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The effects of digital transformation on innovation and productivity: Firm-level evidence of South African manufacturing micro and small enterprises

Open access
Gaglio, Cyrielle, Kraemer-Mbula, Erika, Lorenz, Edward·2022·Technological Forecasting and Social Change

Abstract

This paper studies the relationships among the use of digital communication technologies, innovation performance and productivity, using an extended version of the Crepon-Duguet-Mairesse (1998) model, for a sample of micro and small enterprises (MSEs) in a middle-income country, South Africa. Based on the results of an original survey carried out in 2019, we investigate these links for a sample of 711 manufacturing MSEs located in Johannesburg. We estimate the relationships sequentially, firstly estimating the relationship between digitalization and innovation, and secondly the relationship between innovation and productivity. Our results show that selected digital communication technologies including the use of social media and of a business mobile phone for surfing the internet have a positive effect on innovation, and that innovation conditional on the use of these technologies has a positive effect on labor productivity. The findings suggest that public programs aimed at fostering inclusive digitalization must consider the types of digital technologies that are most accessible and beneficial to small firms, including those operating informally.

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Metadata

Authors
Gaglio, C., Kraemer-Mbula, E., & Lorenz, E.
Venue
Technological Forecasting and Social Change
Publisher
Elsevier BV
Published
2022-09
Volume
182
Pages
121785
ISSN
0040-1625 (ISSN-L)
OpenAlex
W4283385309
Cited by
452
References
34
FWCI
66.58
Type
journal article
Language
en
Open access
hybrid

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CoChat. (2026). Citation check: The effects of digital transformation on innovation and productivity: Firm-level evidence of South African manufacturing micro and small enterprises. https://app.cochat.ai/papers/10.1016/j.techfore.2022.121785
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Gaglio, C., Kraemer-Mbula, E., & Lorenz, E. (2022). The effects of digital transformation on innovation and productivity: Firm-level evidence of South African manufacturing micro and small enterprises. Technological Forecasting and Social Change. https://doi.org/10.1016/j.techfore.2022.121785

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