The effectiveness of human capital in the context of the digital transformation of the economy: The case of Ukraine

Ihor Roshchin,Volodymyr Rodchenko,Larysa Fedoryshyna,Ganna Rekun,Svitlana Gazarian

doi:10.15549/jeecar.v8i2.686

Abstract

The purpose of this article is to empirically assess the qualitative parameters of the effectiveness of human capital for business digitalization in Ukraine. Using a survey of 500 business representatives in Ukraine and the Fibonacci rule, and taking into account the digital business transformation level, the qualitative levels of human capital efficiency have been classified. Also, using the method of principal components, the system of factors of human capital's effectiveness for the intensification of digitalization has been empirically substantiated. An empirical model for assessing the quantitative levels of human capital effectiveness in the context of digital business transformation has been developed using integral assessment. The potential for the development of business digitalization based on the factors' actual values has been determined. The results obtained can become the basis to improve the quality of human capital for the successful introduction of modern digital technologies into the country's business processes.

Highlights

In comparison to traditional forms of management, the digital economy modifies the structure of economic relations, stimulates the intensive growth of intra-industry competition, expands the scale of market relations, andThe effectiveness of human capital in the context of the digital transformation
Because of the controversial nature of the issue of the effectiveness of human capital in the context of the digitalization of the economy, our study identified qualitative parameters of the effectiveness of human capital which ensure the development of informatization of the economy in a developing market, taking into account the current state of human resources
The results indicate that a low level of digitalization perception exerts the main destructive influence on the development of business digitalization from its effectiveness for business, the development of digital competencies, and digital development culture

Summary

Introduction

In comparison to traditional forms of management, the digital economy modifies the structure of economic relations, stimulates the intensive growth of intra-industry competition, expands the scale of market relations, andThe effectiveness of human capital in the context of the digital transformation. In comparison to traditional forms of management, the digital economy modifies the structure of economic relations, stimulates the intensive growth of intra-industry competition, expands the scale of market relations, and. The transition to the digital economy changes the labor market and the requirements for human resources significantly. The active development and spread of information technologies in society have led to the formation of a new social and labor structure characterized by innovative forms of employment. There is a transformation of the country's social structure, as the rapid technological progress creates new requirements for all players in the labor market, changes hiring practices, increases flexibility and mobility, and increases the level of education requirements (Ragnedda, 2018). According to experts and business representatives, because of the latest trends in the world by the end of 2022 digitalization will provoke a reduction in the number of employees who are employed full-time (Walwei, 2016)

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Conclusion