Digital Investment Research Articles

Exploring the scope and depth of digitalisation in times of crisis: Implications for SME resilience

This article investigates the role of digitalisation in bolstering small- and medium-sized enterprises (SMEs) during crises. Drawing on data from 245 North American SMEs, we examine the impact of digital technology adoption on firm resilience. The findings reveal nuanced relationships: both the depth (Digital Depth) and scope (Digital Scope) of digitalisation exhibit curvilinear associations with resilience (Profit Outlook), suggesting optimal levels for maximum benefits. Moreover, digital depth moderates the relationship between digital scope and resilience, highlighting their interactive role in enhancing adaptive capacities. This research employs a quantitative approach to explore how SMEs can leverage digital tools for resilience. Notably, it highlights the importance of strategic digital investments tailored to industry dynamics for resilience enhancement illustrating the study underscores the practical significance of digital integration for SMEs, indicating its potential to not only restore pre-crisis performance but also foster sustainable growth in the aftermath of disruption.

The impact of corporate digital transformation on stock market activity: evidence from the Chinese listed manufacturing companies

Purpose This research aims to investigate the impact of corporate digital transformation (CDT) on stock market activity. Design/methodology/approach A data set of Chinese listed manufacturing enterprises from 2012–2021 is used as a research sample. Findings This research finds that CDT can promote stock market activity. This study validates two potential mechanisms: increasing financial performance and mitigating information asymmetry. This study further suggests that internal control and analyst coverage can strengthen the impact of CDT on stock market activity. Research limitations/implications The research exhibits certain limitations that should be considered in future research. Because the findings are based on the Chinese context, the applicability and generalizability of the findings to other environments may be limited. This research enriches the literature on the determinants of stock market activity from a technological perspective and incrementally contributes to understanding the impact of CDT on stock markets. After analyzing two opposing perspectives on the economic consequences of CDT, the favorable effect of CDT on stock market activity is proven based on the resource-based view and agency theory. This research extends the literature on the relationship between CDT and investor behavior, demonstrating that investors perceive CDT as beneficial. The results provide evidence that CDT can increase financial performance and improve the information environment, leading to increased investor attention and enhanced trading activity. Practical implications This research has incremental practical implications for enterprises and regulatory authorities to comprehend the economic consequences of CDT in developing countries. First, enterprises should increase their digital investments to improve their performance and decrease information asymmetry. Furthermore, enterprise managers should strengthen information systems to adapt to the process of CDT and train employees on digital skills. Second, regulatory authorities should provide comprehensive digital policies and programs supported by tax incentives, subsidies and digital infrastructure projects (Wang et al., 2023). Originality/value This research strengthens the debate on the market impact of CDT. Unlike prior literature, this study explores the influence of CDT on stock market activity for the first time, enriching the literature on CDT and stock market activity. Furthermore, the outcomes guide regulatory authorities to actively support CDT and expedite the digital upgrading of manufacturing industries to promote stock market activity.

PERENCANAAN DAN PENINGKATAN KEUANGAN MELALUI INVESTASI DIGITAL SYARIAH PADA MASYARAKAT DI KAWASAN CAGAR BUDAYA KERATON KARTASURA

Family economic welfare is everyone's hope. Economic welfare can be successful if there are right decisions in managing finances that begin with financial planning and decisions. The role of housewives and women in economic welfare can be shown in financial management, so a good understanding is needed in managing finances. This community service program aims to improve understanding of financial planning and improvement through digital investment. The participants of the method used through Asset Based Community Development (ABCD) with housewives and women in the cultural heritage area of the Kartasura palace. The results of the training provided will encourage participants to have appropriate digital investment planning and decisions, so that in the future they can obtain welfare

The status of health information systems and digital transformation in the European Region

Abstract Although there have been investments in health information systems (HIS) and digitalization, WHO/Europe’s work with Member States (MS) shows that much can be improved still. Typically, there is a strong focus on data collection, but less on analysis and knowledge translation, resulting in available data not being optimally used to support decision making. Standards for data exchange and interoperability have not yet been fully implemented. Efforts are underway to train healthcare professionals, yet only half of MS have developed policies for digital health literacy. Fewer still have implemented a comprehensive digital inclusion plan, leaving disadvantaged populations at risk of falling behind. In line with the traditionally strong focus on HIS strengthening in WHO’s work, the European Programme of Work 2020-2025 (EPW) emphasises the need for MS to improve and modernise their HIS to ensure that decisions are data driven. One of the EPW flagship initiatives is Empowerment through Digital Health, promoting the leveraging and scaling up of digital transformation for better health. The Regional digital health action plan for the WHO European Region 2023-2030 outlines the strategic actions needed to achieve this, while fully respecting the values of equity, solidarity and human rights. Collaboration with MS and international partners is vital in this work. WHO/Europe has established several MS-driven health information networks in the past, most notably the European Health Information Initiative (the EHII). The EHII in 2023 has made a restart in the form of the European Health Information Network (HIN). The HIN will guide the work under the EU-funded action ‘Supporting Member States in the WHO European Region in strengthening health information systems and boosting health data governance’, which will be implemented by WHO/Europe. This strong European Commission and WHO/Europe partnership will be a main catalyst for HIS improvement in the Region the coming years.

Entrepreneurs’ impatience and digital technologies

AbstractThis paper analyzes the impact of entrepreneurs’ preferences (impatience and risk attitudes) on firms’ propensity to invest in both general and digital technologies. Using data from the Rilevazione su Imprese e Lavoro (RIL) survey, conducted on a representative sample of Italian firms, we find that impatience significantly reduces the likelihood of adopting digital investments, even when controlling for risk preferences. To address potential endogeneity and simultaneity concerns, we implement an instrumental variable (IV) strategy, exploiting exogenous variation from exposure to earthquakes. The findings remain robust and highlight the crucial role of impatience in shaping investment decisions, particularly in digital technologies.

Digital adoption and human capital upscaling: a regional study of the manufacturing sector

AbstractWe study the effect of the diffusion of digitalization, measured as the level of expenditures in digital technologies, on labor demand within the manufacturing sector. We exploit unique information from a focus study of the quarterly survey of Unioncamere Piemonte (one of Italy’s most industrialized and technologically advanced regions) to measure the extent to which planned digital technologies investments impact hiring propensity, differentiated by educational level. Based on a representative sample of non-micro firms, our findings suggest a positive relationship between digital investments and the probability of hiring highly educated workers, mainly driven by the demand for individuals with a post-secondary technical institute (ITS) diploma and post-MSc qualifications or a PhD in STEM fields. Conversely, we also find that digital investments negatively influence the probability of hiring low-educated individuals, primarily referring to the demand for workers with secondary education. Our results reveal firms’ human capital upscaling dynamics powered by digitalization processes.

Financial Mechanism for Sustainable Development of the Marine Economy with Respect to Technology, Digitalization, and Low Carbonization

This study explores the impact of regional financial development on the sustainable growth of the marine economy across 14 coastal cities in Guangdong Province from 2004 to 2022. To assess this, a comprehensive index system was developed to measure marine economic sustainability, incorporating key factors such as capital investment, production efficiency, and processing and trade. The findings indicate that financial development significantly enhances the sustainable growth of the marine economy. However, the interaction between financial development, technology digitalization, and low-carbon initiatives leads to diminishing returns in terms of sustainability. Through the use of the Moran index and the spatial Durbin model, the analysis reveals a dual outcome: while financial development positively influences a city’s marine economic sustainability, it exerts negative spillover effects on neighboring cities. Previous studies have primarily focused on the relationship between financial development and the marine economy at the national or provincial level, leaving a gap in understanding these dynamics at the city level. Furthermore, the coordination between financial development and marine economic sustainability across cities within the same region remains largely unexplored. This study addresses these gaps by investigating city-level dynamics and examining intercity coordination between financial development and marine economic growth. The results offer a novel perspective for policymakers, highlighting strategies to balance regional financing for the marine economy with targeted investments in science, technology, digitalization, and low-carbon initiatives. This approach seeks to optimize resource allocation and mitigate potential substitution effects. Ultimately, this research contributes to a more nuanced understanding of the complex interplay between financial development and the marine economy at both city and regional levels.

Analisis Return on Investment (ROI) Digital pada UMKM: Sebuah Pendekatan Metodologis

As productive economic enterprises owned by individuals or individual business entities, MSMEs are faced with the reality where digital technology is developing increasingly rapidly, which forces them to immediately carry out digital transformation to achieve business growth and sustainability. Investments in digital technology, from digital marketing to the use of e-commerce platforms, have become important to maintain the competitiveness of MSMEs in an increasingly competitive market. In carrying out digital transformation, MSMEs need to measure and assess the performance of digital investments by comparing the profits obtained from the investment against the costs incurred in the process of digitizing their business. This is the main challenge faced by MSMEs in measuring the effectiveness of their digital investments. This is where the concept of Return on Investment (ROI) becomes very relevant. In this research, it was found that calculating digital ROI requires careful planning and continuous evaluation so that MSMEs can make the right decisions regarding the technology they invest in, both short-term and long-term calculations. Increasing ROI requires a strategic approach that involves reducing costs, increasing revenue, monitoring performance, and utilizing technology and automation that is appropriate to the business being run, through a combination of digitalization strategies, product innovation, good customer service, operational efficiency, and creative marketing. By optimizing every element in investment, it is ensured that every rupiah invested provides maximum returns. By implementing these strategies, MSMEs can increase their competitiveness in the market, strengthen relationships with customers, to increase the competitiveness and sustainability of their business.

The green promotion back to digitization: Research on air quality, urban green coverage and digital innovation

We examine the relationship between air quality, urban green coverage, and the digital innovation of companies in this paper. Using a sample of Chinese A-share listed companies spanning from 2006 to 2016, we discover a positive effect of air quality on companies' digital innovation. Furthermore, urban green coverage enhances this positive relationship through the environmental effect and signaling effect. In mechanism analysis, we find that improved air quality correlates with digital investment attraction, digital human resource immigration, and digital R&D efficiency enhancement channels, subsequently contributing to the advancement of digital innovations among companies. The positive impact of air quality on digital innovation is particularly pronounced in non-state-owned enterprises and under stricter government air policy regulations. Additionally, our study shows that while air quality significantly boosts total innovation by enhancing digital innovation, it has a minimal effect on non-digital innovation. Our findings underscore the importance of paying attention to air quality and promoting green environmental initiatives in the digital era.

Investing in the future: an integrated model for analysing user attitudes towards Robo-advisory services with AI integration

Purpose Recognizing the importance of Robo-advisors in digital financial services, this paper aims to analyse the users’ perception and acceptability of artificial intelligence (AI) in digital investment solutions using an extended “Technology Acceptance Model” (TAM). Design/methodology/approach The model is tested using 454 online valid responses received from Indian Fintech users via direct path analysis, mediation and moderation. Findings The study’s findings show that trust, perceived usefulness and perceived risk all significantly impact users’ attitudes towards Robo-advisors. In contrast, ease of use and social influence did not impact users’ attitudes statistically. Furthermore, the results indicate that their attitudes and ease of use influence users’ intentions to adopt Robo-advisors. Moreover, the moderation effect of gender partly supports the overall model. Specifically, in the path between attitudes and their antecedents, gender plays a role in influencing the relationships among these variables. This aligns with preliminary research in the field, providing additional insight into how gender may moderate the factors influencing users’ attitudes and intentions regarding Robo-advisory services. Research limitations/implications This research study also reveals that trust, perceived risk, ease of use and demographic factors influence the adoption of Robo-advisory services. It is functional, but its sample selection is not probabilistic and overly emphasizes gender. Future research should use probabilistic sampling, other demographic factors and experience and situational factors. Also, it is necessary to examine how convenient and satisfying it is to communicate with service providers. Filling these gaps will improve the knowledge of consumer behaviour in the context of Fintech adoption and develop the current research. Practical implications This study posits that perceived usefulness, trust, perceived risk and ease of use remain core determinants of adopting Robo-advisory services. So, to improve the level of trust of users, it is necessary to develop security measures, data clarity and quality and customer support. Enhancing ease of use by incorporating better interface gestures is always beneficial for increasing the number of users and their level of satisfaction. As identified in previous studies, practical solutions will be achieved by pursuing the increased use of technology while leveraging AI for personal services and minimizing perceived risks, which will strengthen more advanced security measures as well as sufficiently clear communication. Originality/value The paper aims to extend the TAM by incorporating measures of trust and social influence to identify the factors that drive the adoption of Robo-advisors. In doing so, the paper may contribute to developing a more comprehensive understanding of the factors that shape consumers’ attitudes and intentions towards these technologies. Moreover, the paper appears to examine the moderating effect of gender on attitude and its predictors, which could provide insights into how gender characteristics may impact the adoption of Robo-advisors.

How to facilitate in-depth digitalization in enterprises?

ABSTRACT Digitalization is the new engine for enhancing long-term production efficiency in enterprises. However, as a high-investment, high-risk, and long-duration activity, the returns from digitalization are fraught with considerable uncertainty. This paper begins from the perspective of maximizing corporate profits and constructs a static equilibrium analysis framework to explore the digitalization strategies of enterprises under varying degrees of return uncertainty. It is discovered that as the uncertainty of digital investment returns gradually decreases, the optimal strategies for industrial enterprises evolve from ‘not undergoing digitalization’ to ‘undergoing preliminary digitalization’, and finally to ‘undergoing in-depth digitalization’. Based on these findings, this paper proposes corresponding policies to promote in-depth digitalization in enterprises.

Does data asset disclosure contribute to the market efficiency? Evidence from China

Information regarding firms' data assets and stock pricing has been more closely related when data is integrated into firms' value creation processes. However, since data asset disclosure can also be engaged in impression management by firms, its contribution to market efficiency may be impeded. Using a sample of Chinese A-share listed firms from 2014 to 2020, this study examines the impact of increased data asset information disclosure on the subsequent stock price volatility. The findings suggest that more data asset disclosure reduces stock return idiosyncratic volatility. The mechanism analysis shows that data asset disclosure reduces idiosyncratic volatility of stock prices by mitigating analyst forecast dispersion and noise trading induced by buy-sell imbalances. Moreover, this mitigating effect is more pronounced in firms with more analyst following, observable digital investments, and higher liquidity. But the effect is diminished if firms use a more positive abnormal tone in their annual reports.

Digital transition in a turbulent world: European regional growth opportunities in 17 years' time

ABSTRACT Recently, the digital transition has been highlighted as a strategy fostering economic competitiveness. How the advantages from the digital transition will distribute over time and space is still unclear. This paper builds scenarios comparing the effects of a digital transition. Technological assumptions are consistently related to the assumptions on other structural changes. The internal coherence among assumptions is guaranteed by a larger overarching framework based on how the geopolitical context will evolve. A deeper within-EU integration and global cooperation, or a fragmented Europe torn in a world polarized in two blocs, enhance the digital transition and the main structural changes in different ways. Qualitative assumptions, validated through a Delphi analysis, are translated into quantitative ones and included in our MAcroeconometric, Social, Sectoral, Territorial 5 (MASST5) model, a regional macro-econometric forecasting model, through which simulations of GDP growth rates at regional (NUTS2) level are simulated for the period 2021–2038. Results show that if the digital investment plans stimulate growth, they only partially reverse regional growth divergence trends caused by advantages stemming from an integrated market, even if distributed with the aim of closing the digital gap among European countries.

Management Economic Systems and Governance to Reduce Potential Risks in Digital Silk Road Investments: Legal Cooperation between Hainan Free Trade Port and Ethiopia

This research explores the interplay between innovation, economic systems, governance structures, and law, and how they interact with one another in the context of China and Ethiopia’s investments in the Digital Silk Road. The way cutting-edge methods related to governance and economic systems might help lower the risks involved in major infrastructure projects, like the Digital Silk Road, particularly in light of law and 5G developments, is investigated. China–Africa connections are to be strengthened, sustainable development is to be encouraged, and healthy economic progress is the goal of the partnership between Ethiopia and the Hainan Free Trade Port. The impact of these transnational investments on fair growth and sustainable development is assessed, while exploring the evolving agendas and procedures governing investments. This research draws attention to how the law and legal cooperation between Ethiopia and China may promote mutually advantageous outcomes, promote transparency and governance mechanisms, and lessen the likelihood of disputes. This research on the factors influencing the future of the Digital Silk Road and its consequences for long-term, sustainable economic growth, and business in the area, aims to provide valuable insights for policymakers, development professionals, and academics, and for the copromotion of China and Ethiopia in terms of digital investment. This research relates to the promotion of the African Continental Free Trade Area (AfCFTA), in terms of construction and economic development. It also examines how the DSR raises concerns about data security and privacy, cross-border transactions, technology transfer, and cyberterrorism, as well as encourages digital investment, such as through enhancing digital governance regulations, modernizing international investment agreements (IIAs), and bolstering global health, coordination, and cooperation; the article concludes by analyzing the implications for Africa. The findings show that such cooperation would support Africa’s digital transformation and sustainable development, while strengthening China–Africa cooperation.

The political economy of digital government: How Silicon Valley firms drove conversion to data science and artificial intelligence in public management

IMPACT The relationships between digital governments and private digital technology corporations shape investments that endure for years, even decades. Yet recent changes have been under-researched in public management and accountability studies. Until the 2010s systems integrators (SIs) were dominant, producing proprietary legacy computer systems that still shape government technologies today. Since that time, governments have become increasingly reliant on the online tools and cloud technologies developed by Silicon Valley (SV) firms and platform corporations. To keep digital investments in line with business and civil society progress, governments have had to catch up and innovate with the latest generation of data-intensive technologies, such as artificial intelligence (AI), and to adopt some SV organizational culture and practices in government. However, previous long time-lags in public sector responses highlight many lessons for today’s digital government change pioneers. In particular, the article illustrates the importance for digital managers of accelerating change in government organizational cultures, and developing the expertise to manage contractual diversity.

The Impact of ESG Performance on Corporate Financial Performance: The Moderating Effect of Digital Level

In response to economic development, companies are striving to improve their financial performance in order to seek long-term growth and development. As a major player in market economic activities, corporations are constantly undergoing digital transformation. Its qualities of technology, innovation, intelligence and uniqueness can enable companies to gain new competitive advantages and gradually become one of the important factors influencing ESG practices. The current study examines how ESG performance affects corporate financial performance using a two-way fixed-effects method employing a moderating effects framework. This study uses panel data from listed companies on the Shanghai and Shenzhen stock exchanges between 2014 and 2022 to investigate whether ESG performance could enhance corporate financial performance. The statistical results show that, the impact of ESG performance on corporate financial performance is moderated by three dimensions of digital level. Digital strategy, digital investment and digital staff all have significant, beneficial moderating effect on the relationship between ESG performance and corporate financial performance. The study adds to the body of knowledge in ESG performance and corporate financial performance by providing insights into the moderating effect of digital level that improve their financial performance.

A Study on the Influence Effect of Digital Investment on the Environmental Performance of Listed Companies

A Study on the Influence Effect of Digital Investment on the Environmental Performance of Listed Companies

The Factor Influencing the Adoption of Fintech in Investment Among Malaysians: A Unified Theory of Acceptance and Use of Technology (UTAUT) Perspectives

Technology has proven to be one of the stronger management and administration platforms for solving all of the conventional problems, including digital financial service management. Besides, it has proven to be the more potent distribution channel, not only for the movement of goods and services but also for digital investment. Nowadays, technology delved deep into the unicorns from the consumer’s Internet segment, which encompasses all business to customers’ Internet and Financial Technology companies. Both have emerged in banking, insurance/takaful, investment, asset management, and foreign exchange, among others, to track their activities in providing financial services. However, investment services also need to be given attention, especially when it comes to human intervention with the use of FinTech. The objective of this paper is to examine the influence of adoption factors for FinTech on investment. The objective will examine FinTech's potential in reducing costs, enhancing human resource efficiency, increasing customer satisfaction, and increasing investment returns. This study is based on the Unified Theory of Acceptance and Use of Technology (UTAUT) framework. This study helps participants in the future of the financial services industry leverage their organizational goals towards a hub of financial and non-financial digital ecosystems as technology advances. The comprehensive development of FinTech is essential to the investment management capabilities of all parties, such as value aggregators, advisors, and competitive access facilitators, in the increasingly challenging field of digital technologies. The combination of effective and systematic investment services could be combined with internal capabilities in FinTech across the investment landscape for external innovations, service providers, and advice facilitators.

Unveiling the Future: Decrypting Mobile Investment Resistance with Multi-Stage SEM-ANN-NCA Approach

Mobile commerce has transformed business over the past decade with various m-commerce applications. Despite the growing popularity of digital investment, there is still global resistance to using mobile applications for investment purposes. This work aims to develop a model for analyzing and predicting mobile investment resistance (MIR) by investigating the main hurdles identified in Innovation Resistance Theory (IRT). In addition, this study has extended the IRT theory by integrating demographic factors and mobile innovativeness. Data has been collected from 920 investors. The tri-stage SEM-ANN-NCA strategy, which introduces a new methodological paradigm for mobile investment resistance forecasting, makes this academic study powerful and exceptional. The researchers found that risk is the most influential barrier, followed by usage, tradition, value, image, education, age, and mobile innovativeness. This study helps mobile investment service providers and Fintech companies identify the most significant challenges, solve them, and improve the user experience for mobile investors.

Developing PRISM: A Pragmatic Institutional Survey and Bench Marking Tool to Measure Digital Research Maturity of Cancer Centers.

Multicenter precision oncology real-world evidence requires a substantial long-term investment by hospitals to prepare their data and align on common Clinical Research processes and medical definitions. Our team has developed a self-assessment framework to support hospitals and hospital networks to measure their digital maturity and better plan and coordinate those investments. From that framework, we developed PRISM for Cancer Outcomes: PR: agmatic I: nstitutional S: urvey and benchM: arking. The primary objective was to develop PRISM as a tool for self-assessment of digital maturity in oncology hospitals and research networks; a secondary objective was to create an initial benchmarking cohort of >25 hospitals using the tool as input for future development. PRISM is a 25-question semiquantitative self-assessment survey developed iteratively from expert knowledge in oncology real-world study delivery. It covers four digital maturity dimensions: (1) Precision oncology, (2) Clinical digital data, (3) Routine outcomes, and (4) Information governance and delivery. These reflect the four main data types and critical enablers for precision oncology research from routine electronic health records. During piloting with 26 hospitals from 19 European countries, PRISM was found to be easy to use and its semiquantitative questions to be understood in a wide diversity of hospitals. Results within the initial benchmarking cohort aligned well with internal perspectives. We found statistically significant differences in digital maturity, with Precision oncology being the most mature dimension, and Information governance and delivery the least mature. PRISM is a light footprint benchmarking tool to support the planning of large-scale real-world research networks. It can be used to (i) help an individual hospital identify areas most in need of investment and improvement, (ii) help a network of hospitals identify sources of best practice and expertise, and (iii) help research networks plan research. With further testing, policymakers could use PRISM to better plan digital investments around the Cancer Mission and European Digital Health Space.