The Relationship Between Digital Capital and Business Success: Discussion at the IDLab Seminar

On February 9, 2025, as part of the IDLab scientific seminar, a research presentation was held on " Digital Relational Capital as a Driver of Financial Success in Russian Small and Medium-Sized Enterprises." The study was presented by its authors—Petr Parshakov, Sofia Paklina, and Evgeniya Shenkman. The research was conducted within the framework of the RSF project 23-78-10149, "Factors of Intensification of SME Resources under External Uncertainty."

In the era of rapid digitalization, digital relational capital has become a key resource influencing a company's financial stability. It encompasses online reputation, social media activity, search engine visibility, and the quality of digital interactions with customers. Studies confirm that companies with a strong digital presence achieve better customer acquisition and retention rates, which positively impact their financial performance. Enhanced online visibility and brand trust through digital channels correlate with increased revenue and customer loyalty. This effect is particularly pronounced in highly competitive industries, where digital communications play a crucial role in shaping consumer value.

 

The study's authors highlight that the impact of digital capital on financial performance varies across industries. In traditional sectors such as manufacturing, the effect may be less pronounced compared to high-tech and B2C-oriented businesses. The research is based on data from Russian SMEs and examines the specific role of digital relational capital in the context of digital transformation. One of the key indicators used to measure digital engagement was the number of company followers on the social network VKontakte. Additionally, various forms of government support for SMEs were taken into account to explore potential mediating effects between digital relational capital and financial performance.

 

The authors applied econometric models to address the issue of sample selection bias, as follower data on VKontakte is not available for all companies. The analysis revealed that an increase in the number of followers positively correlates with the financial performance of SMEs, particularly when government informational support is present. However, even in the absence of such support, the positive effect remains, albeit at a lower magnitude.

At the seminar, the researchers presented their preliminary calculations and then engaged in a discussion with colleagues on how to further improve the study.