THE IMPACT OF DIGITAL TRANSFORMATION ON ENTERPRISES' RESILIENCE: EVIDENCE FROM UKRAINE

Abstract

The research focuses on determining the impact of digitalization factors on the resilience of Ukraine’s entrepreneurial sector. The main aim is to determine whether digitalization has a positive impact on the resilience of enterprises. The factors under research include the following: the availability of Internet access at Ukrainian enterprises, their e-commerce, the number of employees involved in research and development, and the share of enterprises that employ ICT specialists. The research methodology has two components: the use of a multifactor nonlinear regression model and the calculation of the proposed Index of Digital Penetration in the Ukrainian business sector. The results show that the most influential factors of digitalization are: the presence of employees specializing in ICT and e-commerce. Both factors make Ukrainian enterprises more resilient and adaptive to shocks. However, the results of the Digital Penetration Index emphasize the low level of digital transformation in Ukrainian enterprises, particularly limited automation and insufficient use of cloud computing and artificial intelligence technologies. The results of the study confirm that digitalization does enhance the resilience of Ukraine's entrepreneurial sector, but the low level of digital transformation underscores the need for legislative action to accelerate the development of advanced digital technologies. In order to benchmark the experience, the authors compare the use of digital technologies in Ukrainian and EU enterprises. The results of the research can be used to deepen the study of sectoral resilience, the experience of EU countries, and to provide recommendations for digital development of Ukraine.