| Abstract: |
Purpose The digital economy has become a key driver of economic growth in the
modern world, influencing industries, business practices, and consumer
behavior (Raji et al., 2024). For the Republic of North Macedonia, digital
transformation (Casey, 2015) offers significant potential for modernizing its
economy, improving productivity, and increasing competitiveness globally
(Thurow, 2000). This paper explores the contribution of digitalization, how it
affects online sales, the importance of digital skills that employees should
possess, and the contribution of social media to increasing sales. By
examining the key elements (Sutinen and Närvänen, 2022) of companies'
digitalization, their presence on social media, and the level of online sales,
we can see the effect of digitalization (Gonzalez-Verona et al., 2021) on the
sales success (Gupta and Israney, 2025) achieved by companies. The high level
of digitalization is considered a key factor that positively reflects the
increase in online sales. Furthermore, we can process the impact of
digitalization (Abou-Foul et al., 2020) on the broader economy, including the
creation of innovations and investments (Lytras and Serban, 2025) in the
development of employees' digital skills (Stofkova et al., 2022), which
directly affect the level of effectiveness of companies. Digital skills
(Audrin et al., 2024) are reflected in the overall operation, and a special
focus is on sectors such as digital finance, e-commerce (Suganya et al.,
2025), and manufacturing. However, all these positive effects are based on
digital tools (Helsper and Van Deursen, 2015) and technological innovations
that enable significantly better and faster exchange of information and more
efficient communication. In fact, this communication and contact with
customers is often carried out through social media (Mountinga et al., 2011).
It also highlights the opportunities for performing on social media (Nafees et
al., 2020), through Instagram and Facebook profiles, where companies are
presented and followed by consumers (Cheung et. al., 2009). In this way,
companies present themselves on the market and get closer to customers
(Manthiou et al., 2014). Buyers have the opportunity to purchase products and
satisfy their desires and needs in this facilitated way. Of course, digital
transformation brings a number of challenges and opportunities related to the
digital transformation in North Macedonia. The digital economy has the
potential to be a central component of North Macedonia's long-term economic
strategy, fostering sustainable growth, improving living standards, and
positioning the country as a more competitive player in the market. Based on
the above, the aim of this study is to examine the effect of digitalization on
the development and improvement of the economy. The paper is based on three
hypotheses: H1: The level of digitalization of companies is positively related
to the level of online sales. H2: The level of companies' presence on social
media is positively correlated with the level of online sales. H3: The level
of digital skills of employees is positively related to the level of online
sales. Design/methodology/approach An online questionnaire will be distributed
to business owners, managers, entrepreneurs, and IT professionals in North
Macedonia. 100 respondents will actively participate in the survey and will
answer identical questions. In order to test the hypotheses, a quantitative
analysis of the collected data will be conducted. The instrument for data
collection will be a survey questionnaire of the type of closed questions
according to the Likert scale principle, with a total of five levels. The
survey will be composed of three parts, namely: Questions related to digital
development, such as whether and how much companies are investing in the
digital development of companies, whether managers are striving to implement
digital technologies, i.e. whether they see the future here, how online sales
are monitored, whether there are analytical tools, whether the company has a
strategy for digital transformation and improvement. The second part will be
based on social media as a way of presenting the company. So, the questions
would be of the type of whether social media is part of the operation, what
type of posts are placed by the company, whether communication with users is
regular through comments and messages, the attitude and willingness to
advertise the company through paid ads on Facebook and Instagram. The third
part will be based on the independent variable - digital skills of employees.
The questionnaire will be aimed at understanding the level of knowledge of
basic digital skills, the frequency of training intended for digital
technologies, the readiness for online data analysis, the success of online
sales, and whether it is without downtime and major technical problems. The
analysis will be based on structural equation modeling (SEM) in two stages:
Confirmatory factor analysis (CFA), and the structural model will be tested
using software (SPSS). Through structural equation modeling (SEM) (Malhotra et
al., 2017), an assessment of the structural relationships between different
constructs will be obtained, which will be represented by several different
indicators in an integrated and defined model. The statistical method of
regression will be used in order to determine the influence of the dependent
variable on the independent variable. A potential limitation of questionnaires
is the reliability of the data obtained. The accuracy of the data obtained can
always be questioned. Not all respondents will be open to giving honest
answers for various reasons. Some will want to hide their strategy, some will
misrepresent themselves, and so on. Expected findings We can conclude that in
the first hypothesis, the dependent variable is online sales, and the
independent variable is the level of digitalization. The questionnaire
determines how much digitalization contributes to increasing sales, and the
information can be obtained through online sales reports. In fact, through the
answers to the number of orders placed and sales made via the internet, the
questionnaire allows us to see the percentage of sales increase after the
implementation of digital elements. With this, we see the effectiveness of
digitalization on the level of sales increase. The research for the second
hypothesis is conducted by researching the company's social media profiles and
the number of followers on them. It is a kind of indicator of the level of
interest in the brand, the recognition that leads to sales. The fact that
someone follows a brand profile speaks of interest. The third hypothesis is
based on the level of influence of employees' digital skills on increasing
online sales. The questionnaire will assess the readiness and awareness of
employees, as well as the company's investments in their education for
digitalization. This can be seen through the effects they achieved before and
after the education, whether the education led them to think about
implementing new digital solutions in order to increase sales. In this way, it
will be seen whether and how digitalization affects the performance and
operations of companies and their economic results. Online sales are not just
a technological process but the result of a combination of technology, human
factors, and communication. Originality/value Digitalization has been
considered for years as a process that infiltrates all parts of human life and
work. There are numerous studies that consider digitalization as a process
that affects different processes separately, but not as an integrated process
that connects all economic sectors. The research is expected to expand the
scientific framework for digital marketing, and it will achieve this by
integrating the three elements: digital development, social media, and
employee skills. The survey that will be conducted among companies will
provide empirical evidence on the degree of digitalization of companies and
its impact on sales. The results will also show how successful companies
present themselves on social media, and how for them social media is a way to
connect with customers in order to increase sales. It will be seen which
content reaches customers the most. On the other hand, emphasis will be placed
on employee education, because only employees who know the importance of
digitalization and of course, possess the knowledge to implement changes in
the implementation of digital practices in the daily operations of the
company, contribute the most to increasing sales. We can conclude that
digitalization reaches its maximum if it is applied in all sectors; in this
way, full capacity will be achieved, and the economy will grow. The paper will
help to consolidate theoretical knowledge and practical application in the
daily operations of companies, providing a clear picture of the effects of the
application of the independent variables, digital development, social media,
and digital skills of employees on the dependent variable, online sales. |