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‘Digital divide’ among European entrepreneurs: Which types benefit most from ICT implementation?

Jose Maria Millan (), Serhiy Lyalkov, Andrew Burke, Ana Millán and André van Stel ()

Journal of Business Research, 2021, vol. 125, issue C, 533-547

Abstract: This paper explores the extent to which information and communications technology (ICT) is used by different types of self-employed individuals and how it affects their earnings. We investigate independent own-account workers (IOA), self-employed with employees (SEwE) and dependent self-employed workers (DSEW). Using recent survey data for 35 European countries, we find that earnings rise with the level of ICT use but only from a threshold of utilisation accounting for at least 25 per cent of the time. Moreover, we find that the increase in earnings associated with ICT adoption and usage is larger for SEwE types when compared to both IOA and DSEW. Finally, we find an indirect negative inertia effect of job tenure (i.e., entrepreneurs who have been running their business for a relatively long period of time) on earnings (via low ICT adoption and use). Policy implications are also discussed.

Keywords: Digital divide; ICT adoption and usage frequency; Entrepreneurial earnings; Inertia effects; Types of entrepreneurship; European Working Conditions Survey; Europe (search for similar items in EconPapers)
JEL-codes: J24 L25 L26 L53 O30 O52 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.jbusres.2019.10.034

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