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How did Digitalization Affect Company Performance during the Covid-19 Pandemic?

Author

Listed:
  • Milan ČUPIĆ

    (University of Kragujevac, Faculty of Economics, Liceja Kneževine Srbije 3, Kragujevac, Serbia,)

  • Marijana MILANOVIĆ

    (Western Serbia Academy of Applied Studies, Department of Užice, Užice, Serbia,)

  • Mirjana TODOROVIĆ

    (University of Kragujevac, Faculty of Economics, Liceja Kneževine Srbije 3, Kragujevac, Serbia,)

Abstract

The study aims to examine the impact of company digitalization on its response to the COVID-19 pandemic and financial performance. It also aims to examine the impact of company response to the COVID-19 pandemic on financial performance and the mediating role of company response to the COVID-19 pandemic in the relationship between company digitalization and financial performance. The results show that the more digitalized companies have responded to the COVID-19 pandemic more successfully and managed to improve their long-term financial performance. They also managed to improve their short-term financial performance but only indirectly, through response to the COVID-19 pandemic. The study contributes to the literature on the direct and indirect effects of digitalization on company financial performance in periods of crisis like the COVID-19 pandemic and the specificities of these effects in developing and transitioning economies. The study results have practical implications for company managers and owners, as well as policymakers in developing and transitioning economies similar to Serbian.

Suggested Citation

  • Milan ČUPIĆ & Marijana MILANOVIĆ & Mirjana TODOROVIĆ, 2025. "How did Digitalization Affect Company Performance during the Covid-19 Pandemic?," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 166-185, July.
    • Handle: RePEc:rjr:romjef:v::y:2025:i:2:p:166-185
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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