Digital transformation management in Georgian business: Growth strategies and competitive advantages

Abstract

Innovative development is one of the key factors in a company’s competitiveness. Ensuring a higher level of development and utilisation of the latest company technology is important and therefore the search for new methods is relevant. The study aimed to describe the current trends in digital business transformation in Georgia. The study analysed many different types of statistics describing both the state of digitalisation and innovative technologies in the country and the current describing the state of entrepreneurship. Based on the analysis, the study concluded that the situation with digital transformation in Georgia is improving, which correlates with the direction of development of enterprises. In Georgia, the government actively supports digital transformation through various initiatives aimed at developing digital infrastructure and offering e-services. This is evident in the level of existing projects in this area and the pace of change in the development of enterprises in the field of digitalisation. However, it is found that while the number of research and development institutions in the nation is rising, the expenditures (adjusted for inflation) are falling. New fintech businesses are starting to appear, providing cutting-edge services for online financing. Due to a mix of public policies, private funding, and international collaboration, Georgia is becoming progressively more digital. Nevertheless, the country needs to accelerate the pace of development of this area in companies, which indicates the need for more active stimulation of this area by the state. The findings of this study can be used to formulate both the company’s long-term development strategy and to create a state policy in this area.