Digital Transformation As A Driving Force Behind Contemporary ‎Economic and Social Change

  • Authors

    • Kostiantyn Herasymiuk PhD in Public Administration, Docent, Associate Professor of the Department of Social ‎ Medicine and Organization of Public Health Services, National Pirogov Memorial Medical ‎University, Vinnytsya, Ukraine‎
    • Denys Zabolotenko Master’s Degree Public Management and Administration, Postgraduate Student, Public ‎Higher Educational Establishment “Vinnytsia academy of continuing education”, Vinnytsya, ‎Ukraine
    • Zoriana Buryk Doctor of Sciences in Public Administration, Professor, Department of Public ‎Administration, Hryhorii Skovoroda University in Pereiaslav, Pereiaslav, Ukraine
    https://doi.org/10.14419/5e3kah23

    Received date: September 5, 2025

    Accepted date: October 13, 2025

    Published date: October 22, 2025

  • Digital Economy; Digital Adaptation; Digital Rivalry; Productivity Transformation; Digital ‎Infrastructure; Public Interest
  • Abstract

    The article explores the issue of gaining efficiency for the economy and society in the process ‎of digital adaptation. The impact of digital technologies on labor productivity, ‎competitiveness and social processes is analyzed. The purpose of the study is to identify the ‎peculiarities of the global economy’s adaptation and to substantiate the directions of ensuring ‎the process of integrating digital technologies into public life in the global environment. A ‎comprehensive methodological approach combining multiple linear regression is used to ‎analyze the relationship between labor productivity, employment share and gross value added ‎‎(GVA) in the digital sectors of a sample of 36 countries. The results of the regression analysis ‎show that the model explains 41.4% of the variation in labor productivity in the digital ‎economy and at the same time confirms the statistically significant impact of employment on ‎its growth. It is established that the development of jobs in information and ‎communication technologies is a key driver of digital transformation. The practical value of ‎the study is to provide recommendations for the formation of public policy aimed at ‎stimulating digital employment and inclusive technological development. The scientific ‎novelty of the study is manifested in the identification of the relationship between digital ‎adaptation and economic performance, in particular through the emphasis on the role of ‎human capital in increasing labor productivity. The author proposes an integrated approach to ‎assessing digital transformation, which takes into account both quantitative and qualitative ‎aspects, including technological integration and social inclusion, which intensifies the ‎formation of new strategies for sustainable development of countries in the context of global ‎economic challenges‎.

  • References

    1. Al-Zoubi, W. K. (2024). Economic development in the digital economy: A bibliometric review. Economies, 12(3), 53. https://doi.org/10.3390/economies12030053.
    2. Bodó, B., Engelmann, J., Araujo, T., Simon, M., & Zurek, T. (2024). Trust in the digital society – dynamics, research questions, agenda [Seminar]. Competence Centre on Behavioural Insights Seminar Series, Knowledge4Policy, European Commission. https://knowledge4policy.ec.europa.eu/sites/default/files/CCBI_2024-10-02_Bodo.pdf.
    3. Bradač Hojnik, B., & Huđek, I. (2023). Small and medium-sized enterprises in the digital age: Understanding characteristics and essential demands. Information, 14(11), 606. https://doi.org/10.3390/info14110606.
    4. Brynjolfsson, E., & McAfee, A. (2021). The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. W. W. Nor-ton & Company. https://books.google.com.ua/books/about/The_Second_Machine_Age_Work_Progress_and.html?id=WiKwAgAAQBAJ&redir_esc=y.
    5. CELIOS. (2024). Digital Economy Outlook 2025 [Report]. https://celios.co.id/wp-content/uploads/2024/12/Digital-Economy-Outlook-2025.pdf.
    6. Chen, Z., & Xing, R. (2025). Digital economy, green innovation and highquality economic development. International Review of Economics & Fi-nance, 99(C). https://doi.org/10.1016/j.iref.2025.104029.
    7. Dahmer, L. J. N. (2024). Digital Transformation in the Fourth Industrial Revolution: Challenges and Opportunities for Project Management. Revista Sistemática, 14(5), 1339-1343. https://doi.org/10.56238/rcsv14n5-022.
    8. Díaz Triñanes, A. (2024). A digital market for a new society, a digital society for a new market: Marion Fourcade and Kieran Healy, The Ordinal Society (Cambridge, Massachusetts, Harvard University Press, 2024, 384 p.). European Journal of Sociology, 65(3), 427–431. https://doi.org/10.1017/S0003975624000201.
    9. Digital Cooperation Organization. (2024). Digital Economy Trends 2025 [Report]. https://dco.org/wpcontent/uploads/2024/12/DigitalEconomyTrends2025.pdf.
    10. European Commission. (2022). The Digital Economy and Society Index (DESI). Shaping Europe’s digital future. https://digital-strategy.ec.europa.eu/en/policies/desi.
    11. Fox, S., & Griffy-Brown, C. (2024). Sustainable technology in society: Technology in Society Briefing. Technology in Society, 77, 102486. https://doi.org/10.1016/j.techsoc.2024.102486.
    12. Huawei Technologies & IDC. (2024). Global Digitalization Index 2024: Quantifying ICT maturity and digital transformation progression. Huawei. https://www.huawei.com/en/gdi.
    13. IMD World Competitiveness Center. (2024). IMD World Digital Competitiveness Ranking 2024 (67 economies assessed; report: The digital divide: risks and opportunities). IMD Business School. https://www.imd.org/centers/wcc/world-digital-competitiveness-center/rankings/world-digital-competitiveness-ranking/.
    14. Interactive Advertising Bureau. (2025). Measuring the Digital Economy: Advertising, Content, Commerce, and Innovation [Report]. https://www.iab.com/wp-content/uploads/2025/04/Measuring-the-Digital-Economy_April_29.pdf.
    15. Ivanenko, O. (2024). Digitization as a new reality under conditions of social instability. Sociology: Theory, Methods, Marketing, 2024 (3), 25–46. https://doi.org/10.15407/sociology2024.03.025.
    16. Javaid, M., Haleem, A., Singh, R. P., & Sinha, A. K. (2024). Digital economy to improve the culture of Industry 4.0: A study on features, imple-mentation and challenges. Green Technologies and Sustainability, 2(2), 100083. https://doi.org/10.1016/j.grets.2024.100083.
    17. Makedon, V., Myachin, V., Plakhotnik, O., Fisunenko, N., Mykhailenko, O. (2024). Construction of a model for evaluating the efficiency of tech-nology transfer process based on a fuzzy logic approach. Eastern-European Journal of Enterprise Technologies, 2(13(128)), 47-57. https://doi.org/10.15587/1729-4061.2024.300796.
    18. Makedon, V., Myachin, V., Kuriacha, N., Chaika, Yu., & Koptilyi, D. (2025). Development of strategic management of a corporation through the implementation of scenario analysis. Scientific Bulletin of Mukachevo State University. Series "Economics", 12(2), 135-146. https://doi.org/10.52566/msu-econ2.2025.135.
    19. Malynovska, Yu., Bohomaz, P., Mats, Yu., & Parashchyn O. (2025). Digital Business Transformation: Key Challenges for Modern Managers. Evropský Časopis Ekonomiky a Managementu, 11(2), 21-28. https://doi.org/10.46340/eujem.2025.11.2.3.
    20. Mandych, O., & Kovalenko, V. (2024). Digital adaptation of financial architecture to minimize shadow business. Economic Analysis, 34(4), 635–642. https://doi.org/10.35774/econa2024.04.635.
    21. Metelenko, N. G., Kovalenko, O. V., Makedon, V., Merzhynskyi, Y. K., & Rudych, A. I. (2019). Infrastructure security of formation and devel-opment of sectoral corporate clusters, Journal of Security and Sustainability Issues, 9(1), 77–89. https://doi.org/10.9770/jssi.2019.9.1(7).
    22. Organisation for Economic Cooperation and Development. (2023). Digital Government Index (Going Digital Toolkit, Indicator 58) [Dataset]. OECD. https://www.oecd.org/en/publications/2023-oecd-digital-government-index_1a89ed5e-en.html.
    23. Phan, D. M., & Dinh, H. T. (2023). Digital transformation of business community in globalization: An empirical study in a typical developing coun-try. Eastern European Journal of Enterprise Technologies, 3(13 (123)), 98–110. https://doi.org/10.15587/1729-4061.2023.283251.
    24. Polishchuk, Y., Gernego, I., & Horbov, V. (2025). Digital transformation of relocated business. Economy of Ukraine, 68(5 (762)), 53–71. https://doi.org/10.15407/economyukr.2025.05.053.
    25. Romero, I., & Mammadov, H. (2024). Digital transformation of small and medium-sized enterprises as an innovation process: A holistic study of its determinants. Journal of Knowledge Economy, 16, 8496–8523. https://doi.org/10.1007/s13132-024-02217-z.
    26. Rust Russo, F. (2024). The place of digital society in the pluriverse. Digital Society, 3, 37. https://doi.org/10.1007/s44206-024-00125-y.
    27. Statista. (2025). Worldwide digital competitiveness rankings by country [Statistics]. https://www.statista.com/statistics/1042743/worldwide-digital-competitiveness-rankings-by-country/.
    28. Suhendra, I., Istikomah, N., Anwar, C. J., Supriadi, A., Wakhid, A. A., Purwanda, E., & Salim, A. (2025). Influence of the digital economy on economic growth: Empirical study of a region in Indonesia. Cogent Economics & Finance, 13(1), 2457477. https://doi.org/10.1080/23322039.2025.2457477.
    29. Suntsova, O. O. (2024). Digital transformation of the global economy: Challenges and opportunities. Financial and Credit Systems: Prospects for Development, 3(14), 87–100. https://doi.org/10.26565/2786-4995-2024-3-08.
    30. van Dijck, J., van Es, K., Helmond, A., & van der Vlist, F. (2025). Introduction: Governing the Digital Society. In Governing the Digital Society: Platforms, Artificial Intelligence, and Public Values (pp. 13–24). Amsterdam University Press. https://doi.org/10.2307/jj.28874939.6.
    31. Von Solms, R., & Van Niekerk, J. (2013). From information security to cybersecurity. Computers & Security, 38, 97–102. https://doi.org/10.1016/j.cose.2013.04.004.
    32. Westerman, G., Bonnet, D., & McAfee, A. (2020). Leading digital: Turning technology into business transformation. Harvard Business Press. 32. https://www.scirp.org/reference/referencespapers?referenceid=3404468.
    33. World Bank. (2024). World Development Indicators [Data set]. The World Bank. https://databank.worldbank.org/source/world-development-indicators.
    34. Zavidna, L., Kolesnikova, K., Barna, M., Shelemetieva, T., & Lanytsia, I. (2025). Integrated Strategic Models for the Post-War Recovery of Ukraine’s Hospitality and Tourism Industry, OIDA International Journal of Sustainable Development, 18(10), 29-40. https://oidaijsd.com/wp-content/uploads/2025/06/18-01-02-07-IJSD-UR2-25.pdf.
  • Downloads

  • How to Cite

    Herasymiuk, K., Zabolotenko, D., & Buryk, Z. (2025). Digital Transformation As A Driving Force Behind Contemporary ‎Economic and Social Change. International Journal of Basic and Applied Sciences, 14(6), 453-462. https://doi.org/10.14419/5e3kah23