1. bookVolume 15 (2021): Issue 1 (December 2021)
Conference Details
License
Format
Conference
eISSN
2558-9652
First Published
15 Dec 2017
Publication timeframe
1 time per year
Languages
English
access type Open Access

Correlative approach to digitalization and economic growth

Published Online: 31 Dec 2021
Volume & Issue: Volume 15 (2021) - Issue 1 (December 2021)
Page range: 44 - 57
Conference Details
License
Format
Conference
eISSN
2558-9652
First Published
15 Dec 2017
Publication timeframe
1 time per year
Languages
English
Abstract

It is known that the evolution of digital technologies, together with a combination of other essential generic technologies, leads to a change in the way we design, produce and market related products and services, as well as in the way how value is generated from them. Digitalization and transformation of the business process to create remarkable customer experience are absolutely necessary for any company that wants to evolve and succeed in the fast-digitizing business environment. The main objective of this research was to discover how digitalization influences economic growth. The databases used were Eurostat and World Bank. We selected 8 main research variables, which were divided into two sets to describe (i) the phenomenon of digitalization by digital skills, mobile subscriptions, enterprises with e-commerce, and (ii) the phenomenon of economic growth by real GDP growth, unit labour cost growth, resource productivity and R&D expenditure of GDP. The research methodology was centred on Canonical Correlation Analysis to reveal the connections within and between the two phenomena. The results revealed, for example: the digitalization set was able to explain 70.33% of economic growth with the correlation of 0.800; the real GDP growth is affected by the share of enterprises involved with e-commerce, unit labour costs and resource productivity are affected by high-level digitalization seen by enterprises conducting data analysis on customers for marketing purposes; and that digital skills and R&D expenditures are positively related.

Keywords

Androniceanu, A., Georgescu, I., & Kinnunen, J. (2019). Digitalization clusters within the European Union. In K. S. Soliman, K.S. (Ed.). Proceedings of the 33rd International Business Information Management Association Conference (IBIMA): Education Excellence and Innovation Management through Vision 2020 (pp. 1719-1729). April 10-11, 2019, Granada, Spain. Search in Google Scholar

Androniceanu, A.-M., Kinnunen, J., Georgescu, I., & Androniceanu, A. (2020a). A multidimensional approach to competitiveness, innovation and well-being in the EU using Canonical Correlation Analysis. Journal of Competitiveness, 12(4), 5-21. https://doi.org/10.7441/joc.2020.04.01.10.7441/joc.2020.04.01 Search in Google Scholar

Androniceanu, A.-M., Georgescu, I., Tvaronavičiene, M., & Androniceanu, A. (2020b). Canonical correlation analysis and a new composite index on digitalization and labor force in the context of the Industrial Revolution 4.0. Sustainability, 12(17), Article number: 6812; https://doi.org/10.3390/su12176812; https://www.mdpi.com/2071-1050/12/17/6812. Search in Google Scholar

Androniceanu, A., Georgescu, I., Kinnunen, J., & Androniceanu, A.-M. (2020a) Multidimensional analysis of consumer behaviour on the European digital market. In Sroka W. (Ed.). Perspectives on Consumer Behaviour. Theoretical Aspects and Practical Applications (pp. 75-95), Cham: Springer. DOI: 10.1007/978-3-030-47380-8.10.1007/978-3-030-47380-8 Search in Google Scholar

Androniceanu, A. (2020a). Major structural changes in the EU policies due to the problems and risks caused by COVID-19. Administratie si Management Public, 34, 137-149. DOI: 10.24818/amp/2020.34-08.10.24818/amp/2020.34-08 Search in Google Scholar

Androniceanu A. (2020b). Innovative digital models for an intelligent and sustainable education. In: Peters M., Heraud R. (eds) Encyclopedia of Educational Innovation. Singapore: Springer. DOI: https://doi.org/10.1007/978-981-13-2262-4.10.1007/978-981-13-2262-4 Search in Google Scholar

Belas, J., Amoah, J., Petráková, Z., Kliuchnikava, Y., & Bilan, Y. (2020). Selected Factors of SMEs Management in the Service Sector. Journal of Tourism and Services, 21(11), 129-146. DOI: 10.29036/jots.v11i21.215.10.29036/jots.v11i21.215 Search in Google Scholar

Bimber, B., Flanagin, A.J., & Stohl, C. (2012). Collective action in organizations: interaction and engagement in an era of technological change. New York: Cambridge University Press, 2012. 240p.10.1017/CBO9780511978777 Search in Google Scholar

Brennen, S., & Kreiss, D. (2014). Digitalization and Digitization. Retrieved January 23, 2021, from https://culturedigitally.org/2014/09/digitalization-and-digitization/. Search in Google Scholar

Connolly-Barker, M., Kliestik, T., Suler, P., & Zvarikova, K. (2020). Real-time decision-making in the information technology-driven economy: planning, managing, and operating smart sustainable cities. Geopolitics, History, and International Relations, 12(1), 73-79. doi:10.22381/GHIR12120206.10.22381/GHIR12120206 Search in Google Scholar

Costea, E.-A. (2020). Machine earning-based natural language processing algorithms and electronic health records data. Linguistic and Philosophical Investigations, 19, 93-99. doi: 10.22381/LPI1920205.10.22381/LPI1920205 Search in Google Scholar

Dvorský, J., Petráková, Z., & Fialová, V. (2020a). Perception of Business Risks by Entrepreneurs According to Experience with the Business Failure. International Journal of Entrepreneurial Knowledge, 8(1), 76-88. DOI: 10.37335/ijek.v8i1.104.10.37335/ijek.v8i1.104 Search in Google Scholar

Dvorský, J., Petráková, Z., Khan, K.A., Formánek, I., & Mikoláš, Z. (2020b). Selected Aspects of Strategic Management in the Service Sector. Journal of Tourism and Services, 20(11), 109-123. DOI: 10.29036/jots.v11i20.146.10.29036/jots.v11i20.146 Search in Google Scholar

Fila, M., Levicky, M., Mura, L., Maros, M., & Korenkova, M. (2020). Innovations for business management: motivation and barriers. Marketing and Management of Innovations, 4, 266-278. http://doi.org/10.21272/mmi.2020.4-22.10.21272/mmi.2020.4-22 Search in Google Scholar

Georgescu, I., & Kinnunen, J. (2021). The digital effectiveness on economic inequality: a computational approach. In Dima A.M., D’Ascenzo F. (Eds.). Business Revolution in a Digital Era. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-59972-0_16.10.1007/978-3-030-59972-0_16 Search in Google Scholar

Hotelling, H. (1936). Relations between two sets of variates. Biometrika, 28, 3-4, 321-377. https://doi.org/10.1093/biomet/28.3-4.321.10.1093/biomet/28.3-4.321 Search in Google Scholar

Kinnunen, J., Androniceanu, A., & Georgescu, I. (2019). Digitalization of EU countries: a clusterwise analysis. Proceedings of the International Management Conference: Management Strategies for High Performance. Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), 1-12. Search in Google Scholar

Kinnunen, J., & Georgescu, I. (2020). Disruptive Pandemic as a Driver towards Digital Coaching in OECD Countries. Revista Romaneasca pentru Educatie Multidimensionala, 12(2Sup1), 55-61. https://doi.org/10.18662/rrem/12.2Sup1/289.10.18662/rrem/12.2Sup1/289 Search in Google Scholar

Ključnikov, A., Mura, L., & Sklenár, D. (2019). Information security management in SMEs: factors of success. Entrepreneurship and Sustainability Issues, 6 (4), 2081-2094. https://doi.org/10.9770/jesi.2019.6.4(37) ISSN 2345-0282.10.9770/jesi.2019.6.4(37) Search in Google Scholar

Meyer, D.F., Masehla, T.M., & Kot, S. (2017). The relationship between economic growth and economic development: A regional assessment in South Africa. Journal of Advanced Research in Law and Economics, 8 (4), 1377-1385. DOI: 10.14505/jarle.v8.4(26).38. Search in Google Scholar

Mircica, N. (2020). Restoring public trust in digital platform operations: machine learning algorithmic structuring of social media content. Review of Contemporary Philosophy, 19, 85-91. doi:10.22381/RCP1920209.10.22381/RCP1920209 Search in Google Scholar

Hotelling, H. (1936). Relations between two sets of variables. Biometrika, 28(3/4), 321-377. https://doi.org/10.1093/biomet/28.3-4.321.10.1093/biomet/28.3-4.321 Search in Google Scholar

Ionescu, L. (2020). Robotic process automation, deep learning, and natural language processing in algorithmic data-driven accounting information systems. Analysis and Metaphysics, 19, 59-65. doi:10.22381/AM1920206.10.22381/AM1920206 Search in Google Scholar

Kosach, I., Duka, A., Starchenko, G., Myhaylovska, O., & Zhavoronok, A. (2020). Socioeconomic viability of public management in the context of European integration processes. Administratie si Management Public, 35, 139-152. DOI: 10.24818/amp/2020.35-09.10.24818/amp/2020.35-09 Search in Google Scholar

Platt, C. (2020). Emotional and psychological distress related to covid-19 isolation, quarantine, and physical distancing: evidence of gender-based differences. Journal of Research in Gender Studies, 10(2), 63-72. doi:10.22381/JRGS10220202.10.22381/JRGS10220202 Search in Google Scholar

Shpak, N., Odrekhivskyi, M., Doroshkevych, K., & Sroka, W. (2019). Simulation of innovative systems under Industry 4.0 conditions. Social Sciences, 8, 202; doi:10.3390/socsci8070202.10.3390/socsci8070202 Search in Google Scholar

Shpak, N., Kuzmin, O., Dvulit, Z., Onysenko, T., & Sroka, W. (2020). Digitalization of the marketing activities of enterprises: case study, Information, 11, 109; DOI: 10.3390/info11020109.10.3390/info11020109 Search in Google Scholar

Ślusarczyk, B., & Ul Haque, A. (2019). Public services for business environment: challenges for implementing Industry 4.0 in Polish and Canadian logistic enterprises. Administratie si Management Public, 33, 57-76, DOI: 10.24818/amp/2019.33-04. Search in Google Scholar

Smith, M. (2020). Effective Leadership in Online Small Businesses: an Exploratory Case Study. International Journal of Entrepreneurial Knowledge, 8(2), 27-41. DOI: 10.37335/ijek.v8i2.117.10.37335/ijek.v8i2.117 Search in Google Scholar

Stverkova, H., Pohludka, M., Kurowska-Pysz, J., & Szczepańska-Woszczyna, K. (2018) Cross-border entrepreneurship in Euroregion Beskydy. Polish Journal of Management Studies, 18 (2), 324-337. DOI: 10.17512/pjms.2018.18.2.26.10.17512/pjms.2018.18.2.26 Search in Google Scholar

Uslu, A., Alagöz, G., & Güneş, E. (2020). Socio-cultural, Economic, and Environmental Effects of Tourism from the Point of View of the Local Community. Journal of Tourism and Services, 21(11), 1-21. DOI: 10.29036/jots.v11i21.147.10.29036/jots.v11i21.147 Search in Google Scholar

Virglerova, Z., Conte, F., Amoah, J., & Massaro, M. R. (2020). The Perception of Legal Risk and Its Impact on the Business of SMEs. International Journal of Entrepreneurial Knowledge, 8(2), 1-13. DOI: 10.37335/ijek.v8i2.115.10.37335/ijek.v8i2.115 Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo