This study investigates the influence of digital innovation on the development of firms in emerging economies based on strategic processes that enable them to obtain solutions in pandemic situations. Our study aims to (i) determine the relevant factors and mechanisms used by firms to improve their performance in pandemic situations for emerging countries; (ii) examine the circumstances under which the adoption of digital innovation leads to better firm performance.
We study emerging economies such as China and Central American countries to compare and understand companies' adaptation strategies. We rely on the "tripod strategy" from different but complementary perspectives: institutional, competitive, resource, and strategic orientation. Using a novel Fuzzy Set Qualitative Analysis (FsQCA) approach, we analyze 1939 Chinese firms drawn from the Survey for Innovation and Entrepreneurship in China (EISEC) and 751 Central American firms drawn from the World Bank Enterprise Survey. In doing so, we explain the combinations of mechanisms that influence higher firm performance in pandemic situations for emerging economies.
In China and Central America, the results show that firms do not have access to financial support due to weak state capacity. In the case of China, the results indicate that the use of organizational innovation and high labor flexibility are necessary conditions for higher firm performance. In the case of Central American countries, the results suggest that high organizational informality through temporary jobs and the presence of suppliers are necessary conditions for higher firm performance.
Our study presents several limitations. First, the application to a South American context allows us to generalize the results. Second, analyzing the factors and their interaction to understand the underperformance of companies in emerging countries.
The practical contribution of this study allows us to know and understand the reality of companies in China and adaptation strategies. It enables policymakers to expand into a particular context. It is noteworthy that, despite the global health crisis, China is the only country growing in adverse situations. Therefore, the strategies provided by the lessons learned in China allow similar problems in Central America.
|Period||12 Jun 2021 → 13 Jun 2021|
|Held at||University of San Francisco, United States, California|
|Degree of Recognition||International|