Document Type : Research Article
Authors
1
Department of Industrial Mangement, Faculty of Economics, Management and Administrative Sciences,Semnan University,Semnan, iran.
2
PhD Candidate in Operations and Production Management, Industrial Management Department, Economics and Management Faculty Semnan University
10.22067/jstinp.2026.98926.1207
Abstract
Digital transformation has become a critical driver of economic competitiveness and global trade integration. Yet the mechanisms through which domestic digital adoption translates into digital trade performance remain insufficiently understood, particularly in emerging and transitional economies. This study examines the relationship between business-level digital adoption and digital trade dynamics through a comparative longitudinal analysis of four economies—China, India, South Korea, and Iran—over 2015–2024. It constructs two composite indices: Business Digital Adoption and Integration (BDAI), reflecting how far firms adopt and integrate digital technologies, and Digital Trade Momentum (DTM), capturing the growth and intensity of digitally enabled trade participation. The indices draw on internationally comparable indicators from the World Bank, ITU, UNCTAD, OECD, and IMF, normalized through Min–Max scaling. Rather than implementing a computational simulation, the study adopts a system dynamics–informed interpretive framework, using causal loop analysis to explain the nonlinear, feedback-driven, and path-dependent patterns observed in the data. The findings reveal significant cross-country divergence in both digital capability formation and digital trade performance. South Korea maintains consistently high adoption and stable trade competitiveness; China exhibits rapid growth driven by large-scale ecosystem expansion; India shows gradual adoption gains but more moderate trade diversification; and Iran remains structurally constrained, with limited adoption and weak integration into global digital trade networks. Interpreted through a system dynamics lens, digital transformation operates through reinforcing feedback mechanisms linking infrastructure, firm-level capabilities, innovation capacity, and trade participation. Economies that align these dimensions accumulate cumulative advantages, whereas structural constraints reinforce persistent digital gaps. The study contributes to the digital economy literature by linking micro-level capability formation with macro-level trade outcomes and by identifying the systemic conditions required to translate digital adoption into sustainable digital trade competitiveness.
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