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Diversification of Business Through Digital Technologies: Case Study of Kazakhstan Industrial Companies

Author

Listed:
  • Lambekova Aigerim

    (Karaganda Buketov University, Karaganda, Kazakhstan)

  • Shuren Toktar

    (Karaganda Buketov University, Karaganda, Kazakhstan)

  • Imanbayev Aliy

    (Central Asian Innovation University, Shymkent, Kazakhstan)

  • Bekish Ulan

    (Academy of Public Administration under the President of the Republic of Kazakhstan, Astana, Kazakhstan)

  • Zhadigerova Gulshat

    (Central Asian Innovation University, Shymkent, Kazakhstan)

Abstract

This article examines the impact of digital technologies on the diversification of industrial enterprises’ activities, using the example of industrial firms in Kazakhstan. A literature review was conducted to analyze the influence of digital technologies on financial, human resource, and logistics indicators of enterprises, as well as their effects on activity diversification. Based on the review and expert interviews, the authors developed survey questions and conducted a survey among 230 respondents who are middle and high-level managers of industrial enterprises in Kazakhstan. Using the Smart PLS program, we employed a dual-model approach: one to measure variables like digital technologies, financial performance, HR performance, logistic performance and diversification levels (Formative model), and another to analyze their relationships (Structural Equation Modeling, SEM). The findings indicate strong convergent validity among the variables studied. Interestingly, digital technologies have a significant impact on financial and HR performances, but less so on logistic performance. This highlights a common issue among most industrial enterprises: the limited use of digital technologies in their logistical consolidation. Moreover, while financial and HR performances strongly influence enterprise diversification, logistic has a minor effect. These results underscore the intricate dynamics within enterprise management frameworks and highlight how technological and organizational strategies can affect diversification outcomes differently. The results of the study can be useful for supporting the theory of the relationship between digital technologies and the diversification of enterprise activities, as well as for identifying problem areas that require deeper analysis and intervention by top managers of enterprises.

Suggested Citation

  • Lambekova Aigerim & Shuren Toktar & Imanbayev Aliy & Bekish Ulan & Zhadigerova Gulshat, 2025. "Diversification of Business Through Digital Technologies: Case Study of Kazakhstan Industrial Companies," Economics, Sciendo, vol. 13(3), pages 429-448.
    • Handle: RePEc:vrs:econom:v:13:y:2025:i:3:p:429-448:n:1021
    DOI: 10.2478/eoik-2025-0073
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    References listed on IDEAS

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    1. Shim, Jeungbo, 2013. "Bank capital buffer and portfolio risk: The influence of business cycle and revenue diversification," Journal of Banking & Finance, Elsevier, vol. 37(3), pages 761-772.
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    More about this item

    Keywords

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • 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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