Effect of digitalisation on business performance of manufacturing companies in Hungary
DOI:
https://doi.org/10.14267/VEZTUD.2023.09.03Keywords:
digitalisation, business processes, productivity, value chainAbstract
The manufacturing industry in Hungary is responsible for 24.3% of the GDP. Overall, Hungarian companies’ labour productivity reaches only 70% of the EU average. This study shows that digitalisation may contribute to higher labour productivity. In this study a new index to measure digital business process integration (DBII) is introduced based on Porter’s Value Chain model. It is also shown that higher DBII can be associated with higher labour productivity. A positive association between organizations’ IT capabilities and labour productivity is also presented. Although a weaker but still significant association between DBII and profit per employee exists, the companies with the highest DBII do not have the highest average profit per employee.
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