An entropy-based digital maturity index for small and medium enterprises in Hungary

Abstract This paper introduces a firm-level digital maturity index for small and medium enterprises (SME-DMI), created using an entropy-based objective weighting method. The indicator was developed through a representative survey of Hungarian firms and its main objective is to evaluate the digital applications, tools and skills used by companies. It encompasses digital tools and infrastructure access, digital application usage and related skill levels. In addition to the main dimensions and their associated weights, this indicator also analyses the relationships between digital dimensions and firm size, using ANOVA. The results demonstrate that the impact of firm size is significant for both digital skills and knowledge and for business applications. However, connectivity and access digital public services is no longer a distinguishing factor between small and large firms.