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Drivers of Advanced Digital Technologies

Author

Listed:
  • Ozlem Fikirli

    (Bartin University, Department of Economics)

  • Hasan Sahin

    (Ankara University, Department of Economics)

Abstract

Advancements in digital technologies, especially computer and information systems, force firms to adopt them in their production processes. Artificial intelligence, cloud computing, big data analytics, robotics, smart devices, and blockchain are the leading advanced technologies. This study explores the drivers of firms’ adoption of these technologies by estimating a multivariate probit model utilizing a Eurobarometer dataset. A statistically significant and positive correlation between the error terms of all models indicates that investigating the adoption of all advanced digital technologies together is more appropriate than independent analyses. Drivers of advanced digital technologies appear similar with decisive factors in using new technologies, and implementation of any type of innovation significantly increases the probability of adoption. The other determinants are the firm size, interaction with international markets, and the network structure of the market in which firms operate. Furthermore, location positively impacts the adoption of cloud computing and big data analytics, while it exerts no significant influence on the adoption of other types of advanced digital technologies.

Suggested Citation

  • Ozlem Fikirli & Hasan Sahin, 2024. "Drivers of Advanced Digital Technologies," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 10(2), pages 43-54, December.
    • Handle: RePEc:ana:journl:v:10:y:2024:i:2:p:43-54
    DOI: 10.22440/wjae.10.2.1
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    References listed on IDEAS

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    More about this item

    Keywords

    Digital technology; Technology diffusion; Multivariate probit model;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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