A digital perspective about how complexity science pushes firms into the stochastic frontier

Since the beginning of the Digital Age, firms involved in “digital business,” e.g. Apple, Google, Amazon, and Facebook, have relatively quickly moved out toward the end of their industry’s Stochastic Frontier (SF). Using data from the S&P Stock Market Index, we show how quickly modern firms, using Digital Age technology, have begun to dominate their industry, i.e., by moving out to the top end of their industry sector’s SF.