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Understanding the connect between digitalisation, sustainability and performance of an organisation

Author

Listed:
  • Moid U. Ahmad
  • James Murray

Abstract

Digitalisation of organisations is rampant in current times. For both government (Digital India Initiative) and commercial organisations, connectedness to digital platforms is required and investment in digital platforms is a competitive priority. This investment also has strategic implications as it has the capability to reduce certain costs and enhance the effectiveness of an organisation's systems. Going digital involves many indirect benefits and also direct costs. Thus, it becomes imperative to understand the cost and benefit structure of digital platforms in organisations and the effectiveness of such platforms. The basic premise of this study is to understand the effect of digitalisation on the business and efficiency in an organisation which has chosen investments in digital assets and information technology. This research paper tries to answer a very basic question on the effect and effectiveness of digitalisation on companies and analyses the effect. Investment in information technology was found to be positive and highly correlated with sales and moderately correlated with PAT. The regression analysis also indicates that sales and PAT have positive coefficients for IT investments. One significant finding of the study is that the effect of digital investment was positive on PAT and sales.

Suggested Citation

  • Moid U. Ahmad & James Murray, 2019. "Understanding the connect between digitalisation, sustainability and performance of an organisation," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 17(1), pages 83-96.
  • Handle: RePEc:ids:ijbexc:v:17:y:2019:i:1:p:83-96
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    Cited by:

    1. Vladimir Zhuravlyov & Tatyana Khudyakova & Natalia Varkova & Sergei Aliukov & Svetlana Shmidt, 2019. "Improving the Strategic Management of Investment Activities of Industrial Enterprises as a Factor for Sustainable Development in a Crisis," Sustainability, MDPI, vol. 11(23), pages 1-20, November.
    2. Abdullah Al Daas & Moid U. Ahmad & Suleiman Jamal Mohammad, 2020. "The Dynamics Between Dividends, Financing and Investments: Evidence From Jordanian Companies," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 231-240, July.

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