Investments In Digital Technologies Research Articles

Analysing Different Risk Management Approaches and Their Effectiveness in Enhancing Supply Chain Resilience

Purpose: This paper aims to review various risk management strategies as well as measure its capability as an instrument to strengthen the chain resilience in the backdrop of the present-day economic environment. Methodology: The paper utilizes well-known literature review techniques to gather and analyze the strategies including diversification, collaboration, technology adoption, and contingency planning that not only avoid supply chain risks but also create resiliency in organizations. It is focused on the root causes, effects, and aftermath of supply chain disruptions; the potential solutions to counter these problems are also evaluation by this process. Findings: The study points out that the traditional risk management approaches are not enough, and suggests implementing the techniques such as mapping of the supply chain, supplier diversification and investment in digital technologies like block chain, cloud computing and cyber security. These approaches aid in boosting the supply chain resilience by providing transparency, enabling backup inventory management, and improving collaboration and efficiency within the supply chain operations. Unique Contribution to Theory, Practice and Policy: The study complements the existing body of knowledge by offering a detailed overview of risk management strategies that can be implemented for the purpose of supply chain resilience. It provides with concrete suggestions on issues of diversity, the use of new technologies, and of coordination to strengthen the chains of supply against disruptions. Furthermore, the research calls for policy intervention to enable the utilization of the above-discussed strategies and increase supply chain resilience at a broader level as well.

ЭФФЕКТИВНОСТЬ ГАЗОСНАБЖЕНИЯ НА ОСНОВЕ ЦИФРОВОЙ ТРАНСФОРМАЦИИ

Abstract. The relevance of the research is based to the need for effective implementation of digital technologies in the field of gas supply. The study of energy supply from natural gas was carried out in accordance with the functional patterns of technological processes and gas consumption factors in conjunction with the directions of digital transformation. 
 Subject: The main aim of the research to define and propose criteria for digital transformation, based on features of the gas supply industry for the gradual progressive development of the regional economy. 
 Materials and methods: The functional relationship with gas supply was determined based on the analysis and generalization of the main directions and criteria for the digital transformation. The method of comparing the results of digital transformation with a technological approach and with a relative assessment of investments was used. 
 Results: Groups of indicators that are technologically interconnected in gas supply are presented as criteria for digital transformation. An additional function to expand the boundaries of evaluating the economic efficiency of digital technologies is to provide a mechanism for creating added value in Russia. The increasing capitalization through investments in digital technologies is not a factor in increasing efficiency without a reasonable practical effect. 
 Conclusions: The implementation of digital transformation should not lead to an excessive increase in tariffs for gas supply to Russian regions, since energy supply is a necessary condition for the development of the economy.

The pandemic push: Digital technologies and workforce adjustments

Using a novel firm survey matched to administrative employee records, we demonstrate that the COVID-19 pandemic was a push factor for the diffusion of digital technologies in Germany. Two out of three firms invested in digital technologies. Three quarters of those investing firms invested because of the pandemic, particularly in hardware and software to enable decentralized communication, management, and coordination. These investments also fostered additional firm-sponsored training, underscoring the complementarity between investments in digital technologies and training. We then show that the investments helped firms insure their workers against the economic downturn. Firms with additional digital investments retained more of their employees on regular working hours and relied less on short-time work. Low- and medium-skilled, as well as young workers, benefited the most from the insurance effect of digital investments.

Globalization and ICT capital endowment: How do they impact on an inclusive Green Growth Index?

This study investigates the contribution that digital transformation and globalization have made to inclusive, green economic growth. We construct an inclusive green growth index leveraging 28 variables accounting for economic, environmental and social performances. By exploiting a dataset of 95 countries and spanning from 2010 and 2020, we regress the inclusive green growth index on variables capturing investments in digital technologies and the degree of trade and capital openness. Findings show that while globalization does not have strong and significant relevance for inclusive green economic growth, investments in digital technologies are beneficial. However, this evidence does not hold for high income countries.

ARTIFICIAL INTELLIGENCE INTEGRATION ASSESSMENT IN BANKS THROUGH FINANCIAL REPORTING: CASE STUDY OF ARMENIA

In the dynamic intersection of finance and technology, the integration of artificial intelligence (AI) within the banking sector can mark a pivotal shift towards operational efficiency and enhanced customer service. This study, performed with the case of Armenian banking sector, employs a dual-analytical lens, focusing on the ratio of intangible assets to total assets (IA/TA) and IT-related costs in operational expenses (OPEX) to infer the extent of AI adoption through digital maturity. Despite the anticipation that these financial ratios would directly reflect a bank's digital transformation efforts, our findings illustrate a more complex reality, where such co-movement of the two ratios is not necessarily consistent over time within the sector. This deviation underscores the nuanced interplay between financial investment in digital technologies and the actual deployment of AI, revealing the need for a holistic approach that combines quantitative financial metrics with qualitative insights.

Internationalization and Organizational Resilience to COVID-19 Crisis: The Moderating Effect of Digitalization

Organizational resilience is a company’s ability to quickly recover and adapt when it encounters sudden and unexpected challenges. Our study looks at how a company’s level of international involvement before such challenges can influence its resilience, particularly when faced with the global disruptions caused by the COVID-19 pandemic. We also examine whether a company’s prior investment in digital technologies can help soften any negative impacts. From January 20 to June 10, 2020, we analyzed data from 2,363 Chinese companies that are traded on stock exchanges. We assessed their organizational resilience based on how their stock prices fluctuated and how quickly they returned to their pre-shock performance levels. Our findings indicate that companies with more international activities before the pandemic were generally slower to recover. However, companies with advanced digital capabilities before the pandemic demonstrated greater resilience, overcoming the negative repercussions more effectively. This research contributes new insights to the understanding of how international business activities affect a company’s ability to withstand and bounce back from global crises. Additionally, it underscores the importance of digitalization in enhancing organizational resilience.

Investments in the Digitalization of service Companies as a source of Well-being of the Population of the Regions

The article assesses the impact of investments in the digitization of service organizations on population well-being indices across Russia’s regions. The relevance of the study is reduced to the fact that in the context of digitalization of the economy there is a dynamic development of the service sector, which becomes a driver of the growth of the quality and standard of living of the population. The purpose of the study is to determine the presence of economic effects from investments in digitalization that contribute to the improvement of the level and quality of life of the population in the region. The objectives of the study are theoretically justify the selection of indicators for assessing the well-being of the regional population, investments in the digitalization of service organizations depending on the type of region, and the calculation of digital effects. Methods of assessment of par correlations, typology, and panel data used to conduct spatial-time analysis. 85 regions of Russia were selected as the objects of study, and the research period includes the pre-pandemic and pandemic period, the impact of which led to an increase in investment in digital technologies in the service sector. The study tested the scientific hypothesis that investment in the digitalization of the service sector contributes to an increase in the volume of services, their availability and their quality, which, in turn, leads to an increase in the well-being of the population. The analysis carried out did not allow us to fully confirm the hypothesis, since there are differences between regions and types of services. The novelty of the study is in the formed spatial-time models, reflecting the relationship between investment in the digitalization of the services sphere and the factors determining the quality of life of the population of the regions of Russia. The analysis did not fully support the hypothesis, as there were differences between regions and types of services. It concluded that the investment increased the population’s use of computer equipment and service volumes, as well as their ability to save more money and use services for managing their personal finances.

How smart is a ‘smart factory’?: an organizational view

Abstract This paper investigates the game-changing paradigm in modern manufacturing, known as the “smart factory,” from an organizational perspective. Factories get smarter—or smartized—by becoming more data-intensive and more tightly integrating operations with management. We design a unique survey to measure this intangible organizational capital accumulation process for 939 Korean manufacturing plants. Observing heterogeneous levels of smartization across factories, we explore their relationship with three performance dimensions: productivity, cost efficiency, and product variety. The drivers of smartization are also identified. Our analysis uncovers a strong association between smartization and heightened productivity, with varying interactions with other performance metrics based on the specific manufacturing process (e.g., lower defect rate only in assembly line process). Importantly, we find that investments in digital technologies drive smartization only when complemented by structured incentive management and proper chief executive officer (CEO) leadership.

Digitalization in Global Trade: Opportunities and Challenges for Investment

This paper explores the evolving landscape of global trade and customs in the context of digitalization and the opportunities and challenges it presents for investment. The rapid advancement of technology and the digital revolution have significantly transformed the way businesses engage in international trade, leading to increased efficiency, streamlined processes, and enhanced global connectivity. However, these advancements also bring forth new complexities, such as cybersecurity risks, data privacy concerns, and regulatory compliance issues. We examine the key areas where investment in digital technologies can drive innovation, efficiency, and competitiveness in global trade and customs. It discusses the potential benefits of implementing technologies such as blockchain, artificial intelligence (AI), Internet of Things (IoT), and cloud computing in areas like supply chain management, customs compliance, trade finance, and risk management. The paper also explores case studies and real-world examples of successful digital transformation initiatives in the global trade and customs domain. The study emphasizes the importance of strategic investment in digital technologies as a means to unlock the full potential of global trade and customs. It provides insights and recommendations for policymakers, industry stakeholders, and investors on navigating the evolving landscape, seizing opportunities, and mitigating risks associated with digitalization in the realm of international trade and customs. Global trade, Customs, Digitalization, Investment, Blockchain, Artificial Intelligence, Supply chain management, Risk management, Cybersecurity

Importance of digital and soft skills in the digital age

In our digital age, the effects of digital transformation, the scope and speed of current changes, and the emergence of digital technologies have led to a radical transformation of workplaces, resulting in a reduction of demand for employees carrying out routine, manual tasks, while evokes a need for digitally-skilled employees emphasising the importance of digital and soft skills for business growth. Organisations need to equip their employees with different types of skills to achieve organisational goals in order to benefit from investments in digital technologies. While practitioners and academics are increasingly focusing on the importance of the human factor of digital transformation processes, there is limited knowledge about the impacts of digital transformation on the digital skills of the employee and how organisations can guide employees through the digital transformation journey, yet. This study provides an important insight into a specific country's context, which has not been sufficiently examined. This paper aims 1) to investigate how the digital transformation has changed the demand for human workforce (Q1a) and the challenge in the lack of digital skills (Q1b) and 2) to examine the importance of soft skills as an impact of digital transformation (Q2). The target group of the research is the managers and white collar workers of Hungarian manufacturing companies. The data collection was in spring 2021. Descriptive statistics and relationship analyses (Cramer's V and Kendall's Tau) were used to analyse the collected data (n=489). The research investigates an important social-digital phenomena determining how digital transformation arises significant demands on digital and soft skills. Results indicate that digital and soft skills such as critical thinking, complex problem solving, adaptability, resilience and creativity are essential to successfully exploit the digital transformation. The result can add value and stimulate new research on digital and soft skills and provide a useful benchmark for other countries.

Your innovation or mine? The effects of partner diversity on product and process innovation

AbstractDespite a fundamental revolution in digital technology, along with an ancillary reduction in the cost of transmitting knowledge, the innovation literature on knowledge collaboration continues to hold on to the spatial localization of knowledge collaboration as a truism. Drawing on the open innovation literature and knowledge‐based view of firm innovation, this study explores key boundary conditions affecting the relationship between research and development (R&D) collaboration breadth, and product and process innovation. Using a large‐scale survey consisting of 25,813 observations of 14,784 firms in the United Kingdom during 2004–2020, we demonstrate that the breadth of knowledge collaboration with regional, national, and international partners directly affects product and process innovation. However, this relationship depends on the geographical location of the collaboration partner, the type of partner, and the firm's absorptive capacity. We found diminishing marginal returns to knowledge collaboration breadth for regional partners in product innovation, and an inverted U‐shaped relationship in R&D collaboration breadth with regional partners for process innovation and for national and international partners for product and process innovation. While investment in digital technologies only shifts the curve upwards, it is unlikely to change the direction of the relationship between R&D collaboration and a type of innovation outcome. On the contrary, an increase in the share of science, technology, engineering, and math graduates enables firms to leverage the negative effect of R&D collaboration breadth nationally and specifically for process innovation. Investment in digital technology and human capital increases absorptive capacity and reduces the transaction costs associated with over‐search and limited managerial capabilities and resources.

COVID-19 as a Jump Start for Industry 4.0? Motivations and Core Areas of Pandemic-Related Investments in Digital Technologies at German Firms

Academic studies prior to the pandemic rather emphasized that the progression towards Industry 4.0 happened in an incremental manner. However, the extraordinary circumstances of the pandemic have led to considerable investments that were widely interpreted as a (generalized) digitalization push. However, little is known about the character of such investments and their effects. The goal of this contribution is to provide an empirically based overview of recent investment in digital technologies in six economic sectors of the German economy: mechanical engineering, chemicals, automotives, logistics, healthcare, and financial services. Based on 36 case studies and a survey at 540 companies, we investigate the following questions: 1. How much did the COVID-19 pandemic reduce existing obstacles for investments in digitalization measures? 2. Is there a universal digitalization push due to the COVID-19 pandemic that differs from the trajectory before the pandemic? The results show that the pandemic affected investment in an unequal manner. It was driven by the immediate need to sustain business operations through the virtualization of communication among employees and with external partners. However, there was less dynamism in shop-floor-related digitalization, as it was less related to epidemiological concerns and is more long-term in nature.

Methodology for assessing the influence of external and internal factors on the development of the digital economy

Purpose. To develop a mathematical model and propose an algorithm for analyzing and evaluating the impact on the digital economy and forming the method for choosing the factors of the external and internal impact which require institutional management measures. Methodology. Special and general methods of scientific knowledge are used: mathematical methods – for developing a model for assessing the effects on the digital economy and choosing institutional management measures; methods of analytical research – to distinguish groups of factors; the method of analysis and synthesis – when determining the most important factors and groups of influence and developing a management algorithm. Findings. Factors influencing the directions of investment in digital technologies for mass and corporate consumers and a significant difference in the amount of financing according to them have been identified. The possibility of a decrease in the level of competitiveness of the country due to the inadequacy of investing in digital technologies for the corporate sector is indicated. Management actions to increase investment in digital technologies for the corporate sector are recommended. Originality. The mathematical model and algorithm have been developed for the analysis and assessment of impacts on the digital economy and the formation of a method for selecting impact factors that require management measures. Using a mathematical model, the area of investing in the development of the digital economy was analyzed and management proposals for this area were developed. Practical value. The developed mathematical model for the analysis and assessment of impacts on the digital economy and the algorithm for monitoring, analysis and management of impacts can be implemented for scientific and practical purposes.

Digital technologies and eco-innovation. Evidence of the twin transition from Italian firms

ABSTRACT This paper investigates how the twin transition (digital & green) unfolds within firms by relating investments in digital technologies to the propensity of eco-innovating production processes and models. Drawing on a heterogeneous theoretical background, digital technologies can be hypothesised to enable eco-innovation across the board. However, a greater eco-innovation impact is expected from Artificial Intelligence and from bundling digital investments. Using the new Permanent Census of Firms of the Italian National Statistical Office, these hypotheses are tested on a large sample of more than 150,000 firms. Results confirm that the contribution of digital technologies to a firm’s eco-innovation is mainly driven by investments in AI application areas, while investments in other digital technologies work more selectively. Moreover, new eco-innovative production processes and models benefit from bundling investments in different digital technologies, but with differences among firms of different size.

Impact of Covid-19 on the Indian Garment Industry

This research aims to examine the impact of COVID-19 on the Indian garment industry. The research methodology involves a literature review of academic studies, government reports, and industry publications, along with survey research conducted through secondary data. The findings of this research suggest that the Indian garment industry has been significantly affected by the pandemic, with declining exports, production, and employment. The use of tables, charts, and graphs provides a clear and concise presentation of the data, highlighting the implications of the findings for the industry. The research highlights the need for policy interventions to support the industry's recovery, such as financial assistance, labor reforms, and digital transformation. Overall, this research provides insights into the challenges and opportunities facing the Indian garment industry in the post-pandemic era. The findings of this research highlight the need for policymakers to support the Indian garment industry in its recovery from the pandemic. The industry requires policy interventions to address its financial, labor, and digital challenges. Financial assistance in the form of grants, loans, and tax breaks could help the industry overcome its liquidity constraints. Labor reforms could make the industry more flexible and competitive. Finally, investments in digital technologies, training, and infrastructure could help the industry improve its efficiency, resilience, and competitiveness. Overall, this research provides insights into the impact of the COVID-19 pandemic on the Indian garment industry, highlighting its challenges and opportunities. The use of tables, charts, and graphs helps to provide a clear and concise presentation of the data, while the literature review and survey provide a comprehensive understanding of the industry's situation. This research can inform policymakers, industry stakeholders, and academics interested in the Indian garment industry and its response to the pandemic.

Digitization effects on banks’ financial performance: the case of an African country

PurposeThe concept of digitization covers a wide range of initiatives to achieve sustainable development. This paper aims to determine the impact of bank digitization strategies on financial performance in an African country.Design/methodology/approachThis study used the generalized least squares estimation method to analyze data from a sample of 12 Tunisian banks from 2010 to 2020. The reason for selecting this method was its ability to address issues of heteroscedasticity and autocorrelation.FindingsThis study indicates that digital transformation has a positive effect on Tunisian banks financial performance, as measured by return on assets and return on equity. Specifically, investing in payment tools, digital channels and internet security leads to improved performance for banks. These findings suggest that banks that offer digital services perform better, as they are able to increase profitability, maintain financial stability and improve transparency.Research limitations/implicationsThis study is important for central bank, regulators, policymakers and investors. Overall, this study emphasizes the need for banks in Tunisia to embrace digital transformation to improve their performance and remain viable in the modern business landscape.Originality/valueThis study ponders the effect of Tunisian banks’ digital transformation on financial performance. Tunisia context serves as model for other African countries. Tunisian banks should prioritize investments in digital technologies to stay competitive in the market.

Information and Communication Technologies and Agricultural Production: New Evidence from Africa

While information and communication technologies (ICT) have proven to be useful in boosting agricultural production and productivity, regardless of the geographical location, much of the discussion on ICT and their impact focus on the global north, with deficient literature on the global south. The limited account of the global south shows mixed conclusions on the impact of information and communication technologies on agricultural production, with most studies focusing on crop production, as a proxy for agricultural production, leaving out livestock production. Animated by this concern, this article explores the impact of ICTs on agricultural production (crop and livestock) in Africa using panel data from 32 African countries and the panel autoregressive distributed lag model as the estimation technique. We find that individuals using internet significantly increased crop production in the long run. Specifically, a percentage increase in internet patronage increases crop production by 0.071% but significantly decreases the livestock production index, both in the short and long run. Mobile phone subscriptions had a significant negative impact on crop production in the long run but had a significant positive impact on livestock production in the long run. Fixed phone subscriptions significantly increased crop production in the long run but significantly decreased livestock production index in the long run. The findings show bidirectional causality between crop production and internet patronage, livestock production and individuals using internet, crop production and mobile cellular subscription, crop production and net national income, and rural population and both crop and livestock production. We recommend that governments in Africa increase funding investment in digital technologies to foster increased agricultural production while addressing structural challenges that constrain increased access to digital agricultural technologies. It might be useful if governments in sub-Saharan Africa (SSA) incentivize the telecommunication companies to extend digital coverage to rural areas through tax rebates and holidays to encourage rural inclusion in the digital space to bridge the digital divide.

Investments in digital technology advances in textiles

The investments in digital technologies are expected to soon have a major impact on the textile and fashion companies’ sustainability and competitiveness. Motivated by these trends empirical research on investments of the fashion and textile companies in ICT technologies-based advancement in the Serbian case was provided in 2022. Representatives of 423 textile and fashion companies were asked about their investments in various digital technologies in the previous three years and their digital transformation status. The research findings show that investments in cloud computing, IT, energy management, automation, robotics, and machine learning technologies have a significant impact on the digital transformation of companies. Most of them reached a medium level of transformation, fewer than a high level, with many textile and fashion companies just defining digital transformation. The contribution of the research findings to the investments in the companies’ digital transformation can be seen in the significance of the textile’s digital technology implementation, which enables manufacturers and retailers to respond directly to market demand by reducing product lead time and cost, increasing supply chain efficiency and profitability, and promising in terms of ensuring competitive advantage in the risk and challenging business environment.

Challenges to delivering evidence-based palliative medicine

Established as a medical specialty in 1987, palliative medicine approaches middle age facing existential questions of identity, purpose and vision. Time has weakened strong foundations laid by Dame Cicely Saunders in research, education and clinical excellence. Clinical knowledge gaps are wide, and widening. Palliative medicine research is underfunded and underrepresented in discourse. Despite huge advances in modern medicine, there is still clinical uncertainty about simple interventions, such as whether artificial hydration at the end of life is helpful or harmful. Where good quality data do exist, the pace of change is slow, if change is happening at all. Trial design often fails to assess the holistic impact of interventions, using primary endpoints that are inconsistent with outcomes most valued to the patient. Recent years have seen a rapid expansion in innovation and investment in digital technologies, embraced by many in palliative medicine. Experience shows that caution must be applied where the evidence base is sparse. While as a specialty we must remain forward looking and progressive in our mindset, it cannot be assumed that these new interventions alone will provide the solutions to the old problems that exist in palliative medicine. This review summarises the key points presented in the Palliative Medicine section of the RCP Clinical Medicine Conference, 2022.

Armed drones and international humanitarian law

The militarisation of Artificial Intelligence Diplomacy has resulted in the development of heavy weapons that are more powerful than traditional weaponry, fail to distinguish between civilians and combatants, and cause unnecessary suffering. Superpowers and middle powers have made significant investments in digital technologies, resulting in the production of digital weapons that violate international humanitarian law and human rights standards, and complicate the achievement of global peace. Armed drones and militarised robots cause unnecessary pain and suffering to helpless civilians. These weapons have been used to combat terrorism, but, surprisingly, have not addressed issues of terrorism that affect post-Cold War international relations. As a result, the use of armed drones is causing more harm than is necessary to achieve the objective of war. There is a call for international artificial intelligence (AI) governance, as well as a need to understand the effects and serious threats that armed drones pose to international humanitarian law (IHL), as well as to peace processes in international relations and global cooperation. Scholars, policy-makers, human rights activists and peace practitioners should participate more actively in debates about the military application of AI diplomacy, in order to develop effective AI diplomacy rules and regulations. This serves to mitigate the risks and threats associated with armed drones on IHL and international human rights standards, which are the foundations of the post-modern world.