Globalization and Its Socio-Economic Consequences, Volume I
23rd International Scientific Conference Proceedings
Elvira Nica (Volume editor)
Summary
Designed to spark interdisciplinary dialogue, these proceedings bring together contributions from scholars, researchers, and business professionals, fostering a deeper understanding of globalization's dynamics. By highlighting research and practical perspectives, this book aims to inform and inspire those engaged in navigating the globalized landscape.
Excerpt
Table Of Contents
- Cover
- Title Page
- Copyright Page
- Contents
- Digital Services in Central and Eastern European Capitals: A Citizen’s Perspective Analysis
- Digital Maturity of Cities. A Comparative Study
- Use of Unified Modelling Language and Enterprise Resource Planning System to Improve the Quality of Management and Production in a Manufacturing Company
- Exploring the Metaverse Gold Rush: Understanding Consumer Behaviour and Usage Implications within a Globalized Virtual Realm
- Digital Twin Technology in the Function of Risk Management of Logistics Processes
- Globalization Based on Transformation and Digitalisation
- Mapping the Potential of 3D Printing in the Corporate Environment
- Globalization as a Tool for Sustainable Development
- Product-related Services Provided by Electrical Engineering Manufacturers in the Visegrad 4 Countries
- The Digital Transformation of Public Administration: An Analysis of the Impact of Globalization on Sustainable Development Strategy
- Digitalization in the Area of Taxes and Accounting
- Process Mining and Global Business Services
- Crypto Bridges: Enabling Seamless Token Exchange Across Blockchain Networks
- Internet of Things Based Hyperlocal Marketing as a Global Trend
- Globalization’s Impact on Capital-Labor Substitution: Dynamic Model
- Assessment of Innovation Factors in Lithuanian Small and Medium-sized Agricultural Enterprises
- The Use of Artificial Intelligence in the Marketing Communications of Micro-enterprises
- An Overview of the Key Benefits and Threats of Digital Marketing
- Global Use of Artificial Intelligence for Predicting and Working with
- Global Indicators Affecting Cyber Security in Slovak Republic
- Expression Restrictions on the Global Social Networks as a Barrier to the Implementation of the Concept of Groundswell in Promotion of Eco-products
- The Model of an Automated Warehouse
- How Global Aspects Affect the Groundswell in the Context of Online Communication and Shopping Environment
- The Impact of Industry 4.0 on Employment in Slovakia
- Globalization of Trade in the Context of the Retail Sector: A Bibliometric Analysis
- Generative Artificial Intelligence in the Workplace: Job Automation and Augmentation, Labor Devaluation and Replacement, and Increased Productivity and Profitability
- Augmented Reality Application for Mobile Devices
- Online Marketing’s Impact on Customers in the Globalization Era
- Narcissistic Ghosting and Its Global Significance in the Context of the Emergence of Groundswell Communication on Social Media
- The Impact of Business Size on Adoption of Facial Biometric Technologies
- Peculiarities of State Regulation of Food Retail in St. Petersburg and Medium-term Prospects for Its Development
- Bibliographic Mapping of the Global Groundswell in the Context of Social Media
- Financial Security of the National Economy in the New Reality
- Global Trends in the World Gas Market in Conditions of Turbulence and High Uncertainty: Price Convergence and Changes in the Structure of Demand
- The Electricity Crisis in the Context of Globalization
- Population Dynamics and Food Security in Europe in the Context of Globalization
- Globalization and the Impact of the Proximity of Waste Landfills on Real Estate Value
- Business Model and Regulatory Environment for Biogas Utilization
- Changes in the Structure of the Food Market in Russia and St. Petersburg During the World Pandemic of Covid-19
- Economic Globalization and the Environment: Strategies for Sustainable Development in the Age of Global Connectivity
- Attitudes of Owners on the Corporate Social Responsibility on the SMEs Segment V4 Countries – Gender View
- Analysis of Global Drivers for Sawnwood Demand in Slovakia: An Econometric Perspective
- The Influence of Global Challenges on Fleet Optimization
- Corporate Social Responsibility Practice and Sustainability Strategy of Small and Medium-sized Enterprises in Developing Economies: The Case of Azerbaijan
- The Impact of Regulation on the Sustainability of SMEs
- Development and Perspectives of the Sharing Economy in the Global Environment
- Foreign Trade and Environmental Tariffs on Imports
- Managerial Engagement in Sustainability Among Small and Medium-sized Enterprises Owners and Leaders
- Is Food Waste in Slovak Primary Production a Real Threat to Food Security?
- Corporate Social Responsibility in Times of Crisis: A Comparative Analysis of Social Public Assistance in the Visegrad Region, with Focus on Slovakia, Czech Republic, and Poland
- Challenges in Slovak Forestry Due to External Influences
- A Comparative Analysis of Municipal Waste Management Practices in Visegrad 4 Countries
- The Forecasting and Analytical Model of Ensuring the State’s Intellectual Security
- The Relationship of Globalization with the Mechanisms of Economic Growth in the World Economic System
- Increasing the Sustainability of Development of Organizations in the Context of Global Instability
- Smart City: Development of the Concept and Problems of Implementation in the Global World
- The Role of Public Administration in Shaping the Sustainability of Agriculture: An Analytical Perspective on Globalization and Sustainable Development
- Entrepreneurship for a Sustainable World
- Economic Aspects of the Sustainability of the System of Providing Gerontological Social Services in the Context of Population Aging on the Example of the Czech Republic
- Current Attitudes of Business Enterprises Towards Corporate Social Responsibility Activities in the Czech Republic
- What We (Do Not) Know About Mental Health in Organizations? A Lens for Sustainable Development Goal 8
- Overview of the European Union Legislative Framework for Sustainable Reporting in 2023
- The Global Energy Transition’s Trends and Contradictions
- Impact of the Global COVID-19 Pandemic and Perspectives of the Hospitality Sector in Slovakia
- Challenges of Potential E-mobility Revolution on the Electricity Production in Slovakia
- Sustainable Development of Russia in the Global Innovation Index System
- Sustainability of Economy in Countries with Different Levels of Development
Cristina Alpopi1,* Armenia Androniceanu1, Elvira Nica1, and Mihaela Melenciuc1
Digital Services in Central and Eastern European Capitals: A Citizen’s Perspective Analysis
Abstract:
Research background: The advances in digital technology have facilitated the development of smart cities. The research context reflects the complexity and diversity of contemporary urban issues and attempts to find innovative solutions in order to address these challenges.
Purpose of the article: This study aims to evaluate and compare the level of development of digital services in eleven Central and East European capitals, according to their citizens’ perceptions.
Methods: The method used for the evaluation was the Minimax Technique, which allowed us to develop a detailed analysis of the quality of the existing digital services from each city. Based on the data about the digitalization of public services and social life, a city rank was determined to illustrate both the digital level of the infrastructure and public services from the perspective of a smart city.
Findings & Value added: The results revealed significant differences between the cities in terms of citizens’ perception of digital services. Vilnius has obtained the highest evaluation city rank. This study is an important step in evaluating smart cities from Eastern Europe and provides useful information both for city managers and politicians. The obtained research results can be useful for the managers of the analyzed European capitals to make the necessary changes in city strategies for improving citizens’ perceptions and transforming them into modern and efficient smart cities.
Keywords: smart city, urban digitalisation, urban mobility, digital transformation
JEL Classification: O18; O33
1 Introduction
Smart cities are a field of urban research and development that has caught the attention of the contemporary world in an unprecedented manner. On the background of the 21st century’s technological and social rapid changes, the cities have become epicentres of innovation and adaptation to the new challenges of the modern society. In an increasingly urbanized world, the smart city concept has evolved beyond being just a trendy term and has become an imperative necessity for the sustainable development of the urban communities.
Organizational, technological and social changes in modern cities are motivated by their aspiration to contribute to solving the climate crisis. Therefore, smart cities aim at harmonizing the social, cultural and environmental aspects in a global approach that combines participatory governance with an efficient management of the natural resources. The goal is to meet the needs of the institutions, communities and citizens (Săvulescu & Antonovici, 2014).
In order to understand the “smart city” concept, a term that has become more and more popular in the scientific literature and the international policies during these last decades, it is important to acknowledge that cities are considered to be key elements for the future of mankind. They play a crucial role in all social and economic aspects worldwide, having a recognized impact on the environment (Albino et al., 2015).
Urban planning based on the “smart city” concept will overcome urban challenges, such as crowded transport, electricity network with high carbon emissions, infrastructure maintenance and repair, as well as urban security and policy (Al Sharif & Pokharel, 2022). In the European Union there are multiple regulations and initiatives aimed at developing and promoting smart and sustainable cities. These are meant to support the urban transformation in a more efficient, more sustainable direction, more oriented towards the needs of the citizens. Below are a few of the main European regulations and initiatives concerning smart cities (European Commission, 2023):
1Urban Agenda for the EU – This initiative promotes the cooperation between cities and Member States of the EU in approaching major urban challenges.
2EU Funding for Smart Cities – The Horizon 2020 Programme and, more recently, The Horizon Europe Programme have provided funding for research and development projects in the smart city field. These programmes support the innovation and the adoption of smart technologies within cities.
3Directives on Energy Efficiency – Directive 2012/27/UE and Directive 2018/844/UE lay down requirements for improving the energy efficiency in buildings and urban transport.
4GDPR (General Data Protection Regulation) –Smart cities collect a significant amount of data to improve services and the urban infrastructure and the GDPR guarantees the protection of the citizens’ personal data.
5“Smart and Sustainable Cities” Initiative (Covenant of Mayors for Climate and Energy) – This is a collaboration agreement between the local and regional authorities to fight against climate change and to promote renewable energy.
6Digital Europe Programme – This programme aims at promoting digitalisation in Europe and supporting the development of digital technologies, including those related to smart cities.
In this context, there are documents assumed by the Member States of the European Union (EU) concerning smart cities that may vary according to the country and the national or regional strategies. Nevertheless, there are certain types of joint initiatives and documents which are assumed or developed by many Member States in the smart city development context. Here are a few of these (European Commission, 2023):
1National Strategies for Smart Cities
2Sustainable Urban Plans or Agendas
3Agreements with the Local Authorities
4Research and Development Initiatives
5Local Legislation and Urban Regulations
6Public-Private Partnerships
7Funding Programmes This scientific study focuses on exploring and analyzing the smart city phenomenon, placing under a magnifying glass the various aspects that define it and their impact on urban life. Smart cities are characterized by an extensive use of advanced technologies in order to improve the efficiency, the quality of life and the sustainability in our crowded cities. They integrate elements such as information and communication technologies, data management, renewable energy, smart mobility, participatory governance and many more to create a safer, healthier and more connected urban environment.
1.1 The Stage of Knowledge in the Field
The smart city concept is an innovative approach of the urban development, using technology to improve the quality of life for the citizens and to increase the efficiency of the public services. The technological infrastructure, the energy efficiency, the urban mobility, the participation of the citizens in taking decisions and the security of the data are a few of the key aspects taken into consideration by smart cities. However, it is important to bear in mind the need to ensure a sustainable development and that the welfare and safety of the inhabitants must be at the heart of all efforts (Ionica, 2023).
A smart city is that environment where, by using digital and communication technologies for the benefit of its inhabitants and their businesses, the traditional networks and services become more efficient (Israilidis et al., 2021).
According to Androniceanu and Georgescu (2023), the “Digital First” principle represents the orientation that some public administrations in the member states of the European Union have to plan their policies and strategies. The coherent approach at the national level regarding the reuse of public data can contribute to improving the quality of services provided to citizens and private companies by the public administration. By leveraging existing data, the administration can support decision-making in key sectors of the public sector with increased efficiency. At the same time, administrations produce the data and infrastructure needed to facilitate the re-use of this data by public and private sector organizations, thus helping to boost economic competitiveness.
Lytras and Visvizi (2018) believe that the future of the cities is a “smart” one, as there are various commercial partnerships and research organizations worldwide seeking to contribute to the creation of applications for smart cities.
Accordingly, smart cities are characterized by a variety of elements and features and different authors and experts have highlighted these aspects in different ways. In the following, there several key elements presented, characterizing smart cities from the point of view of different authors:
•Use of Advanced Technology: Smart cities are based on state-of-the-art technology, such as the Internet of Things (IoT), sensors, data management systems and artificial intelligence (IA), to collect, monitor and analyze information throughout the city (Giffinger et al., 2007);
•Extended Connectivity: Smart cities are characterized by an extended and efficient communication infrastructure, enabling connectivity and easy access to services for all the inhabitants and economic operators (Hollands, 2008);
•Sustainability and Energy Efficiency: Smart cities place a special emphasis on reducing resource consumption, efficient energy management and environmental protection. They aim at being sustainable and reducing the carbon footprint (Caragliu et al., 2011);
•Smart Mobility: Smart cities develop intelligent transport systems, that encompass an efficient public transport, a sustainable mobility (bicycles, electric vehicles), as well as solutions to reduce congestions and improve the mobility (Giffinger et al., 2007);
•Participatory Governance: Smart cities actively involve the citizens and the communities in the decisional process and encourage the participation of the public in the development of the city (Nam & Pardo, 2011);
•Quality of Life: Smart cities strive to improve the quality of life for their inhabitants by providing better public services, including education, healthcare, culture and recreation (Allam & Newman, 2018);
•Innovation and Creative Economy: These cities promote innovation and economic development by supporting creative and technological business ecosystems, as well as by creating collaborative working spaces (Caragliu et al., 2011);
•Resilience and Safety: Smart cities are prepared to cope with natural threats or social challenges by developing crisis management plans and early warning systems (Hollands, 2008);
•Cultural and Social Diversity: These cities value the cultural diversity and promote the social inclusion of all groups of inhabitants. They encourage the exchange of cultures and experiences (Caragliu et al., 2011);
•Administrative Efficiency: Smart cities use technology to improve the efficiency and transparence of the public administration, reducing the bureaucracy and unnecessary spending (Nam & Pardo, 2011).
These elements are only a few of the main characteristics attributed to smart cities by various authors and experts. It is important to understand that the smart city concept is dynamic and adapts to local needs and conditions and that the characteristics can vary from one city to another, according to their objectives and priorities.
Tsun Lai and Cole (2023) assess that “smart city” is a basic characteristic of the modern urban development. In the literature there are multiple smart city indices presented, by means of which their performances are successfully compared. It is important to identify those indices that enable different comparisons between the cities. The authors, in the “Measuring progress of smart cities: Indexing the smart city indices” paper, propose a method for evaluating the accuracy and quality of the existing smart city indices according to five criteria – Credibility, Reliability, Methodology, Versatility and Precision.
Digital Cities Index (DCI) 2022, developed by Economist Impact, provides a way to evaluate the digitalisation degree in 30 cities around the world. By analysing the key pillars of the digital connectivity, services, culture and sustainability, this index reflects the efforts and progresses of the cities in adopting smart technologies and sustainable practices.
Smart cities have appeared as an important concept in urban development, intended to improve the quality of life for the citizens by implementing smart technologies, supporting urban innovation, increasing the economic productivity and approaching common problems such as urbanization, climate crisis and the shortage of raw materials. Smart city technologies have appeared in various fields, creating implications and bringing benefits for the housing sector, energy, economy, medical care, infrastructure, environment, government etc. (Alshamaila et al., 2023).
In the context of these evaluations and definitions of the smart cities, it is obvious that the “smart city” concept continues to have a significant impact on the modern urban development. The development and implementation of smart technologies in the cities is an ongoing process, with significant benefits for the citizens and the society as a whole.
1.2 Key Dimensions of the Smart Cities
Starting from the idea mentioned above, different authors define in different manners the dimensions incorporated by a smart city, each characteristic with the corresponding type and number of factors. The smart city key dimensions are essential tools for evaluating, planning and developing cities in a more efficient and sustainable manner, and also more oriented towards the needs of the citizens. These dimensions offer a structure and framework to approach the smart urban development and to measure the progress in this respect.
Accordingly, Camboim et al. (2019) have identified four key dimensions of the smart cities: city governance, configuration of the urban environment, technical and economical dynamics and socio-institutional structure. Giffinger et al. (2007) have identified six key characteristics of the smart city: smart economy (competitiveness), smart environment (natural resources), smart governance (participation), smart life (quality of life), smart mobility (transport and ICT) and smart people (social and human capital). Sharifi (2019) has conceived a model in which he classified the indicators of a smart city by seven representative themes: economy, governance, people, mobility, environment, life and data. Bosh et al. (2017) suggested five other key dimensions, which define the framework of a smart city: people, prosperity, planet, governance and propagation. Zhu et al. (2019) have identified eight directions for the development of the smart city in China: smart community, smart governance, smart logistics, smart transport, smart medicine, smart energy, smart materials and smart constructions. Sen et al. (2018) proposed a smart city framework that contains six urban fields: economy, education, mobility, life and environment and security. Lim and Maglio (2018) conceived 12 characteristics of the smart cities encompassing smart devices, smart energy, smart environment, smart transport, smart houses, smart buildings, smart logistics, smart health, smart agriculture, smart security, smart hospitality and smart education.
Basically, smart cities use technology to bring significant improvements in each of these fields, making them more efficient, more accessible and more convenient for the inhabitants. By integrating the technology in these aspects of the urban life, more connected and more intelligent cities are created, which respond better to the needs and requirements of the modern society.
2 Methods
The general objective pursued in this paper is to evaluate and compare the development level of the technological services in 11 East European capitals, including Bucharest, from the perspective of the citizens’ perception (120 from each city) regarding the technological pillar which describes the existing services in each city, with the purpose of achieving a ranking of these that would show the position each one has in their endeavour to become a smart city. The technological pillar is evaluated through 5 fields (see Appendix 1), respectively: health and safety, mobility, recreational activities, work and school and governance, and the data employed were drawn from the 2023 IMD Smart City Index Report, for each city.
Each field has a number of services carried out in each city for the benefit of the citizens, with the purpose of ensuring the advance towards a smart city. Accordingly, the health and safety field encompasses services such as: online reporting of the city’s maintenance problems, applications or sites allowing the citizens to quickly transmit unwanted situations so that these cand be solved, access to various city services through Wi-Fi, surveillance cameras giving the citizens a feeling of safety, websites or applications that allow citizens to obtain information on the efficient monitoring of the air pollution, online appointment of the medical check-ups which improves the access and reduces reduce queue times etc.
The mobility field refer to services such as: car-sharing applications to reduce traffic congestion, applications ensuring the directioning to available parking spaces to reduce travel times, bicycle rental to reduce traffic congestion, online appointment and ticket sale for an easier use of the public transport, offering information related to traffic congestion in the city by means of mobile phones etc.
In support of the recreation activities, online ticket sale services are provided for shows and museums, making the participation in these events much easier.
As regards “work and school,” the online applications facilitate employment opportunities and simplify the business opening process. Also, the high speed Internet facilitates the connectivity needs and the educational institutions offer the possibility of acquiring good IT knowledges.
In terms of governance, the public access to the city’s finances in the online environment reduces the corruption, the online processing of the identification documents reduces waiting times, the existence of online platforms where citizens can express their ideas improve their life and the possibility to vote online improves the voting participation rate.
Starting from the assumption that the implementation of smart technologies in smart cities has a significant impact on the quality of life for the inhabitants and on the efficiency of the urban functioning, the hypothesis of the study is that the cities adopting these smart technologies will have significant improvements regarding health and safety, mobility, recreational activities, jobs and education, as well as the quality of the local governance.
In order to reach the general objective of the study, the following steps have been taken:
1Literature review: A detailed analysis of the literature was made to identify the existing studies and theories regarding smart cities and the impact of the smart technologies on the urban development, as well as the characteristics of the smart cities.
2Data Collection: Relevant statistical data from the 2023 IMD Smart City Index Report were collected for the 11 East European capitals, Bucharest included, regarding the technological pillar.
3Data Analysis and Methodology: The collected data were analyzed by means of the “Minimax Technique,” to identify the minimum and maximum value of the criteria relevant to the technological pillar.
4Result Interpretation: The results were interpreted in the context of the existing theories and of the general objective pursued, as well of the initial hypothesis.
5Formulation of the study’s conclusions.
In this manner, the Minimax Technique was employed as an evaluation and classification tool to reach the general objective of the study, giving a clear perspective on the citizens’ perception regarding the technological pillar from each smart city and highlighting the relative position of these in relation to others. This enabled the achieving of a ranking illustrating the position of each city in their endeavour to become smart cities. In this context, the Minimax Technique was the right choice, involving steps such as identifying the evaluation criteria, data scaling, assigning criteria weights, calculating total scores and city ranking.
3 Results and Discussions
We will further present the analysis of the research results, highlighting the findings obtained by applying the Minimax Technique in evaluating and ranking the 11 East European capitals, Bucharest included. This analysis will provide a detailed perspective on the position of each city as regards the citizens’ perception on the technological pillar of the city, as well as a comparison of these results between the cities.
3.1 Analysis of the Research Results
As we can notice, the table data from the Appendix 1 do not have a measuring unit, since the services presented in our analysis are diverse and cover a wide range of aspects related to the technological pillar of the smart cities. This diversity in criteria and indicators may complicate the direct comparison of the cities’ performances, as the natural differences between services and values could distort the results and could offer an incorrect picture of the situation.
To approach this issue and to smooth the data, we used the Minimax normalisation technique. Normalisation is an important step in data analysis when working with criteria which vary significantly in amplitude and measuring units. This technique allows us to bring all data at the same scale, so that we can accurately compare the performance of the cities within our analysis.
By applying the Minimax Technique, we have succeeded in transposing all data in an interval ranging between 0 and 1 (see Appendix 2), where 0 means the worst possible performance and 1 is the best possible performance, intermediate values being calculated by means of the relation (1):
(1)
where :
U(x) ranges between 0 and 1;
U original value that must be normalised;
min U minimum value;
max U maximum value.
This normalisation process enabled a relative comparison of the cities based on the perception of the citizens regarding the technological pillar, without being influenced by the initial absolute values of the criteria.
Analyzing Appendix 2, we can notice that for each criterion associated to the 5 services in each city, we have individual utility values and, in the end, we calculate the total utility for each city. This approach allows us to dissect and evaluate in a detailed manner the contribution of each criterion to the general perception of the citizens regarding the technological pillar of their city.
By individual breakdown and evaluation of the criteria, we can identify the strengths and weaknesses of each city in terms of technological services. This offers us a more detailed picture of the manner in which the citizens perceive the quality and efficiency of these services, according to their various aspects.
The total utility, which is the sum of the individual utilities of each criterion, offers us a global measure of the citizens’ general perception on the technological pillar of the city. This is an important indicator that allows us to compare cities with each other as regards their performance in the technology field and to identify the cities that stand out through high- quality technological services, as well as those that might need significant improvement in this area.
In terms of health and safety, Vilnius ranks first in this field, with a total utility of 5.04, outlining a high level of positive perception of the technological services related to health and safety. Bucharest is on the 8th place with 2,17, which also indicates a relatively positive perception of these services and distinguishes itself particularly in criteria such as online reporting of the maintenance problems and access to online medical services. Ljubljana, Budapest and Zagreb are among the cities ranking lower in this field.
The mobility field is led by Warsaw, with a total utility of 4,37, while Bucharest is on the 9th place with a total utility of 1.87, followed by Tallinn (1,86) and subsequently by Zagreb (0,2). This field analyses the aspects connected to traffic management, access to public transport and facilitation in crossing the city. Vilnius, situated on the 2nd place, and Budapest, on the 3rd, also stand out for good performances in this area.
For the recreational activity field, the utility values are relatively low for all the cities, with Bucharest situated on the 8th place. This field is focused on facilitating the citizens’ participation in cultural and recreational events and Tallinn city holds the maximum value (1) in this respect, while Riga has the minimum value (0).
In terms of work and school, Vilnius is situated on the first place again, with a value of 3,48 and Bucharest has a total utility of 0.98, ranking last. This field analyses the access to employment, education and professional development opportunities.
In the governance field, we can notice that Tallin city is once again on the first place with a value of 3,24, while Bucharest is on the 10th place, with a total utility of 0.30. This field examines the aspects related to the transparence of the governance and civic engagement.
In the total of all fields, Bucharest holds the 10th place in the general ranking, with a total utility of 5.43. Warsaw ranks first, with a total utility of 15.14.
3.2 Conclusion
Considering the results obtained, we believe that the general objective of the study was reached. The analysis based on the Minimax technique allowed the evaluation and comparison of the performances of the various East European capitals in terms of aspects connected to smart cities.
The study provided a detailed picture of the citizens’ perception regarding the technological services from their cities and outlined the significant differences between these cities. This enabled the identification of the strengths and of the areas that require improvements in each analyzed capital.
In the work and education field, a significant difference is noticed between the evaluated cities. Vilnius holds the top position with an impressive evaluation of 3,48, which suggests that the citizens of Vilnius perceive a favourable environment for the access to employment, education and professional development opportunities. This probably indicates the presence of efficient technological services and well-developed educational policies in Vilnius.
In contrast, Bucharest is at the opposite end of the ranking, with a total evaluation of only 0,98. This suggests that, in the perception of the citizens from Bucharest, the access to employment and education opportunities might be considered suboptimal or requiring significant improvement. This might can be a signal for the local authorities and governing bodies to conduct a more careful analysis of the existing technological services and educational policies, in order to make adjustments and improvements that would better support the needs of the inhabitants.
The general ranking of the smart cities, based on the total evaluation of all the analyzed fields reveals an interesting perspective on the position of Bucharest compared to other East European capitals. With a total utility of 5,43, Bucharest holds the 10th position in the general ranking.
On the other hand, Warsaw is at the top of this ranking, with an impressive total evaluation of 15,14. This suggests that in the citizens’ perception and in terms of technological services related to various aspects of the urban life, Warsaw distinguishes itself as the undoubted leader of the region. This top position might be the result of an efficient smart city development policy and of significant investments in technology and digital infrastructure.
While Bucharest is at the bottom of this ranking, this does not have to be a disappointing evaluation. Instead, it can be seen as an opportunity to identify the areas that require significant improvements and to develop strategies and projects for increasing the quality of life for the citizens by means of technology and of the smart city concept.
The general ranking reflects the ongoing importance of developing smart cities in the East European region and the competition to become leaders in this field. It is crucial that cities continue to invest in innovation and technology in order to improve public services, support the economic growth and meet the changing needs of the citizens.
In summary, this study is an important step in evaluating smart cities from the Eastern Europe and offers a solid basis for taking decisions and for the strategic development of these cities. Taking into account that smart cities continue to be an important trend in urban development, this type of research remains essential to support the progress and innovation in our urban communities.
Acknowledgment
The paper has been prepared under the research project with the title: Digitization, digital transformation, and artificial intelligence in public administration, 2023, financed by the Bucharest University of Economic Studies and is part of the research strategy of the International Centre for Public Management.
References
Al Sharif, R., & Pokharel, S. (2022). Smart City dimensions and associated risks: Review of literature. Sustainable Cities and Society, 77, Article 103542.
Albino, V., Berardi, U., & Dangelico, R. A. (2015). Smart Cities: Definitions, dimensions, performance, and initiatives. Journal of Urban Technology, 22(1), 3–21.
Allam, Z., & Newman, P. (2018). Redefining the smart city: Culture, metabolism and governance. Smart Cities, 1(1), 4–25.
Alshamaila, Y., Papagiannidis, S., Alsawalqah, H., & Aljarah, I. (2023). Effective use of smart cities in crisis cases: A systematic review of the literature. International Journal of Disaster Risk Reduction, 85, Article 103521.
Androniceanu, A., & Georgescu, I. (2023). Public Administration Digitalization and Government effectiveness in EU countries. Central European Public Administration Review, 21(1), 7–30.
Bosh, P., Jongeneel, S., Rovers, V., Neumann, H.-M., Airaksinen, M., & Huovila, A. (2017). CITYkeys indicators for smart city projects and smart cities. https://www.researchgate.net/publication/326266723_CITYkeys_indicators_for_smart_city_projects_and_smart_cities?channel=doi&linkId=5b434e4f0f7e9bb59b187e77&showFulltext=true
Camboim, G. F., Zawislak, P. A., & Amarante Pufal, N. (2019). Driving elements to make cities smarter: Evidences from European projects. Technological Forecasting and Social Change, 142, Article 154–167.
Caragliu, A., Del Bo, C., & Nijkamp, P. (2011). Smart cities in Europe. Journal of Urban Technology, 18(2), 65–82.
Economist Impact. (2022). Digital Cities Index 2022 Executive Summary. https://impact.economist.com/projects/digital-cities/2022-executive-summary/.
European Commission. (2023). Official website of European Commission. https://commission.europa.eu/
Giffinger, R., Fertner, C., Kramar, H., Kalasek, R., Milanović, N., & Meijers, E. (2007). Smart cities – Ranking of European medium-sized cities. http://www.smart-cities.eu/download/smart_cities_final_report.pdf
Hollands, R. G. (2008). Will the real smart city please stand up? City: Analysis of urban trend, culture, theory. Policy, Action, 12(3), 303–320.
IMD World Competitiveness Center. (2023). IMD Smart City Index Report 2023, p. 36. https://imd.cld.bz/IMD-Smart-City-Index-Report-20231/36/
Ionica, A. (2023). Orasele inteligente: Unde tehnologia intalneste viata urbana. https://smartcityblog.ro/orasele-inteligente-unde-tehnologia-intalneste-viata-urbana/
Israilidis, J., Odusanya, K., & Mazhar, M. U. (2021). Exploring knowledge management perspectives in smart city research: A review and future research agenda. International Journal of Information Management, 56, Article 101989.
Lim, C., & Maglio, P. (2018). Data-Driven understanding of smart service systems through text mining. Service Science, 10(2), 154–180.
Lytras, M. D., & Visvizi, A. (2018). Who uses smart city services and what to make of it: Toward interdisciplinary smart cities research. Sustainability, 10(6), Article 1998.
Nam, T., & Pardo, T. A. (2011). Conceptualizing smart city with dimensions of technology, people, and institutions. Proceedings of the 12th annual international digital government research conference: Digital government innovation in challenging times (pp. 282–291).
Săvulescu, C., & Antonovici, C. G. (2014). Orasul inteligent–ecosistem de inovare si adaptare. Smart Cities International Conference (SCIC) Proceedings, Vol. 2 (pp. 11–21).
Sen, R., Eggers, D. W., & Kelkar, M. (2018). Building the smart city, Deloitte center for Government Insights. https://www2.deloitte.com/content/dam/Deloitte/us/Documents/public-sector/us-fed-building-the-smart-city.pdf
Sharifi, A. (2019). A critical review of selected smart city assessment tools and indicator sets. Journal of Cleaner Production, 233, 1269–1283.
Tsun Lai, C. M., & Cole, A. (2023). Measuring progress of smart cities: Indexing the smart city indices. Urban Governance, 3(1), 45–57.
Zhu, S., Li, D., & Feng, H. (2019). Is smart city resilient? Evidence from China. Sustainable Cities and Society, 50, Article 101636.
* Corresponding author: cristina.alpopi@ase.ro
1 Bucharest University of Economic Studies, Faculty of Administration and Public Management, Bucharest, Romania
Cristina Alpopi1,*, Elvira Nica1, Cristina Manole1, and Anamaria Mișa1
Digital Maturity of Cities. A Comparative Study
Abstract:
Research background: Urban digitalization is vital for addressing the complex challenges faced by rapidly growing urban populations. Many researchers believe that smart cities offer solutions to resource management, environmental sustainability, economic growth, and overall quality of life.
Purpose of the article: The digital development gaps of cities and the complexity of the “smart city” concept are becoming fundamental topics in the states’ agenda. In this sense, it is necessary to identify those successful urban concentrations so as to constitute models to inspire the communities left behind from this point of view.
Methods: This article used the method of comparative analysis of data from the Digital City Index to determine the digital maturity stage of cities
Findings & Value added: Our research reveals interesting insights regarding the four criteria analyzed: connectivity, services, culture and sustainability. At the same time, it brings new insights by highlighting specific correlations between the digital transformation and variables such as the development stage of the cities or the continent of which they are a part. The study has its limits in that it uses data that can be correlated. However, it is not sufficient to establish causality. As the concept of “smart city” is a particularly complex one, of course that our research can advance with an analysis of factors that were not taken into account in the DCI report. Our study can be useful to the public management in Romania so that they can make effective decisions in accelerating the digital transformation in the cities of our country.
Keywords: digitalisation, smart cities, DCI, urban digitalisation, technology
JEL Classification: H83; O31; O38
1 Introduction
1.1 Urban Digitalisation
The international pressure on the security, competitiveness and sustainability of cities is becoming a constant in our lives. Of course, in the last two decades, a global priority has been to integrate the smart city model into the agenda of as many states as possible. (Albino et al., 2015). Smart cities are currently at the heart of the European Commission’s (EC) strategic vision for a modern, competitive and climate-neutral economy (European Commission, 2022). Moreover, the European Commission (2022) launched a new digital strategy that establishes a new vision that addresses the opportunities for digital transformation of a post-pandemic scenario and supports the achievement of the strategic priorities of the European Union until 2030. The European Union’s digital strategy is shaped around the so-called “European Digital Decade” concept, which reiterates the crucial importance of the digital transformation process. If the first narratives in this field was referring to the efficiency of public management and the adequate use of resources, nowadays, the central goal of smart city policies became the formation of sustainable, climate-neutral cities. (Biesaga et al., 2023) The digital strategy of the European Union will seek to implement a sustainable vision, created around the individual “for the digital society throughout the digital decade” so that citizens and companies are determined to perform (European Commission, 2022).
We are all citizens of a digital world, a world that confronts us with new possibilities, new rights, new duties (Isin & Ruppert, 2020). Digital citizens use ICT technologies to relate, communicate, access information and socialize in economic and political activities (Ciancarini et al., 2023). Thus, we can say that technology has acquired a fundamental role in the lives of people and the entire community, the digital transformation of cities continuing to bring countless advantages to both citizens and public institutions and stakeholders. The current agenda of smart cities involves the adoption of socio-technical innovation with the promise of merging information and communication technologies (ICT) in the desire to increase the economic and sustainable performance of cities. Researchers believe that this digital transformation will also bring with it a better quality of life for residents (Karvonen et al., 2020).
The management of relationships involving the state, regions, local authorities, and the communication between public administration entities and citizens now relies more and more on these technological advances. Effective governance is built upon principles of government openness, transparency, accountability, and active community involvement in shaping and implementing policies. Digital technologies ensure that these processes are accessible and user-friendly (Androniceanu et al., 2022) The development of cities (their growth and concentration) has led to increasing pressure to identify solutions amid a global effort to sustainably meet people’s demands. In this context, pressures are described as, in particular, environmental, economic and social (United Nations Human Settlements Programme, 2009). For most cities in the European Union, the solution to these challenges is the smart city. Urban digitization refers to the adoption of cutting-edge ICT solutions (mostly data-driven) to inform and integrate problem-solving into urban processes (Millard et al., 2014). Therefore, the digital transformation of cities, namely urban digitization, is understood as a continuous process, with a flexible evolution, which will be shaped according to various factors such as: technological innovations, economic development, crisis situations, strategic priorities.
Digitization will lead to the transformation to new forms of organization and social mechanisms, to new types and institutional models, generating regenerative effects on the whole society, contributing to the increase of the quality of life of all citizens. The conclusions of a group of researchers (Evans et al., 2019) emphasize the fact that the digital transformation of cities is not an issue related only to the technological agenda, but a complex socio-technical process that involves fundamental social, political and cultural. Thus, the great challenge is “to identify and shape the relationships between technological innovation and the society of smart cities by conveying collective interests and serving as a guardian of the public good” (Karvonen et al, 2019). Once the utility and benefits of urban digitization are established, it can be stated that the digital transformation of Romanian cities is more than a wish. However, according to the “Digital Economy and Society Index” (DESI), recorded after 2020, Romania ranks last among the 27 member states of the European Union (EU). This situation makes the phenomenon of urban digitization in Romania an interesting issue for researchers to analyze in order to outline the scientific contexts and, of course, to identify and propose specific solutions for the progress of our country. The present study carries out an analysis of the digital transformation situation of the states in the world in accordance with the “Digital Cities Index” (DCI). This comparative analysis will help us in establishing those models to follow on different issues analyzed by DCI. Our benchmarking research brings relevant insights into evaluating the digital performance of cities. This helps identify best practices and strategies that can be adopted from leading cities to drive local digital transformation in our country.
1.2 Literature Review
In different countries of the world, the development stages and development paths of ICT vary a lot, hence the significant differences of an economic and social nature between different states. For example, the fourth industrial revolution related to ICT is taking place globally, in France (Nouvelle France Industrielle), in Germany (Industrie 4.0), in Sweden (Produktion 2030), Austria (Produktion der Zukunft), Italy (Fabbrica Intelligente) and so on It is obvious that most EU member states are moving towards a digital economy, but it is a reality, at the same time, that there is a significant development gap in terms of its social benefits (Gao et al., 2022). Reis and Melão (2023) emphasize that digitalization is generally associated with the transformation of traditional processes into digital processes or that digitalization is a process of transforming analog data into digital data sets, which leads to the creation of value and the improvement of customer experience Digital development has become a driving force in economic development (Peng et al, 2023) allowing smart cities to do more with fewer resources(Maiurova et al., 2022).
Jiang et al. (2023) show that urban digital transformation can promote resource sustainability through technological innovation, structural transformation and reallocation of capital and that the implementation of urban digital transformation in resource-poor eastern cities and cities with unreasonable industrial structures has a more favorable effect on the sustainability of resources. Urban digital transformation facilitates urban economic and social activities, infrastructure and urban governance through elements of data and digital technologies, improving the efficiency of urban management and living standards. The progress of digital technologies promises “smarter” cities, thus more sustainable, more democratic and more accessible. Van Holstein et al. (2021) suggested that smart city development redistributes and consolidates rather than equalizes, providing unequal access to opportunities to practice urban citizenship. The authors draw attention to the unequal racial and gender results of digital inequality, because technologies can replicate and amplify oppressive and discriminatory structures. The same paper analyzes the unequal effects of the digitization of urban services, with a specific focus on people with intellectual disabilities, as a highly marginalized group of people who face a distinct set of barriers when accessing and using digitization services (Van Holstein, 2021).
In many countries, significant funding is provided for the construction of resilient, safe, sustainable and equitable transport infrastructures, with an obvious need for initiatives to digitize and inventory road assets, especially through the adoption of innovative technologies such as remote sensing, the Internet of Things and artificial intelligence, for asset management. The digitization and management of road assets are generally driven by transport planning and maintenance objectives, such as improving road safety, reducing congestion and increasing transport efficiency (Li et al., 2023). Traffic control infrastructures (ITC), elements such as traffic signs and signals, pavement markings, etc., play an important role in managing traffic flows and improving road safety. They provide information about the current state of the roads, restrictions and prohibitions, warnings and other useful information for traffic participants. Digitized and timely updated ITCs can benefit transportation management and lay a solid foundation for promoting the implementation of connected and autonomous vehicles, as well as the establishment of intelligent transportation systems (Li et al., 2023).
It is essential to assess the possibilities and obstacles regarding the different optimization scenarios for old buildings. Denmark is a leader in digitizing building data and making it accessible to the public, either through demolition and the construction of new ones, or through renovation (Andersen et al., 2021). The construction sector is a significant contributor to global environmental impacts such as global warming due to greenhouse gas emissions. Indeed, the construction sector was responsible for almost 40 % of all energy- related CO2 emissions in 2018. In addition, construction and demolition waste is responsible for 34 % of urban waste produced by OECD countries. In reality, like urbanization, the demand for new buildings will continue to grow. In 2018, 55 % of the world’s population lived in urban areas, which is expected to increase to approximately 68 % by 2050. Urbanization creates a demand for more housing, resulting in increased levels of demolition and new construction (Andersen et al., 2021).
A Danish case study shows that the environmental impact of renovating an old building can be reduced to 40 % of the environmental impact associated with the construction of a new building of similar size. In addition, an analysis of sixteen buildings by engineering company Rambøll showed an advantage in choosing to renovate rather than demolish and replace in terms of CO2 emissions and costs in all sixteen cases. To provide accurate information about the potential for renovation, as opposed to demolition and reconstruction, assessments of improvement options are needed in the early planning stages. A potential way to optimally choose options is to use automation and building information modeling, so digitizing and using data to create information about materials and buildings (Andersen et al., 2021). Dumitrescu (2022) appreciates that, taken together, the general mayor’s office of the city of Bucharest and the sectoral mayor’s offices of the capital carried out the most smart city projects, according to the report Scanning Smart Cities in Romania for 2022. Broken down by general mayor’s office, Cluj-Napoca is the city with the most numerous smart city projects (63), followed by Iasi (56) and Bucharest (54).
2 Methods
In order to analyze the situation of cities all over the world regarding the transition to the desired “smart city,” we used the Digital Cities Index ranking. Developed by Economist Impact and supported by NEC, this is a ranking system that assesses the level of digitization and technological progress in different cities around the world. It provides insight into how well cities are using digital technologies and data-driven solutions to improve urban life, governance and economic development. The specific criteria and methodology for calculating the Digital Cities Index may vary depending on the organization or research institution conducting the assessment.
To carry out this data comparison study, we used the latest DCI ranking – “Making digital work for cities: A global benchmark of urban technology.” Following its analysis, we have selected those states and cities that can be considered models of best practices in certain fundamental components of digital transformation. Thus, we presented their situation and provided some examples of successfully completed processes.
In order to identify best practices of certain cities in the world, we used comparative analysis. Comparative scientific research methodology involves the systematic comparison of different variables, cases or groups to identify patterns, relationships and differences between them. This type of research aims to explore how and why certain variables behave differently or similarly, under different conditions (Ragin, 1987). Benchmarking a Digital City Index (DCI) involves assessing and comparing the digital maturity or readiness of different cities or regions. As the first stage of the comparative analysis, we identified the data of the most recent DCI ranking published during the past year. Afterwards, we collected the data for each city or region that we thought that it was relevant to present. According to the DCI, this data can include information on broadband access, digital literacy rates, availability of digital government services, technology startups and more. Due to the diversity and complexity of the data, we further divided the analysis into four segments according to the four fundamental indicators that the studied index takes into account when analyzing a city’s digital performance: connectivity, services, culture and sustainability. Each of these pillars has various sub-branches and characteristics that we have summarized in Table 1. In order for our analysis to be relevant, we have highlighted which are those urban areas that have become centers of excellence according to the criteria presented in this table. The ranking is made following an objective process of quantitative and qualitative analyses, but without neglecting the citizens’ perception. The results take into account the survey carried out on a sample of 3000 inhabitants living in the cities evaluated in DCI. Among the quantitative metrics we mention, for example, the speed of the Internet, and among the qualitative ones we mention the plans regarding technology such as smart city strategies.
Details
- Pages
- XII, 874
- ISBN (PDF)
- 9783631924747
- ISBN (ePUB)
- 9783631924754
- ISBN (Hardcover)
- 9783631924655
- DOI
- 10.3726/b22205
- Language
- English
- Publication date
- 2025 (May)
- Keywords
- globalization innovation digitization sustainability economics finance management decision-making marketing research sharing economy circular economy
- Published
- Berlin, Bruxelles, Chennai, Lausanne, New York, Oxford, 2025. xii, 874 pp., 146 fig. b/w, 107 tables.
- Product Safety
- Peter Lang Group AG
Biographical notes
Tomas Kliestik (Volume editor)
Elvira Nica (Volume editor)
Prof. Ing. Tomas Kliestik, Ph.D. heads the Department of Economics at the University of Zilina. He focuses cross-sectionally on financial health prediction, earnings management, cost of capital, risk quantification and diversification, and tax shield-based corporate output optimization. He now emphasizes AI, the IoT in the digital and smart economies. Elvira Nica is a full professor at the Bucharest University of Economic Studies, the dean of the Faculty of Administration and Public Management, and also Doctor Honoris Causa at the University of Zilina, Slovakia. She is a scientist in management and economics, focusing on HR management and its strategic aspects, as well as modern aspects of smart economies.
