IMPACT OF TECHNOLOGY ON BUSINESS
Janhavi Raut
MMS, Div- A, Roll No.- 47
1. “The Impact of Technology on Business and Society”
– Kathleen M. Wilburn and H. Ralph Wilburn
The article explanins how advancements in Artificial Intelligence (AI), Big Data, and the Internet of Things (IoT) are transforming business operations. These technologies enable businesses to automate tasks, reduce costs, and enhance efficiency, but they also pose challenges such as job displacement. As automation rises, a gig economy is emerging, characterized by temporary and contract-based jobs without stability or benefits. This shift may lead to a two-tiered society where wealth is concentrated among those who can leverage technology, leaving others reliant on government support. The authors argue that businesses and governments must adapt by investing in workforce retraining, implementing new regulations, and reconsidering economic metrics to ensure equitable growth and social stability.
2. “Impacts of Technological Shock on the Agricultural Business Cycle”
– Jirawat Jaroensathapornkul
The article examines the influence of technology shocks on the agricultural and non-agricultural business cycles in ASEAN-5 countries (Indonesia, Malaysia, the Philippines, Thailand, and Vietnam) from 1971 to 2015. Using a two-sector Real Business Cycle (RBC) model, the study finds that real business cycles fluctuate more than agricultural cycles. The model suggests that technology shocks in one sector can spill over to the other, affecting economic volatility. The results show that the model can effectively simulate actual economic fluctuations, highlighting the interconnectedness of the agricultural and non-agricultural sectors. The study recommends that governments should invest in research and development (R&D) to harness technology shocks for economic growth. Additionally, it suggests further research to refine the model and improve parameter accuracy.
3. “Technology and Occupations in Business Cycles”
– Valeria Cirillo, Mario Pianta, and Leopoldo Nascia
It analyzes how technology, education, and wages influence employment across four occupational groups Managers, Clerks, Craft workers, and Manual workers in five major European countries between 2002–2011. The study finds that technological change leads to occupational polarization: high-skill and low-skill jobs grow, while mid-skill jobs decline. Product innovations tend to create jobs for managers, while process innovations often result in job losses for manual and craft workers. During economic downturns, job losses are concentrated in lower-skill occupations, and the positive effects of product innovation diminish. The research highlights the uneven impact of technology and economic cycles on different occupational groups and suggests a need for targeted policies to address these disparities.
4. “Impact of Digitalization on the Competitiveness of Entrepreneurial Business”
– Anny Atanasova
In this, researcher explores how digitalization enhances the competitiveness of businesses, particularly in Bulgaria. The study emphasizes that adopting digital technologies fosters innovation, productivity, and efficiency, which are crucial for gaining a competitive advantage. However, the research reveals that many Bulgarian companies have not fully integrated modern technologies, especially micro and small enterprises. Larger firms show better adoption rates, resulting in higher competitiveness. The study suggests that accelerating digital transformation, especially in online trade and internal processes, is essential for improving both domestic and international market positions. It concludes that digitalization should be a strategic priority for businesses to thrive in a rapidly evolving market.
5. “Social and Technological Impact of Businesses Surrounding Electric Vehicles”
– Rachana Vidhi, Prasanna Shrivastava, and Abhishek Parikh
The article explores the social, technological, and business impacts of the rapid growth of electric vehicles (EVs). It highlights that while EVs can significantly reduce greenhouse gas emissions, their lifecycle—from production to disposal—presents challenges such as resource scarcity (lithium and cobalt) and environmental impacts from mining and battery manufacturing. The study categorizes businesses into “leading” (those required before EV growth), such as sustainable mining, battery production, and charging infrastructure, and “lagging” (those following EV growth), like battery recycling and vehicle-to-grid integration. It also discusses the role of government policies in standardizing technologies, enhancing recycling, and managing socioeconomic impacts like job shifts in traditional automotive sectors. The research concludes that a balanced approach, combining technological innovations with sustainable practices and supportive policies, is crucial for the successful expansion of EV ecosystems.
6. “The Impact of E-Business Technologies on Supply Chain Operations: A Macroeconomic Perspective”
– Amit Basu and Thomas F. Siems
It gives an overview of how e-business technologies have transformed supply chain operations and their broader macroeconomic effects. The study highlights that technologies like real-time information systems, ERP, and e-commerce have shifted supply chains from mass production to mass customization, reducing the bullwhip effect and lowering inventory and logistics costs. These advancements have led to improved productivity, reduced inflation, and more stable economic output. The paper argues that the efficiency gained from enhanced information flow has contributed significantly to lower prices, higher standards of living, and a more stable GDP growth. It concludes that the strategic use of e-business technologies is crucial for sustaining long-term economic growth and competitiveness.
7. “Perceived Impacts of Technology Use on the Productivity of US Manufacturing Businesses”
– Todd Gabe, Elinor Hunt, and Andrew Crawley
This research examines how technology adoption affects employment, revenue, and productivity in the U.S. manufacturing sector. Based on a 2023 survey of 268 manufacturers, the study finds that about 48% of businesses perceive no impact of technology on employment, while 16% see positive effects and 12% report job losses. However, 50% of businesses believe technology boosts annual revenue, with only 5% perceiving negative impacts. The research estimates that technology increases productivity by an average of 9.2%, rising to 12.1% if businesses that do not use technology are excluded. The most widely adopted technologies include CAD, CNC machines, and programmable controllers, while AI, VR, and robotics have lower adoption rates. The study emphasizes that technology’s positive impact on revenue outweighs its limited effects on employment, suggesting that investments in advanced manufacturing technologies can enhance competitiveness without significantly reducing jobs.
8. “An Assessment of Impact of Information and Communication Technology in Enterprises of Korça Region”
– Rafail Prodani, Jozef Bushati, and Aigars Andersons
The research explores how Information and Communication Technologies (ICTs) have transformed businesses in the Korça region of Albania. The study highlights a significant increase in ICT adoption after 2000, driven by the need for efficiency, competitiveness, and government initiatives. Key findings include:
1. 90% of businesses now use computers and the internet, compared to 62% and 52% in 2012.
2. The percentage of regular internet users in businesses rose from 12% (2012) to 23%.
3. 50% of businesses have a web presence, up from 5% in 2012.
4. Use of Intranet is limited to about 10%, mostly among larger businesses.
5. Online sales increased from 2% to 10%, showing a positive trend in e-commerce adoption.
6. Factors like liberalization of the internet market and the introduction of technologies such as ADSL, Fiber Optics, and 4G have facilitated this growth.
The study emphasizes the need for qualified ICT professionals and continued investment in ICT to further enhance business competitiveness and efficiency in the region.
9. “The Impact of Technology-Enhanced Organisational Learning on Business Performance: An Empirical Study”
– Tanja Arh, Borka Jerman Blažič, and Vlado Dimovski
The research investigates how technology-enhanced learning (TeL) influences organizational learning (OL) and business performance in 356 Slovenian companies with over 50 employees. Using a structural equation model (SEM), the study finds that TeL significantly enhances OL and non-financial performance (such as customer loyalty and employee relations), but has no significant impact on financial performance. In contrast, OL strongly improves both financial results (like ROA and ROE) and non-financial outcomes. The study suggests that while investments in ICT and learning technologies boost knowledge acquisition and internal processes, they do not directly translate into financial gains without a comprehensive and strategic implementation approach. The findings highlight the need for top management support and a knowledge-oriented culture to maximize the benefits of technology-enhanced learning in achieving sustainable competitive advantage.
10. “Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth Generation”
– Kristina Lygnerud
The research tells how the transition to fourth-generation district heating (4GDH), which uses lower temperatures, affects business models in the sector. This shift enables the use of renewable and low-temperature heat sources like waste heat and solar energy, reducing grid losses and improving environmental performance. The study examines six cases across five European countries and finds that, despite the technological advancements, most companies maintained their traditional business models focused on economies of scale rather than adopting new strategies to leverage the benefits of 4GDH fully. The research highlights unexploited opportunities for district heating companies to improve their value propositions by integrating decentralized heat sources and enhancing customer relationships. Key challenges include high investment costs, the need for skilled workforce, and the complexity of managing local heat sources efficiently. The paper suggests that a more flexible business model could capitalize on the green and economic benefits of 4GDH.
Summary: Impact of Technology on Business
Technology is significantly transforming business operations across various sectors. Advancements in AI, Big Data, and IoT are enhancing efficiency and reducing costs but also pose challenges like job displacement and a widening wealth gap. Governments and businesses must invest in workforce retraining and adapt regulations to mitigate these effects. In agriculture, technology shocks influence both agricultural and non-agricultural business cycles, highlighting the need for R&D investment to harness these shifts for economic growth.
Technological change has led to occupational polarization in Europe, boosting high-skill and low-skill jobs while reducing mid-skill jobs. Digitalization, especially in Bulgaria, enhances business competitiveness but is unevenly adopted, with smaller firms lagging behind. For the electric vehicle industry, the rapid growth poses both environmental and resource challenges, necessitating sustainable practices and supportive policies.
E-business technologies have transformed supply chains, improving productivity, reducing costs, and contributing to economic stability. In the U.S. manufacturing sector, technology adoption has positively impacted productivity and revenue, though its effects on employment remain limited. Similarly, in Albania’s Korça region, ICT adoption has surged, improving business efficiency and competitiveness.
Technology-enhanced learning in Slovenian companies has improved organizational learning and non-financial performance, though it has not directly boosted financial results. Effective implementation and a knowledge-oriented culture are essential to maximize these benefits. In the district heating sector, the transition to fourth-generation systems offers environmental and economic advantages. However, most companies continue to rely on traditional business models, missing opportunities for innovation and efficiency. Adapting business models to fully leverage new technologies is crucial for long-term growth and sustainability.
Rereference
1. Amit Basu & Thomas F. Siems, 2004. “The impact of e-business technologies on supply chain operations: a macroeconomic perspective,” Working Papers 0404, Federal Reserve Bank of Dallas.
2. Anny Atanasova, 2024. “Impact of digitalization on the competitiveness of entrepreneurial business,” Entrepreneurship, Faculty of Economics, SOUTH-WEST UNIVERSITY “NEOFIT RILSKI”, BLAGOEVGRAD, vol. 12(1), pages 86-106.
3. Arh, Tanja & Blazic, Borka Jerman & Dimovski, Vlado, 2012. “The impact of technology-enhanced organisational learning on business performance: An empirical study,” Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 17(3), pages 369-383.
4. Jaroensathapornkul, Jirawat, 2020. “Impacts of Technological Shock on the Agricultural Business Cycle,” Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(1), pages 1-17.
5. Kathleen M. Wilburn & H. Ralph Wilburn, 2018. “The Impact Of Technology On Business And Society,” Global Journal of Business Research, The Institute for Business and Finance Research, vol. 12(1), pages 23-39.
6. Kristina Lygnerud, 2019. “Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth Generation,” Energies, MDPI, vol. 12(9), pages 1-16, May.
7. “Perceived Impacts of Technology Use on the Productivity of US Manufacturing Businesses” by Todd Gabe, Elinor Hunt, and Andrew Crawley 1 September 2024, pages 1-15.
8. Rachana Vidhi & Prasanna Shrivastava & Abhishek Parikh, 2021. “Social and Technological Impact of Businesses Surrounding Electric Vehicles,” Clean Technol., MDPI, vol. 3(1), pages 1-17, February.
9. Rafail Prodani & Jozef Bushati & Aigars Andersons, 2019. “An assessment of impact of information and communication technology in enterprızes of Korça region,” Post-Print hal-02342717, HAL.
10. Valeria Cirillo & Mario Pianta & Leopoldo Nascia, 2018. “Technology and Occupations in Business Cycles,” Sustainability, MDPI, vol. 10(2), pages 1-25, February.