Template-Type: ReDIF-Paper 1.0
Author-Name: Konstantins Benkovskis
Author-X-Name-First: Konstantins
Author-X-Name-Last: Benkovskis
Author-Workplace-Name: Latvijas Banka
Author-Name: Styliani Christodoulopoulou
Author-X-Name-First: Styliani
Author-X-Name-Last: Christodoulopoulou
Author-Workplace-Name: European Central Bank
Author-Name: Olegs Tkacevs
Author-X-Name-First: Olegs
Author-X-Name-Last: Tkacevs
Author-Workplace-Name: Latvijas Banka
Title: Adaption of Digital Technologies: the Case of Latvian Firms
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.
Creation-Date: 2025-04-11
File-URL: https://datnes.latvijasbanka.lv/papers/DP_1_2025_EN.pdf
File-Format: Application/pdf
Number: 2025/01
Classification-JEL: D22, O14, O33, L25, J23, J24, F14
Keywords: digital technologies, e-commerce, firm performance
Handle: RePEc:ltv:dpaper:202501