The Impact of Digitalization on the Financial Performance of Russian Companies

Abstract

Digitalization is one of the most urgent problems for Russia; companies need to gain a competitive advantage, increase their efficiency and improve business performance. The aim of the study is to identify the relationship between the financial performance of Russian companies and the degree of digitalization of their business processes. Operating profit was chosen as the main financial indicator reflecting the results of the current core activities of the companies. To calculate the digitalization index, McKinsey information data was taken on six parameters: digital marketing, digital product experience, e-commerce, electronic customer relationship management (E-CRM), social networks. The authors used regression analysis of data from 482 companies from 20 industries for the period 2017–2019 as a research method for testing the hypotheses. The findings of the study revealed that the digitalization index has a positive effect on the operational efficiency of companies, but the degree of influence differs depending on the industry, age, and size of the enterprise. The authors concluded that the greatest effect from digitalization is observed among companies with traditionally high digital maturity. These are companies from the financial, technology, or communications industry, where business digitalization is vital and where a slowdown in digital transformation processes can push such enterprises far back in the ranking. Assessing the impact of digitalization of Russian companies on their operational activities will allow the management of companies to choose the right strategy in matters of digital transformation, which will ensure the company’s competitiveness, increase its efficiency and contribute to its development. On a national scale, the results of this study can help decide which industries should be subsidized for digital innovation.

Development of a system for statistical measurement of the influence of digital technologies on the efficiency of management

“…The purpose of [8] is also to identify the relationship between the financial performance of companies and the degree of digitalization of their business processes. As the main financial indicator, it is proposed to use operating profit, which reflects the results of the current core activities of enterprises.…”

“…The results of our in-depth review [3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19] prove that the lion's share of scientific research considers the impact of digitalization and the development of digital technologies on operational and financial activities. At the same time, statistical methods of evaluation are used to measure the impact.…”

Expert Assessment of the Influence of Digitalization of Companies on Economic and Financial Performance

“…В целом полученные данные совпадают с результатами последних исследований в этой области, проводимых специалистами Высшей школы экономики для предприятий крупного бизнеса [7]. Отрицательное влияние цифровизации, отмеченное рядом экспертов, свидетельствует о том, что для успешности внедрения информационных технологий требуется выполнение целого ряда условий.…”

“…Влияние цифровизации на экономическое развитие стран и экономические показатели крупных международных компаний рассмотрено в работе [6]. Исследованию российских компаний посвящена работа [7], в которой для оценки уровня цифровизации предлагается использовать индекс цифровизации. В качестве экономического показателя в работе рассматривается прибыль компаний.…”

Comprehensive Evaluation of Digital Strategies and Its Impact on Company Performance

“…The incorporation of digital tools to facilitate daily operations is a nascent phenomenon, yet its benefits are discernible [6]. The implications of digitalization encompass diverse aspects, including the utilization of social networks for corporate objectives, adeptness in digital tools, and the rejuvenation of value creation [7], [8]. Moreover, the convergence of servitization and digitization has emerged as a potent catalyst for innovation, thereby bolstering overall performance [5], [9].…”