IMPACT OF DIGITAL ECONOMY ON BUSINESS MODELS AND FINANCIAL MANAGEMENT: INSTITUTIONALIZATION OF DIGITAL TRANSFORMATIONS

DOI: 10.31673/2415-8089.2024.010008

Abstract

The digital economy has truly revolutionized traditional business models and financial management practices, driving the institutionalization of digital transformations across various sectors. This article examines the impact of digitization on business models and financial management, considering the underlying mechanisms and consequences.
The relevance of this topic lies in the comprehensive influence of digital technologies on contemporary business trends. Businesses increasingly leverage digital platforms, data analytics, and automation, making an understanding of digital transformation essential for both practitioners and researchers. Moreover, the COVID-19 pandemic has accelerated the adoption of digital tools, further emphasizing the importance of studying their impact on business practices.
A comprehensive analysis of scholarly literature and empirical research results has led to several key conclusions. Firstly, digitization alters business models, providing greater adaptability, customization, and scalability. Organizations utilize digital platforms to enter new markets, personalize offerings, and optimize operations. Secondly, digital technologies significantly impact financial management practices, enhancing real-time data analysis, risk assessment, and decision-making processes. Automated financial systems optimize resource allocation, mitigate risks, and improve financial performance.
The research results indicate that the institutionalization of digital transformations is a multi-faceted process influenced by organizational culture, leadership, and external factors. Successful integration of digital technologies requires strategic alignment, organizational resilience, and continuous innovation. Digitization presents both opportunities and challenges for businesses, necessitating adaptive strategies and proactive management approaches.
Future research prospects lie in studying specific industries and organizational processes to explore the impact of digitization on business models and financial management in various aspects.

Keywords: digitization; blockchain technologies; innovation economy; institutionalization; financial management.

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