Drivers of Advanced Digital Technologies

Abstract

Advancements in digital technologies, especially computer and information systems, force firms to adopt them in their production processes. Artificial intelligence, cloud computing, big data analytics, robotics, smart devices, and blockchain are the leading advanced technologies. This study explores the drivers of firms’ adoption of these technologies by estimating a multivariate probit model utilizing a Eurobarometer dataset. A statistically significant and positive correlation between the error terms of all models indicates that investigating the adoption of all advanced digital technologies together is more appropriate than independent analyses. Drivers of advanced digital technologies appear similar with decisive factors in using new technologies, and implementation of any type of innovation significantly increases the probability of adoption. The other determinants are the firm size, interaction with international markets, and the network structure of the market in which firms operate. Furthermore, location positively impacts the adoption of cloud computing and big data analytics, while it exerts no significant influence on the adoption of other types of advanced digital technologies.