Digital Transformation Of Enterprises Research Articles

A study of digital transformation and MSMEs performance from a spatial perspective: Evidence from China

Aim/purpose – Not only have micro, small, and medium enterprises (MSMEs) been regarded as a driving force of the national economy, but they have also become im- portant in promoting innovation and entrepreneurship. In general, today’s MSMEs face problems, such as high business costs, insufficient innovation, and inadequate manage- ment capabilities, that have all forced the digital transformation of MSMEs. However, in existing studies, the impact of digital transformation on performance is controversial, and the subjects are generally listed companies. In this paper, we have decided to use micro business survey data and analyze them from a spatial perspective to explore how MSMEs’ digital transformation plays a role in influencing performance and the path of its effect. Design/methodology/approach – We use a sampling method with a dual directory- -regional sampling frame to investigate MSMEs in Ningbo City, Zhejiang Province, China and then delve into the impact of digital transformation on enterprise performance from a spatial perspective by the spatial weighted logit model. Findings – Hierarchical analysis shows that there is a large room for improvement in the Digital transformation of enterprises. The digitalization level of an enterprise has a posi- tive impact on performance. While from a spatial perspective, the digitalization level of neighboring enterprises has a negative impact on the performance of the enterprise. Path analysis shows that the digital transformation of enterprises can increase innovation, reduce costs, and improve the performance of enterprises. Originality/value – We provide an empirical basis for vigorously promoting the digital transformation of enterprises, jointly building digital parks, and improving enterprise performance by reducing costs and improving efficiency. At the same time, it provides relevant suggestions for digital transformation for manufacturing MSMEs that are hesi- tant to see or are at a loss in the digital transformation and helps manufacturing MSMEs to achieve cost reduction and increase efficiency. Keywords: MSMEs, digital transformation, double sampling frame, performance analysis. JEL Classification: C13, C81, M30, O33.

The Virtuous Cycle between Digital Technology, Enterprise Digital Transformation and Digital Economy Development -- A Study of the Dynamic Relationship Based on the PVAR Model

Digital transformation of enterprises is not only a choice to comply with the economic development trend, but also the use of digital technology to reduce costs and increase efficiency is a necessary path for enterprise development. Under the TOE framework, this paper takes digital technology, enterprise digital transformation and digital economy development level as the main variables. By constructing a PVAR model to incorporate the three into the same analytical framework, the dynamic interrelationship and the degree of influence between the three in the time series are empirically examined. The research results show that (1) digital technology, digital transformation of enterprises and the level of digital economy development are causally related to each other and have a mutually reinforcing influence. (2) There are inertia development and self-reinforcement mechanisms among the three variables. (3) Although the interaction among the three variables gradually decreases and tends to zero over time, it still has a strong lag. The research results enrich the dynamic relationship between digital technology, enterprise digital transformation and digital economy development, and provide strategic references for enterprise transformation and upgrading.

МОТИВАЦІЙНИЙ МЕХАНІЗМ ЗАБЕЗПЕЧЕННЯ ЕКОНОМІЧНОЇ БЕЗПЕКИ ПІДПРИЄМСТВА

Today, the process of rethinking the content of security activities in the conditions of each enterprise is active. The increase in the share of the digital sector of the national economy provokes the need for digital transformation of enterprises, the results of which, along with the pace of technical updating and the depth of application of digital technologies, are determined by the interest and ability of personnel to move to a new level of interaction in the "man-machine" pair. The study is aimed at considering the theoretical background and developing a motivational mechanism for ensuring the economic security of the enterprise in the conditions of the digital transformation of the enterprise. In order to develop a motivational mechanism for ensuring economic security in the conditions of the digital transformation of the enterprise, the following methods were applied: induction and deduction, comparison and systematization – in the study of the essential characteristics of the term "motivational mechanism"; synthesis and analysis – when defining and characterizing the main stimulation tools, the use of which should ensure the digital transformation of the enterprise and meeting the needs of the workforce; morphological analysis – to clarify the content of the main components of the motivational mechanism for ensuring economic security in the conditions of digital transformation of the enterprise; graphic – for visual representation of theoretical and methodical material; abstract-logical – for theoretical generalizations and research conclusions. Along with the need to counteract the traditional resistance to any changes that occur in each employee, new tasks arise for security subjects, which are related to the selection of incentives that will allow to reconcile the possibility of meeting the needs of the workforce and the need to implement the digital transformation of the enterprise. Digitization of the labor market creates both a number of new opportunities and actualizes the importance of human capital development, the level of which determines the pace of digital transformation of the enterprise, which poses additional tasks for security subjects in terms of motivating employees to acquire new professional and digital skills. The developed motivational mechanism, which provides for setting a goal, specifying tasks, choosing the optimal combination of positive and negative incentives, monitoring and evaluating results, ensures further progress in the development of security science in a previously little-researched field.

РАЗВИТИЕ СИСТЕМЫ УПРАВЛЕНИЯ ПРОЕКТАМИ ЦИФРОВОЙ ТРАНСФОРМАЦИИ

In the article, the authors analyze the statistical data of the digital transformation market, and investigate the digital transformation project management system. In the context of the rapid development of Industry 4.0 technologies and the transition of the Russian Federation to a data economy, it is necessary to constantly develop a strategic management system for digitalization and a digital transformation strategy for each enterprise. It is also necessary to analyze and optimize the portfolio of digital transformation projects in order to achieve strategic business goals. Limited resources and constant changes in the context of the external and internal environment of the enterprise dictate the need to select the most effective projects in the company’s digital transformation portfolio and develop tools for the digital transformation project management system. The products and services of digital transformation projects are based on Industry 4.0 technologies or end-to-end information technologies of the “Digital Economy” (artificial intelligence, the Internet of Things, big data and others). The purpose of the research is to improve the management system of digitalization processes and develop tools to support strategic management of digital transformation projects within the project office. The result is the development of a set of tools, including a mechanism for selecting digital transformation projects, and a methodological model for strategic management of digital transformation projects, which provides support to the project office of the enterprise for the organization of portfolio management. The proposed management system also includes a mechanism for choosing an approach to managing digital transformation projects. The leading scientific methods underlying the solution of the problem are systematic and expert methods of analysis, which made it possible to analyze the processes of digitalization and management, systematize the problems and trends in the development of digital transformation of enterprises, and identify the main elements of the project selection mechanism. The results of the study can be applied to manage the digital transformation of enterprises and the transition to the concept of a “smart enterprise” based on Industry 4.0 technologies. The proposed tools are recommended to be used to improve the efficiency of enterprise project offices, the effectiveness of the formation of digital infrastructure and an intelligent digital transformation management system.

What are the risks of financial management under the digital transformation of enterprises? Evidence from systems engineering

Digitalization is rewriting the track of economic development and becoming a new driving force for economic growth. It is of great significance for enterprises to better complete digital transformation to scientifically and rationally understand the key indicators and their interrelationships in financial management risks. This paper constructs the index system of enterprise financial management risk under the background of digital transformation, uses the interpretative structural model (ISM) to calculate and analyze the adjacency matrix, obtains the hierarchical division of influencing factors, summarizes the internal pointing relationship between the index factors at all levels, and then uses the cross influence matrix multiplication (MICMAC) to calculate the driving-dependence relationship of each factor to judge its attribute category. This paper summarizes a relatively complete and comprehensive financial management risk impact path with the help of ISM-MICMAC method, and provides a scientific and reasonable countermeasure for enterprises that are about to or undergoing digital transformation to better avoid financial management risks.

Factors and models of economic security of industrial enterprises in a depressed region in the context of digital transformation

The problem of digital transformation of enterprises is explained by the need to ensure long-term sustainable economic security for domestic industrial producers in the context of digitization. The transition to digital rails creates an opportunity to reorganize the production process and form effective interaction among all participants in the digital ecosystem. This necessitates the study of the process and possible directions of digital transformation to ensure an increase in the level of economic security of enterprises. The aim of the article is to present the results of the study of the process and directions of digital transformation of enterprises as a condition for sustainable economic security. The research methodology is based on the analysis and idealization of the process of digital transformation, the logical substantiation of the essence of this phenomenon, and the identification of the main directions of digital transformation. Generalization of data from consulting companies allowed for the formation of the main trends in digital transformation. A structural model of digital transformation of a depressed region enterprise has been proposed, which includes three components: basic spheres of activity, digitization processes, and conditions for ensuring economic security. The obtained conclusions contribute to the development of ideas about the processes of digital transformation of enterprises as a condition for ensuring their economic security. They allow for an assessment of the overall state and identification of vulnerable areas that reduce the level of economic security of a depressed region enterprise. The results of the study will help enterprises in depressed regions make targeted decisions regarding methods of ensuring economic security, taking into account differences in the level of digitization.

Research on digital transformation strategy and subsidy mechanism of manufacturing supply chain based on differential game

<abstract> <p>In the current research on the impact of the government on the digital transformation of enterprises, scholars have neglected the synergies of the supply chain and the mechanisms for regulating and assessing the subsequent behaviour of enterprises. Therefore, this paper uses differential games to study the optimal strategy of cost sharing in manufacturing supply chains during the digital transformation of upstream and downstream firms with government subsidies. The equilibrium game strategy is used with the government and parts of the supply chain as players under different models of cooperation, independent operation and government awards and punishments. For each model, the equilibrium results are solved, compared and simulated. The results show that the government reward and punishment mechanism can effectively suppress the "double marginal effect" and improve digitalization and benefits of enterprises. Meanwhile, the benefit level of enterprises under the government reward and punishment mechanism is related to the target digitalization level and the strength of the reward and punishment. When the target digitization level is relatively low at the early stage of digital transformation, the government reward and punishment mechanism is more likely to promote the level of benefits of enterprises. When the target digitalization level is relatively high in the middle and late stages of digital transformation, the government needs to reasonably set the strength of the reward and punishment in order to effectively promote digitalization and economic development.</p> </abstract>

Does digital transformation of enterprises help reduce the cost of equity capital.

Digital economy is regarded as the main economic form following agricultural economy and industrial economy. And the digital transformation has given enterprises new development momentum. Can it reduce the equity capital cost? This paper uses text analysis obtained by crawling the annual reports from 2010 to 2021 and investigates the impact of digital transformation on the corporate equity capital cost. The results show that: 1) Digital transformation will reduce the equity capital cost; 2) The digital transformation has a heterogeneous impact on the equity capital cost of enterprises with different scales, natures and levels of leverage, which is more significant for large-scale enterprises, state-owned enterprises and highly leveraged enterprises; 3) Digital transformation mainly affects the equity capital cost by improving enterprise value, rather than by increasing analysts' attention and influencing the level of corporate risk bearing.

Study on financial flexibility in the digital transformation of enterprises

Study on financial flexibility in the digital transformation of enterprises

The relationship between entrepreneurial orientation and organizational resilience in the digital context

Purpose: Based on the theory of strategic entrepreneurship, the aim of this article is to identify the relationship between the dimensions of entrepreneurial orientation (innovativeness, proactiveness and risk-taking) and organizational resilience in the context of digital transformation of enterprises. Design/methodology/approach: Due to the gap and considerable fragmentation of research in the existing literature on organizational resilience, particularly that on the whole combination of factors influencing it, in this study a set-theoretic analysis was performed using the fuzzy- set qualitative comparative analysis (fs/QCA). The fs/QCA was used to identify previously unknown combinations of entrepreneurial orientation dimensions and digital business capability dimensions that lead to high organizational resilience. Findings: As indicated by the results of the conducted research, three different configurations are leading to high organizational resilience (digital-driven, digital and entrepreneurial orientation-driven, entrepreneurial orientation-driven). Moreover, it is impossible to create high organizational resilience driven by only one condition. Research limitations/implications: The study was narrowed down to one selected strategic orientation hence future research can be extended to different levels and theoretical perspectives. To generalize the results and increase the level of universality, a larger research sample from multiple industries and regions can also be analyzed. Practical implications: The study provides an important reference for companies to strengthen organizational resilience in the context of digital transformation. It pointed out that an entrepreneurial orientation can promote organizational resilience but requires managers to break the routine and focus on spreading the entrepreneurial spirit in the organization, creating a shared vision among individuals and improving employee creativity. Originality/value: The paper explains the mechanism of the relationship between entrepreneurial orientation and organizational resilience from the perspective of digitization. The findings are relevant to the development of strategic entrepreneurship theory and provide implications for building the resilience of SMEs. Keywords: entrepreneurial orientation, digital business capability, organizational resilience, digital transformation, fs/QCA. Category of the paper: research paper.

Research on the cultivation of innovative entrepreneurial talents for digital transformation of enterprises based on association rule algorithm

Research on the cultivation of innovative entrepreneurial talents for digital transformation of enterprises based on association rule algorithm

КЛЮЧЕВЫЕ ОСОБЕННОСТИ ФОРМИРОВАНИЯ БИЗНЕС-СТРАТЕГИИ РАЗВИТИЯ ПРЕДПРИЯТИЯ В УСЛОВИЯХ ЕГО ЦИФРОВОЙ ТРАНСФОРМАЦИИ

The article analyzes the key features of business strategies in the context of digital transformation of enterprises. The key features of Industry 4.0 are highlighted in terms of the impact on production and business processes. The key reasons causing the need to transform the business development strategies of the enterprise are analyzed. The main goals that enterprises should set themselves when developing new business strategies in the context of digital transformation are formulated. The factors that need to be taken into account when developing business strategies in the conditions of Industry 4.0 are systematized.

Research on the Cultivation of Innovative Entrepreneurial Talents for Digital Transformation of Enterprises Based on Association Rule Algorithm

Research on the Cultivation of Innovative Entrepreneurial Talents for Digital Transformation of Enterprises Based on Association Rule Algorithm

Neural Network Model of Digital Transformation of Enterprises and Industries of the Russian Federation

Neural Network Model of Digital Transformation of Enterprises and Industries of the Russian Federation

Study on the implementation path of C2B digital intelligence customization of “new infrastructure”

In the context of digital transformation of manufacturing enterprises, the research method of double case comparison analysis is used to explore the implementation path of C2B digital intelligence customization of "new infrastructure". The research found that: C2B personalized digital intelligence customization implements digital intelligence supply chain construction strategy, through supply chain digital intelligence transformation, realizes front-end and back-end collaboration, can reduce production costs, improve demand collection and production efficiency, and the implementation path is "digital intelligence supply chain construction → digital intelligence capability improvement → digital intelligence value realization". The research results can not only provide reference for decision making of new infrastructure, but also provide guidance for the path selection of digital transformation of enterprises.

The Impact of Digital Transformation on Internal Control Quality: A Study Based on Five Components of Internal Control

With the rapid development of globalized digital technology, digital transformation has been a topical issue in business sectors. Organizations are facing dynamic adjustments in corporate strategy objectives and disruptive innovation in operation management in the process of digital transformation, which is bound to bring a significant impact on the construction of corporate internal control. This paper focuses on the theoretical analysis of the effect mechanism of digital transformation on corporate internal control quality from the five components of internal control, which are creating synergies of the control environment, the automation of risk assessment, the intelligence of control activities, the transparency of monitoring activities, as well as the sharing of information and the consistency of communication. And it has been demonstrated in detail that digital transformation has a positive impact on the improvement of corporate internal control quality. The research results provide new insights for deepening the digital transformation of enterprises and improving the internal control system.

ЭМПИРИЧЕСКОЕ ИССЛЕДОВАНИЕ КЛЮЧЕВЫХ ЦЕЛЕЙ И ДВИЖУЩИХ СИЛ ЦИФРОВОЙ ТРАНСФОРМАЦИИ ПРЕДПРИЯТИЙ В СОВРЕМЕННЫХ УСЛОВИЯХ

The article explores the key goals and drivers of the digital transformation of enterprises. Based on empirical data on digital transformation, questions are considered regarding the reasons that encourage enterprises to implement digital transformation and its impact on the activities of organizations.

ОЦЕНКА РОЛИ МЕЖДИСЦИПЛИНАРНОГО ИНСТРУМЕНТАРИЯ В ЦИФРОВОЙ ТРАНСФОРМАЦИИ ПРЕДПРИЯТИЙ

The article discusses an interdisciplinary toolkit that has not been fully studied in modern scientific literature, which contributes to the integration of economics and informatics in the context of the digital transformation of enterprises of the classical (analogue) economy into their digital counterparts. Such tools include methods designed to create information models of enterprises, the current activities and network interactions of which are planned to be carried out in digital formats at the micro, meso and macro levels of the economy.

РОЛЬ ЦИФРОВИХ ТРАНСФОРМАЦІЙ БІЗНЕС-ПРОЦЕСІВ ПІДПРИЄМСТВ

The article considers that in modern conditions digital transformation is a key factor for the successful development of businesses. One important aspect of this transformation is the enhancement of business processes to ensure more efficient and optimized operations for companies. This article is dedicated to exploring the importance of digital transformation and analyzing the impact of business process management on enterprise performance. The role of digital transformation in business processes for enterprises in the modern economic environment is considered. It is determined that digitization is a modern stage of development in the digital society, where digital technologies are prevalent and realized through the use of technical tools and software solutions. The process of business process reengineering is examined. The main components and stages, as well as the advantages and disadvantages of reengineering of business processes, are described. Reengineering of business processes is a necessary element of digital transformation of enterprises. The conditions of digital transformation require businesses to review and optimize their processes to ensure greater efficiency and competitiveness. This allows businesses to reduce the time and cost of completing tasks, improve the quality of a product or service, and ensure more accurate and faster data processing. Digital transformation requires businesses to be ready for constant changes and updates. Reengineering of business processes allows enterprises to be ready for these changes and maintain high efficiency of their work in conditions of constant technological changes. However, the implementation of digital technologies is also associated with certain challenges, therefore, enterprises should carefully study the possibilities and take into account all possible risks of digital transformation of business processes before its implementation. Therefore, digital transformation of business processes is an important step in the development of modern business. The implementation of digital technologies allows enterprises to ensure more efficient and productive work and play one of the leading roles in optimizing business processes and restructuring companies in accordance with the requirements of digitalization. The main problems and obstacles that arise in the process of digital transformation are identified, and the main advantages of using digital technologies in business are also described. It is proven that the successful implementation of the digital transformation process can improve a company’s efficiency, reduce costs, and ensure competitiveness in the market.

Choosing the type of business model to implement the digital transformation strategy of a network enterprise

The digital transformation of enterprises and organizations in modern conditions is carried out through the development and implementation of new business models based on various digital technologies which are collectively accumulated as part of digital business platforms. Insufficient development of methods and means of choosing adequate business models for the functioning of network enterprises at the present time, depending on the competitive strategy used, production technologies, digital maturity, and security policy, determines the relevance of this study. The aim of the work is to develop a method to justify the rational choice of the type of business model of digital transformation of a network enterprise under the conditions of multi-criteria evaluation of various factors of obtaining network effects, digital maturity and ensuring economic and information security. To achieve the goal, methodological approaches are used as approaches to solve the problem: to formalize the business model based on the St. Gallen framework, to classify business models of the working group on business models Industry 4.0 to build a knowledge-based system using fuzzy sets of production rules. A method is proposed for classifying the types of business models of a network enterprise depending on the competitive strategy applied, the stage of the life cycle of products and services provided, the type of production and the method of using digital business platforms. In accordance with the classification of the working group on business models of Industry 4.0, network effects are determined for the main roles of participants in network interaction for each type of business model. A conceptual multi-criteria model for choosing the type of business model has been developed, implemented in the form of sets of production rules of a knowledge-based system which include an assessment of network effects, digital maturity, commercial risks and information security risks.