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Some studies suggest digital competence positively impacts firm performance through digital infrastructure, integration, and management, while other studies indicate it has no significant direct effect but can improve specific areas like growth, liquidity, and work-life balance.
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The impact of digital competence on firm performance has garnered significant attention in recent years, especially as businesses navigate the complexities of digital transformation. Digital competence encompasses various elements such as digital infrastructure, digital integration, and digital management, which collectively influence organizational performance. This synthesis aims to consolidate findings from multiple research papers to provide a comprehensive understanding of how digital competence affects firm performance.
Positive Impact of Digital Competence on Firm Performance
Role of Digital Business Capability (DBC)
Digital Competence and Innovation Performance
Moderating Factors
Mediating Role of Smart Technologies
Network Competence and Technological Capability
Digital competence is a critical factor in enhancing firm performance, particularly through the effective management of digital infrastructure, integration, and management. While digital business capabilities and the presence of digital experts on boards significantly contribute to firm performance, the role of digital technologies in innovation is less straightforward and more dependent on complementary factors like R&D and leadership practices. SMEs, in particular, benefit from digital competence, which aids in performance and growth, especially when supported by smart technologies and network competence.
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