Investigating the Effect of Digitalization on the Profitability of Food Industry companies in Mashhad City

Document Type : Research Paper

Authors

• Parisa Alizadeh ¹
• Hamed Ghaderzadeh ²
• Mahmood Haji-Rahimi ³

¹ Assistant Professor of Agricultural Economics at University of Kurdistan

² Associate Professor of Agricultural Economics at University of Kurdistan

³ Department of Agricultural Economics, Faculty of Agriculture, University of Kurdistan, Sanandaj, Iran.

10.30495/jae.2024.33478.2443

Abstract

Population growth, demand fluctuations and the continuous change of consumer needs have made food industry companies face major challenges. One of the ways to properly respond to these environmental changes and maintain a competitive advantage is to take advantage of digital transformation in companies. In this research, the effect of digital transformation and personal characteristics of managers of Mashhad food industry companies on the profitability of these companies has been investigated. The results indicate that the increase in each of the variables of manager's education, use of information and communication technology, manager's education and advertising intensity, reduces the probability of the company being in the group with low profitability ratio and averaged and increases the probability of being in the group with a high profitability ratio. Also, increasing the age of the manager decreases the probability of the company being placed in the group with high profitability ratio and increases the probability of being placed in the group with low and medium profitability ratio.

Keywords

• Digitalization
• Profitability ratio
• Food industry
• Ordered logit
• Mashhad

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