Digital Footprint and Firm Performance: Evidence from Organic and Paid Traffic

This study examines the influence of a firm’s digital footprint (organic and paid traffic) on its performance, assessing a sample of 151 Russian firms between 2017 and 2020. It shows a curvilinear association between a firm’s digital footprints (organic and paid) and its performance that varies across industries, moderated by the firm’s size and age. The study finds that organic and paid traffic have a diverse impact on firm performance. The impact of paid traffic is more complex and critical to understand. To gain full benefits from a digital footprint, firms need to innovate and utilize their resources strategically. The study findings are highly useful for other emerging markets that operate under a highly regulated, fragmented, and restricted environment.