Basic digitization and economic performance in micro-enterprises

Authors

DOI:

https://doi.org/10.5281/zenodo.22695131

Keywords:

Microenterprise, basic digital innovation, production efficiency

Abstract

This study empirically evaluates the relationship between basic digitalization and the economic performance of Peruvian microenterprises during the 2020–2024 period. Methodologically, an unbalanced longitudinal panel was constructed using microdata from the ENAHO, and clustered, random-effects, and fixed-effects models with robust standard errors clustered by id_panel were estimated. Digital innovation was operationalized using three dimensions observable in the ENAHO questionnaire: use of the internet to sell products or services, use of online banking or financial services, and training or formal education. The results show that the digital index has a positive association in the OLS model (β = 0.167; p = 0.001); however, this relationship loses significance in the fixed-effects model (β = -0.190; p = 0.137). Furthermore, the three digital dimensions considered separately also do not show statistical significance in the longitudinal model. As a complementary analysis, productive efficiency was treated as an alternative dependent variable, thereby avoiding the circularity of using a ratio constructed from income to explain income itself. Taken together, the results suggest that the digital premium observed in cross-sectional data is partly due to unobserved heterogeneity among microentrepreneurs, rather than to a robust longitudinal effect of basic digitalization.

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Published

2026-09-10

How to Cite

Algalobo Távara, B. P., Mendoza Pescorán, V. E., & Rodríguez Olazo , E. W. (2026). Basic digitization and economic performance in micro-enterprises . InveCom Journal, 6(Especial 2), 1-13. https://doi.org/10.5281/zenodo.22695131

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