Assessing national digitalization levels using cross efficiency model

Abstract

The digitalization of countries is essential since the process is related to processes of production, operation, and digitalization. Therefore, this study aims to measure the efficiency of the digitalization levels of the countries. The Data Envelopment Analysis method is an efficiency measurement tool and has different models. The CCR model, while widely used, has limitations such as zero weighting issues and discrimination power constraints. The findings showed that the CCR model considered certain factors in the calculation phase and did not take into account others. According to the result of the analysis, the Czech Republic’s performance score was obtained by considering only two variables out of seven. This situation prevents accurate performance assessment. In addition, while there are 08 countries in efficient positions according to the result of the CCR model, it is not possible to rank them. Therefore, they were analyzed using the cross efficiency model. According to the result of cross efficiency model, Sweden ranks first in terms of digitalization levels, while the Netherlands is in second place and Slovenia is last. A unique ranking was obtained by considering all the variables. Therefore, the digitalization levels of countries were measured using the cross efficiency model, which can both create a unique ranking and obtain more consistent weights.