Business Ethics and Leadership (Oct 2024)
The Role of IT Companies’ Business Leadership in Driving Digital Progress in Local Communities
Abstract
This study investigates the role of local IT companies in driving digital progress in Ukrainian communities, highlighting the critical relationship between IT companies’ business leadership and regional digital transformation. The relevance of this topic is particularly significant given Ukraine’s ongoing efforts to digitally transform its regions in the context of post-war recovery and economic rebuilding. Local IT companies are pivotal in fostering economic growth and bridging the digital divide by promoting innovation, infrastructure, and digital services, especially in underserved areas. The methodology used in this study involved the development of an econometric model to evaluate the correlation between two integral indices. The Digital Transformation Index integrally reflects the region’s overall progress on the digital transformation path (institutional capacity, Internet development, ASC development, paperless mode, digital education, regional business cards, penetration of basic services, and sectoral digital transformation). IT Business Leadership Index is proposed to be described in this study by the following indicators: the number of operating local IT companies, their employees and recruited employees, and the volume of products sold, produced and added by local IT companies. Regression, correlation, canonical analysis (to determine the interdependencies between sets of factors, to define the canonical roots of the studied indices), and factor analysis (to build an integral indicator of IT companies’ business leadership under the influence of digital transformation), were used to determine the statistical dependencies between these indicators. The data across Ukraine’s regions were gathered from official government sources, covering 2020‒2022. The findings revealed a strong correlation between active IT company leadership and higher levels of digital progress in regions like Kyiv and Kharkiv. These areas have advanced in implementing digital services such as e-governance and digital education platforms. However, disparities were observed, with regions like Zaporizhia and Donetsk lagging behind due to weaker IT infrastructure and limited access to skilled labor. The analysis highlighted that not all factors contributed equally, with variables like production costs showing weaker correlations. This suggests the need for targeted policies and investments to ensure equitable digital transformation across all regions. This study underscores the importance of strengthening local IT ecosystems. It suggests that a multifaceted approach – encompassing policy support, infrastructure development, and education – is essential for achieving widespread and sustainable digital progress in Ukraine.
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