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ICT Use, Competitive Pressures, and Firm Performance in Mexico

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  • Leonardo Iacovone
  • Mariana Pereira-López
  • Marc Schiffbauer

Abstract

In this paper we present a set of stylized facts regarding the relation between information and communication technologies (ICT) use, firm performance, and competition. Taking advantage of a novel firm-level data set regarding ICT for Mexico, we find that firms facing higher competition appear to be the ones that have more incentives to increase their use of ICT. Accordingly, even though there is indeed a positive relation between ICT use and firm performance, this effect is greater for firms that face higher competition pressures, which is consistent with the theoretical predictions of the trade-induced technical change hypothesis.

Suggested Citation

  • Leonardo Iacovone & Mariana Pereira-López & Marc Schiffbauer, 2017. "ICT Use, Competitive Pressures, and Firm Performance in Mexico," The World Bank Economic Review, World Bank, vol. 30(Supplemen), pages 109-118.
    • Handle: RePEc:oup:wbecrv:v:30:y:2017:i:supplement_1:p:s109-s118.
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    1. Fernandes, Ana M. & Mattoo, Aaditya & Nguyen, Huy & Schiffbauer, Marc, 2019. "The internet and Chinese exports in the pre-ali baba era," Journal of Development Economics, Elsevier, vol. 138(C), pages 57-76.
    2. Mugobi, Thereza & Mlozi, Shogo, 2021. "The impact of external factors on ICT usage practices at UNESCO World Heritage Sites," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7(1), pages 3-12.
    3. Amina Asabe Adamu & Chong Yen Wan & Abdullahi Hassan Gorondutse, 2020. "Ethical Sensitivity and Sustainable Performance of SMEs: Empirical Evidence from Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(8), pages 78-82, August.
    4. Agu, Chinonso .V. & Aguegboh, Ekene .S., 2020. "ICT and Bank Performance in Sub-Saharan Africa: A Dynamic Panel Analysis," MPRA Paper 100355, University Library of Munich, Germany.
    5. Ragoussis,Alexandros & Timmis,Jonathan David, 2022. "Global Transition Online," Policy Research Working Paper Series 9951, The World Bank.

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    More about this item

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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