Position of Southeast European Countries in the Digitalization of Manufacturing Processes Within SMEs: A Comparative Analysis Using EDAS and Entropy Weighting Methodology

The digitalization of manufacturing processes in Small and Medium-Sized Enterprises (SMEs) is increasingly recognized as a pivotal factor for business growth, market expansion, innovation, and improved investment efficiency.Despite the European Union's overarching goal of fostering digital transformation across all sectors by 2030, significant regional disparities persist, particularly within Southeast Europe (SEE).Although substantial research has been conducted on the digitalization of businesses within the EU, limited attention has been paid to the specific dynamics of Southeast European countries, especially those aspiring to join the Union.This study aims to fill this gap by analyzing the degree of digitalization and the adoption of Information and Communication Technologies (ICT) in SMEs across Southeast Europe.The Evaluation Based on Distance from the Average Solution (EDAS) method, enhanced by the Entropy weighting technique, was employed to assess the relative position of these countries in relation to the EU digitalization benchmark.Data obtained from the Eurostat database were utilized to evaluate ICT integration in SMEs with 10 to 249 employees.The results highlight a significant divide between EU member states and the candidate countries, with several SEE nations lagging behind the EU average in terms of digital maturity.Notably, discrepancies were identified not only between EU members and non-members but also within the SEE region itself, with clear divisions emerging between countries that have already joined the EU and those in the accession process.These findings underscore the urgent need for accelerated digital transformation and infrastructure development in countries where ICT adoption remains limited.The study emphasizes the importance of targeted policy interventions to foster digital integration and competitiveness among SMEs in Southeast Europe, thus contributing to the broader objectives of the EU's digital agenda.