THE IMPACT OF DIGITALIZATION ON THE PERFORMANCE OF COMPANIES IN THE AGRICULTURAL SECTOR

Miloš Milanović; Nikola Pavlović; Marko  Savić

doi:10.59267/ekoPolj2602535M

Authors

Miloš Milanović University Pristina, Faculty of Economics, Kosovska Mitrovica, Kolašinska 156, 38220 Kosovska MItrovica, Serbia https://orcid.org/0000-0002-4684-6306
Nikola Pavlović Professor of Applied Studies, Academy of Applied Studies Kosovo and Metohija, Dositeja Obradovića bb, 38218 Leposavić, Serbia https://orcid.org/0000-0001-5466-576X
Marko Savić Academy of Applied Studies Kosovo and Metohija, Dositeja Obradovića bb, 38218 Leposavić, Serbia

DOI:

https://doi.org/10.59267/ekoPolj2602535M

Keywords:

OLS regression, digitalization, agricultural sector

Abstract

This research examines the relationship between the level of digitalization and the returns achieved by companies operating in the agricultural sector. The study is based on a review of the available literature and aims to determine the impact of digitalization on the performance of agricultural companies. The research relies on panel data analysis and utilizes the EViews software. The dataset includes daily data for the period from 2014 to 2024. To investigate this impact, an OLS regression model was applied, revealing the relationship between independent and dependent variables. The results indicate that there is a highly systematic and complex relationship between the degree of digitalization and company performance. Although digitalization is of strategic importance, its impact on returns can be negative due to the costs associated with organizational transformation.

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