Quantifying the Digital Dividend: The Causal Effect of Human Resources Digitisation on Labour Productivity in Ukrainian Firms

Article DOI: https://doi.org/10.57017/jaes.v20.4(90).06

Author(s):

Tetyana VADER Department of Management and Marketing Pryazovsky State Technical University, Dnipro, Ukraine
Valentyn MAIDANOVYCH State University “Zhytomyr Polytechnic”, Zhytomyr, Ukraine
Liudmyla CHYZH Department of Economics and Finance, Educational and Scientific Institute of Maritime Business Odessa National Marine University, Ukraine
Natalia KHOTEYEVA Department of Economics and Finance, Odessa National Maritime University, Ukraine
Oleg KRAVTSOV Department of Public Administration and Local Self-Government, Dnipro University of Technology, Ukraine

Abstract:

In the era of digital transformation, technological adoption has become a key determinant of economic performance. This study quantifies the causal impact of human resources (HR) digitization on firm-level labour productivity in Ukraine over the period 2010–2024. A novel Digital HRM Index was constructed to measure the intensity of digital adoption across HR processes, including e-recruitment, HRIS, digital performance management, and e-learning.

Employing a fixed-effects panel regression model, the study finds that a one-unit increase in the Digital HRM Index raises labour productivity by approximately 3.1% (p < 0.01), controlling for firm innovation capacity, size, capital intensity, and training expenditure. The results are robust and highlight the significant role of HR digitization in enhancing firm efficiency. Policy implications point toward the necessity of supporting digital transformation strategies in personnel management, particularly in transition economies such as Ukraine.

Copyright© 2025 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.

Article’s history: Received 20th of October, 2025; Received in revised form 15th of November, 2025; Accepted 12th of December, 2025; Available online: 30th of December, 2025. Published as article in the Volume XX, Winter, Issue 4(90), December, 2025.

How to cite:

Vader, T., Maidanovych, V., Chyzh, L., Khoteyeva, N., & Kravtsov, O. (2025). Quantifying the Digital Dividend: The Causal Effect of Human Resources Digitisation on Labour Productivity in Ukrainian Firms. Journal of Applied Economic Sciences, Volume XX, Winter, Issue 4(90), 731-741. https://doi.org/10.57017/jaes.v20.4(90).06

Acknowledgments/Funding: The authors declare that they have no acknowledgments and did not receive any funding for this research.

Conflict of Interest Statement: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

Data Availability Statement: All firm-level data used in this study were anonymized to protect confidentiality. The dataset is available from the corresponding author upon reasonable request. No conflicts of interest or external funding influenced data collection or analysis.

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