Abstracts
Abstract
The purpose of this paper is to study the impact of Digital Business Strategy (DBS) on income inequality. This study investigates how DBS complements financial development in order to influence income inequality in a large panel of 149 countries relying on the GMM estimations for the period 2012 to 2016. Results show that digitalisation helps reduce inequality across countries that belong to the high and the medium DBS maturity levels. This paper highlights the importance of building a mature DBS both for enhancing the positive effects of technology innovation and for promoting financial development as a solution to income inequality.
Keywords:
- Digital Business Strategy maturity,
- Cluster,
- Inequality,
- Financial Development,
- Generalised Method of Moments (GMM)
Résumé
Le but de cet article est d’étudier comment la stratégie numérique des entreprises, associée au développement financier des pays, influence les inégalités de revenus dans un panel de 149 pays en s’appuyant sur les estimations de la méthode des moments généralisée pour la période 2012 à 2016. Les résultats montrent que le numérique contribue à réduire les inégalités entre les pays ayant une maturité numérique moyenne ou élevée. Cette recherche met en évidence le fait qu’une stratégie numérique mature renforce les effets positifs de l’innovation technologique et pour promouvoir le développement financier et ainsi réduire l’inégalité des revenus.
Mots-clés :
- Maturité de la stratégie numérique des entreprises,
- Cluster,
- Inégalités,
- Développement Financier,
- Méthode des Moments Généralisée (GMM)
Resumen
El objetivo de este trabajo es investigar cómo la estrategia digital de las empresas, asociada con el desarrollo financiero de los países, influye en la desigualdad de los ingresos en un panel de 149 países utilizando estimaciones del método generalizado de momentos para el período 2012-2016. Los resultados muestran que lo digital contribuye a reducir la desigualdad entre los países que muestran una madurez digital media y alta. Esta investigación pone de relieve que una estrategia digital madura refuerza los efectos positivos de la innovación tecnológica y para promover el desarrollo financiero y así reducir la desigualdad de ingresos.
Palabras clave:
- Madurez de la Estrategia de Negocio Digital,
- Clúster,
- Desigualdad,
- Desarrollo Financiero,
- Método Generalizado de Momentos (GMM)
Appendices
Bibliography
- Abbasi, Kaleemullah; Alam, Ashraful; Du, Min (Anna); Huynh, Toan Luu Duc (2021). “FinTech, SME efficiency and national culture: Evidence from OECD countries”, Technological Forecasting and Social Change, Vol. 163, p. 1-9.
- Abu-Bader, Suleiman; & Abu-Qarn, Aamer S. (2008). “Financial Development and Economic Growth: Empirical Evidence from Six MENA Countries”, Review of Development Economics, Vol. 12, N° 4, p. 803-817.
- Ahlin, Christian; & Pang, Jiaren (2008). “Are financial development and corruption control substitutes in promoting growth?”, Journal of Development Economics, Vol. 86, N° 2, p. 414-433.
- Akhter, Selim; Liu, Yiyang; & Daly, Kevin (2010). “Cross Country Evidence on the Linkages between Financial Development and Poverty”, International Journal of Business and Management, Vol. 5, N° 1, p. 3-19.
- Amagoh, Francis (2016). “Determinants of e-government diffusion in Nigeria: An examination of theoretical models”, Information Development, Vol. 32, N° 4, p. 1137-1154.
- Amari, Mouna; Baklouti, Nedra; & Mouakhar, Khaireddine (2020). “International comparative evidence of E-Government success and economic growth: Technology adoption as an anti-corruption tool”, Transforming Government People Process and Policy, p. 1-20.
- Arellano, Manuel; Bover, Olympia (1995). “Another look at the instrumental variable estimation of error-components models”, Journal of Econometrics, Vol. 68, N° 1, p. 29-51.
- Asiedu, Elizabeth (2014). “Does Foreign Aid In Education Promote Economic Growth? Evidence from Sub-Saharan Africa”, Journal of African Development, Vol. 16, N° 1, p. 37-59.
- Asongu, Simplice A.; Anyanwu, John C.; & Tchamyou, Vanessa S. (2019). “Technology-driven information sharing and conditional financial development in Africa”, Information Technology for Development, Vol. 25, N° 4, p. 630-659.
- Asongu, Simplice (2020). “The Effects of Mobile Phone Technology, Knowledge Creation and Diffusion on Inclusive Human Development in Sub-Saharan Africa”, Journal of the Knowledge Economy, p. 1-15.
- Asongu, Simplice; & Odhiambo, Nicholas (2020). “Inequality and gender inclusion: Minimum ICT policy thresholds for promoting female employment in Sub-Saharan Africa”, Technological forecasting and social change, Vol. 44, N° 4.
- Asongu, Simplice; & Nwachukwu, Jacinta (2017). “The synergy of financial sector development and information sharing in financial access: propositions and empirical evidence”, Research in International Business and Finance, N° 40, p. 242-258.
- Baltagi, Badi H. (2008). “Forecasting with panel data”, Journal of Forecasting, Vol. 27, p. 153-173.
- Beck, Thorsten; Aslı Demirgüç-Kunt; and Vojislav Maksimovic (2004). “Bank Competition and Access to Finance: International Evidence”, Journal of Money, Credit and Banking, N° 3, p. 627-648.
- Beck, Thorsten; Asli Demirgüç-Kunt; & Ross, Levine (2007). “Finance, Inequality and the Poor: Cross-Country Evidence”, Journal of Economic Growth, Vol. 12, p. 27-49.
- Bélanger, France; & Carter, Lemuria (2009). “Lemuria; The impact of the digital divide on e-government use”, Commun. ACM, Vol. 52, N° 4, p. 132-135.
- Ben Naceur, Samy; & Ghazouani, Samir (2006). “Stock markets, banks, and economic growth: Empirical evidence from the MENA region”, Research in International Business and Finance, p. 297-315.
- Ben Youssef, Adel; Boubaker, Sabri; & Omri, Anis (2018). “Entrepreneurship and sustainability: The need for innovative and institutional solutions”, Technological Forecasting and Social Change, N° 129, p. 232-241.
- Berger, Estelle; & Nakata, Cheryl (2013). “Implementing technologies for financial service innovations in base of the pyramid markets”, Journal of Product Innovation Management, Vol. 30, N° 6, p. 1199-1211.
- Bharadwaj, Anandhi; El Sawy, Omar A.; Pavlou, Paul A.; & Venkatraman, N. Venka (2013). “Digital Business Strategy: Toward a Next Generation of Insights”, MIS Quarterly, Vol. 37, N° 2, p. 471-482.
- Cepparulo, Alessandra; Cuestas, Juan Carlos; & Intartaglia, Maurizio (2016). “Financial development, institutions and poverty alleviation: an empirical analysis”, working paper Eurosüsteem, p. 1-28.
- Chatterjee, Amrita, (2020). “Financial inclusion, information and communication technology diffusion, and economic growth: a panel data analysis”, Information Technology for Development, Vol. 26, N° 3, p. 607-635.
- Cheng, Chih-Yang; Chien, Mi-Se; & Lee, Chien-Chiang (2020). “ICT diffusion, financial development, and economic growth: An international cross-country analysis”. Economic Modelling.
- Comin, Diego; & Nanda, Ramana (2014). “Financial Development and Technology Diffusion”. Harvard Business School—Working Paper, 15(036).
- Cruz-Jesus, Frederico; Oliveira, Tiago; & Bacao, Fernando (2018). “The global digital divide: evidence and drivers”, Journal of Global Information Management (JGIM), Vol. 26, N° 2, p. 1-26.
- Cumming, Douglas; Johan, Sofia; & Zhang, Minjie (2014). “The economic impact of entrepreneurship: comparing international datasets”, Corporate Governance—An International Review, Vol. 22, N° 2, p. 162-178.
- D’Onofrio, Alexandra; Minetti, Raoul; & Murro, Pierluigi (2019). “Banking development, socioeconomic structure and income inequality”, Journal of Economic Behavior & Organization, N° 157, p. 428-451.
- Demir, Ayse; Pesqué-Cela, Vanesa; Altunbas, Yener; Murinde, Victor (2020). “Fintech, financial inclusion and income inequality: a quantile regression approach”, The European Journal of Finance, p. 1-22.
- Destek, Mehmet Akif; Sinha, Avik; & AsumaduSarkodie, Samuel. (2020). “The relationship between financial development and income inequality in Turkey”, Journal of Economic Structures, Vol. 9, N° 11, p. 14.
- Ekwonwune, Emmanuel N.; Egwuonwu, Deborah U.; Elebri, Leticia C.; & Uka, Kanayo K. (2017). “ICT as an Instrument of Enhanced Banking system”. Journal of Computer and Communications, Vol. 5, N° 1, p. 53-60.
- Fichman, Robert G.; Dos Santos, Brian L.; & Zheng, Zhiqian (Eric) (2014). “Digital Innovation as a Fundamental and Powerful Concept in the Information Systems Curriculum”, MIS Quarterly, Vol. 38, N° 2, p. 329-354.
- Fowowe, Babajide; & Abidoye, Babatunde (2013). “A Quantitative Assessment of the Effect of Financial Development on Poverty in African Countries”, The Manchester School, Vol. 81, N° 4, p. 562-585.
- Garcia-Garcia, LuzMaria; & Gil-Garcia, J. Ramon (2018). “Reconsidering the Importance of Context for the Success of Digital Government: The Case of Legal Vulnerability and Extreme Poverty in the Provision of Migration Services at the Southern Mexican Border”, The 19th Annual International Conference, p. 1-7.
- Keramati, Abbas; Behmanesh, Iman; & Noori, Hamid (2018). “Assessing the impact of readiness factors on e-government outcomes: An empirical investigation”, Information Development, Vol. 34, N° 3, p. 222-241.
- Khemili, Hasna; & Belloumi, Mounir (2018). “Cointegration Relationship between Growth, Inequality and Poverty in Tunisia”, International Journal of Applied Economics, Finance and Accounting, Vol. 2, N° 1, p. 8-19.
- Kpodar, Kangni; & Andrianaivo, Mihasonirina (2011). “ICT, Financial Inclusion, and Growth: Evidence from African Countries”. IMF Working Paper N° 11/73.
- Kulichkina, Aslaniva. I. (2020). “Digital Maturity: Definition and Model”. Advances in Economics, Business and Management Research, p. 443-449.
- Kwak, Nayeon; Lee, Choong C.; Hwang, SeongHoon; & Yun, Haejung (2020). “IT maturity model for public agencies in developing countries: The case of Mongolia”, (Sage, Éd.) Information Development, Vol. 36, N° 2, p. 224-239.
- Lannon, John (2016). “An evaluation framework for ICT capacity building projects: Action research in Armenia”, Information Development, Vol. 32, N° 5, p. 1585-1599.
- Maomao, Chi; Xinyuan, Lu; Zhao, Jing; & Yuanxiang, Li (2018). “The impacts of digital business strategy on firm performance: the mediation analysis of e-collaboration capability”, International Journal of Information Systems and Change Management, Vol. 10, N° 2, p. 123-139.
- Mouakhar, Khaireddine; & Tellier, Albéric (2017). “How do Open Source Software Companies Respond to Institutional”, Journal of Enterprise Information Management, Vol. 30, N° 4, p. 534-554.
- Mushtaq, Rizwan; & Bruneau, Catherine (2019). “Microfinance, financial inclusion and ICT: Implications for poverty and inequality”, Technology in Society, p. 1-19.
- Nambisan, Satish; Lyytinen, Kalle; Majchrzak, Ann, & Song, M. (2017). “Digital innovation management: reinventing innovation research in a digital world”, MIS Quarterly, Vol. 41, N° 1, p. 223-238.
- Neaime, Simon; & Gaysset, Isabelle (2017). ’Financial inclusion and stability in MENA: Evidence from poverty and inequality”, Finance Research Letters, p. 1-8.
- Ochara, Nixon Muganda; & Mawela, Tendani (2015). ‘Enabling Social Sustainability of E-Participation through Mobile Technology’, Information Technology for Development, Vol. 21, N° 2, p. 205-228
- Olszewska, Karolina (2020). ‘Fostering digital business transformation and digital skill development for economic growth and social inclusion in Poland: a preliminary study’, Social Inequalities and Economic Growth, N° 2, p. 278-293.
- O’Mahony, Siobhán, & Bechky, Beth A. (2008). ‘Boundary organizations: Enabling collaboration among unexpected allies’, Administrative Science Quarterly, Vol. 53, N° 3, p. 422-459.
- Omri, Anis; & Bel Hadj, Tarek (2020). ‘Foreign investment and air pollution: Do good governance and technological innovation matter?’, Environmental Research.
- Omri, Anis; Daly, Saida; Rault, Christophe; & Chaibi, Anissa (2015). ‘Financial development, environmental quality, trade and economic growth: What causes what in MENA countries’, Energy Economics, N° 48, p. 242-252.
- Omri, Anis; Euchi, Jalel; Hafiez Hasaballah, Abdel; & al-Tit, Ahmad (2019). ‘Determinants of environmental sustainability: Evidence from Saudi Arabia’, Science of The Total Environment, N° 657, p. 1592-1601.
- Park, Young K; Mithas, Sunil (2020). “Organized complexity of digital business strategy: A configurational perspective”, MIS Quarterly, Vol. 44, N° 1, p. 85-127.
- Pearce, Douglas (2011). ‘Financial Inclusion in the Middle East and North Africa. The World Bank Middle East and North Africa Region’, Financial and Private Sector Development Unit.
- Roodman, David (2009 a). ‘A note on the theme of too many instruments’, Oxford Bulletin of Economics and Statistics, Vol. 1, N° 71, p. 135-158.
- Roodman, David (2009b). ‘How to do xtabond2: An introduction to difference and system GMM in Stata’, The Stata Journal: Promoting Communications on Statistics and Stata, Vol. 1, N° 9, p. 86-136.
- Shahiduzzaman, Md.; et alam, Khorshed (2014). ”Information technology and its changing roles to economic growth and productivity in Australia”. Telecommunications Policy, Vol. 38, N° 2, p. 125-135.
- Singh, Gurider; Gaur, Loveleen; & Agarwal, Mayank (2017). ‘Factors Influencing the Digital Business Strategy’, Social Sciences & Humanities, Vol. 25, N° 3, p. 1489-1500.
- Srivastava, Shashi Kant; & Panigrahi, Prabin Kumar (2016). ‘The impact of e-government and e-business on economic performance: A comparative study of developing and developed countries’, Journal of contemporary issues in business and government, Vol. 22, N° 1, p. 36-50.
- Ssozi, John; & Asongu, Simplice (2016). ‘The Effects of Remittances on Output per Worker in Sub-Saharan Africa: A Production Function Approach’, South African Journal of Economics, Vol. 84, N° 3, p. 400-421.
- Su, Fang; Mao, Ji-Ye; Jarvenpaa, Sirkka (2020). ‘Strategic Path Dependence and Transformation: The Impacts of External Positive Feedback’, Academy of Management Annual Meeting Proceedings 2020.
- Tchamyou, Vanessa S. (2019). ‘The Role of Information Sharing in Modulating the Effect of Financial Access on Inequality’, Journal of African Business, Vol. 3, N° 29, p. 317-338.
- Tchamyou, Vanessa S.; Erreygers, Guido; & Cassimon, Danny (2019). “Inequality, ICT and financial access in Africa”. Technological Forecasting and Social Change, Vol. 139, p. 169-184.
- Tita, Anthanasius Fomum; & Meshach, Jesse Aziakpono (2016). ‘Financial development and income inequality in Africa: A panel heterogeneous approach’, 28 p. ERSA working paper 614.
- Uddin, Gazi Salah; Shahbaz, Muhammad; Arouri, Mohamed; & Teulon, Frédéric (2014). ‘Financial Development and Poverty Reduction Nexus: A Cointegration and Causality Analysis in Bangladesh’, Economic Modelling, N° 36, p. 405-412.
- UNDESA (2012). Boosting development with broadband and ICTs. the United Nations Development of Economic and Social Affairs.
- UNESCO (2016). Intentional ICT: Curriculum, Education and Development, IBE Working Papers on Curriculum Issues Nº 17, 21 p.
- Wang, Xiuhua; Guan, Jian (2017). ‘Financial inclusion: measurement, spatial effects and influencing factors’, Applied Economics, Vol. 49, N° 18, p. 1751-1762.
- Westermann, George; Calméjane, Claire; Bonnet, Didier, Ferraris, Patrick; & McAfee, Andrew (2011). ‘Digital Tran-Sformation: A Roadmap for Billion Dollar Organisations’. MIT Center for Digital Business and Capgemini Consulting.
- Zhang, Ruixin; & Ben Naceur, Sami (2019). ‘Financial development, inequality, and poverty: Some international evidence’, International Review of Economics and Finance, N° 61, p. 1-16.