engleski

ICT INVESTMENT IMPACT ON THE COMPANY PROFITABILITY

The information and communication technology has a key role in the company and the execution of economic and social activities and is an essential promotional tool of sustainable growth. The dynamic business environment led to increased reliance on the ICT as engines in order to achieve and maintain competitiveness, improve economic performance, and success in today’s marketplace. The adequate levels of corporate expenditure on ICT investment and their measurement and management present a challenge for many researchers. Given that investments in technologies significantly contribute to overcoming unfavorable economic situations, the hypothesis of this paper assumes that companies with higher investments in ICT will be more profitable compared to companies with reduced investments in ICT. The empirical analysis in this study is based on regression panel analysis. The empirical research was conducted through a survey questionnaire on a sample of medium and large companies, ie companies with more than 50 employees within the private and public sector operating in Croatia. In this study, a sample of a total of 83 female and 304 male subjects were obtained, which makes a total of 387 subjects. The analysis of the model shows that companies with below-average investment in ICT have a better indicator of profitability compared to companies with below-average investment in ICT.

Digital Transformation, Investments in ICT, Profitability, regression panel analysis

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