Adoption Behaviour of Digital Technologies by Firms: Evidence from South Africa’s Manufacturing Sector
Kiru Sichoongwe
Abstract:The manufacturing industry is vital to the growth and development of most countries. This study investigates the adoption behaviour of digital technologies by manufacturing firms in South Africa. The study employs econometric model to analyze a total of 516 firms in the manufacturing sector. The probit results show that innovation of the firm and firm size have a significant effect on both the current and the expected adoption of digital technologies, whereas capital ownership correlate positively with the cur… Show more
In a competitive and dynamic environment, business performance is a latent concern for managers, requiring firms to implement a set of strategies such as structural capital (SC), potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP) to enhance their performance. Furthermore, our review of the literature found insufficient empirical research to support the theoretical connections between the variables in question. In this sense, the purpose of the present study is to cover this gap and to analyse the effect of SC on business performance. In addition, the mediating effect of RACAP was studied. Finally, the moderating effect of PACAP on the relationship between RACAP and business performance was analysed. Following the non-probabilistic convenience sampling method, a sample of 238 firms in the tourism sector in Peru’s World Heritage Cities was recruited. This study employs partial least squares structural equation modelling (PLS-SEM) for the statistical analysis of mediation and moderation. The results indicate that SC positively affects business performance and RACAP improves it. Likewise, PACAPs positively moderate the effect of RACAP on firm performance (FP). These results contribute to the theoretical understanding of the determinants of FP. Furthermore, it is helpful in practical managerial decision-making in the tourism sector in developing countries.
This chapter aims to contribute to the benefits of linking globalization and digitalization to develop the digital economy and digital inclusion, fill knowledge gaps, and complete the digital transformation of the globalization-enhanced economy. The policy implications will be created based on significant findings to be employed by the economy's policymakers, industry, academics, international organizations, and other concerned institutions around the world as globalization and digitalization platforms to instrument the sustainable development goals (SDGs) to realize sustainable digital economies and businesses around the globe. To guarantee improved consistency, one ought to employ this review globalization and digitalization findings to examine the SDGs sustainability issues in general and digital technologies (big data analytics applications) as positive externalities and tackle the negative externalities brought by the environmental damages in the undesirable output generated in the form of pollutants emissions to achieve innovation and environmental integration.
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