Institutional Asymmetries in the Digital Transformation of Ukrainian Business: Assessment and Strategic Priorities

Abstract

This article presents a comprehensive assessment and defines strategic priorities for overcoming institutional asymmetries in the digital transformation of Ukrainian business under current socio-economic challenges. It substantiates that contemporary digital dynamics require eliminating the structural gap between rapid public-sector digital renewal and the adaptive capacity of business entities. Grounded in institutional economic theory, the methodology employs a comparative analysis of Ukraine’s standing across five international digitalization indices, a statistical and correlation analysis of the Regional Digital Transformation Index, and an analytical synthesis of AI adoption surveys. The assessment reveals a substantial institutional asymmetry between high public-sector achievements globally (Group A in the GovTech Maturity Index, 40th in the Government AI Readiness Index) and the moderate digital maturity of business and local communities (44.9/100). The correlation analysis (r = -0.06) indicates the absence of a statistically significant linear relationship between basic digital skills and regional digital economy development, an empirical pattern interpreted as consistent with qualitative institutional and regulatory barriers rather than as direct proof of their causal effect. Furthermore, the analysis exposes an asymmetry in business reliance on artificial intelligence: while 93% of companies utilize AI, only 18.4% apply it to cybersecurity, and, per a comparable commercial industry survey, 21% of executives report project failures due to reliance on unverified AI output and missing data-verification protocols. The scientific novelty of the study lies in substantiating a systematic approach to developing the institution of business digital transformation based on a three-tier diagnostic of the digital divide between the state and entrepreneurship, which, unlike existing works, enables shifting the problem of the public–private digital gap from the realm of declarative policy into the practical system of managerial priorities for enterprises. To address these deformations, the paper proposes a framework emphasizing the institutional – rather than purely resource or infrastructural – nature of these imbalances. It substantiates six strategic priorities for developing the institution of business digital transformation, aiming to harmonize regulatory frameworks, incentivize investment, and enhance overall enterprise digital maturity. The findings should be interpreted with two limitations in mind: the regional correlation analysis relies on a sample of 12 regions, and the artificial-intelligence findings draw on two independently designed business surveys. Future research should extend the empirical base as more regional data become available. This is an empirical study based on quantitative and comparative-analytical methods.