Ion POPA1, Ana Alexandra OLARIU2, Ștefan Cătălin POPA3, Corina-Elena MIRCIOIU4
Abstract. Digital transformation is an essential process for contemporary economic and social development. This paper aims to explore the evolution and disparities of digital transformation across European Union (EU) member states by analyzing their digital profiles and classifying them into homogeneous groups based on their performance. Thus, the research draws on secondary quantitative data from the World Digital Competitiveness Rankings developed by International Institute for Management Development (IMD), focusing on three critical dimensions: knowledge, technology and futureproofing. These dimensions capture countries’ educational and research capacity, digital infrastructure and societal adaptability to digital change. In this research, a cluster analysis was performed using SPSS Two-Step Clustering, supported by visual and statistical tools, to identify clustering patterns among 26 EU countries (excluding Malta due to missing data). The research design includes four steps: time trend analysis, geographical mapping, cluster identification, and testing the significance of inter-cluster differences using Mann-Whitney U-tests. The results show a clear bifurcation between digitally advanced countries (e.g., Denmark, Netherlands, Sweden) and those with lower performance (e.g., Romania, Bulgaria, Greece). Significant statistical differences exist across all three analyzed dimensions. These findings offer valuable insights for policymakers seeking to reduce the digital divide and improve regional competitiveness through targeted strategies.
Keywords: digital transformation, European Union, cluster analysis, technology, digital performance.
DOI 10.56082/annalsarscijkd.2025.1.64
1 Bucharest University of Economic Studies, Bucharest, Romania; Corresponding member of the Academy of Romanian Scientists; https://orcid.org/0000-0003-0703-3828; ion.popa@man.ase.ro (corresponding author)
2 Bucharest University of Economic Studies, Bucharest, Romania; https://orcid.org/0000-0002-1153-3502; anaalexandra.olariu@man.ase.ro
3 Bucharest University of Economic Studies, Bucharest, Romania; https://orcid.org/0000-0001-9221-8936; catalin.popa@man.ase.ro
4 Bucharest University of Economic Studies, Bucharest, Romania; https://orcid.org/0009-0004-2450-7903; corina.mircioiu@man.ase.ro
PUBLISHED in Journal of Knowledge Dynamics, Volume 2, No1