K zywdzinski, Ma in; Bu ollo, Flo ian
Wo king Pape
The COVID-19 C isis, Digi aliza ion, and O ganiza ional
Change
Weizenbaum Discussion Pape ; 44
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WZB Be lin Social Science Cen e
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Ma in K zywdzinski, Flo ian Bu ollo
The COVID-19 C isis,
Digi aliza ion, and
O ganiza ional Change
Janua y 2025
# 44
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change
ABOUT THE AUTHORS
Ma in K zywdzinski, Flo ian Bu ollo Weizenbaum Ins i u e, WZB Be lin Social Science Cen e
Con ac : ma in.k zywdzinski@weizenbaum-ins i u .de,
lo ian.bu ollo@weizenbaum-ins i u .de
ABOUT THIS PAPER
This pape p esen s he indings o he esea ch p ojec “Au oma iza ion, digi aliza ion and
i ualiza ion o wo k in he a e ma h o he COVID-19 c isis”.
Weizenbaum Discussion Pape s p esen esul s om he ongoing esea ch o he ins i u e.
The se ies is open o di e en publica ion o ma s such as monog aphs, echnical epo s,
p ep in s, wo king pape s and many mo e.
ABOUT THE WEIZENBAUM INSTITUTE
The Weizenbaum Ins i u e is a join p ojec unded by he Ge man Fede al Minis y o Educa-
ion and Resea ch (BMBF) and he S a e o Be lin. I conduc s in e disciplina y and basic
esea ch on he digi al ans o ma ion o socie y and p o ides e idence- and alue-based
op ions o ac ion in o de o shape digi aliza ion in a sus ainable, sel -de e mined and e-
sponsible manne .
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change
Abs ac
The s udy explo es he impac o he COVID-19 pandemic on he digi aliza ion and o ganiza ion-
al changes in companies ac oss di e en sec o s in Ge many. The esea ch add esses he ex en
o which he pandemic accele a ed digi aliza ion, he a ia ions in digi aliza ion ocus among
companies, and he in e play be ween echnological and o ganiza ional changes. Da a we e col-
lec ed h ough su eys conduc ed in wo wa es in 2021 and 2022, encompassing 540 and 605
companies, espec i ely. The esea ch employed o de ed logis ic eg ession o analyze he ac-
o s in luencing digi aliza ion in es men s. Key indings indica e ha he pandemic ac ed as a
ca alys o digi aliza ion, wi h managemen awa eness and employee accep ance being signi i-
can d i e s. No ably, he e we e dispa i ies in digi aliza ion e o s, in luenced by he economic
impac o he pandemic, sec o al di e ences, and p io le els o digi aliza ion. While companies
wi h exis ing digi al in as uc u e ini ially led he way, less digi alized companies began o ca ch
up o e ime. O ganiza ional changes, such as new leade ship concep s, c oss- unc ional coop-
e a ion, and lexible wo king hou s, we e also linked o inc eased digi aliza ion e o s. The s udy
concludes ha he pandemic has no only accele a ed echnological changes bu also necessi-
a ed pa allel o ganiza ional ans o ma ions o suppo hese de elopmen s.
Weizenbaum Discussion Pape
The COVID-19 C isis, Digi aliza ion,
and O ganiza ional Change
Ma in K zywdzinski, Flo ian Bu ollo
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change
Table o Con en s
1 In oduc ion 5
2 S a e o esea ch and hypo heses 6
2.1. The pandemic as a boos o digi aliza ion 6
2.2. Unequal digi aliza ion p ocesses 7
2.3. Technical and o ganiza ional change 9
3 Resea ch design 10
4 Empi ical analysis 14
4.1. COVID as a push o in es men in digi aliza ion 14
4.2. Inequali ies in digi aliza ion du ing he pandemic 14
4.3. Sec o al di e ences in majo domains o digi aliza ion du ing he pandemic 17
4.4. Digi aliza ion and o ganiza ional change du ing he COVID pandemic 20
5 Discussion 22
6 Conclusions 25
Re e ences 26
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 5
1 In oduc ion
The COVID-19 pandemic was widely iewed as a massi e c isis and a up u e in he unc ioning
o he economy and o ganiza ions. I caused an ab up collapse o bo h he demand and supply
side, which had a massi e impac on he wo ld o wo k. I was also pe cei ed as an accele a-
o o echnological change, as i was a gued ha digi aliza ion and au oma ion o e ed a g ea
oppo uni y o o e coming he c isis (Amankwah-Amoah e al., 2021; Biondi, 2021; Ko inek &
S igli z, 2021; OECD, 2020). Howe e , some s udies ques ion he posi i e e ec s o he pandemic
on digi aliza ion (A n z e al., 2024).
The e ec s o he pandemic on he wo ld o wo k ha e al eady been examined by a numbe o
s udies. Howe e , hese ha e mainly add essed he impac o emo e wo k du ing he pandem-
ic, emphasizing issues ela ed o wo king and li ing condi ions o inequali ies be ween g oups
o employees (Aloisi & De S e ano, 2022; Babapou Cha i e al., 2021; Smi e e al., 2023). The e -
ec s o he Co id-19 pandemic on o ganiza ional change beyond emo e wo k ha e no ye been
sys ema ically esea ched. A ew s udies ha e in es iga ed he de elopmen o in es men s in
digi aliza ion du ing he c isis (Bellmann e al., 2021) and he s a egies o companies in di -
e en sec o s (Bu ollo e al. 2024; Dyba & Di Ma ia, 2023), bu a sys ema ic pic u e o he ela-
ionship be ween he pandemic, he implemen a ion o digi al echnologies, and o ganiza ional
change, is lacking.
In his pape , we con ibu e o illing his gap by add essing he ela ionship be ween echno-
logical change and o ganiza ional change du ing he Co id-19 pandemic om he pe spec i e
o companies. To examine de elopmen s and changes o e he cou se o he pandemic, we use
a su ey ha we conduc ed in Ge many o 540 companies in 2021 and 605 companies in 2022.
We examine how he pandemic a ec ed echnological and o ganiza ional change in adminis-
a i e p ocesses, human esou ces (HR), p oduc de elopmen , sales, and p oduc ion and se -
ice p ocesses. We ope a ionalize ou main esea ch ques ion on he ela ionship be ween he
pandemic, he implemen a ion o digi al echnologies, and o ganiza ional change, wi h h ee
sub-ques ions:
1. To wha ex en did he COVID pandemic lead o a boos in he digi aliza ion o compa-
nies?
2. How and why did he ocus o digi aliza ion du ing he pandemic di e be ween com-
panies?
3. How we e echnical and o ganiza ional change p ocesses linked du ing he COVID
pandemic?
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 6
Ou s udy p o ides di e en ia ed insigh s on how he pandemic a ec ed companies, highligh -
ing exposu e o he pandemic and i s impac on managemen awa eness and accep ance by
employees as impo an condi ions ha acili a ed in es men in digi aliza ion measu es. We
disagg ega e he e m “digi aliza ion” o highligh co e a eas o ac i i y and he une enness o
hese ac i i ies acco ding o sec o s and p io le els o digi aliza ion. We also ack he sequence
o e en s, indica ing how a gap be ween pionee s and lagga ds was ollowed by p e iously less
digi alized companies ca ching up. Finally, ou s udy p o ides e idence o he en anglemen o
echnological and o ganiza ional changes in digi aliza ion p ojec s.
Fi s , we de elop hypo heses on he ela ionship be ween he pandemic and digi aliza ion, he
possible easons o he unequal exposu e o companies, and he ela ionship be ween ech-
nological and o ganiza ional change, alongside a discussion o he ele an li e a u e on hese
issues (Sec ion 2). We hen explain he esea ch design and me hods and p o ide a desc ip i e
analysis o ou sample (Sec ion 3), be o e displaying he esul s on he ela ionship be ween he
pandemic and digi aliza ion (Sec ion 4.1), inequali ies o hese de elopmen s be ween compa-
nies (Sec ion 4.2) and sec o s (Sec ion 4.3), and he ela ionship be ween echnological and o -
ganiza ional change (Sec ion 4.4). In he discussion, we ela e hese indings o he hypo heses
and ou line he indings o ou s udy in de ail (5), which we hen summa ize wi h gene al con-
clusions on he impac o he pandemic on digi aliza ion in companies.
2 S a e o esea ch and hypo heses
2.1. The pandemic as a boos o digi aliza ion
The COVID-19 pandemic caused a global economic c isis. I dis up ed global supply chains and
p oduc ion and se ice p ocesses (Bo io, 2020; Pujawan & Bah, 2022) on a scale unseen o a
long ime. I led o massi e go e nmen in e en ion (also long unseen) o suppo businesses
and households, a leas in Eu ope and No h Ame ica (G ee e al., 2021). A numbe o expe s
expec ed ha he economic, social, and heal h consequences o he COVID-19 c isis would also
ha e long- e m e ec s and would p o ide a s ong push o digi aliza ion (including au oma-
ion) (Amankwah-Amoah e al., 2021; Biondi, 2021; Ko inek & S igli z, 2021; OECD, 2020).
The COVID pandemic had a massi e impac on companies. I b oke ou while economies we e
unde going a socio- echnical ans o ma ion known as digi aliza ion (B ynjol sson & McA ee,
2014). Digi aliza ion is unde s ood he e as he es ablishmen o ne wo ks be ween machines/
compu e s as well as he use o so wa e sys ems and digi al da abases o moni o ing, con-
olling, and op imizing wo k p ocesses (K zywdzinski, 2021).
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 7
C ises can accele a e o slow down p ocesses o echnological ans o ma ion in o ganiza ions.
We build on he concep o c isis as “a low p obabili y, high-impac si ua ion ha is pe cei ed
by c i ical s akeholde s o h ea en he iabili y o he o ganiza ion” (Pea son & Clai , 1998, p.
66). As Wenzel e al. (2021) elabo a e, companies can espond o c ises in ou ways: hey can ac
de ensi ely and (1) e ench hei ope a ions o e en (2) exi he ma ke ; hey can (3) y o pe -
se e e wi hou adap ing hei p oduc s and p ocesses; hey can inally (4) espond o he c isis
wi h inno a ion. Due o he scale and he speci ic na u e o his c isis, we can assume ha he
p ese a ion o many es ablished p oduc s and p ocesses was challenging, lea ing aspec s o
digi al inno a ion as he mos iable al e na i e o e enching ope a ions o exi ing he ma ke .
Such inno a ion unde c isis condi ions, howe e , equi es speci ic condi ions: knowledge and
o he esou ces as well as oppo uni ies o new p oduc s and/o p ocesses.
The Co id-19 pandemic a ec ed all companies and indus ies. As a esul o he lockdowns,
many companies had o ind solu ions o emo e wo king, hough he impac o he pandemic
wen beyond ha . Adminis a i e p ocesses had o be digi alized. The es ic ions also mean
ha adi ional sales channels o en collapsed and had o be digi alized. Supply chains we e in-
e up ed, c ea ing incen i es o he digi aliza ion o supply chain managemen . Howe e , he
pandemic also c ea ed obs acles o digi aliza ion. Many companies s uggled wi h sho - e m
inancing p oblems, while o he s we e o e whelmed by he ask o quickly digi izing p ocesses
and p oduc s (Bellmann e al., 2021; Bu ollo e al., 2024). A n z e al. (2024) show ha digi aliza-
ion in es men s du ing he pandemic we e mainly ela ed o emo e wo k oppo uni ies, while
la ge in es men p ojec s in digi al echnologies ha we e no di ec ly use ul o pandemic
managemen we e pa ly pos poned.
Based on he exis ing li e a u e, we can o mula e he i s hypo hesis o he analysis. I ela es
o he i s ques ion o he ex en o which a digi aliza ion push can be obse ed a all as a esul
o he COVID pandemic. I is assumed ha he need and oppo uni ies o digi iza ion p o ided
a s ong incen i e o change du ing he c isis.
H1: Companies inc eased hei digi aliza ion in es men s du ing he COVID pandemic.
2.2. Unequal digi aliza ion p ocesses
Resea ch emphasizes ha digi aliza ion is a p ocess ha akes place a di e en speeds and
dep hs in di e en coun ies, sec o s, and also ypes o companies (Co oche & O danini, 2002).
Ou second esea ch ques ion asks whe he such di e ences also accoun ed o he digi aliza-
ion push in he wake o he COVID pandemic and he easons o such di e ences. Se e al ex-
plana ions o unequal digi aliza ion du ing he pandemic can be ound in he li e a u e.
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 8
We can expec in es men in digi aliza ion o be ela ed o he immedia e p essu es o he pan-
demic, managemen awa eness, and employee accep ance o digi aliza ion measu es. The c i-
sis came unexpec edly, bu companies we e a ec ed di e en ly and he pe cep ion o manage-
men and employees a ied (Bellmann e al., 2021; Bu ollo e al., 2024).
H2a: In es men in digi aliza ion du ing he COVID pandemic is ela ed o he economic
impac o he pandemic on he companies.
H2b: In es men in digi aliza ion du ing he COVID pandemic is ela ed o he awa eness
o managemen o he need o digi aliza ion.
H2c: In es men in digi aliza ion du ing he COVID pandemic is ela ed o he accep ance
o employees o he need o digi aliza ion.
Pa h dependencies can also be expec ed. I can be expec ed ha hose companies ha al eady
had expe ience wi h digi aliza ion had be e condi ions o pushing digi aliza ion u he
du ing he pandemic. A alos e al. (2023) show ha he gap be ween mo e and less digi alized
companies widened du ing he pandemic. Abidi e al. (2023) conclude ha companies wi h a
highe deg ee o digi aliza ion showed g ea e esilience du ing he c isis.
H2d: In es men in digi aliza ion du ing he COVID pandemic is ela ed o he le el o dig-
i aliza ion be o e he pandemic.
We can also expec di e ences be ween sec o s. These di e ences a e based on he speci ics
o he p oduc s and p ocesses in di e en sec o s. See ha aman (2020) emphasizes ha he
ype o p oduc and p ocesses in luenced how companies esponded o he c isis. He a gues
ha companies wi h p oduc s and p ocesses wi h a high po en ial o digi aliza ion we e hose
which used he c isis as a boos o in es ing in digi aliza ion. Rapaccini e al. (2020) a gue ha
he majo poin is he po en ial o de elop digi al se ices based on exis ing p oduc s. They ex-
pec signi ican di e ences be ween sec o s o e en subsec o s based on how much he com-
panies’ p oduc s can be used o de elop digi al se ices. Ri e and Pede sen (2020) simila ly
emphasize ha c ises can lead o business model inno a ions. Cus ome beha io and demand
can change signi ican ly, o cing companies o adap he alue p oposi ion and alue demon-
s a ion o hei p oduc s. This also equi es companies o de elop new capabili ies (see also
K onblad & En all P egma k, 2021).
P e ious s udies p o ide a pa ial insigh in o hese di e ences. Changes o cus ome ela-
ions was he ocus o he s udy by Nanda e al. (2021). The au ho s a gue ha he COVID c isis
challenged he e ail sec o ; pu e b ick-and-mo a e ail collapsed and e aile s had o ely on
mul i-channel e ail models combining physical and online sales. O he s udies ha e ocused
on he digi aliza ion po en ial o p ocesses. Bellman e al. (2021), Bu ollo e al. (2024), and Dyba
& Di Ma ia (2023) showed ha se ice sec o s in es ed much mo e in digi aliza ion du ing he
pandemic han manu ac u ing sec o s. They explain his by he much highe po en ial o dig-
i aliza ion o p ocesses in se ice sec o s. Bu ollo e al. (2024) showed ha digi aliza ion was
pa icula ly s ong in hose sec o s in which communica ion wi h cus ome s and sales could be
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 15
The ollowing o de ed logis ic eg ession (Table 3) analyzes how di e en condi ions a ec ed
in es men in digi aliza ion measu es.
Ou hypo hesis H2a ocuses on he ole o he economic impac o he pandemic, H2b on man-
age ial awa eness, and H2c on he accep ance o digi aliza ion measu es among employees.
Companies ha we e di ec ly hi by he e ec s o he pandemic showed a highe p obabili y o
inc easing in es men s in digi aliza ion (odds a io 1.20; p>0.05). The e was also a e y s ong
co ela ion be ween in es men s and he inc eased le el o manage ial awa eness o he need
o digi aliza ion as a esul o he pandemic (5.88; p<0.01) and he inc eased accep ance o dig-
i iza ion measu es among employees (1.53; p<0.01). Hypo heses H2a, H2b, and H2c we e con-
i med. Size o he company did no play a big ole in he i s phase o he pandemic as small
and big companies we e o ced o eac o he new challenges. O e ime, howe e , he bigge
companies showed a highe p opensi y o con inue in es men s in digi aliza ion measu es.
The e was no obus and s a is ically signi ican ela ionship be ween he ini ial digi aliza ion
le el o companies be o e he pandemic and he p opensi y o in es in digi aliza ion du ing he
pandemic (hypo hesis H2d). Du ing he i s phase o he pandemic, companies wi h no digi a-
liza ion ended o in es less in digi aliza ion han companies wi h a leas low, pa ial, o e en
high le els o digi aliza ion. This can be unde s ood as inc easing pola iza ion— he leas digi-
alized companies we e le behind. Howe e , in 2022 he coe icien s changed and companies
wi h no and low digi aliza ion le els showed a highe p obabili y o in es ing in digi aliza ion;
his could be a sign o a ca ch-up p ocess.
Table 3: Highe in es men s in digi aliza ion du ing he COVID pandemic (o de ed logis ic eg ession, odds a ios, s anda d
e o s in b acke s)
Independen a iables 2021 2022
Economic impac o he COVID pandemic on
he company
1.20 (0.10)* 1.24 (0.12)*
COVID pandemic inc eased awa eness o he need o
digi alize
5.88 (0.93)** 8.51 (1.48)**
COVID pandemic inc eased accep ance o digi aliza ion 1.53 (0.14)** 1.54 (0.15)**
Numbe o employees 1.14 (0.11) 1.53 (0.16)**
Digi aliza ion le el be o e he pandemic
( e e ence: no digi aliza ion)
Co id Co id
Low digi aliza ion 1.45 (0.73) 0.86 (0.56)
Pa ial digi aliza ion 2.03 (0.98) 0.67 (0.40)
S ong digi aliza ion 1.49 (0.74) 0.64 (0.39)
Ve y s ong digi aliza ion 1.86 (1.11) 0.59 (0.36)
N 469 540
Pseudo-R² 0.28 0.30
Sou ce: Au ho s. Con ol a iables: Sec o s
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 16
While he COVID pandemic led o an inc ease in in es men in some companies, in o he s i
esul ed in a hal o slowdown in digi aliza ion p ocesses, as companies an in o economic di i-
cul ies o had o se o he p io i ies. This poin is emphasized in pa icula by A n z e al. (2024).
The au ho s a gue ha a numbe o p e iously planned in es men p ojec s we e hal ed du ing
he pandemic. Al hough many companies in es ed in digi aliza ion o enable emo e wo king,
his could no compensa e o he hal o many o he digi aliza ion p ojec s.
The indings o A n z e al. (2024) a e compa ible wi h ou s inso a as we ha e no in o ma ion
and hence make no s a emen s ega ding he amoun o in es men s made o hal ed by he
companies. Figu e 1 shows ha he e was ce ainly a conside able p opo ion o companies ha
s opped in es men p ojec s du ing he pandemic, al hough he e a e conside able sec o al di -
e ences (H2e) in he ela ionship be ween he inc ease in in es men and he hal ing o digi a-
liza ion p ojec s. Ou da a only ells us whe he p ojec s we e s a ed and s opped, bu no how
la ge hey we e in each case.
In some sec o s, such as he au omo i e indus y, he p opo ion o companies wi h hal ed p oj-
ec s was ela i ely high. This indus y expe ienced a massi e d op in demand and a dis up ion
o supply chains, bo h o which impac ed p oduc ion and sales. Unde hese condi ions, 43.9%
o he companies su eyed in 2021 epo ed ha digi aliza ion p ojec s we e comple ely o pa -
ially s opped du ing he pandemic. The co esponding igu es a e 30.3% in logis ics, 25.5% in
machine building, and 25.0% in he chemical indus y. The nega i e impac o he pandemic
was lowes in inancial se ices (23.0%) and he heal hca e sec o (18.4%). In 2022, e y simila
numbe s we e epo ed.
Figu e 1: In es men s in digi aliza ion and hal ing o digi aliza ion measu es in six sec o s, 2021
0% 20% 40% 60% 80% 100%
Heal h
Financial se ices
Chemical
Au omo i e
Logis ics
Machine building
In es men s
inc eased:
Yes
Pa ially
P ojec s
s opped:
Yes
Pa ially
Sou ce: Au ho s
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 17
The sec o al di e ences a e linked o ma ke changes, pa icula ly cus ome (demand side) ex-
pec a ions (Bu ollo e al., 2024). In he inancial indus y, he e has long been a end owa ds
shi ing se ices online. Du ing he pandemic, many people we e o ced o use online inancial
se ices, changing demand beha io in he long e m. In heal hca e, digi aliza ion had long su -
e ed om a lack o esou ces. Howe e , aced wi h he need o a ge pandemic measu es, he
Ge man go e nmen changed i s beha io and signi ican ly inc eased in es men in digi aliza-
ion. In he chemical sec o , he ac ha he indus y was signi ican ly less a ec ed by he dis-
up ions o demand and p oduc ion han he au omo i e and mechanical enginee ing sec o s
had a bene icial e ec on in es men in digi aliza ion. Companies’ e enues did no collapse,
making i easie o mobilize in es men s in new echnologies.
The au omo i e and mechanical enginee ing indus ies, by con as , we e hi ha d by he eco-
nomic collapse o he Co id-19 c isis. Demand s uc u es did no change, bu in es men s we e
pa ially pos poned du ing he c isis.
4.3. Sec o al di e ences in majo domains o digi aliza ion du ing he
pandemic
The i em “In es men s in digi aliza ion” does no ye indica e which speci ic digi aliza ion p oj-
ec s a e implemen ed. In addi ion, only some digi aliza ion p ojec s equi e majo in es men s.
The ollowing a gumen he e o e ocuses on speci ic digi aliza ion p ojec s ha we e ini ia ed
o accele a ed by companies du ing he pandemic.
A he beginning o he pandemic, i was expec ed ha he e could be a su ge in au oma ion in
p oduc ion and se ices, as lockdowns seemed o ein o ce he ad an ages o au oma ed p o-
cesses o e human labo . Howe e , as Figu e 2 shows, digi aliza ion was pa icula ly ocused on
adminis a i e p ocesses, aining, sales, and cus ome ela ions (CR), closely ollowed by e-
c ui ing and HR. This poin also con i ms he indings o he s udy by A n z e al. (2024), which
ound an accele a ed digi aliza ion o p ocesses ha a e ele an o emo e wo k, bu a he
same ime emphasized he pos ponemen o Indus y 4.0 in es men p ojec s. The digi aliza ion
p ojec s launched du ing he pandemic can he e o e be desc ibed as less capi al-in ensi e.
These ocal poin s can be explained by he condi ions o he pandemic. The need o emo e
wo k led o a p essu e o con e adminis a i e and HR p ocesses o digi al in as uc u e; his
was necessa y o he unc ioning o o ganiza ions and also much easie han o au oma e p o-
duc ion o se ice p o ision p ocesses. On he o he hand, he s eng hening o online sales in
iew o he es ic ions on ace- o- ace cus ome ela ions became a necessi y o all sec o s,
and his was pa icula ly p onounced in inancial se ices. In con as , he e was conside ably
less ac i i y in he a eas o p oduc ion, supply chain managemen , and p oduc de elopmen ,
pa icula ly in he i s phase o he pandemic (2021).
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 18
Figu e 2: Which digi aliza ion p ocesses we e newly es ablished o accele a ed du ing he COVID-19 pandemic?
0% 10% 20% 30% 40% 50% 60% 70%
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
new digi aliza ion p ojec s s a ed du ing he pandemic
al eady unning digi aliza ion p ojec s accele a ed
Adminis a ion
T aining
Sales & CR
Rec ui ing & HR
P oduc ion o se ices
Supply chain manag.
P oduc de elopmen
Sou ce: Au ho s
The pic u e changed somewha o e he cou se o he pandemic. In almos all sec o s, he p o-
po ion o companies epo ing new digi aliza ion p ojec s dec eased, while he p opo ion o
companies epo ing an accele a ion o ongoing digi aliza ion p ojec s inc eased e y sha ply.
This is o be expec ed, as many new p ojec s we e s a ed in di ec esponse o he pandemic.
Companies hen ocused on hei implemen a ion. While Figu e 2 includes da a om he com-
ple e su ey, he same pic u e also eme ges i we only look a hose companies ha pa icipa ed
in bo h wa es; he p opo ion o companies wi h new digi aliza ion p ojec s dec eased sligh ly
om 2021 o 2022, while he p opo ion o companies accele a ing ongoing digi aliza ion p oj-
ec s inc eased signi ican ly.
A second change o e he cou se o he pandemic was ha p ojec s in he a eas o p oduc ion,
supply chain managemen , and p oduc de elopmen gained in impo ance and caugh up wi h
p ojec s in adminis a ion and HR.
The e we e sec o -speci ic de elopmen s, as Table 4 shows (hypo hesis H2e). Compa ing sec o s,
adminis a ion was among he op h ee ocus a eas in i e cases (wi h he excep ion o he chem-
ical sec o ). Rec ui ing/HR and aining we e also o en among he op h ee digi aliza ion ields.
Sales was among he op h ee ields in chemicals, inancial se ices, and mechanical enginee ing.
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 19
In he au omo i e indus y and logis ics, supply chain managemen was one o he op h ee
digi aliza ion ields. These we e he indus ies mos a ec ed by he collapse o supply chains.
While he e we e no changes in he ocus o digi aliza ion p ojec s in he au omo i e, heal h, and
logis ics sec o s o e he cou se o he pandemic, he digi aliza ion o aining became sligh -
ly less impo an in he chemical sec o , inancial se ices, and machine building. On he o he
hand, digi aliza ion p ojec s in p oduc ion and he p o ision o se ices mo ed up he p io i y lis .
Table 4: Mos impo an a eas o digi aliza ion o au oma ion by sec o (% o companies indica ing new p ojec s o accele a-
ion o unning p ojec s)
2021 2022
Au omo i e Adminis a ion (41.0%) Adminis a ion (63.2%)
Supply chain managemen (41.0%) Rec ui ing and HR (57.9%)
Rec ui ing and HR (39.5%) Supply chain managemen (47.4%)
Chemical Sales and CR (57.8%) Adminis a ion (70.8%)
Rec ui ing and HR (54.5%) Sales and CR (66.7%)
T aining (51.7%) P oduc ion/se ices (63.9%)
Financial se ices Sales and CR (72.8%) Sales and CR (70.9%)
T aining (71.1%) Adminis a ion (67.6%)
Adminis a ion (69.7%) P oduc ion/se ices (66.2%)
Heal h T aining (66.7%) T aining (62.7%)
Adminis a ion (34.1%) Adminis a ion (56.0%)
Rec ui ing and HR (31.3%) Rec ui ing and HR (50.8%)
Logis ics Adminis a ion (48.0%) Adminis a ion (70.3%)
Rec ui ing and HR (38.1%) Rec ui ing and HR (62.0%)
Supply chain managemen (37.8%) Supply chain managemen (59.5%)
Machine building Adminis a ion (46.3%) Adminis a ion (59.2%)
T aining (35.5%) Sales and CR (56.3%)
Sales and CR (34.0%) P oduc ion/se ices (53.5%)
Sou ce: Au ho s
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 20
4.4. Digi aliza ion and o ganiza ional change du ing he COVID pandemic
The las esea ch hypo hesis ela es o he connec ion be ween echnical and o ganiza ional
changes (H3). Ou s udy examined he ex en o which companies in oduced new leade ship
concep s, new o ms o c oss- unc ional collabo a ion, and lexible wo king hou s du ing he
COVID-19 pandemic. Changes in all hese a eas we e clea ly co ela ed wi h each o he (pai -
wise co ela ion coe icien s be ween 0.28 and 0.55).
A ela i ely la ge mino i y o companies in oduced new measu es du ing he pandemic. The
impo ance o hese measu es also seemed o inc ease in he cou se o he pandemic. In 2021,
16% o he su eyed companies epo ed pu ing a s ong emphasis on in oducing new leade -
ship concep s, 29% epo ed ha hey had in oduced new measu es o os e c oss- unc ional
coope a ion in and ac oss eams, and 33% ha hey had in oduced new o ms o lexible wo k-
ing imes. In 2022, he sha e o companies inc eased o 29% in he case o new leade ship con-
cep s, 49% in he case o measu es o os e c oss- unc ional coope a ion, and 43% in he case
o measu es o lexibilize wo king imes.
This inc ease could be an a e ac o he changed composi ion o he sample in he wo su ey
wa es. Howe e , a close look a he 120 companies which pa icipa ed in bo h wa es con i ms
mos o he indings. In his g oup, he sha e o companies which in oduced measu es o os-
e c oss- unc ional coope a ion inc eased om 33% in 2021 o 44% in 2022. The inc ease was
om 29% o 55% in he case o measu es o lexibilize wo king imes. Only he sha e o com-
panies in oducing new leade ship concep s emained nea ly s able a 20% in 2021 and 18% in
2022. The end o in oduce o ganiza ional change accele a ed du ing he pandemic.
Unde wha condi ions did companies implemen hese o ganiza ional measu es? The e is a
clea co ela ion be ween o ganiza ional measu es and he in es men in digi aliza ion du ing
he pandemic, wi h la ge companies mo e likely o make o ganiza ional changes han smalle
ones. In he i s phase o he pandemic (2021), he di ec economic impac o COVID-19 was no
ela ed o o ganiza ional measu es. Companies ied o adap hei o ganiza ion ega dless o
whe he hey we e s ongly o weakly a ec ed by he pandemic. As Table 6 shows, his changed
in 2022. In companies in which he COVID pandemic s a ed o ha e las ing nega i e e ec s, he
p opensi y o in oduce o ganiza ional change dec eased. As companies came unde inc eas-
ing economic di icul ies o e he cou se o he pandemic, hey became less ocused on o gani-
za ional change and (we assume) mo e ocused on sho - e m su i al measu es.
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 21
Table 6: In oduc ion o o ganiza ional changes due o COVID-19 pandemic
Dependen
a iables
Independen a iables New leade ship
concep s
S eng hening
c oss- unc ional
coope a ion
Flexible
wo king imes
2021 2022 2021 2022 2021 2022
Economic impac o he COVID
pandemic on he company
1.04
(0.08)
0.83
(0.07)*
1.13
(0.08)
0.84
(0.06)*
1.01
(0.08)
0.96
(0.07)
COVID pandemic inc eased
awa eness o he need o
digi alize
1.08
(0.16)
0.98
(0.15)
1.33
(0.18)*
1.06
(0.15)
1.11
(0.16)
0.91
(0.13)
In es men s in digi aliza ion
du ing he pandemic
1.69
(0.24)**
1.75
(0.27)**
1.50
(0.20)**
1.64
(0.25)**
1.89
(0.27)**
1.86
(0.28)**
Numbe o employees 1.73
(0.14)**
1.87
(0.17)**
1.42
(0.11)**
2.07
(0.19)**
1.55
(0.12)**
1.92
(0.17)**
N473 543 479 545 480 548
Pseudo-R² 0.08 0.06 0.06 0.08 0.09 0.07
Sou ce: Au ho s. Con ol a iables: Sec o
A special ea u e o he Co id-19 pandemic was ha i occu ed a he same ime as o he c ises.
Be o e he pandemic, geopoli ical ensions be ween he USA, Eu ope, and China had inc eased
signi ican ly. The inal phase o he pandemic also coincided wi h Russia’s a ack on Uk aine and
he esul ing u bulences in wo ld poli ics and global alue chains.
In he second wa e o he su ey, we asked wha impac he digi aliza ion p ocesses igge ed
by he COVID-19 pandemic had had on companies’ esilience o he mul i-laye ed c ises. 27%
o he su eyed companies esponded ha he digi aliza ion measu es in oduced du ing he
COVID-19 pandemic had made a majo con ibu ion o o ganiza ional esilience o c ises, 38%
saw a pa ial con ibu ion, and 26% a leas a small con ibu ion o he company’s esilience.
Only 9% o he su eyed companies saw no con ibu ion a all o he company’s gene al esil-
ience o c ises o we e unable o p o ide any in o ma ion on his.
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 22
5 Discussion
A push in digi aliza ion
Ou analysis shows ha he Co id 19 pandemic ce ainly ac ed as a boos o digi aliza ion, al-
hough he e we e also coun e ailing p ocesses. Digi aliza ion p ima ily ela ed o emo e
wo k and associa ed adminis a i e and o ganiza ional p ocesses (HR, aining), while in es -
men s in au oma ion we e o a he mino impo ance. In some cases, digi aliza ion p ojec s
we e hal ed o slowed du ing he pandemic due o a lack o esou ces o a shi in managemen
ocus. O e all, he impac o he Co id 19 pandemic on in es men s was he e o e ambi alen .
Howe e , he c isis was an e en ha led o a ein o cemen o digi aliza ion s a egies in many
companies, h ough new digi aliza ion p ojec s, highe awa eness o he need o digi aliza ion
by manage s, and highe accep ance o digi aliza ion measu es among employees. Hypo hesis
1 was con i med.
Ou analysis o e s pa icula added alue because we conduc ed he su ey wice du ing he
cou se o he pandemic and can he e o e ack de elopmen s in in es men s and digi aliza ion
p ojec s o e ime. We can also ely on quali a i e case s udy da a o con i m ou analysis (Bu-
ollo e al., 2024). We can show ha he impac o he pandemic on new in es men s in digi ali-
za ion was s onges in he i s phase o he pandemic and hen dec eased. The p opo ion o
companies ha ini ia ed new in es men s in digi aliza ion dec eased om 2021 o 2022, while
he p opo ion o companies ha accele a ed ongoing digi aliza ion measu es inc eased. A -
en ion shi ed om ini ia ing digi aliza ion in es men s owa ds con inuous implemen a ion
o measu es. A majo i y o companies saw hei esilience o c ises s eng hened due o hese
measu es.
Inequali ies o digi aliza ion
Ou esea ch design allows us o sys ema ically analyze he ac o s ha in luenced in es men s
in digi aliza ion measu es, and we a e able o iden i y he ac o s esponsible o he di e ences
be ween companies. I can be con i med ha exposu e o he pandemic had a posi i e in luence
on s eng hening he digi aliza ion o companies du ing he pandemic. Exposu e o he pan-
demic was s ongly co ela ed wi h inc easing manage ial awa eness o he need o digi aliza-
ion and inc easing employee accep ance o digi aliza ion measu es—bo h a e s ongly ela ed
o in es men in digi aliza ion du ing he pandemic. The in luence o hese a iables emains
cons an du ing he cou se o he pandemic. Hypo heses H2a, H2b, and H2c we e con i med.
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 23
Ou esea ch o e s a di e en ia ed esul wi h ega d o he ole o pa h dependencies and he
exace ba ion o inequali ies be ween mo e and less digi alized companies, ac o s ha ha e
been highligh ed in p e ious s udies (Abidi e al., 2023; A alos e al., 2023). Ou s udy shows ha
in he i s yea o he pandemic, companies wi h a pa icula ly low le el o digi aliza ion ac ually
lagged behind companies ha we e al eady mo e digi alized. Howe e , his a io was e e sed
in he second wa e o ou su ey. Less digi alized companies began ca ching up, al hough we
do no ha e enough da a o assess how s ong his ca ch-up p ocess was. We could no con i m
hypo hesis H2d.
Finally, an impo an con ibu ion o ou s udy is in he analysis o sec o al di e ences. We show
ha he sp ead o mobile wo king o ced a digi aliza ion o p ocesses in he adminis a i e and
HR a eas ac oss many sec o s. In sec o s wi h p e iously low digi aliza ion le els (e.g., heal h),
he need o emo e wo k led o a s ong push o digi aliza ion measu es. On he o he hand,
he e a e sec o -speci ic ocal poin s. In some sec o s, he demands and expec a ions o cus-
ome s changed s ongly, opening he way o digi alizing sales and cus ome ela ions (e.g., i-
nancial se ices). O he sec o s like he au omo i e indus y and logis ics we e s ongly hi by
supply chain dis up ions and in es ed in digi alizing supply chain managemen .
Ou analysis also shows empo al shi s in he ocus o digi aliza ion measu es in some sec o s.
Con a y o o iginal expec a ions (Biondi, 2021; Ko inek & S igli z, 2021), he e was no boos o
he digi aliza ion and au oma ion o p oduc ion and se ices a he beginning o he pandem-
ic. In none o he sec o s we examined was his a ea among he h ee mos impo an a eas o
digi aliza ion in 2021. Howe e , he pic u e changed a yea la e . The digi aliza ion and au oma-
ion o p oduc ion and se ices was now epo ed as one o he h ee mos impo an a eas, a
leas in machine building and inancial se ices. One explana ion is ha measu es o digi alize
and au oma e wo k p ocesses a e cos ly and could no be unde aken as sho - e m c isis mea-
su es. Only once he necessa y sho - e m changes o adminis a i e p ocesses had been mas-
e ed was i possible o ocus on mo e a - eaching au oma ion measu es. O e all, hypo hesis
H2e was con i med.
O ganiza ional change
While p e ious esea ch on o ganiza ional change du ing he Co id-19 pandemic has mainly o-
cused on he p ac ice o emo e wo k, an impo an con ibu ion o ou analysis is o examine he
ela ionship be ween digi aliza ion measu es and o ganiza ional change. We show ha he e is
a clea co ela ion be ween in es men in digi aliza ion and inc easing o ganiza ional change,
al hough he s eng h o his ela ionship a ies om sec o o sec o and is mos p onounced in
inancial se ices, whe e echnical change expe ienced a huge boos om he pandemic.
#44 The COVID-19 C isis, Digi aliza ion, and O ganiza ional Change 24
Ou esea ch design allows us o show ha he p opo ion o companies ha in oduced o ga-
niza ional changes inc eased o e he cou se o he pandemic. The mos widesp ead changes
we e measu es o make wo king hou s mo e lexible, bu as many as 15% o he su eyed com-
panies in 2021 and 29% o he su eyed companies in 2022 s a ed ha hey we e in oducing
measu es o change managemen concep s o accompany digi aliza ion measu es.
Wi h ou empo al pe spec i e, we can show ha while he p e alence o o ganiza ional change
measu es inc eased o e he cou se o he pandemic, he companies mos a ec ed by he pan-
demic in oduced ewe and ewe such measu es. Managemen p io i ies shi ed. On he one
hand, he pandemic led o a g ea e awa eness o he need o digi aliza ion and o ganiza ional
change in he business wo ld. On he o he hand, as he pandemic p og essed, he companies
ha we e ha des hi had o de o e mo e and mo e a en ion o su i al and less and less o o -
ganiza ional adjus men s.
Limi a ions
One limi a ion o ou analysis is he ela i ely gene al indica o s ha we e a ailable o us o
o ganiza ional change. Pa icula ly wi h ega d o leade ship concep s and p ac ices o p omo e
c oss- unc ional collabo a ion, ou s udy shows a need o u he esea ch—speci ic change
p ac ices need o be explo ed h ough in-dep h analyses in sec o s and companies, including
quali a i e s udies (Bu ollo e al., 2024)
In addi ion, we ha e no in o ma ion on he le el o in es men . The high numbe o p ojec s
s a ed du ing he pandemic may he e o e go hand in hand wi h a a he es ained in es -
men beha io o e all, as ound by A n z e al. (2024). Du ing he pandemic, companies concen-
a ed on hose p ojec s o digi alize hei p ocesses ha we e absolu ely necessa y and easible
wi h he educed esou ces a ailable du ing he c isis.
