Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)

Abstract

Managing the digitalization strategy in developed and industrial countries

Author(s): Chupina, Z. S., Pavlova, A. V., Lebedev, K. N., Budovich, Y. I., Makar, S. V., & Vorotyntseva, T. M.

Digitalization is one of the key trends in the global economy. At the same time, the importance of monitoring the dynamics of digitalization processes and the degree of its impact on well-being is of paramount importance for all countries involved in the global community. Currently, there are almost no studies that comprehensively assess the institutional, cultural, economic, educational, and infrastructural consequences of digitalization. The paper attempts to assess the impact of digitalization on these drivers of socio-economic development and on well-being in a group of developed and industrial countries. The relevance of determining the effects of the rapid introduction of digitalization in developed and industrial countries predetermined the purpose of the study. The research methodology is based on the construction of a balanced panel regression. The key metric of digitalization is the index of digital evolution of 50 countries for 2010, 2015, 2020. The obtained simulation results demonstrate the positive impact of digitalization on well-being in developed countries, while no impact was found in the group of industrial countries. This is due to the high level of inclusiveness of digital services, the high level of investment by the state and business, and the high level of digital trust and literacy in developed countries. At the same time, in the group of industrial countries, the lack of positive effects of the introduction of digitalization is due to the low degree of state involvement and the insufficiently flexible institutional environment. The results of the study confirm the effectiveness of digital projects by international organizations such as McKinsey and the World Bank, which demonstrate the lack of influence of business corporations. The study reveals that institutional factors and state activities have a direct impact on the implementation of digital projects. The obtained empirical results can be used to form tools for managing the digitalization strategy for regions with different levels of development of the social, economic, institutional and digital environment.

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