The Effect of Coercive Digitization on Organizational Performance

Abstract

This article investigates the influence of institutional pressure on digitalization and performance, exploring the role of consulting companies in their relationships. The study is based on empirical findings administered to 600 firms using PLS-SEM and FIMIX. The theoretical framework presented in this study focused on the role that consulting companies play in the transfer of digitalization. The results indicate that IP can be an effective tool to strengthen digitalization and, in addition, business performance. This outcome is reinforced when consulting services channel this process. Evidence from this study would help managers formulate strategies accordingly for third parties. It also supports public administrations on the appropriateness of imposed digitalization public policies.