Abstract
When studying how digital transformation affects company performance, a phenomenon known as the "digitalization paradox" frequently emerges. In previous studies, however, an average estimate has often been used to assess the relationship between digital transformation and firm performance. Using a fixed-effects quantile technique, this study examines the heterogeneous effect of digital transformation on firm performance in Vietnam. The findings reveal a nuanced relationship, indicating that only high-performing companies gain from digital transformation while others do not. The extensive robustness tests in the empirical analysis support this result. It becomes clear that the mean approach may hide the genuine consequences of digital transformation on firm performance.
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