The Impact of Digitalization on Enterprises Efficiency

Through the past decades, the rise of digital technologies is observed in the framework of the Fourth Industrial Revolution. The businesses adjust their strategies with the goal to increase operation efficiency via technological transformation. This paper conducted a descriptive and regression analysis of the influence of digitalization on the enterprises’ performance in terms of profits and also considered job turnover on the basis of the data set containing 1290 Russian companies of small, medium and large sizes from seven sectors of economy: mining, manufacturing, construction, transport and communications, trade, finance, business services. In the light of the existing contradiction in the current literature and the limited number of works dedicated to the Russian market, this research contributes with its findings to the field of studies. The author concludes that financial performance of enterprises improves with the increase of number of technologies applied. In terms of the effects of digitalization on the job turnover, there is a positive relationship between the level of digital intensity and job creation. Moreover, it was inferred that a net effect of digitalization on employment is overall positive. The results of the research paper can be applied for practical purposes. The enterprises can take into consideration the influence of digitalization on the performance and adjust their business strategies accordingly to stay competitive and improve efficiency. From the macroeconomic point of view, the policymakers can develop the subsidizing programs for the companies to help them go digital and training programs to support the workers in this transition for accumulation of necessary skills and knowledge.