Abstract
Enterprise digitalization is a way for companies to make their processes more efficient, to enhance their marketing strategies, and improve their competitive moat within the global competitive landscape. To see how fast Baltic companies are adapting to digitalization trend and, therefore, how good they are at keeping or improving their competitive advantage, we have developed a digital maturity assessment methodology, which was applied to the listed enterprises in Estonia, Latvia, and Lithuania. This methodology allowed us to detect certain digital maturity trends, such as the significant growth of the attention paid towards concepts related to ‘process automation’. Further, it was clear that many companies are concerned with online business, which can be well-seen from the analyzed annual reports. Additionally, we have compared the level and dynamics of the company’s digital maturity to its financial and market performance. We have concluded that, although there is a positive relationship between several financial indicators (e.g., sales growth), it is too early to see the positive effect of digital maturity on a company’s stock performance.
Highlights
Digitalization is inevitable due to the rapid development of technologies
Acknowledging this fact, we conducted a research on Baltic listed companies in order to determine the level of their digital maturity to understand how far they have developed in terms of digitalization and how well they address this fact to their shareholders based on their rhetoric in annual reports
The Estonian CAGR is 12.7%, which is 14.2% less than the Latvian CAGR, and the Lithuanian CAGR is 5.9%, which is the lowest rate among the Baltic States
Summary
Digitalization is inevitable due to the rapid development of technologies. Today, every individual, business, and government has become a part of the new digital era [1,2]. The companies who promptly implement digitalization manage to enhance their competitive edges and have additional tailwind in the global competitive race, while the ones who lag behind in terms of the digitalization process often find themselves in the laggard group, thereby facing difficulties in sustaining their marginal profitability Acknowledging this fact, we conducted a research on Baltic listed companies in order to determine the level of their digital maturity to understand how far they have developed in terms of digitalization and how well they address this fact to their shareholders based on their rhetoric in annual reports. The present research contributes to the scientific literature on digital maturity by providing research results on the Baltic listed companies’ digital maturity development phase and, disclosing the discovered relationship between the digital maturity and financial and market performance of the company. The part is devoted to the results of the digital maturity analysis, which are followed by the main findings in the conclusions
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