Efficiency of digital business transformation in the Republic of Serbia

Abstract

Purpose: The aim of this paper is to evaluate the intensity and success of the digitalization process, by measuring the efficiency of the use of information and communication technologies in business in the Republic of Serbia (RS) in the period from 2006 to 2019. Design/methodology/approach: The data envelopment analysis method is applied and due to the sensitivity of the results to measurement errors, the robustness analysis of the obtained values of average efficiency is performed, using the bootstrapping method. Findings: The results show an intensive, expansive and relatively efficient process of digital business transformation in the RS. The results indicate inefficient use of software packages, While the efficiency of e-commerce in companies in most years is over 80%. Research limitations/implications: The research is limited to the RS, so the conclusions cannot be generalized in a broader context. Practical implications: The biggest problem in the implementation of digital business transformation in the RS is the understanding of management and employees in organizations that digital business transformation will take place only if software solutions are purchased and installed, with less attention paid to their proper application and low use of their maximum capabilities. Originality/value: Digital transformation measurement is the subject of a very small number of studies. Through a review of the literature, the authors of this paper do not find the use of data envelopment analysis to measure the efficiency of digital business transformation in the way they present it in this paper.