Digital Skills as a Determinant of Network Readiness in European Countries

Abstract Book of the 10th International Conference on Advanced Research in Management, Business and Finance

Year: 2026

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Digital Skills as a Determinant of Network Readiness in European Countries

Beata Sofrankova, Maria Matijova, Dagmara Ratnayake Kascakova

ABSTRACT:

In the context of accelerating digital transformation, digital skills are becoming a significant factor in technological adaptation, innovation performance and long-term competitiveness of economies. The paper focuses on the analysis of the relationship between the level of digital skills and digital readiness of European countries in the period 2018-2024. Digital readiness is measured by the Network Readiness Index, which comprehensively captures the technological, institutional and socio-economic aspects of digital transformation. Kendall’s correlation analysis was used to identify the direction and strength of the relationships between the analyzed variables, which was subsequently supplemented by panel regression analysis to assess the relative importance of individual indicators in explaining differences in digital readiness across time and space. The results indicate the existence of statistically significant, but differentiated relationships between the analyzed digital skills indicators and the level of digital readiness. The strongest positive links were identified in the case of basic digital skills of the population, which show moderately strong correlations with the overall level of digital readiness and with selected pillars of the index. The panel regression analysis also confirms that general digital literacy represents a stable and statistically significant determinant of the digital readiness of European economies, while indicators focused on the specialized digital workforce do not show a clear significant impact. The findings highlight the importance of systematically developing the digital competences of the entire population as a prerequisite for the effective use of digital technologies and the successful digital transformation of economies.

Keywords: Digital Transformation, Digital Human Capital, ICT Workforce, Network Readiness Index, Panel Data Analysis