Business institutions of economic activity digitalization

Abstract

The paper discusses the special features of transformation of business institutions in the process of economic activity digitalization. Methodologically the research is premised on the theoretical concepts of evolutionary and neo-institutional theory, the concepts of the sharing and digital economy. The basic research method is a logical-structural analysis of theoretical and empirical data in the public domain. The study reveals socio-technological driving forces of the development of the digital economy: big data, cloud and blockchain technologies, digital platforms, the Internet of things, the concept of a smart city and the sharing economy. The author formulates the characteristics of economic activity digitalization: an increase in the share of services in total production, a growing decentralization of resources, a rise in the share of instant transactions, the use of cloud technologies, the development of the sharing economy and institutional support for business. The article lays down the principles of economic activity digitalization based on decentralization of resources that embrace expediency, usefulness and effectiveness of digitalization. The paper also identifies the principles of evolutionary development: uncertainty, formality and inevitability of digitalization. It looks at the transformation of business institutions in the process of economic activity digitalization, which lies in three processes: a significant reduction in life cycles of business institutions resulting from making rapid managerial decisions, as well as the increasing role and the shifting content of informal business institutions to the field of rational values and self-expression. The author demonstrates the application of socio-technological driving forces to manage a firm's resources. The use of blockchain technologies and big data is expedient to manage labour resources. Cloud technologies and crowdfunding are used to regulate financial resources. When managing the development of material resources, it is advisable to apply the Internet of things and the sharing economy. Information resources are organized through digital platforms. The research findings can be of use when mapping out strategies for the development of individual companies, sectoral markets and state management of economic sectors.