DIGITALIZATION AND TOTAL FACTOR PRODUCTIVITY OF SELECTED FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE IN KENYA
Abstract
Purpose of the Study: The study’s main objective was to determine the effect of digitalization on the Total Factor Productivity of Nairobi Security Exchange listed firms.
Problem Statement: Despite significant firm investment in advance digital technology, the overall contribution of digitalization to the performance and total factor productivity of firms listed in the Nairobi Securities Exchange has been inconsistent.
Method/methodology: To achieve the objective the study adopted the Growth Accounting Equation Approach and Generalized Method of Moments to analyze the effect of digitalization on Total Factor Productivity of selected listed firms in NSE
Results of the study: The study reveals that digitalization as a key driver of productivity among NSE-listed firms.
Conclusion and policy recommendation: The study concludes digitalization is a critical driver of Total Factor Productivity among firms listed in NSE and forward-oriented tech policies should be prioritized to build a tech savvy working environment
Keywords: Digitalization, Total Factor Productivity, Nairobi Securities Exchange.
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