Challenges of Management in the Digital Economy

Industry 4.0, digitalization, and artificial intelligence are the most often-mentioned factors that influence the competitiveness of companies in an innovative future. This study highlights the connections between these areas from the point of view of the management of industrial companies, revealing the challenges from theoretical and practical viewpoints. The most important questions are: On what level are organizations preparing for the digital future? What differences are perceived among the problems of multinational companies (MNCs) and small and medium-sized enterprises (SMEs)? How do managers prepare for change and what changes are they making as they keep the concept of "smart" technologies in mind? This study highlights the results of a qualitative study conducted in 2018-19 using structured deep interviews with 195 higher leaders of MNCs and SMEs (NVivo 12 was used to analyze the answers). The results show that although managers see and feel the urgent challenges, they are not dealing with additional demands beyond technical developments. Handling of human problems is the most serious task; however, managers are continually postponing decisions related to these problems. Overall, even in the largest companies, managers have not arranged anything in preparation for changes or new leadership styles relevant to the digital future.