Digitization and Enterprise Efficiency in Selected EU Countries

Róbert MÉSZÁROS

https://doi.org/10.53465/EDAMBA.2023.9788022551274.153-163

 

Abstract. Digitization of enterprises becomes very popular recently. Companies should invest in digital transformation of their business processes to reach better efficiency level in order to stay competitive. My study analyses digital transformation on an enterprise level done for Denmark, Netherlands, Finland, Poland, Slovak Republic and Hungary, as well as the impact of digitization on enterprise efficiency in these countries. The results show a large digital gap between selected EU member states. Regarding results obtained, Denmark, Finland and Netherlands have a high level of digitization of both public and private sector. On the other hand, Slovakia, Hungary and Poland have significantly lower level of digitization. We can assume that reasons for such a digital gap observed are the low level of accessibility of digital infrastructure, lack of investments in the integration of digital technology, lack of training of personnel for developing the necessary human capital and the absence of the required business culture in Hungary, Slovakia and Poland. To accelerate the digital transformation of the private sector, Hungary, Slovakia, and Poland will need to make significant investments to improve access to digital infrastructure and enhance people's ICT skills. Results from the panel data fixed effects regression analysis showed that digital transformation of the private sector, especially regarding skilled human capital and successful integration of digital technology, supported by a high level of digital public services, is the way to improve labor and capital productivity in the country.

Keywords: Digitization, Enterprise Efficiency, Digital Divide

JEL classification: D22, O57, O33

Fulltext: PDF

Online publication date: 25 January 2024

ISBN: 978-80-225-5127-4

Publisher: University of Economics in Bratislava

Pages: 153-163

 

To cite this proceedings paper (STN ISO 690 and 690-2): 

MÉSZÁROŠ, R. 2024. Digitization and Enterprise Efficiency in Selected EU Countries. In PETROVSKÁ, F. (ed.). EDAMBA 2023: Conference Proceedings. Bratislava: University of Economics in Bratislava, 2024. ISBN 978-80-225-5127-4, pp. 153-163

https://doi.org/10.53465/EDAMBA.2023.9788022551274.153-163