Do the Uses of Technology Increase Firm Performance? Evidence from the WBES Dataset

This study investigates the effect of technology use on firm performance in an international setting. Using the World Bank Enterprise Surveys (WBES) dataset in 10 European countries, the results show that technology helps firms enhance their performance. Particularly, the use of technology licenses from foreign companies, the adoption of technology for managing suppliers, and the diversification of sales channels by online and telephone sales help firms increase their size in terms of sales and labour scales. This study proposes some policy implications. Policymakers should promote and incentivize the adoption of technology. The government should implement several technology transfer programs that connect local firms with foreign technology providers. The government can foster international collaboration and partnerships in technology and innovation. Further, managers should pay attention to technology as it helps to enhance firms’ supply management and to promote sales through several channels such as online or telephone sales.