Impact of digitalisation on companies' performance during COVID-19 (original) (raw)
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Responses of businesses to public crisis through digitalization during COVID-19
The covid-19 pandemic challenged many businesses in almost all sectors of the economy at a significant level. While this led a certain number of companies that relied on traditional methods and strategies to overcome the obstacles of the crisis to go bankrupt, a significant number of businesses came up with strong dynamic strategies that played an integral role in their survival. This study aims to determine the effectiveness of one of such strategies, digitalization, used by companies operating in Azerbaijan and their response level with to the changing environment. By averaging a 59% response rate, findings demonstrated that companies with strong digital assets and capabilities turned out to be the most successful during this period. In addition, adopting digital transformation in their organizational level to a certain degree played a significant role to provide concurrent production and maintaining the quality of services in a new means. Therefore, this study answered the question of how effective strategy digitalization is when the environment is uncertain and can be useful for many businesses when dealing with future crises.
Proceedings of the Central and Eastern European eDem and eGov Days
The manufacturing industry in Hungary is responsible for 24,3% of the GDP. In overall Hungarian companies' labour productivity reaches only 70% of the EU average. This study shows that digitalisation may contribute to higher labour productivity. In this study a new index to measure digital business process integration (DBII) is introduced based on Porter's Value Chain model. Historic data from a questionnaire is used to categorize companies based on DBII. The association between DBII, organization IT capabilities and business performance indicators (labour productivity and profit per employee) is analysed with the help of cross tabulation and SPSS. It is also shown that higher DBII can be associated with higher labour productivity. Positive association between organization IT capabilities and labour productivity is also presented. A weaker but significant association between DBII and profit per employee suggests, that organizations still need to work out ways how digitalisation can help to harvest the gains from increased labour productivity.
THE IMPACT OF INFORMATION TECHNOLOGIES ON BUSINESS DURING THE COVID-19 PANDEMIC OUTBREAK
Introduction: Towards the end of 2019, it had been reported that a new kind of Corona virus, COVID-19, appeared in Wuhan, China, and since then the source of this virus is obscure. However, the new coronavirus is spreading rapidly and has become a worldwide pandemic. Countries round the world are implementing their own strategies in combating the epidemic. Aim: In this chapter, the effects of information and communication technology on the management and control of businesses in small- and medium-sized enterprises (SMEs) operating in Kosovo during the COVID-19 pandemic are investigated. Moreover, since recently the SME’s in Kosovo have shown faster development in terms of technology, thus the dimensions –the size of amount (unit) of investment is being researched as well. Methods: In this chapter, in an online survey method, respondents were needed to answer using a Likert 5 scale has been applied. The results of online surveys are taken from 54 businesses that were found suitable for evaluation. The data are analysed using the SPSS 23 package program, and the results of frequency analysis, averages and standard deviations were examined. It has been tried to determine whether there is a difference within the approach to information technologies of SMEs operating in Kosovo, based on the year of operation, during the COVID-19 pandemic are investigated. Morever, since recently SME’s in Kosovo have shown faster development in terms of technology, thus the dimensions –the size of amount (unit) of investment is being researched as well. Methods: In this chapter, in an online survey method, respondents were needed to answer using a Likert 5 scale has been applied. The results of online surveys are taken from 54 businesses that were found suitable for evaluation The data are analysed using the SPSS 23 package program, and the results of frequency analysis, averages and standard deviations were examined. It has been tried to determine whether there is a difference within the approach to information technologies of SMEs operating in Kosovo, based on the year of operation, sector, number of personnel, production system type, supply market, target market, foreign capital partnership and legal structures. Findings: According to the results of the analysis obtained, it has been determined that enterprises in Kosovo have different approaches to information technologies consistent with their years of activity, number of personnel, supply markets and target markets. In addition, according to the results obtained, enterprises made the biggest investment in information technologies during the COVID-19 pandemic period. Conclusion: According to the data analyses and the results obtained, disclosed that the utilisation of the Internet, e-mail, capacity increase, communication and improving working conditions, to the areas where businesses make the most use of information technologies. It has been determined that the enterprises evaluate information technologies differently according to their operating time, the sector they operate in, the production tour, the supply market and the target market situation. Originality: Information technologies and investments in this field are a very new concept for businesses in Kosovo. The results obtained from the research will offer very important information and suggestions for businesses that are new to digitalisation. Keywords: Information system; small and medium-sized enterprises; Kosovo; information technology; digitalisation; COVID-19
Examination of Digitalization in Hungarian and Romanian Companies
The Annals of the University of Oradea. Economic Sciences, 2021
2020 posed a series of unforeseen challenges for economic actors. Digitalization, one of the most critical drivers of innovation, provided a lifeline for organizations who anticipated the opportunity and ramifications of a global pandemic. Digitalization offered alternative solutions for contacting partners, serving customer needs, retaining customers, and creating the possibility of online administration. The present study seeks to answer the question – using a database of ongoing research – to what extent are Hungarian and Romanian businesses able to discover the characteristics of the digital transformation, where and to what extent digital technology plays a role in the supply chain, and whether they have started digitization. The developed quantitative database was analyzed and processed utilizing SPSS 25 statistical software. Descriptive statistics and frequency analysis were run, followed by an analysis of variance to explore the existing relationships. For the multiple mean ...
Digitalization and Firm Performance: Empirical Evidence from Forbes-listed Companies
Journal of innovation management, 2024
As the world goes digital, many companies have found that their performance improves when they digitize their operations. This is especially true in light of the COVID-19 pandemic, as companies must rely more on digital tools to survive. Our paper aims to examine the connection between digital competitiveness and the financial performance of 86 digital businesses at the country level before, during, and after the COVID-19 pandemic over the period 2017-2021. Unlike previous findings that relied on qualitative methods, our research relies on quantitative methods. More precisely, we empirically examine the impact of digital competitiveness (i.e., an index) on financial performance (i.e., measured by return on assets) through linear regression models and panel data regressions for three specific periods (2017-2019 pre-pandemic, 2020 pandemic, and 2021 post-pandemic). We found that COVID-19 allows firms to adopt digitalization. More specifically, comparing the three periods, we discovered that digital competitiveness positively influences business financial performance in the post-Covid era. Looking ahead to the post-Covid world, it is clear that companies must prioritize digital competitiveness to ensure their long-term success. Governments can learn important lessons from this research on how to help companies digitize.
Digital strategies and organizational performances of SMEs in the age of Coronavirus
Law and Economics yearly Review, 2019
The process of digital transformation requires a careful management since it involves a set of technological, organisational, cultural and social changes that impact the organization as a whole. For that reason, in order to reach satisfying results, it is not enough to passively adopt digital technologies throughout the organisation. Instead, it is important to be aware of the key organisational implications of embracing such a change in order to be able to manage the whole process in the best possible way. To balance the ongoing digital transformation, it is becoming fundamental to improve also the so-called "digital resilience", that is becoming a critical factor for the success of any SME (Small and Medium Enterprise), now and in the future. Digital resilience needs to be regarded as an integral part of the strategy and mission of any business and should be centred around all involved staff in SMEs. For that reason, the present manuscript
2021
It is becoming increasingly difficult to ignore the importance of the small and medium-sized enterprise sector in the economic and social development of a country. The contribution of a vibrant SME sector to the economies of countries has long been accepted around the world, and is seen as an incubator for jobs, innovation and growth (OECD, 2020). The objective of this research is to understand the effects of the crisis produced by the Corona Virus on the business activity of SMEs. Our survey was administered in collaboration with executives from two digitized companies, from different sectors of activity, during the months of March, April, May, June, and July 2020. Through several theoretical and literature events, this article aims to answer the following main question: To what extent does the Covid 19 pandemic impact the performance of digitized companies? Through, a general reading of post-pandemic economies, as well as the consequences of this latest crisis on the performance o...
The Impact of Digitalisation on The Performance of Companies at National Level
Economic Computation and Economic Cybernetics Studies and Research, 2024
The starting point of this article was to understand how digitalisation strategies can influence the way a business operates. There is no surprise that research on digital transformation has recently attracted a lot of interest among academics. Countries, cities, industries, companies, and people face the same challenge of adapting to a digital environment. The phenomenon of digital transformation always tends to be complicated, ambiguous, challenging, and with unplanned managerial tasks for organisations. The success rate of such digital transformations is very low due to rapid changes in technologies. Digital transformation through these technologies requires a fundamental change in organisational processes, technology, and people's behaviour. Through a systematic review of the literature, it was found that digitally mature businesses focus on integrating digital technologies such as social, mobile, and analytics in the service of transforming the way businesses operate. A unique aspect of digital transformation is that risk-taking is becoming a cultural norm as more and more digitally advanced companies seek new levels of competitive advantage.
Impact of digital performance in growing businesses (Case study Republic of Kosovo)
European Journal of Sustainable Development
Purpose: The aim of this Article is related to the impact that digital performance exerts on development of countries in transition. The data for this article were extracted from a wider survey conducted in the Republic of Kosovo. Methodology: A large number of factors were analyzed in this paper, with a view of presenting the whole impact of digital performance and importance of business development in continuity. This survey includes businesses and employees. A special focus was made on management of digital transformation, value chains and a strategic aspect which result to be among major factors influencing the business performance The paper includes a methodology of research, research questions and hypotheses, survey data report divided into two sections (viewpoint of company and employees), and a final chapter of the paper relates to the presentation of conclusions and recommendations of the study Findings: Results of this paper show that there is a positive correlation betwee...
Has Digitalisation Mitigated the Impact of Covid-19 on the Manufacturing Sector’s Performance?
Australasian Business, Accounting and Finance Journal
The Covid-19 pandemic brought many businesses to a standstill as international travel restriction was imposed across countries in addition to a national lockdown. Firm performances were depressed due to reduced order and output. This study examines whether digitalization has mitigated the negative impact of the Covid-19 pandemic on Malaysia's manufacturing sector. Using sales as the performance yardstick of 24 industrial sectors from January to December 2020, our result shows that manufacturing sales performance was negatively related to the Covid-19 pandemic. However, the adverse impact of Covid-19 was mitigated with a higher level of digitalization. The mitigating role of digitalization remains robust in further analysis. This study has managed to quantify the mitigating effect of Covid-19 on manufacturing sectors. As a policy implication, the government should expedite the introduction of the 5G network, promote digital adoption across all sectors to ensure business continuity and provide an effective response mechanism in any pandemic or crisis.