, webpages, web sales, and EDI sales. The results suggest that larger firms, exporters, and those employing ICT specialists along with a higher-skilled workforce, are more inlined to adopt digital technologies. The provision of relevant training programmes for both ICT and non-ICT staff is essential for fostering technology adoption, particularly for more complex systems like web sales. To assess the impact of digitalisation on firm performance, the study employs a difference- in-differences approach, finding that webpage adoption positively affects turnover and employment, particularly in the manufacturing sector. EDI sales also enhance firm performance, boosting turnover and employment. The study emphasises the need for complementary investments in workforce skills, ICT training, and organisational re-structuring to fully realise the benefits of digital transformation.

Keywords: digital technologies; e-commerce; firm performance (search for similar items in EconPapers)
JEL-codes: D22 F14 J23 J24 L25 O14 O33 (search for similar items in EconPapers)
Date: 2025-04-11
New Economics Papers: this item is included in nep-eur, nep-ict, nep-lma, nep-sbm and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:ltv:dpaper:202501

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