IDEAS home Printed from https://ideas.repec.org/a/ora/jrojbe/v9y2024i2p36-46.html

The Digital Enterprise Landscape: How Desi Metrics Shape Economic Growth In The Eu

Author

Listed:
  • Maria Magdalena Doroiman

    (Doctoral School of Economics and Business Administration, Faculty of Economics and Business Administration, West University of Timisoara, Timisoara, Romania)

  • Nicoleta Sirghi

    (Department of Economics and Economic Modelling, Faculty of Economics and Business Administration, West University of Timisoara, Timisoara, Romania)

Abstract

The European Union’s (EU) economic growth is increasingly driven by digitalization across all areas, including the digital transformation of businesses. This paper explores how the digital transformation of enterprises could influence economic growth in the EU by analyzing data from the Digital Economy and Society Index (DESI) and economic metrics from Eurostat for the post-pandemic period (2021-2022). This paper uses econometric techniques like Panel Corrected Standard Errors (PCSEs) and Robust Regression with Huber Iteration (RRHI) to investigate the cause-and-effect relationships between digitalization and economic factors such as GDP growth rate and real GDP per capita growth. The results show that different digital strategies have varying effects on economic performance. The paper also emphasizes the critical role of real labor productivity in connecting digital transformation with economic performance. The implications of this paper highlight the need for nuanced policy strategies that foster digital skills, improve technological infrastructure and support the Small and Medium Enterprises (SMEs) in their digitalization efforts in order to achieve the ambitious objectives of the EUs Digital Decade. The results also propose a strategic focus on specific technologies that offer immediate economic advantages and enable a stronger incorporation of digital progress across various business operations in the member states.

Suggested Citation

  • Maria Magdalena Doroiman & Nicoleta Sirghi, 2024. "The Digital Enterprise Landscape: How Desi Metrics Shape Economic Growth In The Eu," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 9(2), pages 36-46, September.
    • Handle: RePEc:ora:jrojbe:v:9:y:2024:i:2:p:36-46
    DOI: http://doi.org/10.47535/1991ojbe194
    as

    Download full text from publisher

    File URL: http://ojbe.steconomiceuoradea.ro/wp-content/uploads/2024/10/OJBE-92_fin-36-46.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://doi.org/10.47535/1991ojbe194?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Thompson, Herbert Jr. & Garbacz, Christopher, 2007. "Mobile, fixed line and Internet service effects on global productive efficiency," Information Economics and Policy, Elsevier, vol. 19(2), pages 189-214, June.
    2. Peter Gal & Giuseppe Nicoletti & Theodore Renault & Stéphane Sorbe & Christina Timiliotis, 2019. "Digitalisation and productivity: In search of the holy grail – Firm-level empirical evidence from EU countries," OECD Economics Department Working Papers 1533, OECD Publishing.
    3. Nambisan, Satish & Wright, Mike & Feldman, Maryann, 2019. "The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    4. Ghazy, Noha & Ghoneim, Hebatallah & Lang, Guenter, 2022. "Entrepreneurship, productivity and digitalization: Evidence from the EU," Technology in Society, Elsevier, vol. 70(C).
    5. Vu, Khuong & Hanafizadeh, Payam & Bohlin, Erik, 2020. "ICT as a driver of economic growth: A survey of the literature and directions for future research," Telecommunications Policy, Elsevier, vol. 44(2).
    6. Dabbous, Amal & Barakat, Karine Aoun & Kraus, Sascha, 2023. "The impact of digitalization on entrepreneurial activity and sustainable competitiveness: A panel data analysis," Technology in Society, Elsevier, vol. 73(C).
    7. Peter Gal & Giuseppe Nicoletti & Christina von Rüden & Stéphane Sorbe & Théodore Renault, 2019. "Digitalization and Productivity: In Search of the Holy Grail - Firm-level Empirical Evidence from European Countries," International Productivity Monitor, Centre for the Study of Living Standards, vol. 37, pages 39-71, Fall.
    8. Agata Marcysiak & Żanna Pleskacz, 2021. "Determinants of digitization in SMEs," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(1), pages 300-318, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yu Zhang & Rende Li & Qiaoxin Xie, 2023. "Does digital transformation promote the volatility of firms' innovation investment?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(8), pages 4350-4362, December.
    2. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    3. Silvia Muzi & Filip Jolevski & Kohei Ueda & Domenico Viganola, 2023. "Productivity and firm exit during the COVID-19 crisis: cross-country evidence," Small Business Economics, Springer, vol. 60(4), pages 1719-1760, April.
    4. Alexander Salmen, 2021. "New Product Launch Success: A Literature Review," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 69(1), pages 151-176.
    5. Santiago José Gahn, 2025. "Path dependence in the digital adoption process: a cross-section analysis of Italian firms with a special focus on the Apulia region," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 52(4), pages 967-987, December.
    6. Charles Shaaba Saba & Nicholas Ngepah, 2022. "ICT Diffusion, Industrialisation and Economic Growth Nexus: an International Cross-country Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2030-2069, September.
    7. Briglauer, Wolfgang & Stocker, Volker, 2020. "Bedeutung digitaler Infrastrukturen und Dienste und Maßnahmen zur Förderung der Resilienz in Krisenzeiten," Policy Notes 42, EcoAustria – Institute for Economic Research.
    8. Liu, Bingbing, 2025. "How does digital transformation enhance enterprise technological innovation? Evidence from Chinese manufacturing listed companies," Technology in Society, Elsevier, vol. 82(C).
    9. Gilbert Cette & Sandra Nevoux & Loriane Py, 2022. "The impact of ICTs and digitalization on productivity and labor share: evidence from French firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 31(8), pages 669-692, November.
    10. Otioma, Chuks & Nsanzumuhire, Silas U. & Grillitsch, Markus & Jirström, Magnus, 2023. "Seeking for the shift towards challenge-oriented innovation policies: Tracing digitalization policies over two decades in Africa," Papers in Innovation Studies 2023/9, Lund University, CIRCLE - Centre for Innovation Research.
    11. Erumban, Abdul A., 2024. "Informality and aggregate labor productivity growth: Does ICT moderate the relationship?," Telecommunications Policy, Elsevier, vol. 48(1).
    12. Chiara Franco & Filomena Pietrovito, 2024. "Drivers of firms’ digital activities in response to the Covid-19 pandemic," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(3), pages 695-726, September.
    13. Maryann P. Feldman & Serden Ozcan & Toke Reichstein, 2021. "Variation in organizational practices: are startups really different?," Journal of Evolutionary Economics, Springer, vol. 31(1), pages 1-31, January.
    14. Olena Khlystova & Yelena Kalyuzhnova, 2023. "The impact of the creative industries and digitalization on regional resilience and productive entrepreneurship," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1654-1695, October.
    15. Dolores Añon Higón & Juan A. Daniel Bonvin, 2023. "Do digitalization spurs SMEs’ participation in foreign markets?," Working Papers 2307, Department of Applied Economics II, Universidad de Valencia.
    16. João M. Lopes & Sofia Gomes & Elisabete Nogueira, 2025. "Educational insights into digital entrepreneurship: the influence of personality and innovation attitudes," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-24, December.
    17. Godsway Korku Tetteh & Chuks Otioma, 2025. "Cyberattack, cyber risk mitigation capabilities, and firm productivity in Kenya," Small Business Economics, Springer, vol. 64(3), pages 1493-1514, March.
    18. Stefano Costa & Federico Sallusti & Claudio Vicarelli & Davide Zurlo, 2021. "Italian firms in times of troubles: Covid-19 pandemic as a test of structural solidity," LEM Papers Series 2021/47, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    19. Abdulqadir, Idris & Asongu, Simplice, 2021. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa: Insight from a dynamic panel threshold regression," MPRA Paper 109904, University Library of Munich, Germany.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:jrojbe:v:9:y:2024:i:2:p:36-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tomina SAVEANU The email address of this maintainer does not seem to be valid anymore. Please ask Tomina SAVEANU to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/feoraro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.