The formation of digital business factors
Date
2020-02-24
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Видавництво Львівської політехніки
Lviv Politechnic Publishing House
Lviv Politechnic Publishing House
Abstract
The article is concerned with
identifying and studying factors affecting digital
business formation and development process in order to
form tools for affecting the digital business. The novelty
of this research paper is establishing causes increasing
the volume of digital business and the dependence of its
growth rate on the existing factors. The authors define
the concept of digital business as an entrepreneur
activity (providing electronic commerce, electronic
services) in the Internet for making a profit with the help
of information and communication technologies that
blur boundaries between the real and virtual worlds.
The digital business structure is studied and analysed.
It is generally distinguished 4 sectors (electronic
financial services; electronic commerce; electronic
education and training; other electronic transactions).
The authors prove that modern digital business model
has been transformed from a 4-sectoral into a 3-
sectoral one, including electronic commerce, electronic
financial services, electronic education and training. It
is suggested to study and define factors affecting the
development of digital business according to sevenstage sequence of digital business evaluation. The
hypothesis concerning a set of digital business factors
is proposed and 24 factors affecting digital business are
identified, among which 8 factors mostly affect the
digital business market of the European Union. The
authors also distinguish influencing factors which are
common for all three sectors of digital business, such
as: Internet use by individuals, proportion of people
using the Internet to order goods or services, the level
of household Internet access. The methodology of the
given research is based on scientific and verification
principles, comparative, structural and system analysis.
Applying economic and mathematical methods, it has
been investigated the correlation between the digital
business and the main factors affecting it. The
correlation density between the outcome feature and
influencing factors using a determination coefficient is
estimated. The given research proves that factors are
multicollinear between each other. It has been revealed
the correlation between the EU digital business volume
and chosen factors
Description
Keywords
digital business, electronic business, electronic commerce, electronic banking, electronic education and training, digital business factors
Citation
Pyrog O. The formation of digital business factors / O. Pyrog, A. Poritska // Economics, Entrepreneurship, Management. — Lviv : Lviv Politechnic Publishing House, 2020. — Vol 7. — No 1. — P. 10–17.