The development of the DDG-capability in firms: An evaluation of its impact on firm financial performance

Abstract

We examine whether firms that develop the Digital Data Genesis dynamic capability show higher performance. Using detailed survey data on the capabilities developed by companies by the usage of digital data and firm financial performance of 96 firms, we find that the firms that develop the DDG dynamic capability have levels of ROA, ROS and revenue growth higher than others do. Our results provide one of the first empirical evidence on the direct link between DDG dynamic capability and firm financial performance.