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Digital Divide Decoded: Can E-Commerce and Remote Workforce Enhance Enterprise Resilience in the COVID-19 Era?

Author

Listed:
  • Vo, Long Hai

    (University of Western Australia)

  • Le, Thai-Ha

    (VinFuture Foundation)

  • Park, Donghyun

    (Asian Development Bank)

Abstract

We examine the adverse impact of coronavirus disease (COVID-19) on the performance of more than 12,000 firms in 32 countries along several dimensions; namely, revenue, production, and labor outcomes. We find that the majority of firms experienced permanent or temporary closures, decreased sales and working hours, reduced production capacity, and worker layoffs. However, the impact was heterogeneous across countries and industries. To explain the diverse firm performance, we identify key factors that significantly contribute to firm resilience during the COVID-19 pandemic, especially access to digital infrastructure. After controlling for firm characteristics, macroeconomic conditions, and pandemic prevalence, we found that firms that have access to digital infrastructure performed better than those that do not. The key channel is an enhanced capacity to adopt electronic commerce business models and employ a larger share of the remote workforce, which boosts resilience during the pandemic when social distancing measures are mandated.

Suggested Citation

  • Vo, Long Hai & Le, Thai-Ha & Park, Donghyun, 2022. "Digital Divide Decoded: Can E-Commerce and Remote Workforce Enhance Enterprise Resilience in the COVID-19 Era?," ADB Economics Working Paper Series 667, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0667
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    organizational reform; digital infrastructure; technology transformation; working from home; labor productivity;
    All these keywords.

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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