Imre Gabor Kulcsar
ABSTRACT
The manufacturing industry in Hungary is responsible for 24,3% of the GDP. In 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. Historic data from a questionnaire is used to categorize companies based on DBII. The association between DBII, organization IT capabilities and business performance indicators (labour productivity and profit per employee) is analysed with the help of cross tabulation and SPSS. It is also shown that higher DBII can be associated with higher labour productivity. Positive association between organization IT capabilities and labour productivity is also presented. A weaker but significant association between DBII and profit per employee suggests, that organizations still need to work out ways how digitalisation can help to harvest the gains from increased labour productivity.
- KSH. 2021. Helyzetkép az iparról, 2020. https://www.ksh.hu/docs/hun/xftp/idoszaki/jelipar/2020/index.html.Google Scholar
- MNB. 2020. Productivity Report, 2020 NovemberGoogle Scholar
- Seddon, P.B. 2005. Are ERP systems a source of competitive advantage? Strategic Change 14, 5, 283–293.Google ScholarCross Ref
- Hsu, P.F. 2013. Commodity or competitive advantage? Analysis of the ERP value paradox. Electronic Commerce Research and Applications 12, 6, 412–424Google ScholarDigital Library
- Koch, C. 2002. The ABCs of ERP.Google Scholar
- Porter, M.E. 1998. Competitive Advantage Creating and Sustaining Superior Performance.Google Scholar
- Hitt, L.M., Wu, D.J., and Zhou, X. 2002. Investment in Enterprise Resource Planning: Business Impact and Productivity MeasuresGoogle Scholar
- Kroll, H., Horvat, D., and Jäger, A. 2018. Effects of Automatisation and Digitalisation on Manufacturing Companies’ Production Efficiency and Innovation Performance | Enhanced Reader. Fraunhofer ISI Discussion Papers Innovation Systems and Policy Analysis No. 58.Google Scholar
- Carr NG. 2003. IT doesn't matter. Harvard Business Review 81, 5, 41–49Google Scholar
- Carr NG. 2004. Does IT matter? Harvard Business School Press: Boston, MAGoogle Scholar
Index Terms
- Effect of Digitalisation on Business Performance of Companies in the Manufacturing Industry in Hungary
Recommendations
Digitalisation and employment in manufacturing
The present work tackles the issue of the effects of digitalisation on employment. This issue has been attracting a growing interest, in particular because of the anxiety generated by the idea that digital technologies could cancel a large number of ...
Manufacturing Productivity with Worker Turnover
To maximize productivity, manufacturers must organize and equip their workforces to efficiently handle variable workloads. Their success depends on their ability to assign experienced and skilled workers to specialized tasks and coordinate work on ...
Comments