Development of Digitalization in Production Industry – Impact on Productivity, Management and Human Work

The effectiveness of human capital in the context of the digital transformation of the economy: The case of Ukraine

“…This study used empirical modeling to determine the qualitative characteristics of the effectiveness of human capital at the current stage of development of business digitalization in Ukraine. The proposed approach, in contrast to those available in the scientific literature on the consideration of the problems of human capital compliance to the level of the digitalization of the economy (Voronin et al, 2020;Hu, 2021), was based on assessing the efficiency of human resources, not productivity (Jeske, Würfels & Lennings, 2021). This allows us to consider the priority of the human factor in the formation of the digital market space and not the scientific and technical factors.…”

“…In the scientific literature, digitalization of economic activity is understood by most scientists as a new structural change in the technological structure of the economy, in which digital data, processing large volumes of it and the use of analysis results are the key factors of production (Ragnedda, 2018). Many scientific studies in the field of human capital were based on using a variety of empirical and analytical tools and confirmed the close relationship between digitalization, innovation, and the productivity of human capital (Voronin et al, 2020;Hu, 2021;Jeske, Würfels & Lennings, 2021) The effective development of human capital and the possibility of productive use to ensure sustainable development of economic ties and the establishment of stable ties with business, science, and education in the context of informatization of economic activity is increasingly acquiring the status of a priority strategic direction for the development of the modern economy (Jeske, Würfels & Lennings, 2021).…”

“…Many scientists adhere to the point of view of the positive effects of the impact of digitalization on the development of the national and global economy and business, justifying this by the fact that opportunities for the exchange of large amounts of data and their accumulations are opening up (Jeske, Würfels & Lennings, 2021;Mahmood & Mubarik, 2020). This allows for the process of collecting information, forming a common information space, making reliable predictions, making informed decisions, extracting all kinds of benefits, replacing human routine work with machines, and the like (Jeske, Würfels & Lennings, 2021). But on the other hand, scientists also noted the digitalization of the economy, the emergence of risks of data loss, business loss, job loss, security breaches, and the need for modernization (Walwei, 2016;Chen, 2020).…”

“…With the accumulation of significant intellectual wealth and the development of modern technologies, achievements in labor productivity are minimal (Yanovska et al, 2019). There are various reasons for this contradiction: the imperfection of approaches to statistical collection and processing of data on labor productivity in the digital economy (Ballestar et al, 2020); the presence of a time interval for obtaining the final result and the introduction of innovations (Hu, 2021;Megits, Neskorodieva & Schuster, 2020); and informatization affects labor productivity only in certain high-tech industries (Jeske, Würfels & Lennings, 2021). It seems that the effectiveness of the information economy cannot be assessed by the traditional characteristics of labor productivity as a qualitative parameter of human capital.…”

“…The main sign of labor productivity is necessarily creating a material product in the production activities of people (Yasmin, El Refae & Eletter, 2019). The digitalization of economic activity presupposes the priority development of the service sector; therefore, it is advisable to use labor efficiency as an indicator of the quality of human capital within the information economy as a broader concept covering all areas of labor activity, including both production and nonproduction (Jeske, Würfels & Lennings, 2021). A sign of or a significant difference between labor productivity and labor efficiency is the ratio of ergotic and scientific and technical factors.…”