Digital transformation and ICT sector performance in EU countries

Digital transformation is now one of the most important topics in all EU countries in creating and managing strategies and visions for states, businesses, organizations, and citizens. The ICT sector is currently one of the most important sectors with significant added value. The main purpose of the...

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Main Authors: Eva Ivanová, Eva Grmanová
Format: Article
Language:English
Published: LLC "CPC "Business Perspectives" 2023-01-01
Series:Problems and Perspectives in Management
Subjects:
Online Access:https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/17643/PPM_2023_01_Ivanova.pdf
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author Eva Ivanová
Eva Grmanová
author_facet Eva Ivanová
Eva Grmanová
author_sort Eva Ivanová
collection DOAJ
description Digital transformation is now one of the most important topics in all EU countries in creating and managing strategies and visions for states, businesses, organizations, and citizens. The ICT sector is currently one of the most important sectors with significant added value. The main purpose of the paper is to identify the efficiency of the digitalization of the economy and society concerning the performance of the ICT sector. This paper uses multi-criteria efficiency evaluation methods – Data Envelopment Analysis (DEA models). Inputs in the basic DEA model are the dimensions’ values of the Digital Economy and Society Index (DESI), which are also used to express the DESI summary indicator, such as human capital, connectivity, digital technology integration, and digital public services. Output in the DEA model indicates the ICT share of GDP. Finally, output-oriented DEA models are used to express the efficiency score. The analysis results show that Bulgaria, Romania, Greece, and Malta have a below-average level of DESI, but they can be classified as efficient. Italy, Lithuania, and Slovenia are the worst performers in the efficiency score. The next step was to express the efficiency scores in the DEA models in terms of different combinations of inputs and outputs. Malta was efficient in all fifteen DEA models. Based on these findings, Malta is considered significantly positive. Its approaches can serve as an example for other countries. AcknowledgmentThis paper was supported by the Slovak Ministry of Education’s Scientific Grant Agency VEGA: “Digital Economy and Changes in the Education System as a Reflection on Labor Market Requirements”. Project registration number: [Reg. No.: 1/0689/20].
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spelling doaj.art-4d9993e2591f47008ba48c1b35572ff62023-06-21T11:08:34ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672023-01-01211485810.21511/ppm.21(1).2023.0517643Digital transformation and ICT sector performance in EU countriesEva Ivanová0https://orcid.org/0000-0002-5721-4662Eva Grmanová1https://orcid.org/0000-0003-2269-1677Dean of the Faculty of Social and Economic Relations, Department of Economy and Economics, Alexander Dubcek University of TrenčínPh.D., Associate Professor, Department of Economy and Economics, Faculty of Social and Economic Relations, Alexander Dubcek University of TrencinDigital transformation is now one of the most important topics in all EU countries in creating and managing strategies and visions for states, businesses, organizations, and citizens. The ICT sector is currently one of the most important sectors with significant added value. The main purpose of the paper is to identify the efficiency of the digitalization of the economy and society concerning the performance of the ICT sector. This paper uses multi-criteria efficiency evaluation methods – Data Envelopment Analysis (DEA models). Inputs in the basic DEA model are the dimensions’ values of the Digital Economy and Society Index (DESI), which are also used to express the DESI summary indicator, such as human capital, connectivity, digital technology integration, and digital public services. Output in the DEA model indicates the ICT share of GDP. Finally, output-oriented DEA models are used to express the efficiency score. The analysis results show that Bulgaria, Romania, Greece, and Malta have a below-average level of DESI, but they can be classified as efficient. Italy, Lithuania, and Slovenia are the worst performers in the efficiency score. The next step was to express the efficiency scores in the DEA models in terms of different combinations of inputs and outputs. Malta was efficient in all fifteen DEA models. Based on these findings, Malta is considered significantly positive. Its approaches can serve as an example for other countries. AcknowledgmentThis paper was supported by the Slovak Ministry of Education’s Scientific Grant Agency VEGA: “Digital Economy and Changes in the Education System as a Reflection on Labor Market Requirements”. Project registration number: [Reg. No.: 1/0689/20].https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/17643/PPM_2023_01_Ivanova.pdfDEADESIdigitalizationefficiencyICTperformance
spellingShingle Eva Ivanová
Eva Grmanová
Digital transformation and ICT sector performance in EU countries
Problems and Perspectives in Management
DEA
DESI
digitalization
efficiency
ICT
performance
title Digital transformation and ICT sector performance in EU countries
title_full Digital transformation and ICT sector performance in EU countries
title_fullStr Digital transformation and ICT sector performance in EU countries
title_full_unstemmed Digital transformation and ICT sector performance in EU countries
title_short Digital transformation and ICT sector performance in EU countries
title_sort digital transformation and ict sector performance in eu countries
topic DEA
DESI
digitalization
efficiency
ICT
performance
url https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/17643/PPM_2023_01_Ivanova.pdf
work_keys_str_mv AT evaivanova digitaltransformationandictsectorperformanceineucountries
AT evagrmanova digitaltransformationandictsectorperformanceineucountries