Digitalization intensity and its impact on financial performance: The role of scalable platforms

This research investigates the impact of digital platforms on financial and economic outcomes,\r\nemphasizing EBITDA, market capitalization, and the capacity for debt financing. The research\r\nillustrates that digital platforms enhance revenue streams while simultaneously decreasing\r\noperational expenditures, thereby leading to an overall enhancement in financial performance.\r\nUtilizing a dynamic panel data methodology, the results demonstrate the temporal impacts of\r\ndigital platforms on key financial indicators. Furthermore, it explores the complex interplay\r\nbetween digital intensity and marginal benefits, offering practical ideas for companies seeking\r\nto enhance both scalability and funding opportunities. By analyzing differing levels of digital\r\nintensity, we illustrate how scalability influences financial margins and market capitalization.\r\nThe results imply that organizations adopting digital platforms are more inclined to secure\r\nlong-term economic viability and financing capability through improved efficiencies in data\r\nprocessing and strategic decision-making. However, investing in digitalization has an optimal\r\npoint from where it shows diminishing returns.