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Digital Divide Decoded: Can E-Commerce and Remote Workforce Enhance Enterprise Resilience in the Covid-19 Era?

Author

Listed:
  • Long Hai Vo

    (University of Western Australia, Australia)

  • Thai-Ha Le

    (VinUniversity & VinFuture Foundation, Vietnam & IPAG Business School, France)

  • Donghyun Park

    (Asian Development Bank, Philippines)

Abstract

We examine the impact of COVID-19 on the performance of 12,000 firms in 32 countries and find that the majority of firms experienced permanent or temporary closures, decreased sales and working hours, reduced production capacity, and worker layoffs. However, the impact was heterogeneous across countries and industries. After controlling for firm characteristics, macroeconomic conditions, and pandemic prevalence, firms that have access to digital infrastructure performed better than those that do not. The key channel is an enhanced capacity to adopt e-commerce business models and employ larger share of the remote workforce, which boosts resilience when social distancing measures are mandated.

Suggested Citation

  • Long Hai Vo & Thai-Ha Le & Donghyun Park, 2025. "Digital Divide Decoded: Can E-Commerce and Remote Workforce Enhance Enterprise Resilience in the Covid-19 Era?," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 50(4), pages 25-57, December.
    • Handle: RePEc:ris:jecdev:021998
    DOI: 10.35866/caujed.2024.50.4.002
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    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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