Abstract

The article discusses current digitalization trends from the perspective of business innovation management, the relevance of which has increased significantly during the COVID-19 pandemic. The relationship between the innovative and digital profile indicators and the level of entrepreneurship development is analysed and substantiated based on the world and European experience in general and Azerbaijan in particular. The study’s main goal is empirical confirmation, formalization, and evaluation of digitalization’s impact on entrepreneurship development in Azerbaijan, some European and Asian countries to improve public policy in the areas under study. For achieving the study goals, scientific methods of statistical, analytical, graphical, correlation and regression analysis, and economic and mathematical modelling using Excel and Stata software products were applied. The information base of the study is formed from scientific papers and publications in the field of innovation management, digital economy, and entrepreneurship, as well as World Bank data for a sample of 14 countries in Europe and Asia (Azerbaijan, Czech Republic, Estonia, Georgia, Hungary, Kazakhstan, the Kyrgyz Republic, Latvia, Lithuania, Poland, Romania, Slovenia, Slovak Republic, and Ukraine) for 2006-2020. The author characterized trends in the total number of new firms, the overall density of business and the density of new business in the countries included in the sample, and indicators of the relative cost of procedures and the time to start a business in the studied countries. Particular attention is paid to the export and import of ICT goods, communication and computer services. A panel data regression model with fixed effects has been built to determine the influence of digitalization parameters on the business sector’s development parameters. Evaluating the impact of digitalization on entrepreneurship development in Azerbaijan and other European and Asian countries could be useful to scientists, researchers, public authorities and local governments, business structures, and entrepreneurs.

Keywords: business innovation, high technology, ICT, innovation management, new business, entrepreneurship development, digitalization.

JEL Classification: F50, O33.

Cite as: Sadigov, R. (2022). Impact of Digitalization on Entrepreneurship Development in the Context of Business Innovation Management. Marketing and Management of Innovations, 1, 167-175. https://doi.org/10.21272/mmi.2022.1-12

This work is licensed under a Creative Commons Attribution 4.0 International License

References

1. Alam, M. J., Jesmin, J., Faruk, M., & Nur-Al-Ahad, M. (2021). Development of E-banking in Bangladesh: A Survey Study. Financial Markets, Institutions and Risks, 5(2), 42-51. [Google Scholar] [CrossRef]
2. Antonyuk, N., Plikus, I., & Jammal, M. (2021). Human Capital Quality Assurance under the Conditions of Digital Business Transformation and COVID-19 Impact. Health Economics and Management Review, 2(3), 39-47. [Google Scholar] [CrossRef]
3. Bizhanova, K., Mamyrbekov, A., Umarov, I., Orazymbetova, A., & Khairullaeva, A. (2019). Impact of digital marketing development on entrepreneurship. Innovative Technologies in Environmental Science and Education (ITESE-2019), 135, 04023. [Google Scholar] [CrossRef]
4. Faccia, A., & Cavaliere, L. (2021). Online Banking in Italy. “Widiba Bank” Case Study, PESTLE and DEA Analysis. Financial Markets, Institutions and Risks, 5(1), 87-97. [Google Scholar] [CrossRef]
5. Fernando Alonso Ojeda, C. (2021). Cybersecurity, An Axis On Which Management Innovation Must Turn In The 21st Century. SocioEconomic Challenges, 5(4), 98-113. [Google Scholar] [CrossRef]
6. Ivanovic-Đukic, M., Stevanovic, T., & Rađenovic, T. (2019, January). Does digitalization affect the contribution of entrepreneurship to economic growth. In Proceedings of Rijeka Faculty of Economics: Journal of Economics and Business (Vol. 36, No. 2, pp. 653-679). [Google Scholar] [CrossRef]
7. Kostetskyi, P. (2021). Does Digitalization Lead to Better Transparency: Bibliometric Approach. Business Ethics and Leadership, 5(3), 102-107. [Google Scholar] [CrossRef]
8. Kotenko, N., & Bohnhardt, V. (2021). Digital health projects financing: challenges and opportunities. Health Economics and Management Review, 2(1), 100-107. [Google Scholar] [CrossRef]
9. Law, S. W. (2021). Financial Inclusion and Virtual Bank in the Era of Digitalisation: A Regulatory Case Study in Hong Kong. [Google Scholar] [CrossRef]
10. Lazorenko, V., Saher, L., & Jasnikowski, J. (2021). Web management as a marketing management determinant: case for pharmaceutical enterprises. Health Economics and Management Review, 2(2), 105-114. [Google Scholar] [CrossRef]
11. Niftiyev, I., Yagublu, N., & Akbarli, N. (2021). Exploring The Innovativeness Of The South Caucasus Economies: Main Trends And Factors. SocioEconomic Challenges, 5(4), 122-148. [Google Scholar] [CrossRef]
12. Novikov, V. V. (2021). Digitalization of Economy and Education: Path to Business Leadership and National Security. Business Ethics and Leadership, 5(2), 147-155. [Google Scholar] [CrossRef]
13. Ouelhadj, A., & Bouchetara, M. (2021). Contributions of the Base Erosion and Profit Shifting BEPS Project on Transfer Pricing and Tax Avoidance. Financial Markets, Institutions and Risks, 5(3), 59-70. [Google Scholar] [CrossRef]
14. Pereira, C.S.; Durão, N.; Moreira, F.; Veloso, B. (2022). The Importance of Digital Transformation in International Business. Sustainability, 14, 834. [Google Scholar] [CrossRef]
15. Phomkamin, J., Pumpuang, C., Potijak, P., Sangngam, S., Ketprasit, I., & Mujtaba, B. (2021). Engagement Strategies for E-commerce Businesses in the Modern Online World. SocioEconomic Challenges, 5(4), 24-34. [Google Scholar] [CrossRef]
16. Skrynnyk, O. (2021a). Analysis of Corporate Investment Behaviour in Digital Technologies for Organisational Development Purposes. Financial Markets, Institutions and Risks, 5(3), 79-86. [Google Scholar] [CrossRef]
17. Skrynnyk, O. (2021b). Literature Review on Social and Organizational Acceptance of Digital Transformation. Business Ethics and Leadership, 5(4), 110-117. [Google Scholar] [CrossRef]
18. Soluk, J., Kammerlander, N., & Darwin, S. (2021). Digital entrepreneurship in developing countries: The role of institutional voids. Technological Forecasting and Social Change, 170, 120876. [Google Scholar] [CrossRef]
19. Stavrova, E. (2021). Banks’ Digital Challenges. Business Ethics and Leadership, 5(3), 87-96. [Google Scholar] [CrossRef]
20. Tiutiunyk, I. V., Humenna, Y. H., & Flaumer, A. (2021). Covid-19 impact on business sector activity in the EU countries: digital issues. Health Economics and Management Review, 2(1), 54-66. [Google Scholar] [CrossRef]
21. World Bank DataBank. (2022) Retrieved from [Link]