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ICT use, competitive pressures and firm performance in Mexico

Author

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  • Iacovone,Leonardo
  • Pereira Lopez,Mariana De La Paz
  • Schiffbauer,Marc Tobias

Abstract

This paper presents a set of stylized facts on the relation between information and communications technology (ICT) use, firm performance, and competition. Taking advantage of a novel firm-level data set on information and communications technology for Mexico, the study finds that firms facing higher competition appear to have more incentives to increase their use of information and communications technology. Accordingly, although there is indeed a positive relation between information and communications technology use and firm performance, this effect is greater for firms that face higher competition pressures, which is consistent with the theoretical predictions of the trade-induced technical change hypothesis.

Suggested Citation

  • Iacovone,Leonardo & Pereira Lopez,Mariana De La Paz & Schiffbauer,Marc Tobias, 2016. "ICT use, competitive pressures and firm performance in Mexico," Policy Research Working Paper Series 7629, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7629
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    References listed on IDEAS

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    Cited by:

    1. Fernandes, Ana M. & Mattoo, Aaditya & Nguyen, Huy & Schiffbauer, Marc, 2019. "The internet and Chinese exports in the pre-ali baba era," Journal of Development Economics, Elsevier, vol. 138(C), pages 57-76.
    2. Mugobi, Thereza & Mlozi, Shogo, 2021. "The impact of external factors on ICT usage practices at UNESCO World Heritage Sites," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7(1), pages 3-12.
    3. Amina Asabe Adamu & Chong Yen Wan & Abdullahi Hassan Gorondutse, 2020. "Ethical Sensitivity and Sustainable Performance of SMEs: Empirical Evidence from Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(8), pages 78-82, August.
    4. Agu, Chinonso .V. & Aguegboh, Ekene .S., 2020. "ICT and Bank Performance in Sub-Saharan Africa: A Dynamic Panel Analysis," MPRA Paper 100355, University Library of Munich, Germany.
    5. Ragoussis,Alexandros & Timmis,Jonathan David, 2022. "Global Transition Online," Policy Research Working Paper Series 9951, The World Bank.

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    More about this item

    Keywords

    Private Sector Economics; Information Technology; Marketing; International Trade and Trade Rules; Private Sector Development Law;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • 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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