Analysing role of businesses’ investment in digital literacy: A case of Pakistan

Abstract

• This study aims to examine whether digital transactions can be increased by improved digital literacy of the customers. • The novelty of this research lies in the fact that research about digital literacy and the digital economy, especially in association with one another, is rare worldwide. • The study uses multiple linear regression models. • The findings suggest that digital literacy and digital media usage enablers influence digital sales and transactions. • The results are also discussed in the local context using digital firms Careem, Foodpanda, and TikTok. The digital economy in Pakistan holds abundant potential, yet its existence is far from commonplace for ordinary Pakistani citizens. Understanding and implementing strategies to expedite the onboarding of masses onto digital platforms is paramount for Pakistan's digital economy. This study aims to examine and confirm whether digital transactions can be increased by improved digital literacy of customers. The idea is to find whether companies that invest in digital literacy can reap benefits in the form of increased transactions. The novelty of this research topic lies in the fact that research about digital literacy and the digital economy, especially in association with one another, is scarce worldwide. The subject provides a theoretical foundation for developing countries like Pakistan, where digital technologies, unsatisfactory literacy rates, and low internet penetration exist. The study uses multiple linear regression models and found that digital literacy and digital media usage enablers influence digital sales and transactions in Pakistan. The practical implication of the finding can be linked with digital economy development in Pakistan in the form of the establishment of various new apps and businesses in transportation (Careem, Bykea), food (Foodpanda) and social media (TikTok).