Digitally-Enabled Labor Market: The Dark Side of Digital Transformation

Although it is widely reported in the literature that digital transformation and emerging digital technologies can improve the performance of organizations, little is known about how digital transformation is affecting the labor market. This study shows how new technologies are affecting a digitally-enabled labor market in an emerging economy. Primary data were collected from experts from Brazilian multinational companies. The results of this study indicate that the labor market has been little affected by digital technologies. Our findings suggest substantive capabilities of experts in the context of companies in digital transition. This study is original and presents significant contributions: it offers interesting insights for companies that intend to advance with the digital transformation in emerging economies and sheds light for managers in their efforts to allocate resources to boost the development of capabilities and reduce the impacts Negative effects of workforce-oriented digital technologies in emerging markets.