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

Marinko Skare and Domingo Riberio Soriano

Technological Forecasting and Social Change, 2021, vol. 163, issue C

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.

Keywords: Digitalization; Agility; Family firms; Non-family firms; Dynamic panel; Arellano-Bond (search for similar items in EconPapers)
JEL-codes: C33 D22 L1 O14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:163:y:2021:i:c:s0040162520312440

DOI: 10.1016/j.techfore.2020.120418

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