Advertisement

A Mechanism for Managing the Factors that Support the Development of the Cyber Economy

  • Marina I. Suganova
  • Natalia I. Riabinina
  • Elena A. Sotnikova
Chapter
Part of the Contributions to Economics book series (CE)

Abstract

Purpose: The purpose of this chapter is to determine the factors that influence the development of the cyber economy, to evaluate their strengths, and to develop a mechanism to manage them in both developed and developing countries.

Design/methodology/approach: The authors evaluate the influence of traditional (universal) factors of economic growth: institutional development, infrastructure, financial markets, and globalization. The resulting (dependent) variable is the digital competitiveness index. The influence of these factors is assessed with the help of the method of regression analysis based on the data of the IMD, KOF, and the World Economic Forum for late 2018/early 2019. The objects studied are the most developed economies (the G7) and the leading developing countries (BRICS).

Findings: It is determined that the cyber economy is, in general, strongly influenced by the traditional factors of economic growth. However, it is shown that the external factor (globalization) has only a small influence on the development of the cyber economy, while institutional provision is the most important. Developing countries have less mature and effective institutions and therefore less favorable conditions than developed countries for the development of the cyber economy. Developing countries also lag behind developed countries with regard to other factors.

Originality/value: In order to level the disproportionate development of the cyber economy in developed and developing countries, we developed a mechanism to manage the key factors that offers different recommendations for countries of both groups and reflects the general logic of managing the determined factors. The additional advantage of the developed mechanism is its potential for stimulating stability and active innovative development in the cyber economy.

Keywords

Management Factors Development Cyber economy Fourth industrial revolution Developed countries Developing countries 

JEL Code

C32 C33 L51 O21 O31 O32 O33 O38 

References

  1. Azman H, Salman A, Razak NA, Hussin SB, Hasim MS, Sidin SM (2015) Determining critical success factors for ICT readiness in a digital economy: a study from user perspective. Adv Sci Lett 21(5):1367–1369CrossRefGoogle Scholar
  2. Bogoviz AV (2019) Industry 4.0 as a new vector of growth and development of knowledge economy. Stud Syst Decis Control 169:85–91CrossRefGoogle Scholar
  3. IMD (2019) World digital competitiveness ranking. https://www.imd.org/wcc/world-competitiveness-center-rankings/world-digital-competitiveness-rankings-2018/. Accessed 21 March 2019
  4. Masood T, Egger J (2019) Augmented reality in support of Industry 4.0—implementation challenges and success factors. Robot Comput Integr Manuf 58:181–195CrossRefGoogle Scholar
  5. Popkova EG (2019) Preconditions of formation and development of industry 4.0 in the conditions of knowledge economy. Stud Syst Decis Control 169:65–72CrossRefGoogle Scholar
  6. Popkova EG, Sergi BS (2019) Will Industry 4.0 and other innovations impact Russia’s development? Exploring the future of Russia’s economy and markets. Emerald Publishing, Bingley, pp 34–42Google Scholar
  7. Popkova EG, Ragulina YV, Bogoviz AV (2019) Fundamental differences of transition to industry 4.0 from previous industrial revolutions. Stud Syst Decis Control 169:21–29CrossRefGoogle Scholar
  8. Tolstykh T, Shkarupeta E, Kostuhin Y, Zhaglovskaya A (2018) Key factors of manufacturing enterprises development in the context of industry 4.0. In: Proceedings of the 31st international business information management association conference, IBIMA 2018: innovation management and education excellence through vision 2020, pp 4747–4757Google Scholar
  9. Vegh L (2018) Cyber-physical systems security through multi-factor authentication and data analytics. In: Proceedings of the IEEE international conference on industrial technology, pp 1369–1374Google Scholar
  10. World Economic Forum (2019) The global competitiveness report 2017–2018. https://www.weforum.org/reports/the-global-competitiveness-report-2017-2018. Accessed 21 March 2019

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Marina I. Suganova
    • 1
  • Natalia I. Riabinina
    • 1
  • Elena A. Sotnikova
    • 2
  1. 1.Orel State UniversityOrelRussia
  2. 2.Orel State University of Economics and TradeOrelRussia

Personalised recommendations