Effect of ITC on the International Competitiveness of Firms

Abstract

Purpose – This paper’s aim is to evaluate the effect of the use of information technology and communications (ITC) on the international competitiveness of firms in developing countries. The study also seeks to evaluate other factors that allow or condition the use of ITC such as: human resources, collaboration of the industrial sector, and local environment.

Design/methodology/approach – These effects are examined through an empirical research of 100 small to medium-sized enterprises (SMEs) from a developing country – Peru.

Findings – SMEs from developing countries follow an isomorphic approach. This is because they tend to imitate or copy the better practices from developed countries. The results have shown that ITCs have a positive effect on the international competitiveness of firms.

Research limitations/implications – A limitation is the cross-sectional character of this research.

Practical implications – Firms use ITC to manage their inventory, for the communication between manufacturers and offices, and suppliers, for bill payments, and for the management of sales and marketing, and for the management of their networks.

Originality/value – According to the literature reviewed, this study is one of the pioneers in contrasting empirically whether the use of ITC contributes positively to the international competitiveness of firms in the developing countries of Latin America.

Keywords: Information technologies and communications, International competitiveness, Competitive advantage, Industrial sectors, Exporting, Internationalization, Competitive strategy, Peru, Developing countries, Globalization

JEL Classification: F23, L25, L26