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Estimating firm digitalization: A method for disaggregating sector-level digital intensity to firm-level.

ABSTRACT: The digital transformation of firms plays an increasingly important role in the economy and society. However, limited access to data on firm-level digital intensity is an impediment to advancement of multiple research projects concerned with firm digitalization. To alleviate this challenge, this paper proposes a method for estimating firm-level digital intensity based on other more readily available firm-level data and reference data on digitalization, which is available on sector-level. The proposed method utilizes firm-level revenue breakdown by sector to estimate sector revenue-weighted digital intensity scores, which lead to classification of firms into low, medium and high digital intensity groups. The output from the proposed method can be directly used in research concerned with firm digitalization and investigating this multifaceted phenomenon. Results from the application of the proposed method to an illustrative sample of large US and non-US firms (2000 observations in total) indicate that firm-level digital intensity can be efficiently estimated for large samples using data commonly available to researchers. The key differences between the proposed method and alternative methods are:•Recognition of the fact that firms might participate in more than one sector or industry, which partially explains within-sector heterogeneity in firm-level digital intensity. We found that 67.8% of large US firms and 78.6% of large non-US firms were engaged in more than one industry.•Use of reference sector-level digital intensity scores, which allows for rapid update, application across geographies and time, as well as parallel calculation of multiple digital intensity scores for each reference data. Furthermore, use of reference data enables supplementation of firm-level data on digitalization.•Replicability of the method and reproducibility of the results through inclusion of the source code and availability of data through research and commercial databases.

SUBMITTER: Mucha T

PROVIDER: S-EPMC8374197 | biostudies-literature |

REPOSITORIES: biostudies-literature

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Project description:BackgroundThe recent proliferation and application of digital technologies in public health has spurred interest in digital public health. However, as yet, there appears to be a lack of conceptual clarity and consensus on its definition.ObjectiveIn this scoping review, we seek to assess formal and informal definitions of digital public health in the literature and to understand how these definitions have been conceptualized in relation to digitization, digitalization, and digital transformation.MethodsWe conducted a scoping literature search in Ovid MEDLINE, Embase, Google Scholar, and 14 government and intergovernmental agency websites encompassing 6 geographic regions. Among a total of 409 full articles identified, we reviewed 11 publications that either formally defined digital public health or informally described the integration of digital technologies into public health in relation to digitization, digitalization, and digital transformation, and we conducted a thematic analysis of the identified definitions.ResultsTwo explicit definitions of digital public health were identified, each with divergent meanings. The first definition suggested digital public health was a reimagination of public health using new ways of working, blending established public health wisdom with new digital concepts and tools. The second definition highlighted digital public health as an asset to achieve existing public health goals. In relation to public health, digitization was used to refer to the technical process of converting analog records to digital data, digitalization referred to the integration of digital technologies into public health operations, and digital transformation was used to describe a cultural shift that pervasively integrates digital technologies and reorganizes services on the basis of the health needs of the public.ConclusionsThe definition of digital public health remains contested in the literature. Public health researchers and practitioners need to clarify these conceptual definitions to harness opportunities to integrate digital technologies into public health in a way that maximizes their potential to improve public health outcomes.International registered report identifier (irrid)RR2-10.2196/preprints.27686.

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Estimating firm digitalization: A method for disaggregating sector-level digital intensity to firm-level.

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