Reflections on the link between digitalisation and firm performance during the pandemic: the case of Albania

Ermira Kalaj, Flora Merko and Ela Golemi

SEER Journal for Labour and Social Affairs in Eastern Europe, 2022, vol. 25, issue 1, 101-118

Abstract: This article focuses on an analysis of the digitalisation of enterprises in Albania and its impact on their performance with a view to understanding better the role of digitalisation and the experience of private sector firms in this area. The research draws on an econometric analysis of World Bank data examining firms’ experiences and their perceptions of their operating environment. After setting the scene with an overview of the types and size of enterprises in Albania, the article focuses on digitalisation, the level of which is generally low, and seeks answers to a number of research questions. The authors conclude that, while the impact of digitalisation on performance is positive and statistically significant, achieved chiefly via increased business activity online, there is a need to understand better what this means in practice as well as to explore the lack of statistical significance, despite the presence of a positive relationship, of other variables examined in the course of the analysis. Further work is also needed to understand how firms will approach digitalisation in the future after the economic shocks of Covid-19.

Date: 2022
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DOI: 10.5771/1435-2869-2022-1-101

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