How did Digitalization Affect Company Performance during the Covid-19 Pandemic?

Milan Čupić (), Marijana Milanović () and Mirjana Todorović ()
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Milan Čupić: University of Kragujevac, Faculty of Economics, Liceja Kneževine Srbije 3, Kragujevac, Serbia,
Marijana Milanović: Western Serbia Academy of Applied Studies, Department of Užice, Užice, Serbia,
Mirjana Todorović: University of Kragujevac, Faculty of Economics, Liceja Kneževine Srbije 3, Kragujevac, Serbia,

Journal for Economic Forecasting, 2025, issue 2, 166-185

Abstract: The study aims to examine the impact of company digitalization on its response to the COVID-19 pandemic and financial performance. It also aims to examine the impact of company response to the COVID-19 pandemic on financial performance and the mediating role of company response to the COVID-19 pandemic in the relationship between company digitalization and financial performance. The results show that the more digitalized companies have responded to the COVID-19 pandemic more successfully and managed to improve their long-term financial performance. They also managed to improve their short-term financial performance but only indirectly, through response to the COVID-19 pandemic. The study contributes to the literature on the direct and indirect effects of digitalization on company financial performance in periods of crisis like the COVID-19 pandemic and the specificities of these effects in developing and transitioning economies. The study results have practical implications for company managers and owners, as well as policymakers in developing and transitioning economies similar to Serbian.

Keywords: digitalization; digital technologies; crisis; performance management; developing economy (search for similar items in EconPapers)
JEL-codes: L25 M15 O33 (search for similar items in EconPapers)
Date: 2025
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