Exploring the influence of digitalisation on the formalisation process of informal businesses: a comparative strategic management in China and Peru

Abstract

The formalisation of informal businesses is a complicated process that has been the subject of numerous attempts to find a satisfactory solution. Achieving this transition is an aspiration of academics, policymakers, and the government. To address this problem, our explorative and theoretical research focuses on the influence of digitalisation as a new strategic variable for the formalisation process of informal businesses. For this purpose, we employ comparative strategic management (CSM) in Peru and China businesses to know the factors that drive the formalisation process in heterogeneous contexts. This article demonstrates significant similarities and differences in the formalisation process’s economic, institutional, and strategic environments. Also, from the experience learned from businesses in China, identify factors that could be useful for the Peruvian experience. Finally, this research presents propositions that explain the adaptation mechanisms of digitisation to increase the rate of business formalisation to contribute to sustainable development goals (SDGs), researchers, practitioners, and policymakers.