The impact of digital technologies on business competitiveness: a comparison between Latin America and Europe

What is it about?

This paper examines how the adoption of digital technologies influences the competitiveness of countries, which permeate or impact the performance of companies influenced by the government policies adopted by each country. This study used a structural model validated on the pillars of the Global Competitiveness Index (GCI): Financial System, Adoption of Information and Communication Technologies (ICT), Skills, Labor Market, Product Market, Macroeconomic Stability, Business Dynamism and GDP (PPP) as a percentage of the total world value. For 17 Latin American and 28 European countries. The PLS-SEM (Partial Least Squares - Structural Equation Modelling) technique was applied using the SmartPLS software package. The main results were that the adoption of ICT in the Latin American countries analyzed is a strong predictor of some pillars of the Global Competitiveness Index (GCI), such as Business Dynamism (predicts 66% of the variance), Skills (predicts 81% of the variance), Product Market (predicts 75% of the variance), Labor Market (predicts 42% of the variance) and Financial System (predicts 49% of the variance). Moreover, the adoption of ICT in the 28 European countries analyzed is also a strong predictor of some pillars of the GCI, such as Business Dynamism (predicts 35.6% of the variance), Skills (predicts 72.2% of the variance), Product Market (predicts 51.6% of the variance), Labor Market (predicts 81.7% of the variance, but with a negative trajectory that indicates a negative influence) and Financial System (predicts 38% of the variance).

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