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Digitalization: the edge of first movers

Author

Listed:
  • Cátia Cerqueira

    (NIPE/Center for Research in Economics and Management, University of Minho, Portugal)

  • Fernando Alexandre

    (NIPE/Center for Research in Economics and Management, University of Minho, Portugal)

  • Miguel Portela

    (NIPE/Center for Research in Economics and Management, University of Minho, Portugal; and IZA, Bonn)

Abstract

This paper examines firms’ characteristics and the impact on firm performance of being a first mover in the adoption of cloud computing and big data digital technologies, relative to followers and non-adopters. Our results show that firms with higher levels of education both for managers and workers, and shorter managerial tenure are more likely to be digital adopters. First movers in the adoption of big data show distinct characteristics from followers, namely they are younger and have a larger share of higher education workers. Regarding the impact on firm performance, we find that first movers in cloud computing experience significant performance gains, namely in gross value added and productivity, compared to non-adopters, but no gains relative to followers. Interestingly, first movers in big data exhibit a productivity edge over followers and non-adopters. Furthermore, we find that higher levels of education and shorter managerial tenure amplify the positive effects of big data adoption on firm performance.

Suggested Citation

  • Cátia Cerqueira & Fernando Alexandre & Miguel Portela, 2023. "Digitalization: the edge of first movers," NIPE Working Papers 11/2023, NIPE - Universidade do Minho.
    • Handle: RePEc:nip:nipewp:11/2023
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    File URL: https://repositorium.sdum.uminho.pt/handle/1822/87290
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    More about this item

    Keywords

    cloud computing; big data; management; digitalization; productivity; ICT;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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