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Digitization of the Agricultural Sector: The Impact of ICT on the Development of Enterprises in Ukraine

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  • Hrosul, Viktoriia
  • Kruhlova, Olena
  • Kolesnyk, Alina

Abstract

Purpose. The purpose of the research paper is determining the effect of information and communication technologies (ICTs) on the agricultural enterprises performance in Ukraine by studying the dependence of the performance of agricultural enterprises on the activity of their digital solutions implementation. Methodology / approach. The effect of ICTs on the performance of agricultural enterprises is studied using the methods of average and relative values, dynamic analysis – in determining the trends in the development of enterprises of the ICT segment and the activity of implementation of digital solutions by agricultural enterprises in their practice; correlation analysis – in studying the dependence of the performance of agricultural enterprises on the activity of digital solutions implementation. Results. The dependence of the performance of agricultural enterprises on the activity of their implementation of digital solutions is determined. A direct link between the volume of activities of enterprises operating in the ICT segment and the investments of agricultural enterprises in software is established. It has been determined that the activity of agricultural enterprises in terms of investments in software has a positive effect on their activities results, causing an increase in the volume of sold products, added value and labour productivity. A direct but weak effect of software investments on the cost efficiency of current and environmental activities has been diagnosed. A feedback relationship has been established between the investments made by agricultural enterprises in the acquisition of software and the profitability of their operating activities, which is increasing with taking into account the time lag. Originality / scientific novelty. The article provides empirical evidence of the dependence of agricultural enterprises activity indices on ICT segment enterprises development. The dependence of the results of agricultural enterprises activity on the activity of their digital solutions implementation was investigated with and without taking into account the time lag. The scientific and methodological foundations for assessing the impact of ICT on the performance of enterprises have been improved, in particular by allocating indicators for this assessment by stages of research. Practical value / significance. The results of the study can be used in the decision-making process regarding the digital transformation of agricultural enterprises through the implementation of ICT.

Suggested Citation

  • Hrosul, Viktoriia & Kruhlova, Olena & Kolesnyk, Alina, 2023. "Digitization of the Agricultural Sector: The Impact of ICT on the Development of Enterprises in Ukraine," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(4), January.
    • Handle: RePEc:ags:areint:342110
    DOI: 10.22004/ag.econ.342110
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    References listed on IDEAS

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    1. Wolfert, Sjaak & Ge, Lan & Verdouw, Cor & Bogaardt, Marc-Jeroen, 2017. "Big Data in Smart Farming – A review," Agricultural Systems, Elsevier, vol. 153(C), pages 69-80.
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