How does the digitalization impact society's sustainable development? Measures and implications

Abstract

This paper examines the relationship between digitalization and sustainable development and presents the composite index used for measuring the digital competitiveness of nations - the Digital Economy and Society Index (DESI). To be competitive on a global market, it is not enough just to have an efficient government and flourishing economy. Today's environment is highly dependent on the technological capabilities and keeping track with contemporary technological development is becoming crucial at both micro and macro level. One of the major revolutions in modern business is switching from traditional to digital business models for achieving higher competitiveness level. Digitalization is one of the major impetus of today's development. For accepting and implementing those changes, it is important to highlight the macromarketing role in this process. To identify the shortcomings, good practices, and track the development, it is necessary to have concrete measures. European Commission developed a composite index for measuring digital performance of European Union countries - DESI. This paper examines the methodology of DESI and observes how the digital performance of EU affects main sustainable development components: economic, social, and environmental. Thus, paper explores the correlations of DESI and other composite indices that measure sustainability components: competitiveness, innovation, gross domestic product, entrepreneurship, "goodness" of a country, and contribution to the sustainable development goals. In addition, paper examined the influence of Hofstede's cultural dimensions on digital performance. The highlight the importance of digitalization as another crucial component of sustainable development and society.