Digitalisation and high-growth enterprises in Europe

Article  -  Tuesday, 22 October 2024

Teruel, M., Bauer, P., Coad, A., Domnick, C., Harasztosi, P., Rückert, D. and Weiss, C. (2024): "Digitalisation and high-growth enterprises in Europe", Technology Analysis & Strategic Management

The profound implications that digital technologies have for business dynamism and the competitive environment have raised the attention of policymakers and scholars. This paper examines the link between digitalisation and firm growth and investigates whether high-growth enterprises (HGEs) invest and adopt digital technologies differently than non-HGEs. Using the European Investment Bank Investment Survey and Generalised Least Squares as well as random-effects probit models, we find strong complementarities between different digitalisation indicators. Furthermore, firms investing in digitalisation are more likely to exhibit rapid employment, sales and labour productivity growth. Our results also highlight the heterogeneous nature of the digitalisation process and its relationship with firm performance.

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