The role of digital technologies in firms’ performance: A panel data study on family firms and SMEs
Xinxin Wang, Zeshui Xu, Yong Qin, Marinko Skare
Digital technologies, financial performance, employment, family firms, SMEs
In the current big data era, digital technologies play a vital role for firms to improve their
business and economic growth. Considering the firm type and the firm size, this study explores
how digital technologies impact their performance in the financial and employment
perspectives. The performance variables are presented at the capital, profit, debt-paying, and
development levels from Total Economy Database TM and the Amadeus database for European
companies from 2008 and 2019, in a panel data analysis. In this study, the sample only consists
of good companies that generate profit. The results demonstrate that digital technologies
positively affect shareholders' funds to a greater degree for non-family firms and non-SMEs.
They make a positively larger impact on the return on capital employed by non-family and non-
SMEs. Digital technologies would increase the solvency ratio for firms, except for SMEs.
Finally, they make a positively larger impact on the operating revenue for firms that are nonfamily
and non-SMEs, while the opposite is true for family firms and SMEs. Scientific research
on digital technologies has significant managerial importance and competitiveness connecting
family firms and SMEs. The research makes contributions for the relevant literature on digital
technologies and offers four perspectives affecting performances. The findings benefit scholars,
managers, and policymakers of family firms and SMEs.
The role of digital technologies in firms’ performance: A panel data study on family firms and SMEs [PDF file] [Filesize: 274.53 KB]
Wang, X., Xu, Z., Qin, Y., & Skare, M. (2023). The role of digital technologies in firms’ performance: A panel data study
on family firms and SMEs. Journal of Competitiveness, 15(2), 151-166. https://doi.org/10.7441/joc.2023.02.08