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Technology adoption by women-owned businesses in Canada

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  • Huju Liu
  • Hassan Faryaar

Abstract

Technology adoption is essential for improving the growth, productivity and competitiveness of businesses. Previous research suggests that women-owned businesses may be less likely to adopt technologies because they are usually smaller, face more financial constraints, are less likely to access technology knowledge or training, and have different risk-taking preferences. This paper linked two cycles (2017 and 2019) of the Survey of Innovation and Business Strategy with the Canadian Employer-Employee Dynamics Database to study the use of advanced and emerging technologies by women- and men-owned businesses in Canada. The study found some evidence of differences in the use of certain technologies by women-owned businesses, compared with men-owned businesses. Women-owned businesses (12.3%) were less likely to use emerging technologies, such as artificial intelligence, than men-owned businesses (16.5%). However, there was no significant difference in the use of advanced technologies. A Blinder–Oaxaca decomposition showed that the difference in characteristics between women- and men-owned businesses explained about 31% of the overall difference in using emerging technologies. Certain characteristics such as the share of women employees, the average age of employees, business age and profitability played a role in explaining the overall differences.

Suggested Citation

  • Huju Liu & Hassan Faryaar, 2024. "Technology adoption by women-owned businesses in Canada," Economic and Social Reports 202400800003e, Statistics Canada, Analytical Studies and Modelling Branch.
    • Handle: RePEc:stc:stcp8e:202400800003e
    DOI: https://doi.org/10.25318/36280001202400800003-eng
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    References listed on IDEAS

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    1. Forrester, Juanita Kimiyo & Neville, François, 2021. "An institutional perspective on borrowing discouragement among female-owned enterprises and the role of regional female empowerment," Journal of Business Venturing, Elsevier, vol. 36(6).
    2. Lucia Dalla Pellegrina & Serena Frazzoni & Zeno Rotondi & Andrea Vezzulli, 2017. "Does ICT adoption improve access to credit for small enterprises?," Small Business Economics, Springer, vol. 48(3), pages 657-679, March.
    3. James Fudurich & Lena Suchanek & Lise Pichette, 2021. "Adoption of digital technologies: Insights from a global survey initiative," Discussion Papers 2021-7, Bank of Canada.
    4. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
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    Keywords

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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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