The COVID-19 crisis, digitalization, and organizational change

Abstract

The study explores the impact of the COVID-19 pandemic on the digitalization and organizational changes in companies across different sectors in Germany. The research addresses the extent to which the pandemic accelerated digitalization, the variations in digitalization focus among companies, and the interplay between technological and organizational changes. Data were collected through surveys conducted in two waves in 2021 and 2022, encompassing 540 and 605 companies, respectively. The research employed ordered logistic regression to analyze the factors influencing digitalization investments. Key findings indicate that the pandemic acted as a catalyst for digitalization, with management awareness and employee acceptance being significant drivers. Notably, there were disparities in digitalization efforts, influenced by the economic impact of the pandemic, sectoral differences, and prior levels of digitalization. While companies with existing digital infrastructure initially led the way, less digitalized companies began to catch up over time. Organizational changes, such as new leadership concepts, cross-functional cooperation, and flexible working hours, were also linked to increased digitalization efforts. The study concludes that the pandemic has not only accelerated technological changes but also necessitated parallel organizational transformations to support these developments.