Impact of Digital Transformation on Firm Performance: A Comparative Study of Germany
DOI:
https://doi.org/10.47604/ejbsm.2459Keywords:
Digital Transformation, Firm PerformanceAbstract
Purpose: The aim of the study was to analyze the impact of digital transformation on firm performance: a comparative study of Germany.
Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
Findings: The comparative study on digital transformation's impact on firm performance in Germany reveals that embracing digitalization leads to improved productivity, efficiency, and innovation. It also emphasizes how digital technologies enhance market competitiveness, expand customer reach, and drive revenue growth and profitability. Strategic planning and organizational adaptability are crucial for firms to maximize the benefits of digital transformation. Overall, the findings underscore the transformative potential of digitalization for German firms, necessitating proactive adoption and continuous adaptation to remain competitive.
Unique Contribution to Theory, Practice and Policy: Resource-based view (RBV), institutional theory & dynamic capabilities theory may be used to anchor future studies on analyze the impact of digital transformation on firm performance: a comparative study of Germany. Firms should focus on enhancing employee digital literacy, establishing cross-functional teams, and embracing a customer-centric mindset to drive innovation and growth in the digital age. Policymakers play a crucial role in creating an enabling environment for digital innovation and entrepreneurship.
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