Journal No Special 17

Amfiteatru Economic Journal
The Bucharest University of Economic Studies

Faculty of Business and Tourism
Volume XXV ● November 2023 ● Special Issue No. 17
Quarterly publication
Amfiteatru Economic Journal

is recognized and classified category A by
National Council of Scientific Research from Romania
Topics of the following two issues
Issue no. 65/2024 – Challenges for competence-oriented education in the

context of the development of artificial intelligence systems
Issue no. 66/2024 – Innovative Application of AI in Business Impacting

Socio-Economic Progress
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EDITORIAL BOARD
Editor-in-Chief
Vasile Dinu, Bucharest University of Economic Studies, Romania; Academy of
Romanian Scientists
Managing Editor
Laurenţiu Tăchiciu, Bucharest University of Economic Studies, Romania
Associate Editors
Cristina Circa, West University of Timișoara, Romania
Dan-Cristian Dabija, ”Babeş-Bolyai” University, Cluj-Napoca, Romania
Violeta Mihaela Dincă, Bucharest University of Economic Studies, Romania
Cristian-Mihai Dragoş, ”Babeş-Bolyai” University, Cluj-Napoca, Romania
Madălina Dumitru, Bucharest University of Economic Studies, Romania
Valentin Dumitru, Bucharest University of Economic Studies, Romania
Raluca-Gina Gușe, Bucharest University of Economic Studies, Romania
Romero Isidoro, University of Seville, Spain
Borut Jereb, University of Maribor, Slovenia
Octavian-Dragomir Jora, Bucharest University of Economic Studies, Romania
Nicolae Lupu, Bucharest University of Economic Studies, Romania
Čudanov Mladen, University of Belgrade, Belgrade, Serbia
Judit Oláh, University of Debrecen, Hungary
Corina Pelau, Academia de Studii Economice, Bucureşti, România
Cătălina Soriana Sitnikov, University of Craiova, Romania
George-Sorin Toma, University Bucharest, Romania
Aharon Tziner, The Academic College of Netanya, Netanya, Israel
Cristinel Vasiliu, Bucharest University of Economic Studies, Romania
Milena-Rodica Zaharia, Bucharest University of Economic Studies, Romania
Editorial Advisory Board
Andrej Bertoncelj, University of Primorska, Koper, Slovenia
Yuriy Bilan, University of Szczecin, Szczecin, Poland
Slobodan Čerović, University Singidunum, Belgrade, Serbia
Ung-il Chung, The University of Tokyo, Tokyo, Japan
Lóránt Dénes Dávid, Szent István University, Gödöllő, Hungary; ordinary member of
the European Academy of Sciences and Arts
Emilian Dobrescu, Romanian Academy, Bucharest, Romania
Valeriu Ioan-Franc, Romanian Academy, Bucharest, Romania
Romualdas Ginevicius, Vilnius Gediminas Technical University, Vilnius, Lithuania
Nicolae Istudor, Bucharest University of Economic Studies, Romania
Delgado Francisco Jose, University of Oviedo, Spain
Dumitru Miron, Bucharest University of Economic Studies, Romania
Puiu Nistoreanu, Bucharest University of Economic Studies, Romania
Bogdan Onete, Bucharest University of Economic Studies, Romania
Rodica Pamfilie, Bucharest University of Economic Studies, Romania
József Popp, Corresponding Member of the Hungarian Academy of Sciences; John von
Neumann University, Hungarian National Bank
Roxana Sârbu, Bucharest University of Economic Studies, Romania
Dalia Streimikiene, Vilnius University, Vilnius, Lithuania
Bernhard Swoboda, University of Trier, Germany
Gabriela Țigu, Bucharest University of Economic Studies, Romania
Founders
Vasile Dinu, Bucharest University of Economic Studies, Romania
Sandu Costache, Bucharest University of Economic Studies, Romania
Editorial Office
Irina Albăstroiu, Bucharest University of Economic Studies, Romania
Alexandra Barbu, Bucharest University of Economic Studies, Romania
Mihaela Bucur, Bucharest University of Economic Studies, Romania
Simona Margareta Bușoi, ASE Publishing House, Bucharest University of Economic
Studies, Romania
Răzvan Dina, Bucharest University of Economic Studies, Romania
Raluca Mariana Grosu (Assistant Editor), Bucharest University of Economic
Studies, Romania
Silvia Răcaru, ASE Publishing House, Bucharest University of Economic Studies,
Romania
Violeta Rogojan, ASE Publishing House, Bucharest University of Economic Studies,
Romania
Daniel-Ion Zgură, Bucharest University of Economic Studies, Romania
Contents
Technological Challenges and Sustainable Development ............................................. 947
Alina Mihaela Dima
The Sustainability of Digital Networks and Globalisation, the Key to Resilience? .... 950
Dorel Paraschiv, Daniela Manea, Emilia Țițan, Simona-Andreea Apostu
and Mihaela Mihai
Digitalisation and Skills Adequacy as Determinants of Innovation
for Sustainable Development in EU Countries: A PLS-SEM Approach ..................... 968
Sînziana-Maria Rîndașu, Liliana Ionescu-Feleagă, Bogdan-Ștefan Ionescu
and Ioan Dan Topor
Analysing EU Countries’ Digital Progress Towards Sustainable
Development Goals........................................................................................................... 987
Alexandra-Nicoleta Ciucu (Durnoi), Cosmin Alexandru Teodorescu,
Vanesa Madalina Vargas and Corina Ioanas
Students’ Engagement and Motivation in Gamified Learning .................................. 1003
Mihaela Covrig, Simona Irina Goia (Agoston), Ramona Ștefania Igreț, Cristian Virgil
Marinaș, Alexandra Dorina Miron and Monica Roman
Towards a Modern Leadership: Sustainable Development-Oriented
Management ................................................................................................................... 1024
Mihaela Simionescu, Cristinel Vasiliu, Corina-Georgiana Șerban (Pătrîntaș),
Andreea-Nicoleta Bichel and Oana Simona Hudea
Organic Food Consumption During the COVID-19 Pandemic. A Bibliometric
Analysis and Systematic Review ................................................................................... 1042
Romana Emilia Cramarenco, Monica Ioana Burcă-Voicu and Dan-Cristian Dabija
Towards Sustainable Consumption: Consumer Behavior
and Market Segmentation in the Second-Hand Clothing Industry ........................... 1064
Răzvan-Andrei Corboș, Ovidiu-Iulian Bunea and Monica Triculescu
Social Image in the Online Environment – Sustainable Motive
for Book Sales During the Pandemic ............................................................................ 1081
Corina Pelau, Valentina Ghinea and Bogdan Hrib
Sustainable Development of E-commerce in the Post-COVID Times:
A Mixed-Methods Analysis of Pestle Factors .............................................................. 1095
Adriana Dima, Elena Radu, Ecaterina Milica Dobrotă, Adrian Oțoiu
and Alina Florentina Săracu
Implications of Digitalisation on Skill Needs in a Sustainable Economy ................... 1115
Monica Mihaela Maer Matei, Cristina Mocanu, Ana Maria Zamfir and Anamaria Nastasa
The Relationship Between the Tourism Industry and Sustainable Development
Goals – Word Cloud Analysis ....................................................................................... 1131
Răzvan-Cătălin Dobrea, Aurel Marin, Cristina Dima and Mădălina-Ioana Moncea
Analysis of the Impact of Energy Efficiency and Renewable Energy on Greenho
use Gas Emissions and Economic Growth in EU Member States .............................. 1149
Andra-Nicoleta Mecu, Florentina Chițu, Georgiana-Ionela Marin and Gheorghe Hurduzeu
946 Amfiteatru Economic

TECHNOLOGICAL CHALLENGES AND SUSTAINABLE DEVELOPMENT
Please cite this article as:

Dima, A., 2023. Technological Challenges and Sustainable Development. Amfiteatru
Economic, 25(Special Issue No. 17), pp. 947-949.
DOI: https://doi.org/10.24818/EA/2023/S17/947
In the contemporary context dominated by rapid technological advances, sustainable

development has emerged as an essential and globally significant topic of discussion. While
the undeniable benefits technology brings to everyday life, we must also confront the
significant challenges it poses to sustainable development goals.
One of the major challenges we face in promoting sustainable development is the
increasing dependence on the Earth's limited resources. Advanced technologies, including
electronic devices and electric vehicles, generate a growing demand for natural resources.
This phenomenon can lead to overexploitation of resources and significant negative
environmental impacts. Addressing this challenge and finding solutions requires the
development of more efficient and sustainable technologies, the promotion of advanced
recycling practices, and the identification of innovative alternatives.
Paradoxically, technology can also be a significant source of solutions for promoting
sustainable development. Through innovations like the Internet of Things (IoT) and
Artificial Intelligence (AI), we have the opportunity to monitor and efficiently manage
resources such as energy and water, thereby reducing waste and inefficiencies.
Furthermore, technology can facilitate sustainable development by providing increased
access to information and education in critical areas related to the environment and
sustainability.
In this issue of the journal we have 12 articles on various topics of interest, as follows:
The paper “Sustainable development of e-commerce in the post-covid times: a mixed-
methods analysis of PESTLE factors”, applies a mixed methods approach to identify the
PESTLE factors affecting e-commerce in the post-COVID period. The study was
conducted by developing a questionnaire for organizations using e-commerce and was
applied to a sample of 309 Romanian firms. The results suggest that the pandemic has
intensified the adoption of e-commerce, with businesses focusing on expanding their online
presence and leveraging new technologies to enhance the customer experience.
The article “Analysis of the impact of energy efficiency and renewable energy on
greenhouse gas emissions and economic growth in EU member states”, validates the
hypothesis that energy efficiency and renewable energy production in the European Union
member states effectively reduce greenhouse gas emissions while also positively
influencing economic growth.
The sustainability of digital networks in the context of globalization has become a major
topic of interest in contemporary academic research. In an increasingly interconnected and
technology-dependent world, studying the relationship between these two aspects is
essential for understanding how modern society can achieve and maintain resilience in the
face of profound changes and challenges in its economic, social, and technological
environment. In this context, the paper “The sustainability of digital networks and
Vol. 25 • Special Issue No. 17 • November 2023 947

globalisation, the key to resilience?” highlights a strong connection between the
development of digital networks and innovative services, globalization, and resilience.
In the sphere of current academic research, the importance of the relationship between the
tourism industry and sustainable development goals is becoming increasingly clear. The
tourism industry plays a significant role in stimulating global economic growth, generating
employment and income. Through the analysis of the connection between the tourism
industry and the Sustainable Development Goals (SDGs) conducted in the study “The
relationship between the tourism industry and sustainable development goals – word cloud
analysis” decision-makers can identify opportunities to maximize the positive impact of
tourism on the economy, including poverty reduction, promotion of social inclusion, and
economic diversification.
The process of digitalization has generated a significant increase in data and connectivity
across all sectors, opening up new opportunities and challenges. At the same time,
individual skills are essential to harness technological potential and contribute to innovation
and sustainable development. Digital skills, adaptability, technological knowledge, and
problem-solving abilities are becoming increasingly important for EU citizens and the
workforce. The article “Implications of digitalization on skill needs in a sustainable
economy” investigates the links between digitalization and skills needs among digitalized
enterprises, focusing on those implementing artificial intelligence solutions. The main
results of this analysis indicate that digitalization leads to skills shortages and skills gaps
among companies adopting different digital solutions. Additionally, the depreciation of
employees' skills and the increasing skills needs at the firm level put pressure on increasing
firms' investment in professional training. Furthermore, the study “Digitalisation and skills
adequacy as determinants of innovation for sustainable development in EU countries: a
PLS-SEM approach” aims to examine the extent to which the EU countries’ level of
digitalisation and skills adequacy impact the innovation output, as well as to determine
whether the level of digitalisation can lead to an increase in the individuals’ competencies
and employability.
In the context of current concerns about sustainability and the environment, analyzing
consumer behavior and market segmentation in the second-hand clothing industry becomes
essential to understand current consumer trends and practices in the effort to promote more
sustainable consumption. Thus, the study “Towards sustainable consumption: consumer
behavior and market segmentation in the second-hand clothing industry” identifies the main
factors that influence consumers to buy second-hand clothing products and to examine the
profile of customers who make these purchases, focusing specifically on Romania. The
analysis results highlight various consumer typologies, including consumers motivated by
good value for money and the desire to contribute to a circular economy, younger consumers
with lower incomes and those who occasionally buy second-hand products.
Gamification in learning is an educational strategy that uses game-specific elements to
stimulate students' engagement and motivation in the learning process. It involves the use
of elements such as competition, rewards, challenges, and constant feedback to transform
educational content into a more appealing and captivating experience for students.
Engagement and motivation are two key aspects of learning success, and gamification can
play a significant role in enhancing them. When students are involved in a learning
environment that offers challenges and tangible rewards, they become more inclined to
actively engage and improve their academic performance. The study of these aspects in the
article “Students’ engagement and motivation in gamified learning” highlights three
specific engagement factors: the first factor represents interest in new challenges; the

second factor reflects the immersion in gamified learning and satisfaction of completing;
the third factor is related to students' purposes and clarity of the goals.
The intersection of digitalization and sustainable development goals in the European Union
has gained significant importance as the EU seeks to address complex global challenges.
Digitalization has become a key driver of societal and economic transformation worldwide,
offering opportunities to enhance economic growth, increase efficiency, promote
innovation, and address environmental and social challenges. By analyzing the challenges
and projections related to key digitalization indicators, the article “Analysing EU countries'
digital progress towards sustainable development goals” highlights the progress of the
European Union in achieving sustainable development goals. The focus is the need for a
comprehensive understanding of how digitalization can drive economic prosperity, enhance
social inclusivity, and mitigate environmental impacts while aligning with the broader
Sustainable Development Goals framework.
Exploring the path towards modern leadership through the lens of sustainable leadership is a
current intellectual challenge. In this context, the study titled “Towards a modern leadership:
sustainable development-oriented management” emphasizes the need to adapt leadership
styles in line with the changing requirements of the current economic environment and
sustainability-related challenges. The result reflects the appreciations that the employees
operating in the organisational environment manifest with respect to the features of
sustainability-oriented leaders, as well as to their long-run role in promoting sustainability.
Increased interest in health and the origin of food has led to a shift in consumer preferences
towards organic food products, reflecting a growing environmental responsibility trend. The
paper “Organic food consumption during the COVID-19 pandemic. A bibliometric analysis
and systematic review” aim to identify the most relevant specialized articles, published
during the pandemic which address sustainable consumption of organic food. The results
highlight that approaches to the strategies adopted by retailers to promote the purchase of
organic food require a better use of online marketing tools for development and/or
strengthening a favourable mindset for this type of consumption, raising awareness about the
importance of health, food safety, generating positive attitudes and perceptions, as well as
understanding the need to pay a premium price for these types of foods.
The study “Social image in the online environment – sustainable motive for book sales
during the pandemic” aims to determine whether a good-looking, interesting and attractive
bookshelf used as a background on online communication platforms is a good reason to buy
books during the pandemic. Through empirical analysis, it is demonstrated that the
perception that the presence of books confers an intellectual look, mediated by the fact that
a background with books induces an intellectual image, becomes a valid buying motive for
books. Therefore, the study has significant implications for shaping the future book sales
strategy and highlights the major role played by the aspect of book-covers for the
sustainable future sales.
This special issue mainly focused on technological advances, sustainable development and
the impact on economic and civil society could be an useful instrument for researchers,
academics, and the business community and all parties interested in these topics, offering a
complex perspective over these dimensions within a dynamic and unpredictable context.
Professor Alina Mihaela DIMA, PhD

Vice-Rector, Scientific Research, Development and Innovation
Bucharest University of Economic Studies

AE The Sustainability of Digital Networks and Globalisation,
the Key to Resilience?
THE SUSTAINABILITY OF DIGITAL NETWORKS AND GLOBALISATION,

THE KEY TO RESILIENCE?
Dorel Paraschiv1 , Daniela Manea2* , Emilia Țițan3 ,
Simona-Andreea Apostu4 and Mihaela Mihai5
1)2)3)4)5)
Bucharest University of Economic Studies, Romania
Please cite this article as: Article History

Paraschiv, D., Manea, D., Țițan, E., Apostu, S.A. and Received: 15 August 2023
Mihai, M., 2023. The Sustainability of Digital Networks Revised: 5 September 2023
and Globalisation, the Key to Resilience?. Amfiteatru Accepted: 19 September 2023
Economic, 25(Special Issue 17), pp. 950-967.
Abstract
Rethinking the concept of resilience in the post-pandemic period is urgently needed
considering an uncertain and unpredictable future. To identify the necessary solutions for
the recovery of the economy, the involvement of all actors in the socio-economic and
political environment is vital. Consolidating regional development, intensifying global
cooperation, and developing sustainable business models in the field of digital
entrepreneurship are necessary pillars in revitalising the economy and creating a sustainable
economy. In this context, using data for the countries of the European Union, it was shown,
using statistical methods of multivariate analysis, that globalisation and digitalisation are
necessary to achieve resilience. Thus, new opportunities are opening up for creating
development strategies that can prepare socio-economic systems for future shocks and
uncertainties.
Keywords: resilience, globalisation, digitalisation, networks, sustainability, multivariate

analysis
JEL Classification: L14, L26, C01, O52
*
Corresponding author, Daniela Manea – e-mail: daniela.manea@csie.ase.ro
This is an Open Access article distributed under the terms of the Creative Commons
Attribution License, which permits unrestricted use, distribution, and reproduction in any
medium, provided the original work is properly cited. © 2023 The Author(s).

Sustainable Development and Technological Challenges AE
Introduction
The coronavirus pandemic highlighting the difficulty in facing an uncertain and
unpredictable future. Although resilience in not a new concept at this time it is necessary to
be updated and rethought considering disruption impact of COVID-19 crisis and robust
recovery approach. Global economic uncertainty causes crisis management to be
approached more from a behavioral perspective than an economic one, defining the pre-
pandemic period (Grewal and Tansuhaj, 2001; Ratten, 2020).
Simultaneously, the dynamics of entrepreneurial ecosystems are influenced by the
phenomenon of globalisation but also by changes due to technological progress, which
shows the importance of analysing the evolution of entrepreneurial behavior in terms of
digitalisation and innovative decision-making capabilities (Korber and McNaughton, 2017).
This test fact is also confirmed in the specialised literature by identifying a strong
correlation between social sustainability, innovation, and competitiveness not only at the
organisation level, but also at the country level (Fonseca and Lima, 2015; Fonseca,
Domingues and Dima, 2020).
Considered an essential feature of the entrepreneurial ecosystem, resilience can be a trigger
for entrepreneurial intentions, as evidenced by the European Union's strategies and policies
on the possibility of remedying immediate economic and social damage caused by the
coronavirus pandemic (European Commission, 2022). Thus, in addition to the long-term
EU budget, NextGenerationEU is a temporary tool designed to stimulate recovery and
create a greener, more digital, and resilient Europe (European Commission, 2022),
continuing to capitalise on the opportunities offered by globalisation.
The fiscal and financial commitments made in this activity will have a lasting impact on the
global economic direction, the recovery of losses caused by the COVID-19 pandemic being
influenced by adaptability and efficiency in decision making (Ioan-Franc and Diamescu,
2021; Schwab and Sternfels, 2022). Similarly, the Web Economic Forum (WEF)
emphasises the importance of adopting sustainable and inclusive solutions that consider, in
the long-term, changes in socio-economic and political factors, which coincides with the
vision of the Recovery Plan for Europe (Schwab and Sternfels, 2022; European
Commission, 2022). Recommended public policies, obtained from the analysis of
macroeconomic indicators, offer private entrepreneurs the opportunity to make optimal
decisions for the evolution of their business (Păunică et al., 2021).
To ensure stability and support the economic openness necessary for sustainable
development, it is necessary to consider all aspects of resilience: risk reduction, the ability
to absorb shocks, respectively recovery through adaptation and transformation (OECD,
2021). This study focuses on identifying innovative factors that ensure a sustainable
process of resilience in a country's economy. The post-pandemic context requires new
approaches to maintain stability within a global system based on agreed rules and to ensure
sound governance, which is necessary for economic openness to create a predictable
economic environment conducive to sustainable development (OECD, 2021).
The main purpose of this research is to identify whether there is a relationship between
resilience and globalisation and a country's ability to implement information technology
and communication networks (ICT) to create a sustainable and competitive economy.
Therefore, we analysed 27 European countries from this perspective in 2019, 2020 and
2021, using correlation and regression analysis. The results highlighted that in order to

achieve resilience, globalisation and networks are necessary, the correlation between them
being positive and strong. To achieve this objective, the data were processed and analysed
using the specialised software packages SPSS, XLSTAT and VOSviewer.
The paper is structured in three main sections. Section 1 presents a literature review and
provides an overview of selective studies on globalisation, a country's ability to benefit
from digital transformation and resilience, being dedicated to exploring the most relevant
studies in the field. In Section 2, the methods and data used in the analysis are presented,
with the main results being described and analysed in Section 3. The paper ends with the
authors’ conclusions regarding the studied topic, as well as future research possibilities.
1. Review of the scientific literature

Originally defined as the capacity to absorb disturbances with the possibility of returning to
a functional state, today, the concept of resilience also includes aspects related to the
possibilities of adapting to new realities (Walker, 2020; Ioan-Franc and Diamescu, 2021).
Resilience, analysed from an organisational point of view, is often used to show how a
national economy can return to the level before an economic shock, from the perspective of
macroeconomic indicators. At the same time, the ability to return to an economic level as
close as possible to the one existing before the shock is also supported by the potential of
organisations to respond to negative impacts by minimising the effects of these changes
(Marković, 2018).
Entrepreneurial resilience is an important factor in building a sustainable entrepreneurial
ecosystem using the three dimensions of resilience: resistance, ingenuity, and optimism (Ayala
and Manzano, 2014). At the same time, as an important quality for entrepreneurs, resilience
can be defined as the result of interactions between entrepreneurs and their environment
(Vogus and Sutcliffe, 2007; Ayala and Manzano, 2014) and can make a major contribution to
community recovery and enhanced social cohesion (Grube and Storr, 2018; Muñoz et al.,
2020). At the same time, the dynamic capacity of resilience leads to the need to periodically
assess the resilience of the supply chain (Pettit, Fiksel and Croxton, 2010; Datta, 2017). On the
other hand, Kharrazi (2020) considers redundancy, diversity, and modularity essential
characteristics that contribute to systemic resilience (Ringsmuth et al., 2022).
An important effect of globalisation is the reduction of inequalities, both at the interstate
and at the intra-state level. During the COVID-19 pandemic, this progress was slowed
down, with restrictions imposed and isolation measures bringing differentiated damage,
both at the individual level and in various sectors of activity (Narula and van der Straaten,
2020). This idea is also supported by Ciravegna and Michailova (2021), who, at the same
time, consider that the world economy will not see a greater globalisation in the post-
COVID-19 era, which is in contradiction with the statement of Contractor (2021), who
supports a sharp evolution of globalisation in the post-pandemic period.
In the case of a system, resilience is not always easy to identify and is affected by the
interaction between the system and the type of shock suffered (Kharrazi et al., 2020;
Ringsmuth et al., 2022). If we talk about the economic system, it can be considered a
network characterised by all activities carried out by the economic organisations included
in its composition (Chiriță, Ciurea and Nica, 2021). One of the main components of the
economic system is the digital one, the development of digital entrepreneurship being a key

pillar for job creation and innovation which leads to economic growth (Antonizzi and
Smuts, 2020). As innovation capacity is the main tool for increasing the level of
competitiveness, it will be necessary to adopt government strategies that lead to the
development of a sustainable and innovative society (Suciu and Petre, 2021). Additionally,
the way in which digital trends influence the transformation of the business environment
and the way in which they are associated with the resilience of the innovation system, in
addition to entrepreneurial skills, make the development of digital entrepreneurship a
prerequisite for sustainability (Satalkina and Steiner, 2020). This fact is consistent with the
results obtained by Pînzaru et al. (2022), who identified an interdependence between
digitisation and the drivers of sustainability adoption. Although, at the state and global
level, digital inequalities existed even before the COVID-19 panic, they have now
intensified further (Beaunoyer, Dupéré and Guitton, 2020; Silva et al., 2022), reducing the
digital divide is a challenge for most states (Aissaoui, 2021). Thus, the benefits of the
resulting information and communication technology offer a new perspective on the
entrepreneurial ecosystem in a digital age (Elia, Margherita and Passiante, 2020).
The concept of globalisation rose to popularity in the 1980s and 1990s, with resilience
implying popular appeal and policy relevance so that allowing security objectives to shift,
adapt, and according to media narrative, both in policy and the everyday effective (Brassett,
Croft, and Vaughan-Williams, 2013). Gunasekaran, Rai and Griffin (2011) associated
resilience with competitiveness of SMEs that are influenced by advances in operations
strategies, technology, and globalisation. Although there are diverse existential challenges,
the nation state proved to be resilient, in context of globalisation continuing to remain the
main actor that provides major communication channels to work out projects of
cooperation/coalitions, including alliances and treaties (Harshe, 2014). Financial
globalisation has resulted in further exposure to external conditions, leading to financial
sector modernisation, thus providing a source of further economic growth through the
development of this sector and also through institutional development, thus contributing
towards economic resilience building (Jankee, 2006).
Even territories that have not shown vulnerability presented many of the effects of extreme
events that today give rise to relief and rehabilitation programmes, being indicated that
colonialism, development, and globalisation have reduced resilience, increasing exposure
(Campbell, 2009).
Detecting and characterising community structure is absolutely necessary when studying
networked systems, understanding how community structure affects systemic resilience and
stability. Dong et al. (2018) indicated that the connections among communities` influence
resilience, highlighting the important effects that community structure has on network
resilience. Gao, Barzel and Barabási (2016) studied resilience patterns in complex
networks, the empirical results unveiling the network characteristics conducing to diminish
resilience, thus offering ways to prevent the collapse of ecological, biological, or economic
systems, and guiding the design of technological systems resilient to both internal failures
and environmental changes (Gao, Barzel and Barabási, 2016; Lapatinas, Litina and Poulios,
2022). The network structure and network components, regardless of domain, can influence
resilience concept thought changes and dynamics (Gao et al., 2015), the dynamical
mechanism of the cascading failure can help us to design more resilient networks (Liu,
Peng and Gao, 2015; Yuan, Aihara and Tanaka, 2017).

Globalisation can be defined as a process of interconnection that creates a global information

society, with ICT facilitating the emergence of a ‘network society’ based on the spatial nature
of flows of finance, information, and knowledge (Castells, 1996; Castells, 2001).
Globalisation is associated with four broad processes: mobility of capital; simultaneity;
bypass; and pluralism (Kanter, 1995), Vickery (1996) reporting a link with networks, an
increased number of network relations, and strategic alliances conducing to globalisation
(Dunning, 1997). Håkanson and Dow (2012) highlighted that markets and Networks in
international trade reduce distances regarding globalisation; the impact of geographic
distance has increased markedly for homogenous goods, whereas for more differentiated
goods it has decreased mildly.
Otherwise, Kharrazi et al. (2015) indicated that secure and responsible consumption
requires the diversification of both energy generation and energy imports, highlighting the
role of resilience in global energy networks. System resilience significantly influences the
network interconnectedness and modularity, depending on the network structure (Tu,
Suweis and D’Odorico, 2019). The world is facing an increasing complexity, connectivity,
and turbulence, thus multinational corporations recognised the need for resilience, the
pathway to globalisation and outsourcing creating complex supply networks vulnerable to
disruptions (Fiksel, Goodman and Hecht, 2014). Wei and Pan (2021) indicated that the
information, transportation, and economic networks of cities exhibit a dense pattern of
spatial distribution, the capacity of regions for resistance and recovery can be improved by
strengthening the construction of emergency systems and risk prevention mechanisms. The
main studies related to the FM Global Resilience Index - FM_GRI, the Network Readiness
Index - NRI and the KOF Globalization Index - KOF_GI are highlighted in Figure no. 1.
Figure no. 1. Principal studies on resilience, networks and globalisation

To highlight the most frequent words in the association of resilience with networks and
globalisation, a bibliometric analysis was used based on 22 scientific articles selected from
the academic platform Web of Science. To identify the most common words and the
relationship between them, content analysis was used, considering a network of co-
occurrences with a frequency of at least 3 times and a correlation degree greater than 0.5.
The analysis was carried out using the VOSviewer program (Figure no. 2).
The empirical analysis demonstrated that the most frequent words, from the full content of
the selected articles – apart from the words using: “resilience”, “networks”, “globalisation”
– are: “change”, “development”, “environment”, “impact”, “challenge”, “reliability”,
“complexity” (Figure no. 2).
The most common combinations in the most relevant studies in the field, using as threshold
the value of 0.5 (Figure no. 2), are:
 resilience-network-globalisation-impact-complexity-realiability-sustainability;
 globalisation-risk-challenge-crisis-culture;
 business-vulnerability-government-society-environment;
 change-development-policy-productivity-interaction
Figure no. 2. Word co-occurrence network in WOS publications

Based on the previous theoretical considerations, in order to identify whether resilience is
correlated with globalisation and a country's ability to benefit from digital transformation –
if globalisation and digitalisation lead to resilience, the following hypotheses were created:

H1: There is a strong link between globalisation and resilience in the case of European
countries.
H2: There is a strong link between digital networks and resilience in the case of European
countries.
H3: Globalisation and digital networks together lead to a better resilience.
2. Data and methodology

The study of the relationship between globalisation, the development of digital networks,
and innovative services and resilience was carried out on the basis of three composite
indices (Table no. 1), determined at a global level, the values used in the analysis for
European countries were recorded for the years 2019 (KOF_GI), 2020 (NRI), and 2021
(FM_GRI). Although there are no records for the same year, the analysis carried out better
captures the researched topic, since the data used are complete for the countries considered,
and the effects of globalisation and digitisation on resilience can be well quantified after a
certain period. In addition to the immediate effects of digitisation and globalisation, there
are also long-term effects that can be reflected in an economy’s ability to recover from a
crisis, this study being the first analysis of all three concepts together.
To identify a relationship between resilience, globalisation and the efficiency of the use of
ICT by a state to increase competitiveness and well-being, it is necessary to use composite
indicators, due to their characteristic of quantifying multidimensional concepts that cannot
be measured directly because of their complexity (Oțoiu and a Grădinaru, 2018; Lindén et
al., 2021).
For the accuracy of the analysis, each indicator must have data for each country; thus, the
most complete and recent available data were considered. In addition to the immediate
effects of digitisation and globalisation, there are also long-term effects that can be
reflected in an economy’s ability to recover from a crisis. The data are provided by KOF
Swiss Economic Institute, FM GLOBAL, and Portulans Institute (Figure no. 5, Table no.
1). The component description of the indicators included in the analysis is presented in
Table no. 1.
Table no. 1. Variable’s description
Variables Code Components Source
Economic Factors
FM Global Resilience Index FM_GRI Risk Quality Factors FM GLOBAL (2021)
Supply Chain Factors
Technology
People Portulans Institute
Network Readiness NRI
Governance (2020)
Impact
Economic Globalisation
KOF Swiss Economic
KOF Globalisation Index KOF_GI Social Globalisation
Institute (2019)
Political Globalisation
To characterise urban resilience, we used the FM Global Resilience Index (FM GRI),
which best reflects the level of resilience (Figure no. 3). It is a composite measure

calculated at country level (it takes values from 0 - the lowest resistance to 100 - being the
highest resistance) and includes three basic resilience factors: economic, risk quality, and
the supply chain. Additionally, each factor represents the result of four basic factors.
Figure no. 3. FM Global Resilience Index - Country Score (2021)
Networked Readiness Index (NRI) is a composite index measuring the propensity for
countries to exploit the opportunities offered by information and communications
technology (ICT). It is a composite index constructed with three levels (Figure no. 4).
Figure no. 4. Networked Readiness Index - Country Score (2020)

The KOF Globalisation Index (KOF GI) is a composite index measuring the economic,
social, and political dimensions of globalisation for almost every country in the world on a
scale of 1 - least to 100 - most globalised (Figure no. 5).
Figure no. 5. KOF Globalisation Index - Country Score (overall 2019)

Correlation analysis is used to identify the existence of a relationship between
globalisation, the development of digital networks and innovative services and resilience
(Fox, 1997; Jaba, 2002). To identify whether “globalisation” and “network development”
significantly influence “resilience”, regression analysis was used. This technique of
multivariate data analysis allows measuring the correlation between variables and
identifying the mathematical function that models the dependencies between them (Jaba,
2002). The regression model equation is:
(1)
Cluster analysis was used to group the 27 countries of the European Union according to the
indicators included in the analysis (Ketchen and Shook, 1996). Hierarchical Cluster
Analysis involves building a hierarchical sequence of partitions for a given set of objects,
resulting in a classification based on proximity measures defined for each pair of objects
(Köhn and Hubert, 2015). The similarity between the countries included in a cluster was
measured using the Minkowski (Generalised Euclidean distance) metric, and Ward’s
method. Thus, the grouping of countries, carried out according to similar characteristics for
FM_GRI, NRI, and KOF_GI, can lead to common cluster economies. At the same time,
based on these results, as a future research direction, it is desired to identify the existence of
significant correlations or differences between the clusters identified based on the variables
used.
3. Results and discussion

Descriptive analyses of the data were conducted to examine the sample characteristics. The
summary of descriptive statistics of each variable for the entire sample of countries used in
this study can be seen in full in Table no. 2. From Table no. 2 it was known that the average

score for resilience in case of European countries into the sample in this study is 80.36, the
lowest is 57.19 and the highest is 100 with standard deviation 12.58. The medium NRI
score is 67.49, ranging from 54.16 to 82.75, with a standard deviation of 8.65. The KOF
Globalisation Index ranges between 78.03 and 90.91, the medium value being 84.22 and
standard value 3.68 (Table no. 2).
Table no. 2. Summary statistics of dependent and explanatory variables
FM_GRI NRI KOF_GI
Mean 80.36 67.4915 84.22
Std. Deviation 12.58 8.65 3.68
Minimum 57.19 54.16 78.03
Maximum 100.00 82.75 90.91
As can be seen from Figure no. 5, regarding resilience, the countries with the highest values
for the FM Global Resilience Index are: Denmark, Luxembourg, Austria, Germany, and the
Netherlands, and the lowest values are achieved by: Malta, Greece, Cyprus, and Bulgaria.
Network Readiness Index records the highest values in the countries: Denmark, the
Netherlands, Sweden, and Finland, and the lowest values in the countries: Romania,
Greece, Bulgaria, and Croatia (Figure no. 4). When referring to globalisation, the highest
values for the KOF Globalisation Index (Figure no. 5) were recorded by the countries:
Netherlands, Belgium, Sweden and Austria, the countries with the lowest values being:
Croatia, Malta, Bulgaria, and Romania.
Analysis of the normality of the distributions of the indices used, using the Shapiro-Wilk
test, indicated that the FM Global Resilience Index, NRI, and KOF Globalisation Index
verify the null hypothesis of normality, reflecting a normal distribution. To measure the
correlation between FM Global Resilience Index, NRI, and KOF Globalisation Index,
parametric and nonparametric methods were used (Table no. 3), the results of the two
methods confirming each other (Corder and Foreman, 2014).
Table no. 3. Correlation
Pearson Correlation Spearman`s rho Corellation
FM_GRI NRI KOF_GI FM_GRI NRI KOF_GI
FM_GRI 1 0.852** 0.777** 1 0.843** 0.772**
NRI 0.852** 1 0.758** 0.843** 1 0.745**
KOF_GI 0.777** 0.758** 1 0.772** 0.745** 1
Note: **. Correlation is significant at the 0.01 level (2-tailed).
There is a direct and strong connection between the three indicators at the level of
European countries, which is easily visible in the correlograms for the analysis of the
dependance between the FM_GRI and NRI, respectively, KOF_GI indices (Figure no. 6).

Figure no. 6. Correlogram, European Union countries

This is reinforced by the values of the Pearson and Spearman correlation coefficients
(Table no. 3), which means that a country with a high score for both the Network Readiness
Index and the KOF Globalisation Index will score high in terms of resilience, so a high
degree of resilience, thus confirming the research hypotheses H1 and H2.
To analyse the dependency relationship between the three indices considered, a
multifactorial linear regression model was used, in which the FM Global Resilience Index
is the dependent variable, and the KOF_GI and NRI indices represent the independent
variables. The model is statistically significant ( ),
explaining 77% of the FM Global Resilience Index variation, and the coefficient of the NRI
variable is statistically significant for a significance level of 5%. The coefficient of the
variable KOF_GI is statistically significant at a confidence level of 94.7%, both results
confirming the research hypothesis H3 (Table no. 4). The resulting regression equation is as
follows:
(2)
Therefore, if the NRI score increases by one unit, the FM Global Resilience Index increases by
an average of 0.9 units (direct correlation), and if the KOF Globalisation Index score increases
by one unit, the FM Global Resilience Index increases by an average of 1.05 units (direct
correlation), considering a probability of 95%, confirming hypothesis H3 (Table no. 4).
Table no. 4. Regression analysis
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept -68.897 33.741 -2.042 0.052 -138.534 0.739
NRI 0.899 0.220 4.077 0.000 0.443 1.353
KOF_GI 1.052 0.517 2.033 0.053 -0.016 2.12
Given that, at the level of EU countries, globalisation and the development of digital
networks and innovative services lead to stronger resilience, a grouping of states was made
(Figure no. 7) which highlights the intensity of the correlations.
The cluster analysis results indicate a strong influence of the network on resilience for
countries in cluster 4. The countries with the best FM Global Resilience Index scores are
those in clusters 4 and 3.

Clusters 1 and 2 are governed by countries with high scores for the KOF Globalisation
Index (KOF_GI), compared with the Resilience Index (FM_GRI) and Networked Readiness
Index (NRI). The impact of globalisation on economies differs depending on the political,
economic, social, cultural, technological, and environmental aspects of each state. This fact
is also confirmed by inclusion in the two clusters of some ex-communist countries, states
for which the globalisation component of the economy is more pronounced.
Clusters 3 and 4 include the states with the highest values for the three indicators used in
the analysis. Although the crisis generated by the COVID-19 pandemic made 2021
considered a disruptive year, the values of the resilience index for 2021 do not indicate
major changes for the countries included in the analysis. Denmark stands out, which in
2021 is at the top of the ranking in terms of the resilience of the business environment in
almost 130 countries, compared to 2020, when it occupied position 3. This fact can also be
confirmed by the scores obtained for the Networked Readiness Index (NRI) and the KOF
Globalisation Index (KOF_GI).
• cluster 1
Estonia, Hungary, Italy,
Latvia, Malta, Poland,
Portugal, Slovenia,
Slovakia;
• cluster 2
Bulgaria, Croatia, Cyprus,
Greece, Lithuania,
Romania;
• cluster 3
Denmark, Finland,
Germany, the Netherlands,
Sweden;
• cluster 4
Austria, Belgium,
Czechia, France, Ireland,
Luxembourg, Spain.
Figure no. 7. Clustering European countries according to resilience, globalisation,
and networks
Certainly, the obtained results are interesting and consistent with the obtained results
following the application of the regression model, the mode of interaction of the three
indicators represents the starting point of a future research in which the analysis will be
carried out regionally.
Conclusions
The health crisis generated by the COVID-19 pandemic has highlighted the global
vulnerability as well as the difficulty of the population to adapt to an uncertain and
unpredictable future, showing at the same time that global resilience is low. Therefore, the

concept of resilience needs to be updated and rethought, taking into account the
destabilisation caused by the COVID-19 crisis and the robust recovery approach. This fact
is also emphasised in these OECD reports – Policy Responses to Coronavirus (OECD,
2020), the rethinking of priorities being also confirmed by Hierro et al. (2020), which looks
at which coverage will involve very high socio-economic costs post-pandemic from the
perspective of the link between the resources allocated to medical protection and economic
development.
The comparative analysis of NRI, Globalisation Index and Resilience Index highlighted the
strong, underdetermining link between the development of digital networks and innovative
services, globalisation and resilience, a fact confirmed by the results found in the
specialised literature, regarding the influence of globalisation and the modularity/structure
of a network on the resilience of an economy (Wilson, 2012; Tu, Suweis and D’Odorico,
2019; Blum and Neumärker, 2021). Concurrent, Pollák et al. (2021) confirm a major
relocation of digital interactions, during the pandemic, underlining the need to redefine
procedures in every sector of activity. According to the analysis, at the level of European
countries, there is a strong link between resilience, globalisation, and networks, resilience
being explained 77% by the indices that reflect the level of development of digital networks
and innovative services and globalisation. Finally, we clustered the European countries
according to the three indices, highlighting the similarities and differences between
countries in this regard. The results of this study are consistent with both Kharrazi et al.
(2017), who showed that network structure can significantly affect resilience to global
economic shocks, as well as Juhász et al. (2022) who pointed out that digital transformation
influences all areas of life regardless of geographic location. Simultaneously, ensuring the
resilience of a community can be supported by the diversity and globalisation of economic
activities (Muñoz et al., 2020).
The results open the possibility for future research on a better measurement, through
statistical indicators, of post-pandemic resilience in the context of globalisation and
digitalisation. The update of the three composite indicators included in the analysis is
annual; however, it is possible that some components within them are not updated
regularly, which can lead to results that can distort the overall picture of the 27 economies.
Practically, this limits the number of potential variables that can be used in the analysis and
is one of the arguments for selecting indicators for different years. The authors aim to
develop and test a composite index for resilience that captures the new approach to digital
economic development - through a robust, resilient, and sustainable recovery, based on
indicators that quantify the results of the implementation of the latest technologies (AI, IoT,
etc.), but also some indicators that characterise the objectives of sustainable development.
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AE Digitalisation and Skills Adequacy as Determinants of Innovation
for Sustainable Development in EU Countries: A PLS-SEM Approach
DIGITALISATION AND SKILLS ADEQUACY AS DETERMINANTS

OF INNOVATION FOR SUSTAINABLE DEVELOPMENT IN EU COUNTRIES:
A PLS-SEM APPROACH
Sînziana-Maria Rîndașu1* , Liliana Ionescu-Feleagă2 ,
Bogdan-Ștefan Ionescu3 and Ioan Dan Topor4
1)
Bucharest University of Economic Studies, Romania and 1 Decembrie 1918
University, Alba-Iulia, Romania
2)3)
Bucharest University of Economic Studies, Romania
4)
1 Decembrie 1918 University, Alba-Iulia, Romania

Rîndașu, S.M., Ionescu-Feleagă, L., Ionescu, B.S. and Received: 22 August 2023
Topor, I.D., 2023. Digitalisation and Skills Adequacy as Revised: 14 September 2023
Determinants of Innovation for Sustainable Accepted: 26 September 2023
Development in EU Countries: A PLS-SEM Approach.
Amfiteatru Economic, 25(Special Issue 17), pp. 968-986.
Abstract
Increasing innovation among the European Union (EU) countries became a primary concern,
as it can contribute to higher competitiveness, generate new business opportunities, and
promote the achievement of the sustainable development goals. This paper aims to examine
the extent to which the EU countries’ level of digitalisation and skills adequacy impact the
innovation output, as well as to determine whether the level of digitalisation can lead to an
increase in the individuals’ competencies and employability. For this research, we leverage
a Partial Least Squares - Structural Equation Modelling technique. The data used to achieve
the study’s objective was collected from composite indicators computed for the 27 EU
countries for a period of analysis spanning the years from 2017 to 2020. As a proxy for the
digital performance, we use the Digital Economy and Society Index, while for skills
adequacy and innovation output, we utilise the European Skills Index and the dimension of
innovation output dimension of the Global Innovation Index. The results indicate a
statistically significant impact between the level of digital performance and innovation
output, with a moderate effect size, partially mediated by skill adequacy. Moreover, the
findings emphasise that a higher level of digitalisation determines an increase in the
individuals’ employability and competencies. The study enhances the understanding of the
complex relationship between digitalisation, skills, and innovation by shedding new light on
the trajectories’ coevolution of the analysed constructs, presenting some implications for
policymakers and governments, and providing theoretical suggestions for future research.
*
Corresponding author, Sînziana-Maria Rîndașu – e-mail: sinziana.rindasu@cig.ase.ro
Attribution License, which permits unrestricted use, distribution, and reproduction in
any medium, provided the original work is properly cited. © 2023 The Author(s).

Kewords: digital performance (DP), digitalisation, innovation (IO), skills adequacy (SKA),
sustainable development, EU countries
JEL Classification: O3, O11, O15
Introduction
The permeative character restructures economic and social activities. In this context, at the
microeconomic and macroeconomic levels, there is an urge to leverage as many new
information technology (IT) solutions as possible to gain additional competitive advantages
and improve the level of innovation. In the case of the European Union (EU), sustainable
economic growth and improving the countries’ innovation level are among the series of
Sustainable Development Goals - SDG (Eurostat, 2023); thus, developing these areas will
support the EU in delivering on the 2030 Agenda.
The link between digitalisation and innovation has been and continues to be a highly
researched topic, with most studies focusing on the relationship at the firms’ level. Although
until recently the digitalisation’s role in creating and accelerating innovation was considered
implicit among scholars, new studies suggest that the underlying mechanisms are particularly
complex (Kastelli et al., 2022; Ning et al., 2023), arguing the need to question the status quo,
as digital technologies, depending on their type, might act as inhibitors of innovation (Usai
et al., 2021).
This controversy led researchers to consider other factors that might mediate the relationship.
Therefore, Kastelli et al. (2022) investigate the Greek manufacturing sector and discover that
the absorptive capacity enhances the benefits of digitalisation, improving the contribution of
the digital capacity to innovation performance. Similarly, Otioma (2022) and Gong et al.
(2023) notice the same positive direct link, enhanced by organisational learning, defined as
knowledge acquisition (accumulation), dissemination, and integration. Other studies focus
on the importance of entrepreneurial orientation (Kraus et al., 2023), regional digital industry
(Li et al., 2023a), and internal research and development (R&D) activities (Usai et al., 2021;
Radicic and Petković, 2023). Unquestionably, digitalisation also impacts the required set of
competencies, leading to the individuals upskilling (Pedota et al., 2023). As no form of
innovation can be human-less, a complete set of skills is required to support the creation
process. In this regard, Ciarli et al. (2021) recommend researchers to investigate more the
digitalisation, innovation, and skills to enhance the understanding of the factors’ coevolution.
Scholars have already provided great insight into this triad; however, most studies are related
to the business environment, while less attention is being paid to the countries’ level. The
existing studies that address this matter at the countries’ level are focused mainly on the direct
coevolution of digitalisation and innovation as antecedents of competitiveness (Marti and
Puertas, 2023) and the link between the different variables that form innovation (Huarng and
Yu, 2022; Bate et al., 2023; Oturakci, 2023). To address this research gap, the present study
aims to perform an exploratory analysis to examine the extent to which the countries’ level
of digitalisation and the skills adequacy determine an increase in the states’ innovation
output. Moreover, we are also investigating whether the degree of digitalisation can improve
individuals’ competencies and employability and if the skills’ adequacy can mediate the
relationship between digitalisation and innovation. To achieve this scope, we employed a
Partial Least Squares - Structural Equation Modelling technique, focusing on the EU
Vol. 25 • Special Issue No. 17• November 2023 969

countries between 2017 and 2020. As proxies for the digitalisation, skills adequacy, and
innovation, we used dimensions and sub-dimensions of the composite indicators Digital
Economy and Society Index - DESI (European Commission, 2022), European Skills Index –
ESI (Cedefop, 2022), and Global Innovation Index – GII (World Intellectual Property
Organisation, 2022). Therefore, this study enhances the understanding of the triad
coevolution and provides new insights into the skills adequacy’s importance in mediating the
relationship between the states’ levels of digitalisation and innovation output.
The remainder of the paper comprises four parts. The first part reviews the relevant literature
on the topic, focusing on the relationships between the analysed constructs and introducing
the research hypotheses. The following part describes the methodology employed, focusing
on the secondary data reliability, collection, and analysis. The third section presents the
results and discusses the findings, while the last section presents conclusions, limitations, and
future research directions.
1. Literature review and hypotheses development

1.1. Digitalisation and innovation
The prior literature examined the relationship between digitalisation and innovation by
focusing on the dynamic capability theory (Tortora et al., 2021; Tajudeen et al., 2022),
advocating that companies, by firstly managing resources efficiently (digital technologies),
can explore and exploit the innovation capabilities. By analysing more than 5 000
environmental patents, Leyva-de la Hiz et al. (2019) highlight that companies from states
with environmental weaknesses are wielding digital solutions to generate sustainable
innovations. However, the direct relationship between digitalisation and innovation is an
important topic of research (Kastelli et al., 2022), as some studies consider this link as being
implicit, and other researchers question its status quo, arguing that not all digital technologies
are fostering innovation outputs (Usai et al., 2021).
By analysing the GII’s pillars, Ekici et al. (2019) argue that the countries’ technological
readiness level improves innovation capacities. Other researchers have analysed the structure
of GII to determine which of the innovation inputs impact the outputs. Oturakci (2023)
discovers a negative correlation between the infrastructure pillar - which includes the
assessment of the countries’ information and communication technology (ICT), along with
the evaluation of the general infrastructure and ecological sustainability, and the knowledge
and technology output, while highlighting a positive correlation between the nations’
infrastructure and the creative output. Similarly, after examining the relationship between
digitalisation and environmental innovation in 24 EU countries, Hung et al. (2023) highlights
the importance of the digital business. From the coevolution context suggested by Ciarli
(2021), Marti and Puertas (2023) analyse the countries’ innovation capacity and digitalisation
level as antecedents of competitiveness by using DESI and GII as secondary data for the
examination, observing a stable development in terms of digitalisation and innovation, but
with a significant gap between north-central and south-eastern Europe. Based on these facts,
we assume the following:
H1. The level of digitalisation impacts the innovation output in EU Countries.

1.2. Digitalisation and skills adequacy
A large and growing body of literature investigates the relationship between digitalisation
and skills, focusing on the impact of digitalisation as a determinant of skills improvement.
From a historical point of view, in the case of highly digitalised industries, the skills
upgrading’s rate is significant (Autor et al., 1998). In terms of the digitalisation’s impact on
the skills adequacy, researchers propose new approaches to leverage the ICT’s benefits for
professional upskilling and reskilling (Tay et al., 2022). Vial (2019) argues that the digital
transformation has an increased potential of determining employees to step outside the limits
of their functions, thus leading to an increase in the individuals’ set of skills. Analysing the
relationship between digitalisation and professional development by adopting an identity-
centred approach, Wallin et al. (2022) found that this link is significantly influenced by the
individuals’ work meaning and their perception of themselves, concluding that the work-
identity misalignments can be addressed by improving the career crafting level. Although in
exceptional cases the personal engagement leads to an increase in the level of skill (Dima et
al., 2022), in the context of accelerated digitalisation, this relationship is not easily
quantifiable.
The effect of digitalisation on employment represents an extensively researched topic that
manages to capture different perspectives. Some studies suggest that the increase in
digitalisation leads to both job creation and destruction (Hunt et al., 2022), while other
scholars focus on the digitalisation’s creative or destructive character. By analysing the
changes in the worker flows in the context of increased investments in automation-intensive
goods for more than 30 000 manufacturing companies between 2002-2015, Domini et al.
(2021) highlight that digital and automation technologies can boost the number of employees
due to the creation of new job opportunities. The findings are also supported by the study
conducted by Klenert et al. (2023), extending the scope outside the manufacturing sector with
a neutral effect on low-skill workers. In the same vein, after examining the EU citizens’
perception regarding digitalisation, Vasilescu et al. (2020) found a positive attitude toward
digitalisation in the EU countries, but it also discovered vulnerable groups in terms of
exposure to the digital divide, stressing the need for improving both the individuals’ skills
adequacy and their confidence in the set of competencies.
As the impact of digitalisation on upskilling is an important aspect, scholars are focusing on
the companies’ abilities to help employees develop the necessarily set of skills. While large
organisations can leverage a series of resources to facilitate the process, in the case of small
and medium enterprises, there is a particular level of concern (European Commission, 2020).
However, a recent study, focusing on more than 17,000 Italian companies (Pedota et al.,
2023), emphasised that, regardless of the size, companies understand the importance of the
employees’ ICT competencies, developing strategies to upskill the workforce. By shifting
the perspective to the macroeconomic level, policymakers are expected to be responsible for
improving the individuals’ skills adequacy. Therefore, we hypothesise that:
H2. The level of digitalisation impacts the skills adequacy in EU countries.
1.3. Skills adequacy and innovation

The positive relationship between skills adequacy and creating innovation outputs is obvious,
as even nowadays, given the technological advancement, there is no such thing as a human-

less innovation (Juhász et al., 2022). Similar to the relationship between digitalisation and
innovation, this link can also be analysed through the academic lenses of dynamic capability
theory. The matter in this context is to examine the types of competency that improve the
impact on innovation.
Various studies have examined the taxonomies and their effect on creating innovation.
Brunow et al. (2018) discover that although both creative and STEM (Science, Technology,
Engineering, and Maths) workers improve the firms’ innovation level, in the case of the
creative workers, this link is limited to the companies’ boundaries, while in the case of the
STEM employees, there are fewer restrictions. However, given the shifting demands of the
business environment regarding sustainability-related aspects, along with the need for social
innovations, the importance of transversal competences is revealed (Caeiro-Rodríguez et al.,
2021; Svennevik and Saidi, 2022). In this regard, Shamzzuzoha et al. (2022) stress the need
to understand the required skills to facilitate the implementation of sustainable innovations.
Based on these facts, we hypothesise as follows:
H3. Skills adequacy positively impacts the generation of innovation outputs in EU countries.
Given the two sub-pillars of the GII’s innovation output (World Intellectual Property
Organisation, 2022), it can be observed that both of the items are related to digitalisation.
However, in the case of the creative outputs, a higher share is related to aspects not directly
linked to digitalisation. Starting from the coevolution between digitalisation, skills adequacy,
and innovation suggested by Ciarli et al. (2021), researchers started analysing this triad either
based on the innovation indexes (Marti and Puertas, 2023; Oturakci, 2023) or through
empirical analysis at the companies’ level (Pedota et al., 2023). From a technical perspective,
Li et al. (2023b) demonstrate that digital development, through an adequate set of skills, can
lead to the development of innovations, arguing that by optimising the ICT solutions,
companies could improve their sustainable performance. Thus, we hypothesise that:
H4. Skills adequacy mediates the relationship between the EU countries’ level of
digitalisation and innovation output.
2. Methodology
The scope of the research is to determine the influence of the states’ level of digital
performance and skills adequacy on the innovation output across the EU countries. One
subsequent research sub-objective is to empirically test the impact of the countries’
digitalisation on the skills adequacy and to examine whether this impact determines changes
in the influence of digital performance on innovation outputs. Based on these assumptions,
we propose the following model (Figure no. 1) derived from the previously defined research
hypotheses.

Figure no. 1. The proposed model

This study adopts a quantitative approach to investigate the factors that can determine the
improvement of innovation output. Firstly, we present the data used in this exploratory
analysis, followed by the statistical techniques wielded to test the proposed hypotheses.
2.1. Data collection

The data used for this research was collected from composite indicators computed for all 27
EU countries, between 2017-2020, with a total sample of 108 valid cases. As a proxy for the
countries’ level of Digital Performance, we used the Digital Economy and Society Index
(DESI), while for the skills adequacy and innovation outputs, we utilised as proxies the
European Skills Index (ESI) and the Global Innovation Index (GII). Each composite indicator
wielded has a series of dimensions (measured on a scale from 0 to 100) with the sub-
dimensions presented in Table no. 1.
Table no. 1. Items and constructs used for the study
Construct Dimension Sub-dimensions Source
(abbreviation) (abbreviation)
Connectivity broadband price index
(CON) fixed broadband coverage
fixed broadband take-up European
Digital mobile broadband Commission -
performance
Integration of digital intensity DESI (2022)
(DP)
digital technology digital technologies for businesses Reports’ years:
(IDT) e-commerce 2018-2021
Digital public
e-government
services (DPS)
Skills adequacy Skills activation labour market participation
(SKA) (SA) transition to work Cedefop – ESI
Skills basic education (2022)
development (SD) training and other education Reports’ years:
Skills matching skills mismatch 2018-2022
(SM) skills utilisation

Construct Dimension Sub-dimensions Source

(abbreviation) (abbreviation)
Innovation Creative outputs creative goods and services World
output (CO) intangible assets Intellectual
(IO) online creativity Property
Knowledge and knowledge creation Organisation
technology knowledge diffusion (2022) - GII
outputs (KTO) knowledge impact Reports’ years:
2018-2021
For the current research, we employed the dimensions as items of the constructs. From DESI
we used all the dimensions except for the Human Capital, which has as sub-dimensions the
“internet user skills” and “advanced skills and development”. The “internet user skills”
overlaps with one item of the ESI sub-dimension (“training and other education”). In contrast,
the “advanced skills and development” refers to the number of ICT specialists and companies
that provide ICT training to their employees. Although there is no overlap between the base
indicators of the second sub-dimension with any of SKA’s dimensions, the number of ICT
professionals determines changes in the SKA’s base indicators, which led to the decision to
disregard the HC dimension when performing this analysis. From GII we only used the
dimensions referring to the EU countries’ innovation output, defined by the World
Intellectual Property Organisation (2022) as “the result of innovative activities within the
economy”, given the study’s scope. In contrast, the innovation input refers to the factors that
enable and facilitate innovation activities.
The relationship between digitalisation and workforce’s skills can be complex and
multifaceted, the aim of this study not being to generally define the direction of the
relationship between digitalisation and skills adequacy, but only through the lens of the items
used to create the two composite indices. Thus, we advanced the hypothesis H 2 that digital
progress at the country's level, driven by the need to increase competitiveness and fostered
by government initiatives, is leading to changes in the individuals' skill set, with human
resources having to develop new skills to meet the ongoing business needs generated by
Industry 4.0.
As the labels used by Cedefop for the skills matching sub-dimensions might create confusion,
especially in the case of the SM’s sub-dimension “skills mismatch”, we provide the
framework’s definition as presented in the latest report (Cedefop, 2022, p.7): “the pillars can
be interpreted as a process: the development of an individual’s skills influences their
activation in the labour market and consequently their matching to employment”. Thus, the
sub-dimensions values have not been reversed for the current analysis.
Both ESI and GII are audited indicators, constructed based on the methodological guidelines
provided by the Joint Research Centre. DESI is not audited, but it “was developed according
to the guidelines and recommendations in the OECD/JRC’s Handbook on constructing
composite indicators: methodology and user guide” (European Commission, 2022, p.77).
The descriptive statistics of the items used are presented in Table no. 2.

Table no. 2. Descriptive statistics of the items used
Standard
Item N Min. Max. Mean Skewness Kurtosis
deviation
CO 108 20.30 57.90 40.97 8.76 -0.05 -0.70
CON 108 13.40 72.12 35.61 9.74 0.60 1.28
DPS 108 9.80 86.26 57.10 15.81 -0.66 0.40
IDT 108 11.41 53.41 29.27 9.57 0.24 -0.25
KTO 108 23.70 63.70 39.48 10.13 0.57 -0.51
SA 108 1.70 87.70 53.87 18.99 -0.84 0.29
SD 108 26.00 89.60 51.49 13.96 0.23 -0.30
SM 108 10.00 93.30 54.59 19.33 -0.62 0.07
2.2. Data analysis

The data and the proposed model were analysed using the SmartPls 4 software (Ringle et al.,
2022). The Partial Least Squares - Structural Equation Modelling (PLS-SEM) technique is
considered appropriate for the research’s scope as it allows the simultaneous estimation of
multiple causal relationships between one or more independent variables and one or more
dependent variables (Hair et al., 2019), suitable for the analysis of composite indicators in
different countries (Fernández-Portillo et al., 2020; Buitrago et al., 2021). Furthermore, PLS-
SEM is mainly used to develop exploratory research (Hair et al., 2017). Firstly, we assessed
the measurement model that establishes the reliability and validity of the construct and then
proceeded to evaluate the structural model that determines the significance of the
hypothesised relationships by running a bootstrap analysis with 5000 samples.
In order to test the hypotheses formulated, we conducted the analysis in three stages. The
first stage focuses on examining the measurement model through a confirmatory factor
analysis to assess the reliability and validity of each construct. The second stage was
represented by the bootstrapping procedure employed to test the proposed hypotheses. In the
third step, we conducted an importance-performance map analysis (IPMA) to extend the
PLS-SEM’s results considering each construct’s performance.
In the first stage, we examined the items’ loadings, Cronbach’s Alpha, average variance
extracted (AVE), the composite reliability (CR), and the discriminant validity for the initial
assessment. In table no. 3, we present the items’ loadings, the internal consistency, and the
convergent validity. All the loadings, except for CON and SM, exceed the threshold of 0.708
(Hair et al., 2019). The other two items’ loadings, although not above the recommended
value, exceed the 0.4 value and do not impact the convergent validity of the dimensions (Hair
et al., 2017); thus, the items were not eliminated from the measurement model. Although, in
the case of SKA, the Cronbach’s Alpha is slightly below the 0.7 threshold (Taber, 2018),
“values of 0.60 to 0.70 are acceptable in exploratory research” (Hair et al., 2022, p. 119),
Cronbach and Shavelson (2004, p. 402), stating that “a small mathematical detail (that)
causes the alpha coefficient to run a trifle lower than the desired value. Furthermore,
analysing the relationship between Cronbach's Alpha and CR, Peterson and Kim (2013)
suggest that the two analyses can be used interchangeably. Therefore, as can be noticed, the
model’s internal consistency and convergent validity requirements are met.

Table no. 3. Assessment of the reflective measurement model

Cronbach’s Item
Dimension Alpha rho_A CR AVE Item
loadings
CON 0.701
DP 0.812 0.905 0.884 0.721 DPS 0.929
IDT 0.899
SA 0.872
SKA
0.676 0.791 0.795 0.585 SD 0.903
SM 0.423
IO CO 0.910
0.709 0.739 0.871 0.772
KTO 0.847
To assess the discriminant validity, we used both the Fornell-Larcker criterion and the
heterotrait-monotrait (HTMT) ratio, as the items’ loadings variation is relatively strong;
therefore, the risk for the Fornell-Larcker criterion’s performance to be altered decreases
(Voorhees et al., 2016). As shown in table no. 4, all the dimensions have the square root of
the average variance extracted greater than the correlation between the dimensions and any
other dimension. Similarly, the HTMT ratios are below the conservative threshold of 0.85
(Franke and Sarstedt, 2019).
Table no. 4. Discriminant validity assessment
Dimension Fornell-Larcker criterion HTMT ratios
DP IO SKA DP IO SKA
DP 0.849
IO 0.588 0.879 0.725
SKA 0.523 0.594 0.765 0.557 0.717
The robustness check of the dataset was performed using Gaussian Copula analysis, available
in SmartPls 4, which allows the detection and correction of data endogeneity issues. The
results obtained exceed the 0.05 threshold specified in the literature, thus also excluding
causes that can lead to endogeneity, such as “measurement errors, simultaneous causality,
common method variance, and (un)observed heterogeneity” (Hult et al., 2018, p.3).
3. Results and discussions

The results of the bootstrapping procedure (Table no. 5) depicts that the first three formulated
hypotheses are accepted.
H1 presumed that a country’s DP impacts the IO proxied through CO and KTO. The result
indicates the existence of a significant relationship (β=0.381; T-value=5.874; p<0.001);
therefore, H1 is accepted. This finding confirms the Kalinić and Sternad (2015) and Marti
and Puertas (2023) studies’ results after examining the link between digitalisation and
innovation in the EU countries. In the organisational context, prior studies highlighted that
the industries’ adoption of digital technologies leads to transformations characterised by a
higher level of innovation (Alshawaaf and Lee, 2021; Tajudeen et al., 2022). Given this
outcome, policymakers should focus more on facilitating the companies’ navigation in
Industry 4.0 by providing a series of incentives to determine organisations to become early

adopters of the emerging technologies, improving the digitalisation level of public services
and supporting individuals in gaining a sufficient level of skills to assist companies in the
process of digital transformation. Furthermore, a higher level of innovation seems to lead to
an increase in competitiveness (Clark and Guy, 1998; Marti and Puertas, 2023), thus
generating economic growth (Boikova et al., 2021).
The second hypothesis (H2) assumes that a country’s level of DP has a significant impact on
SKA (β=0.523; T-value=7.761; p<0.001). The result highlights that a higher level of the
country’s DP leads to the improvement of SKA. This outcome is in line with previous
literature focusing on the individuals’ skills development and the digital economy, as a higher
level of digitalisation can lead to the skills’ improvement in an organisational environment
(Ekici et al., 2019; Pedota et al., 2023), especially when the labour market is subject to
automation and individuals have to demonstrate an appropriate set of skills (Nania et al.,
2019). Given the complexity of the skills adequacy, proxied by ESI, through the three main
dimensions constructed on six sub-dimensions, as presented in table no. 1, determined by
wielding 15 base statistical indicators from various international datasets, a high level of
digital performance does not impact only the digital skills, but also other factors such as a
higher employability rate amount of recent graduates and an increased labour-market
participation. In terms of the skills matching dimension, lower values of the five base
indicators (reverse-coded in the index’s reports) highlight a better outcome; thus, the increase
of digital performance among countries leads to a decrease of the dimensions’ values, a
higher level of digital performance reducing the long-term unemployment rate (Başol and
Yalçın, 2021). However, other researchers adopt a more pessimistic view suggesting that a
higher level of DP, especially in an environment dominated by artificial intelligence,
determines a reduction in the number of jobs (Acemoglu and Restrepo, 2020). Therefore, the
extent to which this outcome will continue to last is a subject of further analysis.
As individuals might not always regard self-directed learning as a positive outcome, but
rather as a stressful burden (Lemmetty and Collin, 2020) and keeping in mind that the digital
capabilities of industries and countries continue to expand, lawmakers should carefully
investigate the labour market required set of skills and ensure a proper level of education for
the individuals and promote a shared partnership between the stakeholders; otherwise, there
is a significant risk that countries will be unable to leverage the digitalisation’s full potential
(Spencer and Slater, 2020). At the EU level, through the Recovery and Resilience Strategy,
countries are expected to improve their DP; however, in terms of the skills pillar, most
countries have a high level of unachieved objectives (European Commission, 2023).
The third hypothesis (H3) states that SKA positively impacts IO (β=0.394; T-value=6.347;
p<0.001). As innovation represents one of the main pillars of sustainable economic growth
(Zygiaris, 2022), being the driving force that leads to business value creation (Vitezić and
Vitezić, 2015), Kahn (2018) argues that innovation can be perceived not only as an outcome
or process, but also as a mindset supported by the individuals’ level of skills. Therefore, this
result confirms the link between skill adequacy and innovation. Moreover, previous studies
have highlighted that investing in Corporate Social Responsibility policies might improve
the individuals’ skills and the improvement of the states’ IO (Seitz, 2016).

Table no. 5. The path coefficients (direct effect) of the structural equation model
Sample Standard
Path β Mean Deviation
T-Value P Values Hypotheses
DP  IO 0.381 0.379 0.065 5.874*** 0.000*** H1: Supported
DP  SKA 0.523 0.532 0.067 7.761*** 0.000*** H2: Supported
SKA  IO 0.394 0.398 0.062 6.347*** 0.000*** H3: Supported
Note: *p<0.05; **p<0.01; ***p<0.001.
As can be noticed in figure no. 2, DP explains 27.4% of the variance of SKA (R²=0.289),
suggesting a substantial predicting power of the structural model according to Cohen (1988,
1992) and a weak effect according to Chin (1998).
Figure no. 2. Structural model

By analysing the effect size between these two constructs, it can be concluded that the effect
is significant (f²=0.377; T-value=2.582; p<0.001), as it exceeds the 0.35 threshold proposed
by Hair et al. (2017). The impact of DP and SKA on IO (R²=0.458) highlights that the two
dimensions could explain 45.8% of the variation. In terms of the effect size, the DP's and
SKA’s impacts on IO are moderate and statistically significant (DP  IO: f²=0.195;
T-value=2.466; p=0.014<0.05; SKA  IO: f²=0.208; T-value=2.584; p=0.010<0.05).
Ciarli et al. (2021) argue that there is a complex relationship between innovation,
digitalisation, and skills, considering that it is necessary to understand the trajectories’
coevolution to enhance the knowledge regarding the industries’ organisation and dynamics.
Therefore, in addition to the direct effect, this study also tested the mediation effect of SKA
on the link between DP and IO. As the proposed model respected the assumptions formulated
by Baron and Kenny (1986), an additional analysis was employed to evaluate the mediating
role of SKA. We can observe a partial mediation through SKA in terms of the specific
indirect effect of DP on IO. Although DP has a statistically significant direct effect on IO, as
presented in Table no. 5, by analysing the indirect effect (β=0.206; T-value=4.909; p<0.001)
and the total effect of DP in IO (β=0.588; T-value=10.760; p<0.001) it can be noticed that
this is significant. The analysis results highlight that the relationship between DP and IO is
partially mediated by SKA, thus determining the acceptance of H 4.
This result highlights that the increase in IO determined by the countries’ DP can be enhanced
if SKA is improved. This finding has a series of important implications as one of the six
pillars of recovery and resilience, namely “Smart, sustainable and inclusive growth”, focuses
on the countries’ capabilities to improve their innovativeness (European Commission, 2023).

The EU plan targets the individuals’ skills which might lead to improving the skills’
activation, development, matching, and reducing the mismatch contributing to the increase
of creative, knowledge and technologies outputs; however, the main focus is on digital skills
and early childhood education. In this context, policymakers should also consider the
importance of continuous support for individuals, along with the inclusion of interpersonal
and social competencies that might have a higher return in the context of countries with an
increased level of digital performance.
Examining this mediation result in the context of the Innovation Diffusion Theory (IDT)’s
class of explanation focusing on the individuals’ fixed characteristics, people with a higher
level of education and developed communication skills contribute to the speed of adopting
and creating innovation (Hornik, 2004). Therefore, in an attempt to improve the innovation
level and achieve the sustainability objectives, countries should first consider increasing the
individuals’ skills adequacy, as STEM, interpersonal, and social skills are important drivers
of innovation (Brunow et al., 2018; Ciarli et al., 2021; Hsieh et al., 2022). In addition,
policymakers should not just focus on improving IO without addressing the primary factors
that determine its formation.
Apart from the effect size, the IPMA represents an extension of PLS-SEM, which provides
a better understanding of the indicators and latent variables’ performance on the key target
construct (Ringle and Sarsted, 2016). As depicted in figure no. 3, DSP has the highest
performance, contrary to the result obtained by Hung et al. (2023), suggesting a difference
between the antecedents of green innovations compared to regular innovations. SM, as
expected, had the lowest performance. However, we cannot draw any conclusion on this
outcome concerning its impact on innovation, as the indicator had a low loading. Regarding
the performance of the latent variables on IO, DP has a total value of 47.575, while SKA has
a slightly higher performance (48.461). These results highlight that the indicators used to
construct the variable have a positive performance on IO.
Figure no. 3. Importance-Performance Map of the indicators

Conclusions, limitations and future research directions

The present study investigated the role of the countries’ level of digitalisation and skills
adequacy as drivers of innovation output. Given the complexity of this coevolution, a deeper
understanding of this triad might improve the states’ level of competitiveness, advance
sustainable economic growth, and provide a better glimpse of the challenges that some
business areas might face in the light of Industry 4.0.
To achieve the research’s scope, we used a PLS-SEM technique to statistically test the
importance and the effect size of the EU countries’ level of digital performance on innovation
output and skills adequacy. We also conducted a mediation analysis to explore the skills
adequacy’s role on the innovation output, along with an IPMA to test the indicators’ and
latent variables’ performance on the key target construct. Thus, this research provides a series
of useful implications for both policymakers and organisations.
The first conclusion focuses on the significant impact of the countries’ digital performance
on the innovation output. According to the EU’s objective to deliver on the 2030 Agenda,
this outcome can be leveraged by policymakers to achieve the objectives related to promoting
sustainable industrialisation and innovation. Therefore, companies should use technological
advancements to remain competitive and facilitate the creation of innovation.
The second conclusion refers to the positive impact of digital performance on skills adequacy.
This outcome has a series of implications for legislators, as, at least for now, this impact is
positive, but considering the continuous evolution of digitalisation, individuals will need an
adequate level of additional support to continue responding to the labour-market demands.
As per the SDG 8, the EU countries must focus on both employment and sustainable
economic growth. In this regard, governments should create a series of facilities for
organisations to assist individuals in developing the necessary set of skills. Similarly, the
positive impact of the skills adequacy on innovation emphasises the need for an appropriate
set of STEM, interpersonal, and social skills to foster creative and knowledge and technology
outputs. In this context, organisations should emphasise more the need for proper skills
systems for both initial and continuous training of the individuals. This outcome targets SDG
4 and SDG 9, highlighting the critical interdependency between ensuring relevant skills for
employment and creating innovation.
The third conclusion focuses on the mediating skills adequacy’s role in the relationship
between digitalisation and innovation. Although there was a statistically significant positive
impact between these variables, the overall effect improved. Before this study, the evidence
regarding this coevolution was rather theoretical. This result sets the groundwork for future
research on the mediating role of the skills adequacy in fostering innovations. The study’s
outcomes indicate that countries that want to improve their level of innovation should not
disregard the human resource dimension, as this represents an important pillar in leveraging
digitalisation’s benefits and sustainably support economic growth. Thus, even though
digitalisation facilitates innovation, the skills adequacy plays a significant role in this
coevolution.
This research raises an important question about continuing the positive impact between
digitalisation and skills adequacy, at least in the countries with less efficient skills systems.
More information on this relationship might assist organisations and policymakers in
constructing appropriate strategies when investing in the human resources’ development and
defining the set of highly recommended skills. As currently the recovery and resilience efforts

are mainly focused on digital competencies and youth employment, more than this approach
might be required in addressing the future challenges of the workforce in a highly digitalised
environment.
The practical implications of this study relate to how countries, through policymakers,
together with the business environment, can contribute to innovation development. By
proposing effective strategies to support digitalisation in both public administrations and the
private sector, along with an effective framework for skills development to support
innovations, countries can contribute to sustainable development and achieve the 2030
Agenda goals.
A limitation of this study is represented by the fact that it did not evaluate the effect of the
pandemic on the triad coevolution due to limited data being available for the period 2021-
2022, as most of the indexes are based on past-years values. Nevertheless, despite its
limitations, the study certainly adds to the understanding of the digitalisation’s and skills
adequacy’s importance as antecedents of innovation. A natural progression of this work is to
continue to analyse this coevolution and determine whether the pandemic had a significant
role in this relationship. It would also be relevant to investigate the degree to which different
EU initiatives contribute to skill improvement and examine the potential gaps between
countries.
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ANALYSING EU COUNTRIES' DIGITAL PROGRESS TOWARDS

SUSTAINABLE DEVELOPMENT GOALS
Alexandra-Nicoleta Ciucu (Durnoi)1 , Cosmin Alexandru Teodorescu 2 ,
Vanesa Madalina Vargas 3* and Corina Ioanas4
1)2)4)
Bucharest University of Economic Studies, Bucharest, Romania
3)
Bucharest University of Economic Studies, Bucharest, Romania and Institute
for Economic Forecasting, Romanian Academy, Bucharest, Romania

Ciucu (Durnoi), A.N., Teodorescu, C.A., Vargas, V.M. and Received: 15 August 2023
Ioanas, C., 2023. Analysing EU Countries’ Digital Revised: 12 September 2023
Progress Towards Sustainable Development Goals. Accepted: 24 September 2023
Amfiteatru Economic, 25(Special Issue 17), pp. 987-1002.
Abstract
The article analyses the level of digitalization in the European Union (EU) and correlates the
results with the Sustainable Development Goals formulated by the United Nations. The paper
provides figures on the number of enterprises receiving orders online, the share of enterprises'
turnover on e-commerce, the number of employed ICT specialists by sex (female), and the
number of individuals using the Internet for interacting with public authorities in order to
determine the differences between the member states. The next step carried out in the current
article was to conduct a three-year forecast of the indicators listed previously. The methods
used to make predictions are Autoregressive Integrated Moving Average (ARIMA) and
Double Exponential Smoothing. The results highlight a projected increase in individuals
using the Internet for interacting with public authorities, the rise in e-commerce turnover, the
expansion of high-speed Internet coverage, and the growth in the percentage of female-
employed ICT specialists. Furthermore, the originality of this research lies in providing
valuable insights into the correlation between digitalization and sustainable development in
the European Union. The forecasted trends indicate positive advancements toward multiple
Sustainable Development Goals (SDGs). These findings demonstrate the EU's commitment
to achieving SDG targets related to effective institutions, public access to information,
economic productivity, technology access, quality education, and gender equality. The study
emphasises the crucial role of digitalization in driving sustainable development and
underscores the progress made by the EU in aligning its efforts with the SDGs.
Keywords: digitalization, sustainable development goals (SDGs), forecasts, autoregressive
integrated moving average (ARIMA)
JEL Classification: C53, Q56, Q01, O33
*
Corresponding author, Vanesa Madalina Vargas – e-mail: vanesa.vargas@fabiz.ase.ro

AE Analysing EU Countries’ Digital Progress Towards
Sustainable Development Goals
Introduction
Digitalization and sustainable development are two fundamental concepts that redefine how
modern society approaches economic and social progress. Digitalization refers to the process
of transforming information, data, and processes into digital formats with the aim of
enhancing efficiency, accessibility, and information management (Organisation for
Economic Co-operation and Development, 2019). Simultaneously, sustainable development
focuses on balancing economic growth, social rights, and environmental protection,
considering the current and future needs of society (United Nations, 2017). Together, these
two concepts can catalyse sustainable digital progress aimed at addressing social issues.
has gained significant importance as the EU seeks to address complex global challenges.
Digitalization has become a key driver of societal and economic transformation worldwide,
offering opportunities to enhance economic growth, increase efficiency, promote innovation,
and address environmental and social challenges. Simultaneously, the pursuit of sustainable
development goals (SDGs) has gained significant importance on the EU’s agenda, reflecting
the collective commitment to address pressing global challenges.
Forecasting methods have been described that use historical information to create models
that impact future data. The authors used historical data from 2013 to 2021 related to the
analysed indicators to forecast the values for 2022 to 2024.
This academic text aims to explore the intricate relationship between digitalization and the
SDGs in the European context. By examining the potential opportunities, challenges, and
projections for key digitalization indicators, the study sheds light on the EU’s progress in
achieving sustainable development targets. It emphasises the need for a comprehensive
understanding of how digitalization can drive economic prosperity, enhance social inclusion,
and mitigate environmental impacts while aligning with the broader SDG framework.
Overall, the article provides valuable insights into the digital development of the EU member
countries and highlights the differences among them. The data and analysis can be useful to
policy makers and businesses to understand the e-commerce landscape in the EU and to make
informed decisions. It also provides a comprehensive examination of the intersection of
digitalization and sustainable development goals in the EU. It underscores the significance
of digitalization as a catalyst to achieve sustainable development targets, while emphasising
the importance of collaboration and partnerships among stakeholders. By harnessing the
potential of digital technologies, the EU can advance economic prosperity, social inclusion,
and environmental sustainability, demonstrating its commitment to the SDGs. In the
following sections, the paper will focus on reviewing the specialised literature regarding
digitalization and sustainable development. Moreover, the research methodology will be
presented and the main results obtained will be analysed. Additionally, it will provide
conclusions, discuss the research limitations, and outline future directions for analysis.

Recent years have witnessed a swift expansion of technological advancement (Stanley et al.,
2018). Therefore, it is not unexpected that the digitalisation process has been acknowledged
as one of the significant and rapidly evolving phenomena that is affecting both society and
industry (Chinie et al., 2022; Juhász et al., 2022). The usage of ICT in households,

organisations, and by citizens has been the subject of a lot of intriguing literature and science
research in recent years. There is a connection between the GDP and information and
communication technologies, according to the scientific literature (Dima et al., 2019; Busu
et al., 2020). However, the scientific literature reveals that there is a variation in results and
perspectives regarding the importance and nature of this link.
More recent studies show that ICT has an impact on growth through the following channels:
enhancing living quality; increasing business competitiveness and diversifying the economy
(Dima and Vasilache, 2009). Other authors demonstrate that the usage of e-commerce and
e-business increases productivity and economic growth, on the one hand, and the efficiency
and flexibility of banking operations, on the other (Albiman and Sulong, 2017; Paraschiv et
al., 2022). According to Hasbi and Dubus (2020), ICT significantly reduces transaction costs
in the financial services industry. While the majority of studies that look at the connection
between ICT and economic growth imply a positive association, similar to our study, some
report null connections in terms of importance, therefore the results are far from uniform,
according to Mayer et al. (2020). On the other hand, there are research directions that
contradict the result obtained by the current study and challenge the existence of a connection
between ICT and economic performance. Thompson and Garbacz (2011) or Haller and Lyons
(2015), for instance, found no significant evidence of a link between specific ICT factors and
productivity.
Digitalization represents a key factor in achieving sustainable development goals (Camodeca
and Almici, 2021). This statement, aligning with the findings of the current research, is
supported by the study conducted by Camodeca and Almici (2021), who carefully examined
the connection between digitalization and sustainability, thus illustrating the essential
potential of digital technology in the implementation of SDGs (Sustainable Development
Goals). The use of digital business models and technology can sustainably support innovation
and growth within companies (Bican and Brem, 2020). Furthermore, digital marketing
capabilities can promote a sustainable attitude within organisations, fostering sustainable
development (Diez-Martín et al., 2019).
Adeleye and Eboagu (2019) show evidence that the fast development of ICT has boosted e-
commerce, increased human capital development, encouraged information dissemination,
and network externalities in addition to creating new jobs. Another investigation showed a
connection between income, proficiency in the English language, involvement in social
networks, and access to ICT (Seifert et al., 2018; Pinzaru et al., 2022). The authors claim that
these elements significantly affected people's capacity to use information and communication
technology.
By concentrating on 45 nations between 1993 and 2015, Donou-Adonsou (2019) discovered
that, given improved education, the Internet boosts to economic growth. ICT infrastructure
is found to have a positive impact on the economic growth of EU member states by Toader
et al. (2018) when they look at the period between 2000 and 2017. Moreover, ICT boosts the
economic growth of G-20 countries, according to Nguyen et al. (2020) and Clodniţchi and
Tudorache (2022), who look at the effects of ICT and innovation on carbon emissions and
economic growth for 13 G-20 countries from 2000 to 2014. These findings support the
hypothesis that the development and implementation of Information and Communications
Technology have a significant and positive impact on global economic growth, being
considered a key factor in supporting sustainable development and socio-economic progress.

2. Research methodology
For this chapter, theoretical aspects related to data forecasting will be described, including
ARIMA and Double Exponential Smoothing models. ARIMA models are used to make
predictions based on historical data. Acronomun consists of three components: AR – the
autoregressive component, in which the current values are determined based on past values,
MA – moving average, the present values depend on the past errors of the model, and I –
describes the differentiation order for the data to become stationary. The model is written in
the form of ARIMA (p, d, q), where p denotes the number of lags of the autoregressive
component, d describes the differentiation order of the data, and q determines the lag of
moving average (Hayes, 2022).
The double-exponential smoothing model involves the application of two equations for level
and trend, and is recognised for its ability to give more weight to more recent historical
information, at the expense of those more distant in time (Gardner, 1981).
The first test used to determine the soundness of the model is to calculate the errors of each
method used. In this sense, the Root Mean Squared Error (RMSE) was applied, which
determines the difference between the current and predicted values. About this it should be
remembered that the closer the value is to 0, the better the model (Allwright, 2022).
Another test intended to show the accuracy of the model concerns the autocorrelation of
errors at lag 1 and is named after the statisticians James Durbin and Geoffrey Watson
(Kenton, 2021). The values of this test lie between 0 and 4. When the value is 2, or close to
it, the errors are not autocorrelated. If the value is less than 2, there is positive autocorrelation,
and when it exceeds 2, there is negative autocorrelation.
The last calculated test refers to Thiel’s U1 inequality coefficient, and it is desired to
determine the degree to which a method used for forecasting is better than a naive guess
(Oracle, 2017). To ensure that the prediction is as good as possible, the value of this test must
be as close as possible to 0. A value of this test equal to 1 implies that the predicted model is
no better than a simple guess.
The data used in this research were obtained after querying the databases made available by
Eurostat for the period 2013-2021. To be able to make forecasts for the years 2022-2024, the
methods and tests described previously were implemented using the Crystal Ball extension.
The paper begins with a cross-sectional analysis (year 2021), for the 27 EU member states
for digitalization indicators (companies that have received online orders, share of turnover of
companies in e-commerce, employed female ICT specialists, persons which uses the Internet
for interaction with public authorities and high-speed Internet coverage). The next step
consisted of a longitudinal analysis of the EU average values for the previously described
indicators (2013-2021), followed by the forecast for the next three years.
3. Results
Through this research, the authors wanted to determine the European context regarding aspects
related to digitization. Thus, the research can be divided into three large subsections, the first
referring to the graphical presentation of the countries, the axes of the graphs being represented
by the observed indicators. In the second subsection, the results obtained for the forecasts made

for the period 2022-2024 are illustrated both graphically and tabularly. In the last subsection, the
intersection of digitalization and Sustainable Development Goals is debated.
3.1 Observing the European context
Next, the context of the European Union will be detailed with regard to aspects related to
digitization.
In figure no. 1, on the oX axis, are represented the enterprises having received orders online
(at least 1%) (ent_o_o), and it can be noted that the highest percentage of these enterprises
is in Denmark (over 35%), followed by Sweden and Ireland. At the opposite pole, with a
percentage less than 10% is Luxembourg, followed by Bulgaria, Romania, and France, with
values exceeding 10%, but not reaching 15%. On the oY axis, the share of enterprises’
turnover on e-commerce (s_turn) is highlighted, it can be noted that the highest percentage,
over 35%, is obtained by Ireland, the lowest value, below 5%, is obtained by Cyprus, and
approximately half of the countries have values between 15 and 25%.
40 IRL
35
CZE
BEL DNK
30 SWE
25 FRA FIN
s_turn
HUN
SVK DEU NLD ESP
20 LUX POLPRT SVN LTU
AUT
EST HRV
15 ITA MLT
ROU LVA GRC
10 BGR
5
5 10 15 20 25 30 35 40
ent_o_o
Figure no. 1. Enterprises having received order online and share of enterprises’
turnover on e-commerce
According to figure no. 2, it can be seen that Bulgaria, Romania and Malta are the countries
where the percentage of women working as ICT specialists (eictf) exceeds 25%, most of the
countries having values between 15 and 25%, the countries with values lower than 15% being
the Czech Republic, Hungary, and Slovakia. For the percentage of individuals using the
Internet for interacting with public authorities (ind_p_a), it is noted that Romania and
Bulgaria have the lowest values, most countries having values that exceed 50%, the Nordic
countries, and Ireland having percentages of this indicator of approximately 90% or more.

100 IRLSWEDNKFIN
NLD
90 FRA EST
LUX LVA
80 HUN AUT
CZE SVN BEL
ESP
70 LTU MLT
SVK CYP GRC
ind_p_a
60 DEU PRT
POL HRV
50
40 ITA
BGR
30
20 ROU
10
10 15 20 25 30
eictf
Figure no. 2. Employed ICT specialists by sex (female) and Individuals

using the Internet for interacting with public authorities
Figure no. 3 shows that, apart from Greece, where the coverage percentage is approximately
20%, all other states have values that exceed 40%. For Malta, the percentage of high-speed
Internet coverage (hs_i) seems to be 100%, being closely followed by Luxembourg,
Denmark, and Spain.
30 SWE ESP
SVK SVN ROU
POL PRT
NLD
20 LTU LUXMLT
LVA
number
ITA IRL
GRC HUN
FRA FIN DEU
10 EST DNK
CYP CZE
HRV BGR
AUT BEL
0
10 20 30 40 50 60 70 80 90 100
hs_i
Figure no. 3. High-speed Internet coverage

From table no. 1 it can be seen that between the percentage of enterprises having received
order online and the percentage of individuals using the Internet for interacting with public
authorities there is a direct relationship of medium intensity.

Table no. 1. Correlogram
ent_o_o eictf hs_i ind_p_a s_turn
Enterprises having received order online 1.00
and share of enterprises' turnover on e-
commerce (ent_o_o)
Employed ICT specialists by sex 0.07 1.00
(female)(eictf)
High-speed Internet coverage(hs_i) 0.13 0.35 1.00
Individuals using the Internet for interacting 0.50 -0.12 0.23 1.00
with public authorities (ind_p_a)
Share of enterprises' turnover 0.61 -0.36 0.21 0.62 1.00
on e-commerce (s_turn)
Between the percentage of enterprises having received order online and the share of
enterprises' turnover on e-commerce, a direct link is observed, with a higher intensity
compared to the previous case, of 0.61. The strongest relationship between the analysed data,
of 0.62, is found between the percentage of individuals using the Internet for interacting with
public authorities and the share of enterprises' turnover on e-commerce.
3.2. Data forecasting

In this section, the historical course of the previously described indicators from 2013 to 2021
for the European Union average (27 states) will be described, subsequently trying to predict
some values for the next three years.
According to the description of the historical data (Table no. 2), it is noted that the average
for the 9 years analysed is 50%, the values deviating, on average, from this value by 5.29%.
Regarding the forecast, it is noted that an increase in these percentages is expected at the EU
level.
Table no. 2. Individuals using the Internet for interacting
with public authorities – forecast results
Forecast results Statistics
Date Lower: 2.5% Forecast Upper: 97.5% Minimum 42.00
2022 60.06 61.94 63.81 Mean 50.00
2023 60.49 62.93 65.37 Maximum 58.00
2024 62.56 66.71 70.86 Standard Dev. 5.29
Forecast accuracy
Method Rank RMSE Theil's U Durbin-Watson
ARIMA(2,1,1) Best 1.14 0.4487 2.00
Double Moving Average 2nd 1.16 0.5049 2.02
Double Exponential 3rd 1.69 0.7511 1.14
Smoothing
It can be seen that for the analysed model the data do not have a seasonal component and are
described by an ARIMA type process (2,1,1) for which the RMSE has the lowest value, also
the Durbin-Watson test has a value of 2, sign that the model errors are not autocorrelated.
And Theil's U test also has the lowest value, a smaller value compared to 1, it can be stated
that the forecasting technique is better than guessing. According to this model, the data were

differentiated to the 1st order and are described both by the past values (two lags ago) and
the model errors (of the 1st order).
For the share of enterprises’ turnover on e-commerce, it is worth noting that the minimum
value was 13.1% (table no. 3), the maximum was 19.8%, and the average was 16.9%, the
analysed values differing, on average, by 2.4% from the previously mentioned value. In terms
of the forecast, an increase in these values is expected.
Table no. 3. Share of enterprises’ turnover on e-commerce - forecast results
2022 19.61 21.36 23.11 Mean 16.92
2023 19.52 21.40 23.28 Maximum 19.80
2024 19.91 22.87 25.83 Standard Dev. 2.41
Forecast accuracy
ARIMA(2,1,1) Best 1.06 0.63 2.45
Double Moving Average 2nd 1.20 1.04* 0.83**
Damped Trend Non-Seasonal 3rd 1.36 0.88 2.12
In this case, also, the data do not show a seasonal component. As in the previous case, the
model is described by ARIMA (2,1,1), the root mean square error being 1.064, the lowest
value for the three proposed model variants, also having a value lower than 1 for Theil's U
test and a value of 2.45 for Durbin-Watson test, it can be stated that the errors are not
significantly correlated, and the prediction is correct. For this indicator, the value of 17.6%
was posted in the Eurostat database before the end of 2022, and the value predicted by the
model for this year is 21.36%. Perhaps this value proposed by Eurostat will change in the
course of next year because at the time of the analysis, the year 2022 had not yet ended, but
the predicted value is close to reality.
From table no. 4, an increase in high-speed Internet coverage can be seen during the forecast
period.
Table no. 4. High-speed Internet coverage - forecast results
2022 73.42 81.30 89.18 Mean 36.09
2023 77.23 92.17 107.10 Maximum 70.20
2024 78.42 103.03 127.65 Standard Dev. 19.34
Forecast accuracy
Double Exponential Best 4.79 0.68 1.87
Smoothing
Damped Trend Non-Seasonal 2nd 4.79 0.68 1.87
ARIMA(0,2,0) 3rd 5.55 0.66 2.86
For this indicator, according to Table no. 4, the model with the lowest value for RMSE is
Double Exponential Smoothing for which the value of the Durbin-Watson test is very close
to 2, a sign that the errors are not autocorrelated, and the value for the Theil’s U test is 0.68,
lower compared to 1, it can be stated that the forecasting technique is better than guessing.

According to the information provided in Table no. 5, an increase in value can be observed
for the year 2022, followed by a downward trend.
Table no. 5. Enterprises having received orders online (at least 1%) - forecast results
2022 18.86 19.57 20.29 Mean 16.74
2023 17.41 19.38 21.36 Maximum 19.00
2024 15.75 18.78 21.80 Standard Dev. 1.68
Forecast accuracy
ARIMA(2,1,1) Best 0.43 0.41 1.75
Damped Trend Non-Seasonal 2nd 0.78 0.79 1.13
Double Exponential 3rd 0.84 0.83 1.33
Smoothing
As in the previous cases, one can observe an autoregressive model of order 2, a moving
average model of order 1, differentiated from order 1. According to the correlogram in Figure
4, the three indicators that had significant links, of medium intensity, were described by the
same ARIMA model (2,1,1). This model has the lowest value for root mean square error, of
0.43, the value for Durbin-Watson is relatively close to 2, and the Theil's U test shows the
lowest value, much lower than 1, so the model is correct, for which errors are not
autocorrelated.
The value for the year 2022 of this indicator appeared in the Eurostat database, of 19.7% for
the EU average, the value predicted by the model being 19.57 percent, being very close to
the reported one.
According to the information provided in Table no. 6, the second-best solution according to
the RMSE value, a Double Exponential Smoothing model is created, for which the trend of
the forecasted values is upward.
Table no. 6. Employed ICT specialists by sex (female) - forecast results
2022 19.09 19.66 20.24 Mean 17.37
2023 19.09 20.23 21.36 Maximum 19.10
2024 19.19 20.79 22.39 Standard Dev. 0.94
Forecast accuracy
Double Exponential Best 0.35 0.79 1.60
Smoothing
ARIMA(0,1,1) 1st 0.29 0.64 0.91
Damped Trend Non-Seasonal 3rd 0.36 0.80 1.74
Table no. 6 shows an average value of 17.37% of women employed as ICT specialists in the
European Union, the values deviating from this value, on average, by 0.94 percent for the
analysed years. For this model, the value of the Durbin-Watson test is 1.6, quite close to 2, it
can be stated that the errors are not significantly autocorrelated, and the value for the Theil's
U test is less than 1, being a good model. Although the RMSE value is lower for the ARIMA
(0,1,1) model, it was not chosen because the Durbin-Watson test value is less than 1,
indicating a positive autocorrelation of the errors.

3.3. Exploring the intersection of digitalization and sustainable development goals in

the European Union
Digitalization has become a key driver of societal and economic transformation worldwide.
In the European Union (EU), the pursuit of sustainable development goals (SDGs) has gained
significant importance. As the EU seeks to address complex global challenges, understanding
the intersection of digitalization and the SDGs becomes crucial. It can enhance economic
growth, increase efficiency, and promote innovation while addressing environmental and
social challenges. Furthermore, digitalization plays a pivotal role in fostering social
inclusivity and reducing inequalities. It enables improved access to education, healthcare,
and public services, particularly in remote and marginalised areas. E-commerce and digital
platforms can provide new economic opportunities, empowering individuals and
communities. By bridging the digital divide, the EU can strive for inclusive growth and leave
no one behind.
presents a wide range of possibilities and challenges. By harnessing the potential of digital
technologies, the EU can advance economic prosperity, social inclusion, and environmental
sustainability. However, addressing the intersection of digitalization and the SDGs
necessitates collaboration and partnerships among various stakeholders. Governments,
industry, civil society organisations, and academia must work together to shape policies,
promote innovation, and share best practices. Therefore, the research conducted in this study
involved historical data and various digitalization indicators from Eurostat to make
predictions for the next two years. The COVID-19 pandemic marked a significant setback in
the evolution of Sustainable Development Goals (SDGs) in Europe, with indicators
experiencing a halt or even regression for the first time. In this respect, we analysed a
potential connection between the current and potential future development of digital
indicators on sustainable growth.
One significant finding of the analysis is the projected increase in the percentage of
individuals using the Internet to interact with public authorities (Table no. 2). This result has
implications for sustainability, particularly in relation to Sustainable Development Goals
(SDG) Target 16.6 and Target 16.10. SDG Target 16.6 focuses on developing effective,
accountable, and transparent institutions at all levels, while SDG Target 16.10 aims to ensure
public access to information and protect fundamental freedoms.
Another key finding of the research conducted in this study is the projected increase in the
share of enterprises’ turnover in e-commerce in the following years (Table no. 3). This result
has important implications for sustainability, particularly in relation to Sustainable
Development Goal (SDG) Target 8.2, as well as other relevant targets within the SDG
framework. SDG Target 8.2 aims to achieve higher levels of economic productivity through
diversification, technological upgrading, and innovation, with a particular focus on
encouraging entrepreneurship and fostering sustainable business practices.
The increase in high-speed Internet coverage (Table no. 4) directly contributes to SDG Target
9.C, which focuses on significantly increasing access to information and communication
technologies (ICTs) and striving to provide universal and affordable Internet access in least-
developed countries.
One significant result of the research conducted in this study is the projected increase in the
percentage of female-employed ICT specialists in the following years. This result has
important implications for sustainable development, particularly in relation to the Sustainable

Development Goal (SDG) Target 5, which focuses on achieving gender equality and
empowering all women and girls.
The research results obtained in this study shed light on the correlation between various
indicators and the SDG targets. Table no. 7 summarises the findings, illustrating the
forecasted trends and their alignment with specific SDG targets.
Table no. 7. Research Results and Correlated SDG Targets
Research results Sustainable development goals targets
Individuals using the SDG Target 16.6.: Develop effective, accountable and transparent
Internet for interacting institutions.
with public authorities SDG Target 16.10.: Ensure public access to information and protect
(Table no. 2) fundamental freedoms.
Share of enterprises’ SDG target 8.2.: Achieve higher levels of economic productivity through
turnover on e- diversification, technological upgrading and innovation
commerce (Table no. 3)
Enterprises having
received orders online
(Table no. 5)
High-speed Internet SDG target 9.c.: Significantly increase access to information and
coverage (Table no. 4) communications technology
SDG target 8.1.: Sustain per capita economic growth in accordance with
national circumstances.
SDG target 4.c.: By 2030, substantially increase the supply of qualified
teachers
Employed ICT SDG target 5.5.: Ensure women’s full and effective participation and
specialists by sex equal opportunities for leadership at all levels of decision-making
(female) (Table no. 6) SDG target 8.5.: By 2030, achieve full employment and decent work for
all women and men, and equal pay for work of equal value.
Table no. 7 showcases the forecasted trends for each research result and their corresponding
SDG targets. By aligning the research findings with the SDGs, this study provides valuable
insights into the progress toward sustainable development and the specific goals that are
being addressed.
4. Discussions
There is a direct relationship between digitalization and economic growth, which translates
into an increased impact of sustainable economic growth for countries with a high degree of
digitization. In a study conducted for Ukraine, the authors observed that a 1% increase in
output from the digital sector leads to a 0.83% increase in GDP growth (Novikova et al.,
2022). As the goal is to increase the number of people with access to the Internet, with the
current study showing an expansion of high-speed Internet coverage, it is desirable for the
energy consumption associated with the installation of Wi-Fi sources providing citizens with
Internet access to be minimal (Abdrabou et al., 2020). However, it is not only energy
consumption that needs to be discussed, but also the performance provided by a greater
number of devices (Nakıp et al., 2022).
Various studies have highlighted that e-commerce is a significant area of interest in the
context of achieving Sustainable Development Goals (SDGs). Revinova (2021) argues that
e-commerce is closely related to 10 out of the 17 SDGs and, for the most part, has positive
effects on them. According to Ju et al. (2023), it is found that e-commerce can make

significant contributions to various aspects of sustainable development, including economic

growth, poverty reduction, and environmental sustainability promotion. Additionally, Li et
al. (2021) suggest that e-commerce has the potential to play a significant role in advancing
the sustainable development agenda, but requires the collective commitment of all
stakeholders involved to maximise its benefits.
Another aspect to consider regarding the relationship between digitalization and
sustainability is gender equality, as it is observed that, on average, the percentage of women
working in the EU is below 20% for the analysed period. However, there is an upward trend
in this regard. This is an issue that needs to be addressed starting from the educational stage,
by encouraging female students to pursue careers in these fields through the introduction of
more relevant courses (Tam et al., 2020). Additionally, males tend to have more confidence
in their ability to work in the ICT field (Gebhardt et al., 2019).
The interaction between citizens and the government is crucial, and digitalization serves as a
channel that facilitates communication between these two parties. From the current study,
one can observe an increase in the percentage of individuals using the Internet to interact
with public authorities during the analysed period, as well as in the projected period. The
accessibility of digital public services is crucial for sustainable development (Burlacu et al.,
2019). A study conducted by Kovalenko (2023) has highlighted that certain digital public
services are more popular among young people. Facilitating communication for both
individuals (Wilson et al., 2019) and legal entities (Glukhikh et al., 2020) with public
authorities can be achieved by creating interactive and user-friendly platforms that can be
easily used by any citizen, especially for elderly individuals (Palos-Sánchez et al., 2023).
Conclusions
The purpose of this study was to assess the degree to which the concept of digitalization is
integrated within the member states of the European Union and to correlate the predicted
results with the SDGs. In this sense, five indicators were chosen, the analysis of which
reflects the previously mentioned purpose. What could be noted is the fact that there are
significant differences between the analysed countries, but at the level of the European Union
average, the forecasts made were encouraging for most of the analysed indicators. Moreover,
the predicted values for each indicator show a positive impact on the UN SDGs.
The study finds that Denmark has the highest percentage of enterprises that have received
orders online, while Ireland has the highest share of enterprises’ turnover from e-commerce.
Bulgaria, Romania, and Malta have the highest percentage of women working as ICT
specialists. Most countries have values that exceed 50%. for the percentage of individuals
using the Internet for interaction with public authorities. In 2017, Vicente Almonacid and
Laurent Franck wrote a study on „Extending the coverage of the Internet of Things with low-
cost nanosatellite networks”, and also, according to Couper et al. (2018), 82.9% of the target
population of the National Survey of Family Growth have access to the Internet. Thus, also
in the case of the EU, most of the member states have a rate of high-speed Internet coverage
that exceeds 60%.
A correlogram is also presented, which shows a direct relationship of medium intensity
between the percentage of enterprises that received orders online and the percentage of
individuals using the Internet for interaction with public authorities, as well as a direct link
with a higher intensity between the percentage of enterprises that received orders online and

the share of enterprises’ turnover from e-commerce. The strongest relationship found
between the analysed data is between the percentage of individuals using the Internet for
interaction with public authorities and the share of enterprises' turnover from e-commerce.
According to Ze et al. (2023), ICT promotes economic growth in the long run; also, the results
of their study show that financial globalization and digitalization are essential for sustainable
growth. The forecasts made show that at the average level of the European Union, there will
be an upward trend in the percentage of individuals using the Internet for interacting with
public authorities, and also for the share of enterprises' turnover on e-commerce or high-
speed Internet coverage. Even if an increase in the percentage of enterprises having received
orders online was predicted for the year 2022, a slight decrease can be observed for the next
two analysed years. As for the percentage of female employees in the ICT field, there is an
increase in this indicator for the forecasted period, with an upward trend also in the period
2014-2021. Since digitalization is one of the pillars of the Recovery and Resilience Facility,
it is not surprising the presence of upward trends in the forecast period because the European
Union's plan is to build a stronger Union, in which digitization is a very important aspect.
The limitations of the current research are primarily related to the limited number of years
taken into analysis. Unfortunately, data could not be identified for a longer time period for
indicators in the field of digitalization, which may result in a limited degree of accuracy in
the provided results. For future research, there is a desire to identify new data sources in the
field of digitalization where the time periods offered are longer, thus ensuring that the
obtained results are supported by a higher level of credibility. Additionally, there is an
intention to identify and implement models that can provide additional information on the
links between the indicators associated with the Sustainable Development Goals, as these are
seen as a complex process through which the effects of achieving one target propagate to
related targets, aiding in their accomplishment.
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Technological Challenges and Sustainable Development AE
STUDENTS’ ENGAGEMENT AND MOTIVATION IN GAMIFIED LEARNING

Mihaela Covrig1 , Simona Irina Goia (Agoston)2* ,
Ramona Ștefania Igreț3 , Cristian Virgil Marinaș4 ,
Alexandra Dorina Miron5 and Monica Roman6
1)2)3)4)5)6)
Bucharest University of Economic Studies, Bucharest, Romania.

Covrig, M., Goia (Agoston), S.I., Igreț, R.Ș., Marinaș, Received: 15 August 2023
C.V., Miron, A.D. and Roman, M., 2023. Students’ Revised: 6 September 2023
Engagement and Motivation in Gamified Learning. Accepted: 19 September 2023
Amfiteatru Economic, 25(Special No. 17), pp. 1003-1023.
Abstract
Recently, technology has been increasingly integrated into higher education through
gamified learning, which applies game design principles to educational content. The
purpose of the present paper is to assess and depict the engagement of students in the field
of economics and business in gamified learning and to understand the relationship between
engagement and motivation in gamified learning, elements less studied in the context of
economics and business higher education, as shown in the literature. The paper proposes an
original approach both in terms of the research method and the context of the study.
In order to analyse engagement in gamified learning, we use Nicola Whitton's scale and
employ an exploratory factor analysis on data collected through a questionnaire-based
survey distributed among students at one of the largest universities of economics and
business in Romania, namely The Bucharest University of Economic Studies (BUES). The
analysis reveals three specific engagement factors: the first factor represents interest in new
challenges; the second factor reflects immersion in gamified learning and satisfaction of
completing; the third factor is related to students' purposes and clarity of the goals. Our
results show that all factors exhibit positive associations with student learning motivation,
while the first factor also indicates an association with the gender of the respondents.
A good understanding of these factors can contribute to improving the teaching process by
integrating gamification into teaching activities.
Keywords: gamified learning, learning motivation, engagement, internship, skills, higher

education.
JEL Classification: A2, A23, I21
*
Corresponding author, Simona Irina Goia (Agoston) – e-mail: simona.goia@ase.ro
Vol. 25 • Special No. 17 • November 2023 1003

AE Students’ Engagement and Motivation in Gamified Learning
Introduction
The use of Information and Communication Technology (ICT) in education has become
increasingly prevalent in recent years. It has transformed the way teaching and learning are
conducted, providing new opportunities and resources for educators and students.
Technology enabled the development and implementation of various digital learning tools
such as educational websites, interactive simulations, multimedia presentations, and online
learning platforms. These tools offer engaging and interactive learning experiences that
allow students to access and use educational resources anytime, anywhere. The COVID-19
experience also fostered the digitalisation of education: students discovered the unlimited
opportunities offered by the online environment, and teachers discovered unexplored online
resources, methods, and tools for teaching and research (Dima, Busu and Vargas, 2023).
Recently, technology has become more involved in higher education through gamified
learning. Gamified learning refers to the use of game elements and mechanics in the
context of education and learning. It involves incorporating elements commonly found in
games, such as point systems, rewards, levels, leader boards, competition, and storytelling,
into the learning process to enhance engagement, motivation, and improve the overall
learning experience.
Gamified learning is increasingly popular in higher education, and is applied in various
educational settings, including university classes, online courses, corporate training, and
language learning platforms. It has the potential to increase student engagement, improve
knowledge retention, and develop problem-solving and critical thinking skills through
interactive and meaningful learning experiences (Smiderle et al., 2020).
The research question addressed in this study concerns the identification of elements and
mechanisms to be used to increase the participation and motivation of participants in gamified
learning. We aim to bring to the fore how commitment and motivation are associated in the
context of gamified learning activities delivered during an internship programme for students,
as well as whether the commitment of students is different depending on their demographic
characteristics (for example, the gender of the respondents).
In this context, this study follows an exploratory approach, and the purpose is twofold,
respectively, first to assess and depict students' participation in gamified learning, in the
case of economic and higher education of businesses, and secondly to provide a deeper
understanding of the correlation between participation and motivation in gamified learning.
The case study of the article is focused on economics and higher education in business in
Romania and the case of a gamified competition used within an internship programme is
analysed. A highly relevant topic in the academic literature on the subject of career success
is represented by aspects preceding the start of a career, such as practical training
programmes during university, which take the form of internships in many cases (Covrig et
al., 2022; Jansen et al., 2022).
The use of gamification in internship programmes adds a layer of excitement, motivation,
and participation to the learning experience. By utilising game elements, the university can
create a more dynamic and interactive environment that fosters interns' learning, skill
acquisition, and overall satisfaction with the internship programme.
We rely on the widely recognised work of Nakamura and Csikszentmihalyi (2009) and
their flow theory, which proposes that individuals are most motivated and engaged when
they experience a state of flow, characterised by deep concentration, enjoyment, and a

sense of being fully involved in an activity. Flow occurs when the challenge of a task
matches an individual's skill level, providing a balance between perceived difficulty and
perceived capability.
Engagement in gamified learning is assessed using the scale developed by Nicola Whitton
(2010). The scale measures the level of engagement of a particular learning experience that
captures the perceptions of the respondents related to the experience. Using the data
collected for the 18 items, we employ an exploratory factor analysis aimed at identifying
specific engagement factors.
Data collection was carried out within the project “Practice smart your development -
PRIDE-U”, co-financed by the European Union and implemented at BUES. The students
involved in the project participated in a gamified competition with various tasks and
activities related to the purpose of their internship programme. The project was developed
for economics and business students, and their participation in the gamified learning
competition encouraged the development of their practical skills and competencies. The
originality of this paper consists both in the methodological approach and in the
contextualisation of the analysis on the economic and business field at the university level
in Romania, within BUES.
In terms of structure, the paper continues with the presentation of the theoretical framework
in relation to the latest results in the field, followed by a description of the research
methodology, after which the results are presented and commented on, while the final
section concludes the paper.
1. Theoretical framework
Games are a significant activity during our childhood and help us develop, compete, and
learn in a funny and attractive manner. Even as adults, we enjoy playing games. It is proven
by the disruptive mobile games industry, the most powerful entertainment industry in
economic terms. Using technology and games for educational purposes has extended the
traditional learning paradigm to mobile learning (Su and Cheng, 2015) and gamification.
Although the use of games in training is not new, gamification is a relatively new concept
in learning and development, which uses elements from digital games in the process of
education.
The concept of gamification has captured the attention of both academics and practitioners
in various fields such as education, computer science, human-computer interaction studies,
and even healthcare. However, the conceptual boundaries have not yet been reached, and
there is a multitude of definitions and recommendations regarding its use. A common
definition provided by prominent researchers in the field (Deterding et al., 2011; Deterding,
2012; Domínguez et al., 2013) states that gamification implies the use of game design
elements and mechanism in non-game context to enhance the engagement of the users. It
can be implemented both in digital environments and non-digital environments (Martí-
Parreño et al., 2019) and also in a mixed context. In this regard, the study conducted by Su
and Cheng (2015) brings forward evidence that students like outdoor learning activities
facilitated by smartphones, which allow them to complete remote the learning tasks. Well-
designed gamified systems create opportunities for learners and offer spontaneous feedback
while enhancing their knowledge through academic tasks (Bouchrika et al., 2021).

Gamification is increasingly being applied in different areas: from marketing (Lucassen and
Jansen, 2014; Hsu and Chen, 2018; Singh, Kumar and Jain, 2021), innovation (Procopie et
al., 2015), sustainability (Douglas and Brauer, 2021; Whittaker, Mulcahy and Russell-
Bennett, 2021) to different business contexts (Larson, 2020; Wünderlich et al., 2020) and of
course education (Dichev and Dicheva, 2017). In education gamification is used both in
schools (Toma, Diaconu and Popescu, 2021) and universities (De-Marcos et al., 2014;
Fernández-Gavira et al., 2021; Beranič and Heričko, 2022) and for employee training
(Cechella, Abbad and Wagner, 2021; Wang, Hsu and Fang, 2022).
Various research (Barata et al., 2013; Giang, 2013; Hamari, 2017) highlights the idea that
educational games seem to be a valuable practical approach to learning and teaching, with
positive effects on learning/training outcomes. By applying gamification in the educational
process, users (pupils, students, etc.) are motivated to be present, to engage and actively
participate in the learning process given the joy of the game, the opportunity to win, and the
idea of being in competition with peers. Offered a fun and often familiar environment,
learners are motivated to be actively involved, to reach a higher level in the game, and thus
knowledge is more easily assimilated. The ability to accumulate new skills increases, and
according to Giang's (2013) study, the increase reaches 40%. Díaz-Ramírez (2020)
conducted a study on engineering education, the statistical results providing empirical
evidence of the positive effects of gamification on school performance and other desirable
social behaviours such as the sense of belonging and teamwork. However, research
analysing the use of gamification in economics and business higher education is limited,
especially in Eastern Europe.
Although most studies highlight the positive effects that gamification can have on the
learning process, there are authors who draw attention to mixed and potential negative
effects (Koivisto and Hamari, 2015). In this respect, Andrade, Mizoguchi and Isotani
(2016) point out that some game elements that stimulate competition (such as ranking,
levels) can negatively affect learners with lower performance and who do not want to be
involved in such competitions. In addition to undesired competition, the authors also
address other issues that could result from the use of gamification in the educational
process, such as addictions and off-task behaviour. Hanus and Fox's (2015) longitudinal
study over one semester reveals that the use of common gamification techniques in a
communication course at an American university did not lead to better academic
performance (as assessed by grades), but instead negatively affected motivation,
satisfaction, and responsibility. Students in a parallel course where no gamification
elements were introduced performed better, which would suggest caution when applying
gamification mechanisms in an educational context. Another issue in gamified learning is
represented by the excessive focus of students on extrinsic motivators instead of on
learning outcomes.
The negative effects of gamification can be avoided or diminished through proper design.
Designing a successful gamification process is challenging and it should be based on the
assumption that the individual traits of learners can fundamentally impact the experience
they have in the gamified learning process. Authors such as Codish and Ravid (2017) and
Denden et al. (2021) examine the effects that gender and personality traits can have on
students' perceptions of gamification. The results show that gender and personality can
affect the perceptions of different elements of the game. Buckley and Doyle (2017)
examine the impact that different learning styles and personality traits have on game
players. Research findings show that people who have an active learning style are more

prone to learn efficiently through gamification. It is also observed that extroverted
individuals like gamification, while conscientious individuals are less motivated by it. The
key finding of these studies is that gamified learning must be designed and implemented in
a customised manner, considering the demographic aspects of the target group, as well as
individual learning styles and personality traits.
There is a prevalent opinion that nowadays pupils and students are less and less involved in
classical learning activities, recent studies emphasising the fact that a significant percentage
of them exhibit a low participation and/or a low sense of belonging in a traditional
education setting and teachers are not able to engage them in the learning process (De-
Marcos et al., 2014; Hamari et al., 2016; Su and Cheng, 2015). Gamification has been used
successfully in many web-based businesses to increase user engagement, research
suggesting that the use of technology in the learning process might be a means of
increasing motivation, engagement, and the sense of fulfilment (Domínguez et al., 2013).
New generations expect learning to be interesting, challenging, and fun. Learning and
development specialists are trying to take advantage of the enormous potential of
gamification and use its features to increase motivation and learning engagement. Several
studies support the fact that well-designed computer games can engage learners more and
promote an effective learning environment (Kalogiannakis, Papadakis and Zourmpakis,
2021; Whitton, 2010, 2011). Thus, applying gamification in a pedagogical context could be
a remedy for many students who feel disengaged from traditional teaching methods and
could provide a partial solution to the decrease in students' motivation and engagement with
educational systems currently faced (Alsawaier, 2018). Universities could greatly benefit
from gamification of both high school graduate recruitment strategies and the content of
university courses and curricula (Alsawaier, 2018). Gamification can play an important role
when used in the learning process by increasing student engagement and learning, which
will also lead to higher motivation levels of those students (Surendeleg et al., 2014).
According to the Association for Project Management (2014), the main function that
gamification can provide relates to improving a situation through the use of game
mechanics, whose benefits include (i) increased engagement; (ii) increased levels of
motivation; (iii) increased user interaction; and (iv) increased loyalty. Two of these
benefits, frequently quoted in the scientific literature, namely increased engagement and
increased level of motivation, are analysed and assessed also in the present paper, while the
relationship between them is also explored. Few studies explicitly address the link between
engagement and motivation, and this paper addresses this gap in the literature.
The present research on the engagement and motivation of students in gamified learning was
conducted within the project “Practice smart your development - PRIDE-U” implemented in
BUES between September 2020 and March 2023. The project aimed at developing
professional skills of students in the business environment through several means, including
internships, psychological profile evaluation and a gamified learning competition.
The gamified competition, named VRunners, developed by Equatorial Gaming S.A., is an
alternate reality game that simulates a marathon. It works as a learning game developed in
the online environment, in which each student has the opportunity to compete virtually with
the other colleagues enrolled in the target group and win the game.

The main purpose of this competition is to give students the opportunity to capitalise on
their various skills in economics, management, or IT, by registering and getting involved in
the game. Therefore, the gamified competition is based on concrete tasks related to various
professional areas. Students in the target group must solve various challenges in a given
time frame. The challenges proposed in the gamification learning platform were created by
professors, trainers, and also professionals from more than 50 companies that were actively
involved in the project and covered 12 areas of competencies.
The gamified competition took place between November 2021 and September 2022. 136
BUES students actually created an account on the gamified learning platform, while 100
were active players.
The data used in this research were collected from participants in the gamified competition
through one of the proposed challenges. The students were requested to complete the
research questionnaire and to express their level of participation in the gamified
competition. Participation was voluntary. The questionnaire consisted of questions on the
general attitude of the respondents toward playing computer games and items from the
Whitton scale (2010b) used to evaluate their participation in gamified learning. Finally, the
sample consisted of 100 participants. As all have direct experience with gamified learning,
the sample is adequate to answer the research questions regarding their engagement and
motivation in the educational game. Since the selection was based on convenience, it is not
feasible to generalise the results, which is beyond the scope of this research.
Table no. 1 depicts the sample distribution by the main demographic variables, such as age,
gender, education, and general involvement in playing games. Overall, the proportion of
women (78%) is significantly higher than that of men (22%), most of the respondents being
in their 20s, which was expected as they pursue undergraduate (68%) and master studies
(32%). An important percentage of the participants declare that they do not play games in
the present (34%). However, more than a half declare they occasionally play games, while
8% do this on a regular basis. When asked about the type of games they prefer to play, most
of the respondents choose strategy, multi-player, and adventure games. The main three
reasons they choose to play are: for a mental challenge, for playing with others, and
because of boredom.
Table no. 1. Sample distribution
Variable Levels n %
Gender Female 78 78
Male 22 22
Age Under 20 22 22
21-25 72 72
26-30 2 2
31-35 2 2
Over 35 2 2
Level of studies Undergraduate 68 68
Master student 32 32
Do you play Never 34 34
computer games? Occasionally 57 57
Regularly 8 8
Source: authors’ elaboration on sample data

In this study, the engagement of students in the gamified learning process, specifically in
the VRunners competition, was assessed using the attitudinal scale created by Nicola
Whitton (2010 and 2011). The Whitton scale measures the levels of engagement of adult
game-based learning by asking them about their personal perception of the learning
experience. The 18-item five-point Likert scale is meant to measure post-experiential
engagement with educational games. Based on flow theory (Csikszentmihalyi, 1992), adult
learning theory (Knowles, 1998) and Nicola Whitton’s own qualitative research, the scale is
postulated to comprise five dimensions:
 Perception of challenge: indicates the motivation to complete the activity, the clarity
of the tasks, and the relevance of the final achieved result.
 Perception of control: implies the learner’s perception of fairness, the options
available in the environment; speed, and the available feedback.
 Immersion: regards the absorption of the learning activity.
 Interest: regards the intrinsic interest in completing the activity.
 Purpose: refers to the value perceived by learners in the context of their study
objectives.
To identify the number and nature of factors that influence student participation in gamified
learning activities, we used exploratory factor analysis (EFA) as the main research method.
As the scale used in the research is the result of theoretical reasoning and qualitative
analyses, we did not assume from the very beginning that the five factors involved in the
scale influence the engagement of students and applied this quantitative analysis technique.
EFA is suitable in our case because it provides robust results in a relatively small volume
sample, but with high homogeneity. The methodology based on factorial analysis has also
been used in several studies, of which we mention: Băcilă et al. (2014), which analyses the
behaviour and satisfaction of students from business faculties; Varannai, Sasvári and
Urbanovics (2017), which studies students' behaviour in a context of Kahoot! type gamified
learning or Aguiar-Castillo et al. (2020), which explores the intention and motivation of
students in the field of hospitality to use a gamified application as a complementary
strategy to a traditional learning system.
According to Kabacoff (2022), EFA is a collection of methods designed to reveal the latent
structure of a given set of values. The method looks for a smaller set of latent variables that
can explain the relationships between manifest variables. The primary goal of using the
EFA in this research was to examine the interrelationships between the elements and to
identify a smaller number of latent factors that can explain the patterns of covariation
between the variables and to measure the participation of the participants in the VRunners
competition. By reducing the dimensionality of the data, EFA helps to uncover the hidden
structure and simplify the interpretation of the data. EFA analyses the patterns of
correlations or covariances between the initial variables and identifies factors based on the
shared variance between them. Each factor represents a common underlying dimension or
concept that contributes to the observed correlations among the items. Before running the
EFA, we conducted a correlation analysis on the items, calculating the polycoric correlation
coefficients, as well as KMO, the Kaiser-Meyer-Olkin sample adequacy measure. The
Bartlett sphericity test was applied to investigate whether the data is suitable for a size
reduction method. After applying AFE, descriptive statistics were calculated for the

resulting factors. The last part of the statistical analysis consisted of performing non-
parametric Kruskal-Wallis tests, considering different categorical variables as grouping
variables, the numerical variable being represented by each of the factors resulting from the
EFA, as well as in the correlation analysis to identify whether there is a significant
association between the engagement factors and gamified learning motivation.

3.1. Motivation of students in gamified learning
Motivation to learn is one of the variables of interest in our research. When asked about the
idea of learning with a game, 43% consider to be moderately motivated to learn, 41%
declare themselves strongly motivated to learn, while the rest do not feel motivated by the
gamified learning. These results are similar to those obtained by Chapman and Rich (2018),
in whose research about 70% of students declared that learning through gamification was
more motivating or much more motivating than traditional courses, the most motivating
elements of the game being the points obtained, bonuses and penalties for meeting
deadlines, flexibility of deadlines and grade indicators. This outcome is also in line with
other research results (Domínguez et al., 2013; Surendeleg et al., 2014; Alsawaier, 2018;
Kalogiannakis, Papadakis and Zourmpakis, 2021), suggesting that gamification may be
regarded as an incentive for learning and it should be taken into consideration when
establishing learning programmes in higher education. Through gamification, the
educational experience can be improved, varied, perceived as modern, and transparent,
being an alternative to traditional education or a way to vary the educational act.
3.2. Students’ engagement in gamified learning
The engagement of students in the gamified learning experience was explored using the
scale of the engagement questionnaire developed by Whitton (2010 and 2011). The 18
items are measured on the ordinal 5-point Likert scale, where 1 means “Strongly disagree”,
and 5 means “Strongly agree”. Some of the items identified with the letter r in Table no. 2,
have negative valences and therefore they were reversely coded. Descriptive statistics
displayed in Table no. 2 show that the mean scores of the items range between 3.29 and
4.08, and six (one third) of the items have means greater than 4. The highest means are
exhibited by items related to the utility of the activities (E_9_r), the feeling of being able to
achieve the goal of the activity (E_3) and the joy perceived during performing the activity
(E_16_r). Except item E_10_r, related to the interest in exploring the options available on
the platform, with a skewness coefficient of almost 0, all the other items have negative
asymmetry, and higher values of the Likert scale prevail in the sample.
Table no. 2. Descriptive statistics of the items
St. St. Coef. of
Items Items Mean Median min max skew kurtosis
dev. error variation
E_1 I wanted to 3.88 1.01 4.0 1 5 -0.41 -0.78 0.10 25.98%
complete
the activity
E_2_r I found the 3.90 0.99 4.0 1 5 -0.48 -0.61 0.10 25.38%
activity
frustrating

St. St. Coef. of
E_3 I felt that I 4.06 0.91 4.0 1 5 -0.92 0.89 0.09 22.37%
could
achieve the
goal of the
activity
E_4 I knew what 3.99 0.85 4.0 2 5 -0.28 -0.93 0.08 21.22%
I had to do
to complete
the activity
E_5_r I found the 3.81 1.03 4.0 1 5 -0.44 -0.55 0.10 27.08%
activity
boring
E_6_r It wasn’t 3.66 1.10 3.5 1 5 -0.25 -0.80 0.11 30.14%
clear what I
could and
couldn’t do
E_7 It was clear 4.01 0.86 4.0 1 5 -0.68 0.36 0.09 21.41%
what I could
learn from
the activity
E_8 I felt 3.36 1.14 3.0 1 5 -0.40 -0.42 0.11 33.98%
absorbed in
the activity
E_9_r The activity 4.08 0.96 4.0 1 5 -0.63 -0.48 0.10 23.55%
was pointless
E_10_r I was not 3.29 1.23 3.0 1 5 0.02 -1.11 0.12 37.49%
interested in
exploring
the options
available
E_11_r I did not care 3.78 1.13 4.0 1 5 -0.52 -0.57 0.11 29.98%
how the
activity
ended
E_12 I felt that 3.79 0.88 4.0 2 5 -0.11 -0.90 0.09 23.21%
time passed
quickly
E_13 I found the 4.01 0.96 4.0 1 5 -0.77 0.24 0.10 23.91%
activity
satisfying
E_14_r The activity 3.84 1.03 4.0 1 5 -0.39 -0.64 0.10 26.88%
did not let
me do what I
wanted
E_15_r I was 3.56 1.01 3.0 1 5 -0.16 -0.39 0.10 28.32%
unable to
tell what
effect my
actions had
on me
E16_r I did not 4.04 1.01 4.0 1 5 -0.71 -0.46 0.10 25.11%
enjoy the
activity
E17 Feedback I 4.03 0.92 4.0 1 5 -0.76 0.50 0.09 22.71%
received
was useful
E18 I found it 3.91 0.95 4.0 1 5 -0.65 0.40 0.10 24.41%

St. St. Coef. of

easy to get
started
Our results show that the level of participation of students in gamified activities is generally
high. Furthermore, the results are in line with other studies conducted in higher education,
gamification being considered a learning tool that increases interactivity and engagement
(Domínguez et al., 2013; Smiderle et al., 2020; Bouchrika et al., 2021). The results of
Huang, Hew and Lo (2019) indicate that gamification increases student participation in
flipped learning courses, and students engaged in gamification are more willing to complete
pre- and post-course activities and achieve better test scores.
The multivariate normal distribution for the group of 18 items was tested using the Mardia
multivariate normality test in R and the results showed that the null hypothesis of the
multivariate normal distribution was rejected (skewness statistic was 2910.9196, p-value<
0.0001 kurtosis statistic was 24.4691, p-value< 0.0001). The Anderson-Darling test for the
univariate normal distribution of each of the items shows that none of them followed a
normal distribution.
Given that the data on each item are ordinal with 5-point Likert scale, as well as given the
fact that the ordinal data are not symmetrical, we used polychoric correlation coefficients,
as an alternative to Pearson or rank correlation (Watkins, 2020). Figure no. 1 presents the
polychoric correlation matrix between all items, with almost 92% of all correlation
coefficients being above 0.3 in absolute value. Most of the coefficients exhibited a medium
to large correlation, confirming the existence of a significant relationship between the
items. In Figure no. 1 we can visualise the intensity of correlation: the more intense the blue
colour, the stronger the correlation.
To investigate whether the data were suitable for EFA, Bartlett's test of sphericity was
applied. It confirmed that the data were in favour of the alternative hypothesis, the
polychoric correlation matrix is significantly different from the unit matrix (the value of the
test statistic was  2 (153) =1943.055, with a p-value smaller than 0.0001). In addition, the
value 0.791, greater than 0.7, of the Kaiser-Meyer-Olkin measure of sampling adequacy
recommends that the data are appropriate for EFA.
The next step was to decide on the number of factors. The parallel analysis and the Kaiser
method indicated three factors to be retained. Using the R package 'psych' (Revelle, 2023),
EFA was carried out with three factors, polychoric correlation matrix, 'varimax' rotation,
and principal axis (principal axis factoring or PA) as a method of estimation. The
standardised loadings (or the pattern matrix), shown in Table no. 3, are the correlation
coefficients between each factor and the 18 elements. For each item, the bold coefficients
correspond to the factor with which that item is more strongly correlated. The items were
listed in decreasing order of the loadings for each factor, this way facilitating the
interpretation of each latent underlying construct.

Figure no. 1. Polychoric correlation coefficients matrix
Table no. 3. Standardised loadings (pattern matrix)

Items F1 F2 F3 Communality h2
E_5_r 0.868 0.195 0.129 0.809
E_16_r 0.854 0.338 0.170 0.872
E_11_r 0.841 0.269 0.225 0.831
E_9_r 0.827 0.267 0.331 0.865
E_14_r 0.808 0.271 0.234 0.781
E_6_r 0.681 -0.245 0.544 0.819
E_10_r 0.680 0.244 0.189 0.558
E_2_r 0.573 0.143 0.390 0.501
E_15_r 0.560 0.108 0.355 0.451
E_8 0.044 0.731 0.145 0.557
E_12 0.299 0.649 0.326 0.618
E_1 0.489 0.639 0.384 0.795
E_17 0.356 0.615 0.403 0.668
E_13 0.442 0.606 0.461 0.775
E_7 0.361 0.391 0.739 0.830

Items F1 F2 F3 Communality h2
E_4 0.181 0.307 0.660 0.563
E_18 0.235 0.378 0.622 0.585
E_3 0.269 0.406 0.610 0.610
Note: E_1-E_18= items codification (see Table no. 2); F1-F3 =Factor 1- Factor 3
The first factor is associated with all the negative items, such as “I found the activity
boring”, “I did not enjoy the activity”, “I did not care how the activity ended” and so on.
Therefore, these underlying elements suggest resistance and lack of interest in engaging in
new challenges, different from those of a traditional learning system. As the items with
which this factor is more strongly correlated are reverse coded, we appreciate that this
factor actually represents the dimension of interest in gamified learning challenges, other
than those offered by a classical learning system. Consequently, the first factor is labelled
F1 – “interest and perception of the challenge”.
Items such as “I felt absorbed in the activity”, “I felt that time passed quickly”, “I wanted to
complete the activity”, “Feedback I was given was useful”, “I found the activity satisfying”
have high loadings on the second factor. Therefore, this factor reflects the appreciation of
the challenge-solving journey and the satisfaction derived from completing the tasks;
therefore, we called it F2 – “immersion in gamified learning and satisfaction of
completing”.
The last four items are presented in Table no. 3, “It was clear what I could learn from the
activity”, “I knew what I had to do to complete the activity”, “I found it easy to start”, and
“I felt I could achieve the goal of the activity”, focussing mainly on the third factor. This
factor describes the adaptability and self-confidence of the students in completing the tasks
and is named F3 – “purpose and clarity of goals”.
Whitton (2010 and 2011) proposes a scale covering five potential factors explaining
engagement: perceived challenge, perceived control, interest, immersion, and purpose,
which are the result of theoretical and qualitative analyses. The factors resulting from the
factor analysis of this exploratory research overlap with the five dimensions of the Whitton
scale, but a fusion of them into three factors, considered relevant, is found. Furthermore,
our results suggest the association of the purpose of the challenge with the clarity of the
game's objectives (F3), which become highly relevant for the students in the studied group.
These differences may be specific to generation Z, much more exposed to interaction with
the online environment, more informed and demanding than the 'millennial generation'.
The students' engagement is strongly influenced by how interesting and challenging the
activity is. It is important that the gamified experience provides them with clear activities,
with different options available that are enjoyable and not boring. Students' emotional
engagement increases if the design of the learning environment is carefully designed
(Schöbel, Janson and Leimeister, 2023). Gamified activities that provide clear paths for
reaching the final results are also appreciated by respondents, with the engagement being
influenced by the satisfaction of completing the activity. The study conducted by Leaning
(2015) reports a change in the psychological approach to learning through gamification,
students reporting that they worked harder, read more, and gamification influenced their
attitude and effort allocated to learning.

The three engagement factors presented above accounted for 69.4% of the total variance.
The first factor accounted for 33.6% of the total variance and 48.4% of the common
variance, the second factor accounted for 18.1% of the total variance and 26.1 % of the
common variance, and the third factor accounted for 17.7% of the total variance and 25.5%
of the common variance. Cronbach’s alpha was higher than 0.8 in all three cases,
confirming a good internal consistency (Table no. 4).
Table no. 4. Cronbach’s alpha and statistics related to the proportions of variance
explained by the three factors
Factor 1 Factor 2 Factor 3
Cronbach’s alpha 0.926 0.819 0.847
Sum of Squared loadings 6.040 3.261 3.186
Proportion of Variance 0.336 0.181 0.177
Cumulative Proportion 0.336 0.517 0.694
of Variance
Proportion Explained 0.484 = 0.336/0.694 0.261 = 0.181/0.694 0.255= 0.177/0.694
Cumulative Proportion 0.48 0.74 1.00
We analysed in detail the scores of the three engagement factors. Table no. 5 presents the
descriptive statistics of the factors, including the three quartiles. All three factors exhibit
negative skewness; however, the most negatively skewed factor is the first one, confirming
that greater scores of the interest in gamified learning prevail in the sample. Factor 2 scores
have an almost symmetrical distribution, since their skewness coefficient is almost 0.
Table no. 5. Descriptive statistics of the three identified factors
Factors ra
St.
Mean min Q1 Q2 = median Q3 max ng skew kurtosis St. error
dev
e
Factor 1 – 0 0.99 -2.66 -0.59 0.13 0.87 1.35 4. -0.78 0.16 0.09
interest and 01
perception of
challenge
Factor 2 - 0 0.96 -3.27 -0.74 0.07 0.66 2.27 5. -0.07 0.52 0.09
immersion in 54
gamified
learning and
satisfaction of
completing
Factor 3 - 0 0.92 -3.25 -0.69 0.06 0.64 2.79 6. -0.21 0.69 0.09
purpose and 03
clarity of goals

To achieve the research objectives, a more in-depth analysis was performed, as we were
interested in whether there are significant differences for each of the three factors according
to the gender of the students and the motivation for gamified learning of the students. In
this respect, non-parametric Kruskal-Wallis tests were conducted. In the case of the first
factor F1 - interest and perception of challenge, there are significant differences by gender
at 10% significance level (p-value=0.0671, in Table no. 6). For the other two factors, F2

and F3, the results are not statistically significant (in the case of the F2 factor, p-
value=0.2058>0.05, respectively for the F3 factor, p-value=0.283>0.05).
For the first factor F1, the medians of the groups are significantly different and there is
stochastic dominance between the sexes. Female students show a greater interest in taking
on the challenge of gamified learning than male students. They seem to be more inclined to
assume risks and look for new learning experiences. This result is in line with the findings
of Codish and Ravid (2017) and Denden et al. (2021), which also confirmed gender
differences in gamified learning. Other studies also highlight the importance of
understanding the effects of the demographics of different players in developing learning
applications with specific audiences in mind (Welbers et al., 2019), recommending caution
when generalising the results. However, once the challenge is taken, our results show no
significant gender differences in how intense students are engaged in the gamified learning
or in how they perceive the clarity of the game (see Table no. 6).
The students' responses to motivation in gamified learning through games were organised
into the following three categories; the sample proportions are presented between brackets:
Neutral or unmotivated to learn through games (16%), Moderately motivated to learn
through games (43%), Strongly motivated to learn through games (41%).
For student motivation in gamified learning, the Kruskall-Wallis test was statistically
significant for Factor 2 at 5%. For Factors 1 and 3 it turned out that the test is significant at
the 10% level. Therefore, the result reveals that learning motivation affects all three
dimensions of engagement (see Table 6).
Table no. 6. Kruskal-Wallis test for the three identified engagement factors, grouping
variable: students’ gender and students’ gamified learning motivation
F1 - interest and F2 - immersion in F3 - purpose
perception of gamified learning and clarity of
challenge and satisfaction of goals
completing
Students’ Gender Chi-Square 3.3528 1.6005 1.1528
df 1 1 1
Grouping
variable
p-value 0.0671<0.10 0.2058 0.283

Students’ gamified Chi-Square 4.9554 7.878 5.8662
learning df 2 2 2
motivation p-value 0.0839<0.10 0.0195<0.05 0.0532<0.10
The results show that for each factor, the smallest medians correspond to the group of
respondents who are neutral or demotivated to learn through games. For the second factor
F2 “immersion in gamified learning and satisfaction of completion” and the third factor F3
“purpose and clarity of goals”, the highest medians are those of the group of students who
are strongly motivated to learn through games, while for the first factor F1 “interest and
perception of challenge”, the medians of the moderately motivated and strongly motivated
groups are almost equal, however much larger than the median of the demotivated students.

3.3. The relationship between engagement and motivation in gamified learning
The correlation analysis presented in the following (see Table no. 7) aims to offer
information on the second research objective, which refers to the relationship or association
between each of the three identified engagement factors and the ordinal variable of the
motivation for gamified learning of the students. Kendall rank and Spearman rank
correlation coefficients were calculated, and hypothesis testing was conducted. The
alternative hypothesis was “correlation coefficient greater than 0”. The results from Table
no. 7 show that the data are in favour of a positive and statistically significant correlation
between each of the three engagement factors and students gamified learning motivation, at
significance levels of 5%, 1%, and 1%. Furthermore, we found the strongest association
between learning motivation of the students and Factor 2, immersion in gamified learning,
and satisfaction with the completion.
Table no. 7. Rank correlations between the ordinal variable of gamified learning
motivation and the three identified engagement factors
F1 - interest F2 - F3 - purpose
and immersion in and clarity of
perception of gamified goals
challenge learning and
satisfaction of
completing
Kendall's Students Correlation
0.1695744* 0.2315** 0.1962**
rank gamified Coefficient
correlation learning p-value for one
0.0158<0.05 0.0017<0.01 0.00645<0.01
tau motivation tailed test "greater"
Spearman's Students Correlation
0.2186* 0.2821** 0.2398**
rank gamified Coefficient
correlation learning p-value for one
0.0144<0.05 0.0022<0.01 0.0081<0.01
rho motivation tailed test "greater"
Therefore, our results show that students who are more motivated to learn will express
greater engagement in gamified learning in all its three dimensions. This outcome confirms
that well-designed computer games can engage learners more and promote an effective
learning environment (Kalogiannakis, Papadakis and Zourmpakis, 2021; Boboc et al.,
2023).
Conclusions
The objective of this paper was to evaluate and explain the level of students' participation in
gamified learning within the context of business and economics higher education.
Additionally, we also aimed to examine the connection between the participation of
economic and business students and motivation in learning through educational games. To
analyse engagement in gamified learning, we utilise Nicola Whitton's scale and perform an
exploratory factor analysis on the data collected.
The factor analysis reveals three distinct factors related to engagement. The first factor
represents an interest in facing new challenges, the second factor reflects immersion in

gamified learning and the satisfaction of completing tasks, and the third factor is associated
with students' objectives and the clarity of goals. Our findings indicate that all of these
factors exhibit positive associations with student learning motivation. Furthermore, the first
factor also shows an association with the gender of the respondents. The results also
demonstrate that highly motivated students are more likely to engage deeply in gamified
learning in all three dimensions. This confirms the idea that well-designed educational
computer games can effectively engage learners and foster an optimal learning environment
(Kalogiannakis, Papadakis and Zourmpakis, 2021).
The results provide new and valuable insights on how students in economics and business
perceive engagement in gamified learning. The article has an original approach, both from
the point of view of the analysis method and of the investigated case study.
This study is supported by a homogeneous sample of 100 students in economics and
business who simultaneously participated in the same gamified learning competition.
However, one limitation of the study, which is exploratory in nature, is that the results may
not be generalised to students from other educational domains, as the sample was
conveniently selected and different educational background and relation to gamified
learning may differently impact engagement. Another limitation is geographical; all
students come from a university in Romania. The study opens up new research directions
by replicating the methodology used to analyse gamified learning in other fields of higher
education. Furthermore, future studies can contribute to identifying causal relationships
between engagement, motivation, and possibly gamified learning outcomes. Methods based
on simultaneous equation models represent alternatives for data analysis for larger sample
sizes.
A key takeaway from existing studies is that gamified learning should be tailored according
to the specific characteristics of the target group, including demographic aspects, individual
learning styles, and personality traits. Designing and implementing gamified learning
experiences with these considerations in mind is crucial to achieving optimal results. A
better understanding of the mechanisms that determine the motivation and engagement of
economics and business students in learning through games, as well as other elements that
influence their involvement and motivation, is essential for the development of engaging
and effective games that improve the didactic process and learning outcomes. The results of
this study can be useful to teachers who use gamification in the teaching process, to
organisations that develop educational games, and to decision makers at the university level
who can influence various decisions such as including gamification in the curriculum,
training teachers to use gamification in the didactic process, etc.
Acknowledgment
The paper was supported by the Project “Practice smart your development” – (PRIDE-U,
POCU/626/6/13/133138). The paper was presented at the ICESS 2023 conference. Authors
are grateful to participants for their useful feedback. All authors collectively contributed to
the conception, writing, reviewing, and editing of this article. Authors are listed
alphabetically.

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AE Towards a Modern Leadership: Sustainable Development-Oriented
Management
TOWARDS A MODERN LEADERSHIP: SUSTAINABLE DEVELOPMENT-

ORIENTED MANAGEMENT
Mihaela Simionescu1 , Cristinel Vasiliu2 , Corina-Georgiana Șerban
(Pătrîntaș)3 , Andreea-Nicoleta Bichel4 and Oana Simona Hudea5
1)5)
University of Bucharest, Bucharest, Romania.
1)
Romanian Academy, Bucharest, Romania.
2)3)4)

Simionescu, M., Vasiliu, C., Șerban (Pătrîntaș), C.G., Received: 30 July 2023
Bichel, A.N. and Hudea, O.S., 2023. Towards a Modern Revised: 9 September 2023
Leadership: Sustainable Development-Oriented Accepted: 22 September 2023
Management. Amfiteatru Economic, 25(Special No. 17),
pp. 1024-1041.
Abstract
The new context generated by the series of crises having occurred at the global level (the
COVID-19 pandemic, the Ukraine war, the price increases) brings to our attention the
sustainable development-oriented management of organisations.
The purpose of this paper is to outline the importance of adapting management styles to the
requirements of the current economic context and to the sustainability-related challenges.
The efficient communication, the cohesion, and the development of personal relationships
are essential for creating a productive and pleasant work environment.
The main research methods used in order to achieve such a goal are: principal component
analysis, matching propensity score, binary logistic regression, multilevel binary logistic
regression, and structural equation models.
The results reveal that the long-term orientation of leaders towards sustainability is
influenced by factors such as gender, age, position within the organisation, type of
organisation where they carry out their activity, but also by a series of personal qualities and
features.
This article is a novelty for Romania, as it fills a gap in the related scientific literature on the
relationship between the characteristics of a leader and the role of the same in the
implementation of sustainability in the organisational environment.

Autor de contact, Cristinel Vasiliu – e-mail: cristi_vasiliu@yahoo.com
Acesta este un articol cu acces deschis distribuit în conformitate cu termenii Creative

Commons Attribution License (https://creativecommons.org/licenses/by/4.0), care permite
utilizarea, distribuirea și reproducerea fără restricții în orice mediu, cu condiția ca lucrarea
originală să fie citată corect. © 2023 Toate drepturile aparțin autorilor.

The output reflects the appreciations that the employees operating in the organisational
environment manifest with respect to the features of sustainability-oriented leaders, as well
as to their long-term role in promoting sustainability. Furthermore, the implications regarding
the promotion of good practices in sustainability, among both managers and employees, are
identified, taking into consideration the dynamic rhythm of the business environment and the
ever-complex sustainability-related requirements.
Keywords: sustainability, sustainable development, leader, leadership, strategy.
JEL classification: Q01, M15, M54
Introduction
In the dynamic and unpredictable business environment, it becomes obvious that the
sustainability concept should be analysed and implemented. By targeting to minimise the
negative effects or even generate positive ones on the environment, sustainability involves
other factors as well, such as long-term projection of organisational strategies, provision of
work conditions beneficial to employees, and even considering taking steps for their
continuous training. Used as a communication tool, as a competitive strategy, or as a modality
to meet legal, economic, or ethical requirements, sustainability becomes ever more visible,
especially in large corporations (Akdogan, Arslan and Demirtas, 2016).
The literature is extensive and comprises a series of studies focused on the analysis of
leadership styles and on the identification of the qualities necessary to become efficient and
successful organisational leaders. At the same time, a significant growth of the interest in
organisational sustainability is ascertained, this subject becoming more and more relevant in
the context of the current social, economic, and ecological evolution.
However, there is a notable gap in the literature on the exploration and understanding of the
connection between leadership styles and support for sustainability within organisations.
Although both topics have been individually deeply studied, the research approaching the
synergy between them is scarce and limited.
To better understand the nature of such a connection and to explore the synergy between
leadership and sustainability, researchers and professionals in management and
organisational behaviour should take steps towards a rather holistic approach. Such an
integrative approach could bring some light to the way the leadership styles and the specific
features of leaders might influence, support, or even inhibit the organisational efforts of
reaching sustainability-related goals.
From the perspective of employees, being involved in initiatives promoting sustainability
strengthens the feeling of work environment safety and own labour significance (Akdogan,
Arslan and Demirtas, 2016). However, the most important role in selecting a sustainable
strategy belongs to leaders, as they have the leading capacity and the power to make possible
the implementation of such a strategy. Leaders are those individuals capable of articulating
problems and recognising the capacity of their organisation to solve them (London, 2008).
Previous studies demonstrated that leaders and their styles are important elements in
facilitating sustainability, the differentiation of ethical styles as a critical factor increasingly

Management
preferred by employees and leaders (Lin et al., 2020). As the literature lacks a detailed
analysis of leadership styles from the perspective of sustainability, this element will be
approached in this study.
The purpose of this paper is to outline the importance of adapting management styles to the
requirements of the current economic context and to the sustainability-related challenges.
The efficient communication, the cohesion, and the development of personal relationships
are essential for creating a productive and pleasant work environment.
The paper continues with the literature review section, split into two large topics:
sustainability and leadership styles in the organisational environment. Thereafter follows the
analytical presentation of the methodology being at the basis of the quantitative research, the
latter having generated the output rendered in results and discussions. The last part of the
paper is dedicated to conclusions, research limitations, practical implications, and new
directions of research.
1. Literature review
In a business environment, the sustainable development and sustainability concepts are
strongly correlated with the feeling of safety. Although initially used in the 1970s, in the
context of the occidental development model, the covered dimensions are not exclusively
limited to economic aspects, but also include social issues (Ruggerio, 2021).
According to the definition rendered in the report "Our Common Future", published by the
World Commission in 1987, relating to Environment and Development, sustainable
development refers to„... development that meets the needs of the present, without
compromising the ability of future generations to meet their own needs...” (WCED, 1987,
quoted by Ruggerio, 2021, p.3).
The existing literature considers sustainability and organisational implication as a reaction to
the external pressures of the global organisations, in order to be useful, especially in
extremely changing contexts, such as wars, health, or political instability crises (Thoradeniya
et al., 2022). Therefore, in an ever-changing working environment, as the one that has
characterised the last years, sustainable development is seen as a strategy creating a safety
net for the future. According to Gorski (2017), a company assumes a visible role in the
context of sustainability when it exceeds basic activity and what the law requires, bringing
additional value both to the company and to the society.
The unstable environment, specific to the last period, provided organisations with the
opportunity to assess the risks they are facing. Therefore, as stated by Bashir, Alfalih and
Pradhan (2022), organisations should approach such new economic and environmental
challenges in a systematic, holistic, and radical way, based on sustainable development. The
implementation of innovation in the business model can be used in such regard, to design
new products or to develop news working patterns treating both return and sustainability as
a unique concept and as part of the main solution.
The business sustainability becomes a reflection of the organisation success and growth, this
being transposable into the business strategy, essential in a competitive environment, and
indispensable for the future. In this context, the organisational key of success is the leader,

on which all stakeholders rely for leading them out of the crisis (Bowers, Halland and
Srinivasan, 2017), as well as for valorising the opportunities.
1.1. Impact of sustainable development and sustainability
The authors explore, through a multidimensional approach, the concept of sustainable
development and its significance in the treatment of the complex challenges facing our
society. Via resorting to various sources, the same outline the essential sustainable
development aspects, such as environmental protection, social equity, and economic
prosperity. They insist on the need for integrated strategies, collaborative efforts, and
technological progress, in order to promote sustainable development practices. Sustainable
development became a fundamental concept in approaching emerging global issues, ranging
from climatic changes to lack of resources and inequality of rights (Bowers, Hall and
Srinivasan, 2017). Highlighting the multidimensional nature of sustainable development
requires a comprehensive understanding of this concept and its present and future
implications.
Preserving the natural operational environment of an organisation is a central pillar of
sustainable development. Brynjolfsson and McAfee (2014) outline the importance of using
innovative technologies in order to minimise ecological footprints and to promote a
sustainable management of resources. With respect to social equity, Arora, Cohen and Walsh
(2019) state that artificial intelligence and machine learning can be used as technological
facilitators for entrepreneurship, promoting economic opportunities, and lowering social
disparities. Furthermore, Bughin and Catlin (2017) reveal the potential of smart cities and
digital solutions in creating liveable communities, therefore favouring social cohesion and
quality of life.
On the other hand, economic prosperity and sustainable development are supposed to create
a balance between economic growth and environmental protection. Acemoglu and Restrepo
(2019) explore how automation and technological progress can replace and reduce the
volume of the needed labour force, constructing the future of labour in a sustainable
development context. Gomber, Koch and Siering (2018) discuss about the current and future
directions of the digital finance and financial technology (FinTech) based research,
underlining their potential in contributing to a sustainable economic development. To achieve
sustainable development, as an integral part of an organisation, integrated strategies and
collaborative efforts are essential. Less et al. (2023) focus on the importance of intelligent
governance in providing the ethical and legal frameworks necessary for a responsible use of
artificial intelligence. At the same time, the study reveals the contribution of governance
policies and structures to the promotion of sustainable development initiatives.
1.2. Leadership styles in the context of sustainability
Leaders represent the key actors of an organisation, both appreciated for their success and
deemed liable for any failure. During the last decades, they have become subjects of high
interest, mainly as for the leadership styles, thoroughly analysed by specialists in terms of
the organisational and employee effectiveness (Abbas and Ali, 2023).
Busola Oluwafemi, Mitchelmore and Nikolopoulos (2020, p.196) observed that leaders have
to demonstrate “flexible adaptive leading behaviours and to adjust their leadership styles to
the unpredictable circumstances encountered”. Some of the current largely approached
leadership styles are: transformational leadership, ethical leadership, distributed or shared

Management
leadership, and authoritarian leadership. To understand the most appropriate leadership

styles, relevant for the present research, each of them will be analysed in relation to the
specific competencies required.
According to Chamakiotis, Panteli and Davison (2021), the transformational leadership is an
option fit for the nowadays teams, based on virtual interactions, as it is characterised by
inspirational motivation and individualised attention. This can facilitate trust building;
individual identification, and can promote an innovative atmosphere (Xie et al., 2018).
Innovation and sustainability have been positively correlated with the organisation capacity
to surpass crises, as well as with the digitalisation process, which is so useful in a virtual
environment (Ebersberger and Kuckertz, 2021). The transformational style is deemed to be
pro-sustainability by providing all necessary conditions for employees to get involved in
actions relating to the improvement of the work environment and of the surrounding one.
Trust, voicing behaviour, and lack of anxiety in the business environment are positively
correlated with sustainable initiatives (Zheng et al., 2023).
The transactional management style, based on the reward-punishment system, was related to
strict leading behaviours, associated by Busola Oluwafemi, Mitchelmore and Nikolopoulos
(2020) with the sanctioning of errors, delimitation of routines, monitoring, and control of
goal reaching, appropriate measures taken, and attention paid to homogenous
accomplishment of tasks.
According to Zheng et al. (2023), transactional leaders resort to existing information, the
interactions involving reward-based conditional exchanges. As for sustainability, such
aspects are positive, as sustainable initiatives need a clearly delimited vision and the
participation of the largest possible number of organisational members, both aspects being
covered by the transactional leadership style. Although the previous studies demonstrated
that the transactional leaders have a minimum impact on the behaviours that cannot be
quantitatively measured, respectively, rewarded, it can be argued that those transactional
leaders adopting a sustainable strategy have the ability and the tendency to implement such
system targeting and rewarding the sustainable goals,
Therefore, as noted by Lee et al. (2023), the transactional leaders have the capacity to better
define and share the scope and role of employees within a company, leading to an augmented
trust in management, an increased motivation, and a superior performance.
However, it should be determined that, compared to the transformational leadership style, the
transactional one forces employees to focus on error prevention, raising stress at work, and
lowering the level of involvement in practices relating to the protection of the surrounding
environment (Zheng et al., 2023).
Taking into consideration the fact that this study concerns Romania, a country having dealt
with autocratic leaders, specific to a communist and post-communist period, the transactional
leadership style can be identified as an intermediary stage towards the targeted western
models and cultures of inspirational leaders that, in most of the cases, could not be reached
yet. The present study aims to analyse the transactional style, as a sustainability mediator.
Another leadership style that has drawn the attention lately is the ethical style, which refers
to the achievement of ethical actions, considering the impact of decisions on stakeholders
and the transmission of moral signals to followers (Banks et al., 2021). It involves specific
attitudes and behaviours of the followers, beyond ethics, such as: work satisfaction, personal

initiative, trust in leaders, organisational commitment, implication at work, task performance,
job withdrawal behaviours, deviant behaviours, and employee emotions (Velez and Neves,
2018). The ethical leadership style is usually associated with the sustainability concept,
referring to both the increase of the commitment towards the organisation and the adhesion
to equality, stability, and sustainability related behaviours (Ilyas, Abid and Fouzia, 2020).
As noticed by Chamakiotis, Panteli and Davison (2021), in case of virtual teams, the central
leadership styles operate better if combined with other styles, promoting empowerment and
distribution, such as the shared leadership. The shared leadership looks for different
performance levels of specific tasks and for responsibility undertaking, by empowering
people to lead collectively towards common goals. This is accomplished by sharing mental
models, as a predictor of the team efficacy (Lungeanu, DeChurch and Contractor, 2022). The
types of teams benefitting from the shared leadership are the ones the members of which have
different abilities, experience, and features. Team collaboration provides the necessary
involvement and empowerment, so as to overcome the difficult situations, as well as the
necessary ideas and abilities, to adopt a new working style. From the perspective of
sustainability, the dilemma that arises concerns the ability of shared leadership to create a
clearly delimited vision, necessary for such a concept.
Regarding the authoritarian leadership style, frequently associated with pre-democratic
leadership forms, the sustainability-related literature is limited. Authoritarian leaders are
supposed to be characterised by the need for power, narcissism, neuroticism, and even
psychopathic behaviours, inducing a low to inexistent level of admiration among followers
(Hamsa et al., 2018). They are oriented towards the tasks of the employees and less towards
the well-being of the group, so that a correlation with the sustainability antecedents, such as
trust, sense of ethics, or psychological safety, is almost inexistent. Although considered
negative influencers of the group climate and of the team efficiency, they have also been
associated with some positive aspects, such as precise structures, hierarchical predictability,
and clear roles. After all, the involvement of the authoritarian leaders in sustainable initiatives
might be efficient, but it represents a subjective issue, seldom encountered within this
leadership style (De Hoogh, Greer and Hartog, 2015). Irrespective of the selected leadership
style, digitalisation stops being an innovation source, turning into a requirement, allowing
teams to work remotely and supporting businesses to continue with their activities in a
sustainable manner (Ebersberger and Kuckertz, 2021). Nowadays, it became a must, due to
the remote work-related policies adopted by most organisations. By virtue of such event, the
virtual teams involved individuals who have previously rejected working remotely or just
couldn't work at home until them. As argued by Chamakiotis, Panteli and Davison (2021),
the leadership success depends to a large extent on the cohesion between the leader and the
team, as part of the team social and emotional process.
An important initial factor was the already existing team cohesion, but this can also be
obtained by resorting to digital instruments specifically created for such a purpose.
Communication represents a major factor and the ability to send precise and timely messages,
as well as to develop more personal relationships at work, in order to build trust. This is
deemed one of the biggest challenges, considering the personal time and family limits, as
well as the breaks that are so useful for any employee.
Given the leadership styles described above and the expectations related to sustainable
development, the authors embarked on developing this study, in order to identify which one

Management
better fits the expectations of followers, correlating the same with the context-specific
business and social environment of sustainability.
Therefore, four hypotheses are formulated at the theoretical level, the same being
subsequently checked on the data collected based on the questionnaire. The first and last
hypotheses refer to the appreciations manifested by respondents about the characteristics of
sustainability-based leaders. The other two hypotheses have in view the role of sustainability
in the long run, with a focus on the differences encountered depending on the age, gender,
and status of employees. The hypotheses are as follows:
H1: There are differences between the employees working in the private sector and those
working in the public sector in terms of the level of appreciation of the qualities needed by a
leader who pleads in favour of sustainability.
H2: The employees leading teams appreciate more the role of sustainability in achieving long-
term goals than those who do not have such responsibility.
H3: The gender, age, and level of appreciation of the qualities of a leader oriented towards
sustainable development significantly influence the long-term performance of the companies
promoting leadership.
H4: The opinions regarding the qualities of a leader focussed on sustainability are influenced
by the awareness of the challenges to be faced, as well as by the deep commitment of the
leader to certain leadership practices.
Consistent with the research goals and questions, the authors resorted to exploratory research
(enquiry) based on a structured questionnaire.
This quantitative research method involved the collection of data from 249 leaders and
employees. The questionnaire included questions regarding their perception relating to the
leadership styles, the importance of sustainability, the competencies, and responsibilities
necessary for a leader preoccupied with such an issue. The collected data was analysed using
different methods presented below, based on SPSS 23 and Stata15software.
The analysed sample consists of 249 employees working in the public and private sectors.
To collect data from these statistical units, we proceeded to an enquiry and used a
questionnaire that also included questions outlining the relationship between leadership and
sustainability. The questionnaire was distributed to respondents between June 1st and July
15th, 2023 via Google Forms. A snowball-type directed sampling method has been used, as
the questionnaire was first distributed to a lower number of respondents, who forwarded the
same to other individuals meeting the characteristics targeted by the research purpose. The
sample is not representative for the population and the research being based on an enquiry
for which the representativeness of the sample in relation to the population, given a specific
characteristic, is not required.
Among the respondents, 70.3% are women and 29.7% are men. Most of the respondents are
aged 20 to 35 (48.6%), being followed by those belonging to the superior age category,
namely 35 to 50 (42.6%). Only one-third of the respondents lead teams and more than half

work in multinationals. Also, almost half of them have 10 years (41.8%), respectively 10 -
20 years (41%) of service length (Table no. 1).
Table no. 1. Distribution of respondents according to certain characteristics
Variable Category Relative frequencies (%)
Gender Male 29.7
Female 70.3
Age (years) Under 20 0.4
20-35 48.6
35-50 42.6
50-65 8.4
Team leading Yes 33.3
No 66.7
Field of activity Public 16.5
Private 83.5
Company size Microenterprise 14.1
Small enterprise 15.7
Medium-sized enterprise 18.9
Multinational (large enterprise) 51.4
Length of service (years) <10 41.8
10-20 41.0
20-30 15.3
>30 2.0
Source: own computation in Stata 15
The methodological framework resides in several methods that match the logical approach,
in line with the hypotheses rendered at the theoretical level.
2.1. Principal component analysis
The first step consists of the principal component analysis (PCA), destined for identifying
the most important features needed by a leader oriented towards the sustainable development
of the company, according to the opinion of the employees working in the public system,
respectively, in the private one. The score of the features of a leader who pleads in favour of
sustainability at the level of the company led by the same is computed based on the common
characteristics included in the first principal component of each group of respondents (the
employees working in the private sector, respectively, the employees working in the public
one). Each feature needed by a leader is measured on a 6-point Likert scale, being assigned
a number of points (written in brackets) for each possible variant of answer: full disagreement
(0), disagreement (1), rather disagreement (2), rather agreement (3), agreement (4), full
agreement (5). The score variable is reflected in the sum of the number of points associated
with the level of agreement regarding the characteristics of a leader who advocates
sustainability at the organisational level. A higher score reveals a higher importance assigned
to the characteristics of a successful leader for the implementation of sustainable practices in
the said organisation. The hypothesis relating to the different perceptions of the employees
working in the public system as against the employees working in the private one as concerns
the qualities needed by a leader who pleads in favour of sustainability is checked based on
the comparative analysis carried out in this respect.

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2.2. Propensity score matching

Regression using propensity score matching (PSM) is generated based on the previously
determined score variable. This technique allows for the evaluation of the independent effect
of an intervention (treatment). In this case, the intervention refers to the team leader of some
of the employees who have answered the questionnaire. This status can affect their
perceptions related to the qualities needed by a leader oriented towards company
sustainability, as well as the opinion regarding the impact that sustainable leadership might
have on the long-term organisational success. In this context, the technique should be applied
twice, having, at a time, as a dependent variable, the score variable, previously determined,
and the impact variable, having as values the scores associated with the answers to the
question relating to the appreciation of the impact of sustainable leadership on company long-
term performance: no impact (0), very low impact (1), low impact (2), medium impact (3),
high impact (4), very high impact (5). Additionally, the average treatment effect (ATE) is
computed for the dependent variable of interest.
2.3. Binary logistical regression and multi-level binary logistic regression (with mixed
effects)
The impact variable defined above was re-codified so as to take two possible values: 0
(without significant impact, associated with the variables: no impact, very low impact and
low impact) and 1 (with significant impact, for the cases: medium impact, high impact, and
very high impact). The arising variable, named binary impact, represents the dependent
variable in the binary logistic regression using as explanatory variables the previously defined
score variable, the age, and the gender of respondents. Besides, the multi-level binary logistic
regression groups the respondents based on their position of team leaders, respectively, on
their field of activity (public/private).
2.4. Structural equation models
Structural equation models (SEM) are used to evaluate the relationships between the
observed and latent variables. This study analyses the relationship between the challenges
faced by leaders in dealing with sustainability-related issues, the features needed by a leader
who pleads in favour of sustainability at the level of the company led by the same, and the
practices to which the leader of the company of respondents is deeply committed.

The principal component analysis on the dataset relating to the appreciation of the
characteristics needed by a leader focussed on sustainability at institutional level resulted in
two principal components for the employees working in the public sector and a single
component for the employees working in the private one. The Varimax method of rotation
and the Kaiser criterion for selection of the principal components were used, this
corresponding to eigenvalues exceeding 1. For the employees working in the public sector,
the first principal component stands for 73.385% of the total variance and corresponds to an
eigenvalue of 7.338, while the second one reveals 13.74% of the variation, the related
eigenvalue amounting to 1.374. Together, the two principal components explain 87.125% of
the total variance. Concerning the employees working in the private environment, the
principal component identified reflects 65.343% of the total variance, with an eigenvalue

equal to 6.534. Table 2 shows the matrices of the principal components, following a Varimax
rotation.
Table no. 2. Matrices of main components
Employees working Employees working
Characteristics
in the public sector in the private sector
Component 1 Component 2 Component 1
Power 0.463 0.810 0.664
Dedication 0.929 -0.052 0.864
Intelligence 0.926 -0.057 0.911
Empathy 0.949 -0.152 0.764
Creativity 0.950 -0.198 0.862
Future orientation 0.931 -0.127 0.853
Authority 0.487 0.770 0.619
Trust others 0.823 0.068 0.830
Ethics 0.957 -0.125 0.809
Communication skills 0.950 -0.143 0.859
For the respondents working in the public system, the first principal component includes the
characteristics of a leader focussed on sustainable development, such as: dedication,
intelligence, empathy, creativity, future orientation, trust in others, ethics and communication
skills. The second component includes power and authority, suggesting that the employees
working in the public system consider that authority and power are features less important to
a leader. In exchange, the proper organisation and the quality of the relationship with
subordinates do matter. Ethics seems to be the most important characteristic of a leader,
according to employees working in the public sector. Regarding employees working in the
private sector, all considered features are important for a leader, but intelligence prevails.
Therefore, the hypothesis stating that there are differences between the employees working
in the private sector and the ones working in the public sector as to the level of appreciation
of the qualities needed by a leader who pleads in favour of sustainability is validated.
The perception of the qualities needed by leaders focused on sustainability could be different
in the case of employees leading teams as opposed to not having such responsibility. Hence,
the effect of this intervention (experience in leading teams) on the score variable,
respectively, on the appreciation of the impact of the sustainable leader on the success of an
organisation in the long-run is evaluated. According to Table 3, the experience of leading a
team of some respondents does not generate differences in appreciating the qualities of a
leader focused on sustainability, as compared to those not leading teams. On the other hand,
the average impact of sustainable leadership on the long-term performance of the company
is appreciated as less significant if the respondents did not lead teams in relation to the case
where they all dealt with such leadership experience. Otherwise said, employees leading
teams appreciate more the role of sustainability in achieving the company long-term goals
than those not having such responsibility.

Management
Table no. 3. Output of propensity matching scores

Average treatment Coefficient Robust standard p-value
effect errors
Dependent variable: -0.323** 0.143 0.025
impact
Intervention: leading a
team (no/yes)
Dependent variable: 0.072 1.35 0.957
score
Intervention: leading a
team (no/yes)
Note: ** indicates p-value < 0.05.
The impact variable is transformed into a binary variable taking two possible values: 0
(without significant impact) and 1 (with significant impact), named binary impact, and
indicates the significance of the sustainable leadership impact on the company’s long-run
performance. According to Table 4, the gender, age, and score explain the impact of
sustainable leadership on the company’s long-run performance.
Table no. 4. Binary logistic regression and multi-level binary logistic
regressions (with mixed effects) explaining the appreciation of the impact of
sustainable leadership on the long-term performance of the company
Variable Odds ratio (p-value in brackets)
Gender 2.101* (0.091) 2.101* (0.091) 2.101 (0.091)
Age 1.962* (0.061) 1.962* (0.061) 1.962* (0.061)
Score 1.105*** (0.001) 1.105*** (0.001) 1.105*** (0.001)
Constant 0.003*** (0.003) 0.003*** (0.003) 0.003*** (0.003)
Grouping variable: - 0.089 -
leading a team
Constant variance
Grouping variable: - - 0.0204
field of activity
(public/private)
Constant variance
Chi-square (p-value) 19.56 (<0.01) 14.34 (0.0025) 20.46 (<0.01)
Hosmer and 2.87 (0.874) 3.04 (0.804)
Lemeshow test: 3.87 (0.7941)
statistics (p-value)
Note: *** indicates p-value < 0.01, ** indicates p-value < 0.05, * indicates p-value < 0.1.
The chances that women appreciate as significant the impact of sustainable leadership on the
company long-term performance are almost two times higher than in the case of men. Passing
from one age category to a superior one, the chances of recognising as significant the impact
of the sustainable leadership for those belonging to the upper age category are almost two
times higher than for those belonging to a lower age category. An increase with 1 unit of the
score related to the appreciation of the quality of a leader oriented toward sustainability

causes an increase with 10.5% of the chances to have a significant impact of the sustainable
leadership on the company long-term performance. In case of grouping by clusters, given the
experience in leading teams or the field of activity, the influence on the company
performance of the sustainable leadership is significantly lower. Therefore, the hypothesis
assuming that the gender, age and level of appreciation of the qualities specific to a leader
oriented towards sustainable development have a significant impact on leadership from the
perspective of the long-run performance of companies is validated.
Different measures, based on certain items, were also considered:
A. Deep commitment of leaders concerning certain practices:
A1. Continuous training of employees;
A2. Consideration of the long-term implications of the decisions made and implemented.
B. Challenges faced by leaders in approaching sustainability-related issues:
B1. Missing solid scientific data that demonstrate that the sustainable solutions are viable;
B2. Lack of viable supply chains to obtain sustainable solutions.
C. Features of a leader focused on sustainable development:
C1. Dedication;
C2. Intelligence.
Cronbach's Alpha coefficient reveals values exceeding 0.8 (0.8223 for A, 0.8466 for B, and
0.9124 for C), which suggests the internal consistency of the model. The factor loadings
exceed 0.7: 0.755 for A1, 0.845 for A2, 0.788 for B1, 0.806 for B2, 0.904 for C1, 0.912 for
C2. According to the Heterotrait-Monotrait criterion, used for assessing the discriminant
validity, all computed coefficients are lower than 0.9. The values of the inflation factors are
below 3, no multi-collinearity cases being revealed. According to Table 5, the appreciation
of the characteristics of a leader focused on sustainability is directly explained based on the
deep commitment of the own leader to certain practices, as well as on the challenges faced
by leaders in approaching sustainability-related issues. Otherwise, being acquainted with the
manner of action of the leader focussed on sustainability, as well as with the challenges faced
by the same, directly influences the description of the features of a leader focussed on
sustainability.
Table no. 5. Relationship coefficients for SEM
Standard Z p-
Relationships Coefficients Conclusions
deviation statistics value
A→C 0.2393397*** 0.0553464 4.32 <0.01 The deep commitment
of the leader as for certain
practices has a
significant influence on
the appreciation of the
features of the leader
focussed on
sustainability.

Management
Standard Z p-
Relationships Coefficients Conclusions
deviation statistics value
B→C 0.1366182** 0.0648875 2.11 0.035 The challenges faced by
leaders in approaching
sustainability-related
issues directly influence
the appreciation of the
features of the leader
focused on
sustainability.
Note: *** indicates p-value < 0.01, ** indicates p-value < 0.05, * indicates p-value < 0.1.
The questionnaire included a question with multiple choices, suggested four roles of leaders
in promoting sustainable practices, and also the possibility of mentioning other roles. The
four roles are Champions and models to follow, Facilitators and supporters, Decision-makers
and strategists, and Communicators and educators. It should be mentioned that the
respondents did not mention any other role.
The frequencies related to the role of leaders in the promotion of sustainable practices
revealed a preference for the role of facilitators and supporters of sustainability, with a
percent of 30.1% (Table 6). This aspect demonstrates that sustainability should be seen as a
common effort, facilitated and supported by leaders, but involving all employees. The
responsibility is shared between leaders and their followers, underlining the major role that
the role of facilitator involves. Therefore, to create a sustainable perspective of the business
environment, leaders must create specific contexts.
Table no. 6. Frequencies–roles of leaders
The role of leaders in promoting sustainable practices Answers Percent
within organisations N Percentage of cases
Qualities of Champions and models to follow 96 23.5% 38.6%
the leadera Facilitators and supporters 123 30.1% 49.4%
Decision-makers and strategists 79 19.4% 31.7%
Communicators and educators 110 27.0% 44.2%
Total 408 100.0% 163.9%
a. Group
Source: own computation in SPSS 23

The interviewed individuals manifested their top preference for the transactional leadership
style, followed by the ethical one. The preference for the transformational style is quite low,
due to the inspirational element rather missing in the nowadays Romanian business
environment. Most respondents (45 individuals, representing11%of the total answers) having
indicated the transactional leadership style consider that leaders should act mainly as
facilitators and supporters. This quality is also mentioned by those who have chosen the
ethical leadership style. Therefore, the role of facilitator and supporter is identified as
primordial in promoting sustainability for the most frequently encountered leadership styles:
transactional and ethical (Table 7).

Table no. 7. Association of the roles of leaders with the leadership styles
and the gender of the respondents
Leadership styles Total
Transfor Transacti Ethic Auto- Laissez-
mational onal al cratic faire
Champions and 2 11 6 5 2 26
models to
Roles of leadersa follow
Facilitators and 4 19 3 7 3 36
supporters
Male
Decision- 4 16 2 7 2 31
makers and
strategists
Communicator 8 13 5 5 4 35
s and educators
Total 18 59 16 24 11 128
Champions and 13 22 17 13 5 70
models to
follow
Roles of leaders
Facilitators and 12 26 26 14 9 87
supporters
Female
Decision- 9 17 11 7 4 48
makers and
strategists
Communicator 13 21 17 12 12 75
s and educators
Total 47 86 71 46 30 280
Percentages and totals are based on responses.
a. Group
Source: own computation in SPSS 23

Concerning the distribution depending on the gender of respondents and on the roles of
leaders as for the orientation of the organisation towards sustainability, the results reveal a
relatively balanced spread of options regarding the qualities of leaders, in the case of males,
with preference for facilitators and supporters, respectively, communicators and educators.
The same preferences are encountered in the case of women, but with a significant difference
in terms of percents. Thereafter, a reversal of the roles between the two genders is observed
– champions and models to follow are preferred by females and decision-makers and
strategists by males.
Given the abovementioned, all four hypotheses assumed at the theoretical level are validated
on the basis of the data collected via the specified questionnaire. Such results allow for the
formulation of some recommendations for promoting a sustainable leadership:
 organising training sessions for all employees, relating to the benefits of sustainability,
challenges, practices and sustainable solutions;
 encouraging leaders to share and transfer some of their responsibilities related to
sustainability to the members of their teams and to provide the same with support in order to
allow them to develop the skills necessary for promoting sustainability at organisational
level;

Management
 considering an open and transparent communication between leaders and employees as

for the sustainability-related goals, values, and progress, in order to inspire the employees to
get involved and, thereby, to actively contribute to the sustainability initiatives;
 appreciating and rewarding the employees involved in promoting sustainability via a
performance assessment system, by compensating the same, or by publicly recognising their
contribution.
Conclusions
The present study encompasses two current concepts that have a major impact on the
Romanian organisational future: leaders and sustainability. These are approached from the
perspective of the level of appreciation of the qualities needed by leaders to be oriented
towards sustainability. The related literature abounds in studies analysing the leadership
styles and the required qualities, while the interest manifested with regard to the
organisational sustainability is more and more obvious, but the connection between the two
topics is rarely studied. In order to cover such gap, the present paper reveals the appreciations
that the employees operating in the organisational environment manifest with respect to the
features of sustainability-oriented leaders and the role of sustainability in the long-run, with
a focus on the differences occurring depending on the age, gender, and status of employees.
Research-related results contribute to the enrichment of the literature on leaders and their
impact on organisational sustainability. Additionally, practical implications for the
dissemination of good practices in sustainability are identified, both among managers and
employees. The sense of responsibility, the involvement level-related information and the
sustainability specific practices represent essential elements in stimulating sustainable
actions within a business environment.
Regarding the review of the existing literature, the results of this research confirm and
support the conclusions of other studies, such as Ilyas, Abid, and Fouzia (2020), Bashir,
Alfalih, and Pradhan (2022), and Gorski (2017), on the strong impact of leadership on
sustainability. The fundamental role of the leader is influenced by factors such as age, gender,
and work environment, identified in the present paper as well.
However, this study has some limitations that should be taken into account when interpreting
the resulting output. Data were collected based on a limited sample of 249 respondents,
including both employees and leaders, from public and private environments, working in
large corporations, small and middle enterprises, as well as start-ups. For a better
understanding, future studies could analyse in a detailed manner each and every aspect, in
order to be able to reflect specific behaviours and ideas in an exhaustive manner.
Furthermore, the low level of control over the responses received from the interviewed
individuals, through self-administration of the online posted questionnaire, could be
questioned.
Furthermore, sustainability is a continuously changing concept, permanently influenced by
the current business environment and by events that occur at the global level. In this regard,
the authors suggest for the following research to consider the collection of data during
different time moments, to analyse the evolving and dynamic nature of sustainability.

Such academic approaches may provide a deeper and more comprehensive understanding of
the importance of sustainability and its impact on the business environment, allowing the
identification of the most efficient strategies to promote sustainable actions in this complex
context.
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AE Organic Food Consumption During the COVID-19 Pandemic.
A Bibliometric Analysis and Systematic Review
ORGANIC FOOD CONSUMPTION DURING THE COVID-19 PANDEMIC.

A BIBLIOMETRIC ANALYSIS AND SYSTEMATIC REVIEW
Romana Emilia Cramarenco1 , Monica Ioana Burcă-Voicu2
and Dan-Cristian Dabija3
1)2)3)
Babeș-Bolyai University, Cluj-Napoca, Romania

Cramarenco, R.E., Burcă-Voicu, M.I. and Dabija, Received: 21 August 2023
D.C., 2023. Organic Food Consumption During the Revised: 9 September 2023
COVID-19 Pandemic. A Bibliometric Analysis and Accepted: 22 September 2023
Systematic Review. Amfiteatru Economic, 25(Special
Issue 17), pp. 1042-1063.
Abstract
The COVID-19 pandemic has generated multiple transformations globally, with isolation
periods alternating with those marked by intense social and economic restrictions, having a
major impact on economic production and distribution activities, but especially on consumer
behaviour. The recent pandemic has generated a strong contraction in consumption,
increasing consumers' risk aversion, and disrupting the way they purchase different foods.
Consumers have shifted to sustainable consumption, preferring foods that can help them
towards a balanced diet, strengthen their health, and help develop resistance to viruses. This
paper aims to identify the most relevant specialised articles, published during the pandemic
(2020-2023), addressing sustainable consumption of organic food. They are investigated
through a bibliometric analysis, which highlights the main directions in which this
international research has converged. In the investigative approach, the authors resort to
applying the PRISMA methodology peculiar to this type of analysis; the references selected
according to the different objective criteria chosen are subsequently analysed using the
VOSviewer software. Based on the review of the literature, the paper also presents possible
future research directions highlighting the opportunities for scientific capitalisation of this
research topic.
Keywords: organic food, sustainable consumption, consumer behaviour, COVID-19

pandemic.
JEL Classification: E21, L66, Q560

Corresponding author, Dan-Cristian Dabija – e-mail: dan.dabija@ubbcluj.ro

Introduction
Sustainability or sustainable development is the process of managing natural resources in
such a way that generations can cover their needs in a similar way to that of current
generations (World Commission on Environment and Development (WCED), 1987; WHO,
2023). Sustainable development is based on an integrated approach, which considers both
environmental issues and social and economic implications.
The COVID-19 pandemic has led to significant changes in consumer behaviour, through a
clear orientation towards online procurement (McKinsey, 2020); consumers prefer orders
from virtual stores and are increasingly using mobile apps and courier services (Andronie et
al., 2021; Pop et al., 2023). Especially periods of isolation and restrictions have generated a
spectacular increase in online orders for food and other goods (Koch et al., 2021).
Paradoxically, the COVID-19 pandemic initially boosted stockpiling (Ahmadi et al., 2022)
and overconsumption (Babbitt et al., 2021), but ultimately led to a decrease in consumption
due to the financial instability of citizens, respectively, to the deterioration of their financial
situation as a result of work interruption (Nemteanu et al., 2022), and the lack of predictability
regarding the evolution of the pandemic caused by frequent lockdown periods (Grashuis et al.,
2020). Practically, during the pandemic situation there was a lack of consumption
predictability due to its self-imposed limitations, which alternated with compulsive behaviours
such as making significant purchases of food goods for long periods of time and stockpiling.
At the same time, there was a heightened predisposition to increase the consumption of fresh
and healthy products; consumers probably associated them with immunity boosts and general
well-being (Das et al., 2021; Pocol et al., 2021a; Sohn et al., 2022).
The present research aims to trigger the researchers’ interest in exploring the specificities of
the sustainable consumption of ecological foods, by proposing a systematic review. Thus,
the objective of the paper is to identify the most representative specialised papers published
during the recent COVID-19 pandemic that dealt with the sustainable consumption of organic
food. In conducting the research, the authors employed the PRISMA method for the
bibliometric analysis. This allows us to highlight the main directions of research on
sustainable food consumption. The data are processed using VOSViewer software in the form
of summative tables. Subsequently, a systematic analysis of the main directions of
investigation is performed.
The article is structured as follows: Section 1 presents a review of the literature on sustainable
consumption and organic food, followed by Section 2 containing the description of the
research method used, based on the PRISMA approach. Here are the criteria for including
and excluding the various bibliographic references in the analysis carried out in the two
databases, Scopus and Web of Science. Section three presents the results of the bibliometric
analysis, where the included references are categorised according to different criteria (type
of research, number of citations, most frequently cited articles, journals in which they
appeared, etc.). Subsequently, a systematic content analysis is performed on the
particularities of sustainable consumption of organic food, the relevance of attitudes for
sustainable consumption, and the evolution of sustainable consumption of organic food
during the COVID-19 pandemic. The paper ends with conclusions, which contain possible
future directions of research concerning the investigated phenomenon.

Sustainable consumption is increasingly the subject of strategies established by international,
regional, and national bodies. Thus, the European Union has included in the Maastricht
Treaty the strategy of sustainable development, highlighting the need for the harmonious and
balanced integration of the economic activities of organisations, so as to enable social and
economic cohesion, solidarity between member states, employment, improving the quality
of life, etc. (European Union, 2023). More recently, the EU has also developed a strategy on
food sustainability, entitled The Farm to Consumer Strategy, which aims to create a
sustainable food system that ensures food security, protecting nature, and individuals
(European Commission, 2023; Pocol et al., 2023). The UN considers that sustainable
consumption depends on sustainable production, with the aim of facilitating the satisfaction
of basic needs and ensuring a high quality of life, by minimising the use of natural resources
and toxic materials, reducing emissions of pollutants, and reducing the amount of waste so
as not to endanger society as a whole (United Nations, 2022). After the OECD, sustainable
consumption is achieved by streamlining energy and other resources, minimising food waste,
and developing among consumers a mentality, respectively, a responsible behaviour with
nature (Krizanova et al., 2019; OECD, 2023).
Although food systems have the potential to support consumer health and contribute to
environmental sustainability, they remain a threat to them due to their overdevelopment,
which puts pressure on production systems, namely, to ensure quantity to the detriment of
food quality (Willet et al., 2019). In the production of sustainable and organic food, it is
essential to consider the protection of the environment, so that there are no disturbances or
imbalances in existing ecosystems (Popa and Dabija, 2019). Basically, organic food
production systems must be sustainable from a social, economic, and financial perspective.
Their transformation into such sustainable systems involves the careful cooperation and
active involvement of the various stakeholders of the system: local authorities, producers,
distributors/retailers, and consumers (Ruben et al., 2021; Gallardo Vasquesz, 2023).
Organic foodstuffs are products controlled and certified by bodies empowered to do so (CE,
2023), intended for human consumption which are made according to agricultural methods
and procedures which comply with very precise standards, without the use of synthetic
chemical compounds or genetically modified organisms, contributing to the protection of
nature and the support of biodiversity (PE, 2021). Depending on the geographical area in
which organic food is produced, distributed or consumed, ecological foods are called ‘bio’
(Switzerland, France) or ‘organic’ (Anglo-American space); the literature uses these concepts
alternatively (Popa and Dabija, 2019; Sabau et al., 2023). To facilitate the recognition of
organic food by consumers, regardless of geographical area, they are marked accordingly,
with the Euro-leaf, bearing the name and code number of the body which carried out the
necessary checks and granted the certification (Lazaroiu et al., 2020; Majerova et al., 2020).
The literature (Coderoni et al., 2020; Fernandes and Saraiva, 2022) suggests that when it
comes to regular purchases of organic food in conjunction with the market values of organic
products, it acts as an incentive for consumption. The identity of these consumers and the
knowledge of how they support sustainable consumption constitute the starting point for the
transition to the circular economy.
Organic food consumption is influenced not only by objective factors, but also by
psychological factors (Tarkiainen and Sundqvist, 2005; Basha et al., 2015; Wojciechowska-
Solis et al., 2022). The researchers’ interest was focused on studying the attitudes of

consumers of organic food, both on explicit and implicit attitudes (König et al., 2016;
Richetin et al., 2016; Panzone et al., 2016; Pakseresht et al., 2022). Consumer behaviour
oriented towards health and environmental protection can significantly contribute to
sustainable economic development, social progress, and to the improvement of the quality of
life (Paul and Rana, 2012; Wojciechowska-Solis et al., 2022). Additionally, consumer
behaviour oriented towards environmental preservation is present in marketing research
focused on current consumption trends in a sustainable society (Prothero et al., 2014; Joshi
et al., 2015; Lu et al., 2023). Lim (2017) proposes the theorisation of three types of consumer
behaviour: behaviour with a mindful mindset, behaviour focused on responsible
consumption, and anti-consumption behaviour.
2. Research method
This paper aims to identify the most relevant specialised articles, published during the
pandemic (2020-2023), in two of the most important bases of scientific articles, Scopus and
Web of Science (WoS). The articles explored analyse the issue of sustainability of organic
food consumption. Bibliometric analysis and systematic analysis were employed to
investigate selected articles, to highlight how sustainable consumption of organic food is
analysed in specialised articles.
The systematic analysis of literature is a valuable method for researchers, for accessing
current relevant literature, evaluating existing theories and explanatory models, in order to
identify new approaches designed to contribute to the advancement of research in the field.
The analysis used the PRISMA model (Figure no. 1), deemed an important, relevant, and
representative tool for creating systematic syntheses of literature in a wide variety of
scientific fields (Page et al., 2021).
The created model was based on three stages: the identification of specialised articles published
in the period 2020-2023, in English, in representative international databases, namely Scopus
and Web of Science, the screening or checking of eligible items using the “sustainable
consumption” filter and “consumer behaviour”, and the inclusion of articles remaining in the
systematic review of literature. Using the filter terms „sustainability”, “food consumption”,
“organic foods”, „ecological foods” or „bio foods”, 115 items were identified; the base for
analysis was subsequently reduced to 98 articles, after the elimination of 17 duplicate articles.
The articles included in the analysis appeared in various scientific journals; the top 10 papers are
in table no. 1 (out of a total of 54 articles, 16 appear one time, in one journal each).
Table no. 1. Top 10 academic journals
Number
Journal WoS Scopus
of articles
Sustainability 13 X X
Foods 5 X X
International Journal of Environmental Research and Public 4 X X
Health
Asia Pacific Journal of Marketing and Logistics 3 X X
Journal of Business Research 3 X X
Journal of Marketing Management 2 X X
Food Quality and Preferences 2 X
Cogent Business and Management 2 X X
Cleaner and Responsible Consumption 2 X

Number
Journal WoS Scopus
of articles
Agronomy 2 X X
Note: ‘x’ marks the existence of the journal in the selected databases (WOS – Web of Science).
Identifying scientific articles via Scopus and WoS
References from
References from WoS
Scopus (sustainability
Identification (sustainability + food
+ food consumption +
consumption + organic foods)
organic foods)
n: 76
n: 39
References eliminated before screening:

Database (n: 115)
Duplicate references eliminated (n: 17)
Analyzed references.
(n: 98)
Results verified for eligibility – Results verified for eligibility –

sustainable consumption consumer behavior
Verification (eliminated duplicates: 8) (eliminated duplicates: 2)
(n: 20 + 48 = 68 – 8 = 60) (n: 24 + 32 = 56 – 2 = 54)
Analyzed results Analyzed results

Eliminated duplicates (2) Eliminated duplicates (22)
E1 (n: 10); E2 (n: 4) C1 (n: 14); C2 (n: 14); C3 (n: 32);
C4 (n: 26); C5 (n: 25); T (n: 12)
References included in the References included in the review

review C1 (n: 12); C2 (n: 12);
Included C3 (n: 26); C4 (n: 22); C5 (n: 18);
E1 (n: 8); E2 (n: 4)
T (n: 12)
Note: E1=retail; E2= marketing strategies; C1=human health; C2=safety; C3=attitudes;

C4=perceptions; C5=willingness to pay; T=tendencies
Figure no. 1. The application of the PRISMA method for bibliometric study

3.1. Bibliometric literature analysis
In advancing our research endeavour, we explored the functionalities of the VOSviewer
software. VOSviewer was used in the implementation of this approach, which generated the
following co-dependencies in the selected bibliography (Table no. 2).
Table no. 2. Co-dependences of the selected bibliography
Bibliographical references Citations Link Importance
Rizzo et al., 2020 57 8
Perito et al., 2020 32 4
Kamenidou et al., 2020 32 7
Garcia et al., 2020 25 2
Nguyen et al., 2021 22 21
Fifita et al., 2020 21 2
Rempelos et al., 2021 20 1
Pulcini et al., 2020 18 0
Aldaya et al., 2021 18 2
Bumbac et al., 2020 14 2
Nova et al., 2020 14 0
Leggett, 2020 12 1
Katzeff et al., 2020 11 2
Neumayr and Moosauer, 2021 11 3
Wojciechowska-Solis et al., 2022 11 17
As shown in Table no. 2, there are links between the analysed studies centered on sustainable
consumption of organic foods. Of the 115 articles found in the database, by introducing as a
selection criterion the relevance of at least one citation, the results indicate the connecting
validity of 35 items found in Table no. 2. Basically, in Table no. 2, the closest link is
highlighted in relation to the work of Rizzo et al. (2020) analysing the health impact of
organic food consumption. It is quoted 57 times with a link importance of 8. Second, a paper
on generational differences in the preference of organic food (Kamenidou et al., 2020) and a
case study on consumers' attitudes towards organic and local foods (Perito et al., 2020). Both
papers highlight a link importance 7 and 4, respectively. As for the link strength between
co-dependencies, the highest level, with 21 links, highlights a paper on the purchase intention
of organic meat by Vietnamese consumers (Nguyen et al., 2021), then a comparative work
on the purchasing behaviour of organic food during the COVID-19 pandemic in Poland and
the United Kingdom (Wojciechowska-Solis et al., 2022) with 17 links, and a paper that
comparatively analyses consumers' perception of organic food before and after the COVID-
19 pandemic with 15 links (Brata et al., 2022).
The analysis of the bibliographic references cited in the selected articles was then employed.
As shown in Table no. 3, it is found that the most cited paper (5 mentions, link importance 71)
belonged to Bryla (2016), analysing the reasons and hindrances of sustainable food
consumption. That of Reisch et al. (2013) offers an overview of sustainable food
consumption (5 mentions, link importance 40); that of Aertsens et al. (2009) treats personal
factors of food consumption (4 mentions, link importance 56); that of Kushwah et al. (2019)
attempts to understand consumers’ resistance to organic foods (4 mentions, link importance

50), and that of Hansmann et al. (2020) treats driving forces and obstacles to the increase in
organic food consumption (4 mentions, link importance 44).
Table no. 3. References cited in the selected bibliographical paper
Cited reference Citations Link Importance
Bryla, 2016 5 71
Reisch et al., 2013 5 40
Aertsens et al., 2009 4 56
Kushwah et al., 2019 4 50
Hansmann et al., 2020 4 44
Azzurra et al., 2019 3 57
Rana and Paul, 2017 3 57
Thogersen et al., 2015 3 57
Tarkiainen and Sundqvist, 2005 3 53
Nuttavuthisit and Thogersen, 2017 3 42
Scalco et al., 2017 3 25
Aleksandrowicz et al., 2016 3 17
Garnett, 2011 3 6
As for the key concepts highlighted in the selected studies (Table no. 4), 607 terms were
identified. When entering the threshold of at least 2 references to the key term, the database
was limited to 191 items, although Table no. 4 presents only the keywords with at least 5
mentions. Therefore, from the result obtained, it is noted that the term with the most common
occurrence is ‘sustainability’ (35 references and a link importance of 203), followed by
‘organic products’ (33 references and a link importance of 236 ), ‘food consumption’ (17
references and a link importance of 169), of ‘consumer behaviour’ (11 references and a link
importance of 102), ‘organic/ecologic farming’ (10 references and a link importance of 101)
and ‘sustainable food consumption’ (10 references and a link importance of 74).
Table no. 4. Key concepts associated with sustainable consumption of organic food
Keywords Occurrence Link Importance
frequency
Sustainability 35 203
Organic/ecological/bio food 33 236
Food consumption 17 169
Consumer behaviour 11 102
Organic/ecological/bio farming 10 101
Sustainable food consumption 10 74
Human behaviour 8 144
Purchase intention 7 33
Sustainable consumption 7 27
People/clients/consumers 6 125
Consumption of organic food 6 42
Foods 6 38
Organic/ecologic/bio 6 38
Willingness to pay 6 24
Organic/ecological/bio foods 5 108

3.2. Types of research
The application of the ‘sustainable consumption’ filter allowed the identification of 60
scientific articles, and the ‘consumer behaviour’ filter of another 54 works. ‘Sustainable
consumption’ can be supported by strategies adopted by subsequent stakeholders, retailers,
various organisations responsible for consumer education and/or with the raising of
awareness in favour of organic food consumption (Pocol et al., 2023; Sabău et al., 2023), but
also by producers interested in generating purchase intention among consumers (Cong Doanh
et al., 2021). At the same time, the analysis also aimed at delimiting the specific marketing
strategies, undertaken by retailers to support the consumption of organic food. The core
element of the sustainable consumption concept is represented by the sustainable consumer
behaviour. To grasp the way that researchers explored this theme, we verified the research
type employed: quantitative or qualitative. Thus, the studies included in the analysis are both
quantitative and qualitative in nature, but the authors’ interest is higher in the quantitative
ones. Interestingly, two studies based on multiple methods have been identified, including
both a qualitative and a quantitative component (Table no. 5).
Table no. 5. Research methods in the selected studies (consumer behaviour)
Reference Quantitative research Qualitative research
Fernandes and Saraiva, 2022 X
Wojciechowska-Solis et al., 2022 X
Rizzo et al., 2020 X
Perito et al., 2020 X
Kamenidou et al., 2020 X
Radojević et al., 2021 X
Giray et al., 2022 X
Brunin et al., 2022 X
Leggett, 2020 X
Kaur et al., 2023 X
Ishaq et al., 2021 X
Akter et al., 2023 X
Baldi et al., 2021 X
Hasan et al., 2023 X
Kovacs and Keresztes, 2022 X
Kristia et al., 2023 X X
Nguyen et al., 2021 X
Pulcini et al., 2020 X
Brata et al., 2022 X
Brumă et al., 2022 X
Chekima et al., 2023 X
Dorce et al., 2021 X
Katzeff et al., 2020 X X
Meyer and Simons, 2021 X
Rahman and Luomala, 2021 X
Tulloch et al., 2021 X
Volgger, 2022 X
Wielicka-Regulska, 2020 X
Yamoah et al., 2022 X
Eight of the articles focused on sustainable consumption contextualise the retail field,
highlighting, for example, the role of retailers in ensuring consumers’ access to healthy
organic food, but also the need to develop a mindset in favour of adopting behaviours aimed
at improving and maintaining health (Wielicka-Regulska et al., 2020; De Canio et al., 2021;

Yamoah et al., 2022; Kaur et al., 2023). The literature comparatively addresses the size of
the organic food market (Leggett, 2020; Neumay et al., 2021; Yamoah et al., 2022;
Wojciechowska-Solis et al., 2022) and the sales volume of this type of food through grocery
store chains (Kamenidou et al., 2020; Neumay et al., 2021; Wojciechowska-Solis et al.,
2022). The role of marketing strategies adopted by retailers to generate consumer orientation
towards sustainable, organic food (De Canio et al., 2021; Neumay et al., 2021; Cui et al.,
2022) is highlighted. The principles of sustainable food consumption help to develop and/or
strengthen the marketing strategy by offering healthy products that comply with ethical
manufacturing principles, thus contributing to the society.
3.3. Characteristics of sustainable consumption of organic foods
The added value, utilitarian and hedonistic benefits, along with the socio-economic
characteristics of sustainable green products are not simply appreciated by a niche of
consumers, more precisely by those oriented towards the exclusive purchase of organic
products, but they are also recognised by consumers of conventional products (Fernandes
and Saraiva, 2022). The identified articles reveal the role of marketing strategies adopted by
retailers to support sustainable consumption, paying attention to the impact that through
specific neuromarketing techniques, retailers can influence to some extent the consumer
behaviour (Yamoah et al., 2022), catching the attention of individuals, arousing their
curiosity, and making them return to the store and/or buy certain products on an impulse. The
literature also highlights the impact of strategies to promote organic food in specific markets,
such as China (Leggett, 2020), but also in the development of the global organic food market.
Sustainable marketing strategies also aim at the opportunity to include organic food in the
basic supply of retailers, which essentially contributes to attracting consumers to stores (Kur
et al., 2023). Last but not least, sustainable marketing strategies also refer to the role that
marketing communication plays in supporting and presenting the sustainable food offer to
different generations of consumers (Kamenidou et al., 2020), with Millennials and Gen Zers
highlighting an increased inclination towards organic food (Dabija et al., 2019; Popa and
Dabija, 2019). Thus, resorting to sustainable retail strategies is intended to support and even
develop sustainable consumption of organic food.
Eyinade et al. (2021) identify the different attributes associated with consumer orientation
towards sustainable food consumption: human health, food safety, attitudes, perceptions, and
willingness to pay a higher price. Based on these characteristics, it is found that in the 54
articles included in the analysis, there is an increased research interest on the role of attitudes
(27 articles) and consumer perceptions (22 articles) in supporting this type of food
consumption, followed by the role of the willingness to pay a higher price for organic food
(15 articles). The role of human health (13 articles) and food safety (12 articles) in supporting
organic food consumption rank last. Table no. 6 contains a synthesis of the identified articles
according to the five identified characteristics.
Table no. 6. Attributes of sustainable consumption of organic foods
C1 = C2 = C5 =
C3 = C4 =
References human food willingness
attitudes perceptions
health safety to pay
Fernandes and Saraiva, 2022. x
Wojciechowska-Solis et al., 2022 x x
Rizzo et al., 2020 x x x x
Perito et al., 2020 x x x x

C1 = C2 = C5 =
C3 = C4 =
References human food willingness
attitudes perceptions
health safety to pay
Kamenidou et al., 2020 x x x x x
Radojević et al., 2021 x x x x
Giray et al., 2022 x
Brunin et al., 2022 x x
Leggett, 2020 x x x x x
Kaur et al., 2023 x x
Ishaq et al., 2021 x x
Akter et al., 2023 x x
Baldi et al., 2021 x x
Hasan et al., 2023 x x x x
Kovacs and Keresztes, 2022 x x x
Kristia et al., 2023 x x x x x
Nguyen et al., 2021 x x
Pulcini et al., 2020 x
Akter et al., 2023 x x
Brata et al., 2022 x x
Brumă et al., 2022 x x x
Chekima et al., 2023 x x
Dorce et al., 2021 x x
Katzeff et al., 2020 x x
Meyer and Simons, 2021 x x x x
Rahman and Luomala, 2021 x x x
Richter and Hunecke, 2020 x x
Sharma et al., 2021 x x x
Tulloch et al., 2021 x
Volgger, 2022 x x
Wielicka-Regulska, 2020 x x
Yamoah et al., 2022 x
3.4. Particularities of sustainable consumption of organic foods

The specificity of organic food gives them uniqueness, which is often associated by
consumers with the support and/or improvement of human health, with a natural diet, with
the protection of the environment and/or nature preservation, and with the support of future
generations who will have access to the same type of resources as the current generations
(Molinillo et al., 2020). Health concerns have been strongly exacerbated by the pandemic
context, when the interest in the consumption and purchase of organic food has increased,
some consumers stating that they can strengthen their immune system or avoid the Sars-Cov-
2 virus (Śmiglak-Krajewska and Wojciechowska-Solis, 2021). Supporting organic food
consumption is also due to the concern of members of contemporary society for ethical,
environmental, and health issues (Schleenbecker and Hamm, 2013; Asveld et al., 2019). The
modern consumer largely considers that the consumption of organic food is ethical compared
to that from intensive, extensive, and conventional agriculture (Radojević et al. 2021), but
also that it thus contributes to reducing the negative impact of man on nature, and to
improving his health (Popa and Dabija, 2019; Pocol et al., 2021a; Radojević et al., 2021). In
the purchase of organic food, consumers are guided by the term origin which, in their view,
is often associated with local and/or regional food, and with food safety (Perito et al., 2020;
Krizan et al., 2022). Sometimes, the concern for food safety has proven to be the strongest
predictor of consumer purchases (Ishaq et al., 2021). Consumers’ purchase intention in
metropolises is strongly influenced by their concerns about food safety, their current attitude,
but also by the awareness of its contribution to health care (Hasan et al., 2023).

3.5. The relevance of attitudes regarding sustainable consumption

Literature analysing the topic of sustainability in relation to organic food consumption also
focuses on food safety issues (Wojciechowska-Solis et al., 2022; Akter et al., 2023), human
health, nature protection, etc. which it addresses in the light of consumer attitudes,
perceptions, motivations, and behaviour, showing how the consumption of organic food can
contribute to sustainable economic development, to social progress, and to improve the
quality of life. At the same time, studies also show that once consumers are fully aware of
the beneficial effects of eating organic food, they will actively seek it in store chains, and
thus their purchase intention increases (Fernandes and Saraiva, 2022). Although these
consumers show attitudes conducive to sustainable consumption of organic food, however,
there is a significant difference in society between their attitudes and motivations, on the one
hand, and the actual act of purchasing and consuming these foods, on the other hand (Vermeir
et al., 2020; Brumă et al., 2022). Attitude is not always reflected in their behaviour (Katzeff
et al., 2020).
Consumers who consciously seek relevant information about products obtained through
maintaining balance in ecosystems have the highest level of favourable attitude, leading them
to reduce the hindrances to the purchase of organic food (Akter et al., 2023). Conservative
customers when buying organic food are sometimes sceptical about their authenticity, but
they highlight a favourable inclination to eat organic food and understand the importance of
this consumption to maintain health. The attitudes of organic food consumers often mediate
the relationship between the benefits of these products and their intentions to purchase them,
respectively, between the health benefits of food and their intentions to contribute to
sustainable consumption (Dorce et al., 2021).
Consumers' attitudes towards eating organic food become apparent when they are future-
oriented, with their perceptions of the availability of these foods leading to their consumption.
However, some subjective criteria regarding consumption (purchasing power, interest in
organic products, the level of awareness regarding food quality and health impact) may
reduce the relevance of the availability of these organic foods (Chekima et al., 2023). It has
been established that attitudes influence consumers' intentions to buy organic vegetables,
followed by perceived behavioural control and subjective rules, while the perceived price
moderates the relationship between the purchase intention and the actual purchase (Dorce et
al., 2021). The literature (Rahman and Luomala, 2021) reveals that there are direct and
indirect implications of cultural differences between consumer segments with respect to their
attitudes, motivations, and actual behaviours of sustainable consumption.
To persuade consumers to buy such organic foods, respectively, to highlight a sustainable
and responsible consumption in relation to human health, retailers, but also producers, should
be concerned with the development of a mindset in their favour, by communicating through
labels and advertising campaigns the benefits of consuming these foods for man’s own
development in harmony with nature. The concerns of retailers and producers should also
aim to increase the interest of consumers in these foods (Popa and Dabija, 2019; Perito et al.,
2020). In order to determine sustainable consumer behaviour, sector stakeholders, together
with the authorities, should identify appropriate solutions to support the production and/or
processing of healthy foods through public environmental, economic, and social policies,
through over-taxation of unhealthy foods due to a high content of sugars, fats, etc., and to
invest in mobile apps capable of providing assistance and guidance to consumers in choosing
sustainable food (Brunin et al., 2022). Of course, consumer associations, along with those

supporting environmental protection, should also be more actively involved in supporting the
consumption of sustainable and organic food, but also of fresh ones, which thus contribute to
the improvement of human health, respectively, which constitute a viable alternative for a
balanced diet (Pocol et al., 2021b; Sabău et al., 2023).
Decisions to buy organic food also depend on everyone’s attitudes. They manifest themselves
in a complex environment and depend on the specifics and characteristics of food, the
conjuncture in which people are found, but also on intrapersonal aspects, which generate
ambivalence, compromise, and disagreements. Positive attitudes towards sustainable diets
are determined by personal and social norms, altruistic values, and the desire to pursue a
moral behaviour in food consumption (Meyer and Simons, 2021).
As for the consumers’ willingness to pay for the food’s nutritional characteristics and added
value, it is found that it depends to a large extent on the interest of individuals in maintaining
or improving their health (Li et al., 2019), but also on the income available to support a
balanced and sustainable consumption through the purchase of organic food, which is
generally more expensive than conventional food, and the consumption of fresh and
functional foods (Pocol et al., 2021b). In the context of sustainable consumption of organic
food, price plays an important role in generating consumers' perception of their quality
(Kovacs and Keresztes, 2022). While women generally pay more attention to the attributes
of organic food that compete in maintaining or supporting health, men are less willing to pay
a premium price for organic food (Rizzo et al., 2020). Similar to the pre-pandemic situation,
consumers who consider organic food to be healthier will avoid buying the conventional
counterpart, even if the organic product is more expensive than expected (Honkanen et al.,
2006; Popa and Dabija, 2019). Consumer awareness of the relevance of food to maintaining
and/or improving health favours accepting a higher price in normal situations, but not in
pandemic times (Kamenidou et al., 2020). Social, political, economic, or health crises, as was
the recent COVID-19 pandemic, promote a change in consumers' attitudes and perceptions
of the purchase and consumption of organic food, these being preferred more due to their
potential contribution to overall health (Muñoz-Sánchez et al., 2021).
3.6. Sustainable consumption of organic foods during the COVID-19 pandemic
Following the selection of the bibliography and the elimination of duplicates and articles of
low relevance, 12 other articles have been identified proposing to combine different emerging
trends in the study of sustainable consumption of organic food during the pandemic of
COVID-19 (Christia et al., 2023), namely: „COVID-19”, „sustainable entrepreneurship” and
„qualitative research”. As sustainable consumption of organic food has grown rapidly (Fifita
et al., 2020), contributing to the partial change in the perception that this market is a niche
market, there is a change in global consumption trends towards a balanced and healthy diet.
The COVID-19 pandemic has helped to raise awareness of issues that contribute to
alleviating or improving health; consumers oriented towards the purchase of organic food are
characterised by the desire for self-improvement and openness to change (Wojciechowska-
Solis et al., 2022). In fact, these consumers are divided into the „potentially green”, concerned
with the protection of the environment and the persevering preference for organic food,
highlighting at the same time an increased sensitivity to food price changes, respectively
„non-ecological” consumers who prefer food according to their acquired habits or to the
traditions they know, where sustainable motives play a secondary role. In contemporary
society, consumers' preference for organic products, but also for supporting sustainable
consumption, becomes a certainty (Perito et al., 2020). Changing consumers' behaviour

regarding food is a great challenge due to the difficulty of changing eating habits since food
is largely based on emotions, but also on personal experiences, and on cultural traditions
(Kamenidou and Stavrianea, 2020).
Long-term trends lead to a real need to change some aspects regarding the consumption,
structure, and manufacturing of foodstuffs due to the pressure exerted by the influence of
consumer behaviour on the configuration of agriculture, processing, and even food
distribution (Wielicka-Regulska, 2020). Consumer behaviour during the pandemic has
undergone major changes in openness to the use of technology, better knowledge of how to
collect, sort, and recognise information, purchasing food online, and increased trust in online
payment tools, which today are identified as an opportunity by producers and retailers
(Tunçalp and Yıldırım, 2022). Therefore, there is a real potential for market development
among wider consumer segments.
From the perspective of online communication on social media networks during the COVID-
19 pandemic, it is revealed that the public exhibits an increased interest in topics related to
biodiversity, health, balanced eating, or agri-food systems that can bolster human health
(Tulloch et al., 2021). Of course, the adoption by companies of the most appropriate strategies
for approaching consumers depends largely on the availability of data on the actual
consumption of organic food, but also on the socio-demographic characteristics of the target
segments (Gutiérrez-Villar et al., 2022). When addressing and targeting these, issues such as
the origin of organic food (local/regional or foreign), the attractive design of the packaging,
the absence of additives and any harmful chemicals, price, etc. must be taken into account
(Radojević et al., 2021), together with the logo of the control and certification body and the
easy-to-understand eco-label highlighting the sustainability of consumption (Neumayr and
Moosauer, 2021), and the name of the controlled trademark or product that complies with the
quality diagrams (Gogovețan et al., 2022). Future strategies must be based on data that
indicate that consumer segments that raise concerns about environmental conservation issues
are likely to formulate favourable attitudes and minimise the monetary barriers associated
with the purchase of organic food (Nguyen et al., 2021).
Conclusions
The bibliometric analysis of scientific articles, published in the pandemic period 2020-2023,
focused on sustainable consumption and consumer behaviour, reflects a moderate interest of
researchers, especially in the retail sector. We consider that the approaches to the strategies
adopted by retailers to promote the purchase of organic food require a better use of online
marketing tools for development and/or strengthening a favourable mindset for this type of
consumption, raising awareness about the importance of health, food safety, generating
positive attitudes and perceptions, as well as understanding the need to pay a premium price
for these types of foods. Moreover, consumer behaviour is significantly different among
consumers belonging to different generations and to various cultural environments.
Investigating these differences would be extremely interesting and would substantiate the
way retailers operate in this specific market.
Sustainable consumption of organic food has been stimulated in the context of the COVID-
19 pandemic, with intense concerns in the field of European policies, but also strategic
approaches to stakeholders in the sector (producers, retailers, consumer organisations) to
support and develop responsible consumer behaviour towards the environment. Currently,

attention should be focused on „the gains” of the pandemic period and the transposition of
these experiences in the context of the „New Normal” into a) viable strategies, able to
contribute to increasing consumer interest in sustainable consumption, based in particular on
green products and organic food; b) strategies to raise awareness of the role of healthy eating
for the well-being of society and to increase citizens' immunity; c) increasing the role of
online trade in organic food; d) raising the interest of retailers in diversifying the supply of
healthy, sustainable and/or organic food; e) including the assortments of local organic food
to support the regional economy; f) offering the possibility of ordering sustainable products
and organic food, regardless of their degree of processing, aware of the fact that currently
only those that do not require special transport conditions can be offered to customers; g)
creating personalised offers of organic food as an alternative to conventional ones; h)
ensuring priority access for buyers to organic food in both physical and virtual stores.
To support sustainable consumer behaviour, coherent implementations of environmental,
economic, and social policies targeting subsidies or grants awarded on clear criteria for
production are recommended for the processing, commercialisation, and marketing of
organic food, providing financial support for the development of mobile apps that facilitate
consumer orientation towards choices specific to ethical, responsible consumption.
Acknowledgement
This paper was also made possible through the project funded by CNCS - UEFISCDI,
number PN-III-P1-1.1-TE-2021-0795.
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AE Towards Sustainable Consumption: Consumer Behavior and Market
Segmentation in the Second-Hand Clothing Industry
TOWARDS SUSTAINABLE CONSUMPTION: CONSUMER BEHAVIOR AND

MARKET SEGMENTATION IN THE SECOND-HAND CLOTHING INDUSTRY
Răzvan-Andrei Corboș1 , Ovidiu-Iulian Bunea2* and Monica Triculescu3
1)2)3)

Corboș, R.A., Bunea, O.I. and Triculescu, M., 2023. Received: 20 August 2023
Towards Sustainable Consumption: Consumer Revised: 5 September 2023
Behavior and Market Segmentation in the Second- Accepted: 20 September 2023
Hand Clothing Industry. Amfiteatru Economic,
25(Special Issue 17), pp. 1064-1080.
Abstract
In this study, we use bibliometric analysis as a quantitative and systematic approach to assess
the scientific landscape and present the existing literature, focusing on the consumer buying
behaviour of second-hand clothing in the context of sustainability. We observe a decrease in
the number of published papers on this topic, as evidenced by the limited number of papers
in the Web of Science (WoS) database (41 papers) and Scopus (38 papers). Through co-
occurrence analysis, we highlight the importance of consumer behaviour research in
sustainable fashion and identify research gaps related to the absence of market segmentation
analysis based on consumer behaviour and demographic information in the second-hand
clothing market. To address these gaps, our research aims to identify the main factors that
influence consumers to buy second-hand clothing products and to examine the profile of
customers who make these purchases, focusing specifically on Romania. We collected data
from 110 respondents through a questionnaire. Using two-stage clustering and ANOVA, we
identify distinct consumer segments that share similar characteristics. These segments show
variations in age, income, frequency of purchase, and reasons for choosing second-hand
clothing. By addressing sustainability concerns and providing practical strategic options, our
study aims to help businesses operating in the second-hand clothing market. Our findings
align with previous research on diverse consumer segments with different attitudes and
behaviours towards second-hand consumption.
Keywords: consumer behavior, second-hand clothing, market segmentation, sustainability,

strategic options
JEL classification: Q01, Q56
*
Corresponding author, Ovidiu-Iulian Bunea – e-mail: ovidiu.bunea@man.ase.ro

Introduction
Although buying second-hand clothing has become increasingly popular, research in this area
remains limited (Padmavathy et al., 2019). Some researchers, such as Guiot and Roux (2010)
and Styvén and Mariani (2020), have highlighted the economic motivations behind the
purchase of second-hand clothing, including the reduced price and the possibility of obtaining
unique items and from prestigious brands at a lower price. Moreover, Machado et al. (2019)
analysed the role of consumers in the circular economy and highlighted the connections
between financial motivations, quality, sustainability, and critical and ethical consumption in
second-hand clothing.
Ögel's (2022) study explored young consumers' motivations for purchasing second-hand
clothing, revealing that attitude and subjective norms are predictors of intention to purchase
such products, but also that novelty and concern for environmental protection play a
significant role in purchasing decisions.
Another study published by Zaman et al. (2019) demonstrates that those who buy second-
hand clothing can be divided into three different groups based on their perception of this type
of purchase. Their research focuses on the reasons why people tend to buy second-hand
clothing, and these are not limited to financial reasons, but also include environmental
aspects, recycling, and trends that encourage the reuse of clothes that many people tend to
forget in the closet.
Also, Gwozdz et al. (2017) identified different consumer segments based on their clothing
consumption patterns, showing that there are differences in purchasing behaviour and
openness to more environmentally friendly business models.
Therefore, recent studies show that there is an increased need to understand consumer
motivations and behaviour regarding the purchase of second-hand clothing, with a focus on
sustainability and the circular economy, therefore providing a solid foundation for our
research endeavour.
Our research is based on the bibliometric analysis of the scientific literature on consumer
behaviour with respect to second-hand clothing and on a quantitative, exploratory, survey-type
research conducted in Romania. Our aim is to identify the profile of second-hand clothing buyers
and the factors that influence their decisions, focusing on assessing the impact of sustainability
and circular economy principles. We used cluster analysis to identify market segments based on
eight variables relevant to consumer behaviour and demographic information.
The novelty of our research lies in the focus on understanding the behaviour of consumers
who purchase second-hand clothing, specifically in the context of sustainability. It also
provides practical implications for companies operating in the second-hand clothing market
by identifying market segments based on consumer behaviour and demographic information.
The research gap covered in this study is the lack of sufficient understanding of consumer
behaviour buying second-hand clothing in the context of sustainability and the absence of
market segmentation analysis based on consumer behaviour and demographic information in
the second-hand clothing market.
Our paper begins with a bibliometric analysis to map trends, influential works, and gaps in
previous research on consumer behaviour when purchasing second-hand clothing. Then, we
detail the research methods used. The next section consists of the results, where we present our
findings, including the data collected and the market segments identified by cluster analysis. In
the discussion, we interpret the results and correlate them with the existing literature by debating

their implications. The final section consists of conclusions, where we summarise the findings
and highlight their importance in understanding consumer behaviour in the purchase of second-
hand clothing, in the context of sustainability and the circular economy.
1. A bibliometric analysis: mapping trends, influential works, and research gaps

In this study, we use bibliometric analysis as an alternative to the traditional literature review
because it provides a quantitative and systematic approach to assess the scientific landscape,
identify research trends, and objectively analyse the existing literature.
Bibliometric analysis offers a distinct advantage over a traditional literature review by
providing a quantitative and systematic approach to examining the scientific landscape.
The paper thus presents a bibliometric analysis of the main keywords related to the central
objectives of this research, namely "second-hand clothing" and "sustainability". The research
used renowned databases such as Web of Science and Scopus. The selection criteria were
only the keywords, with no other criteria, with the aim of considering as many papers as
possible. The Web of Science database provided 41 articles that met the predefined selection
criteria, while Scopus provided a collection of 38 articles. The data collection was carried out
in January 2023. For the subsequent analysis of the co-occurrence of keywords, VOSviewer
(van Eck and Waltman, 2011) version 1.6.19 was used in a similar way to works of this type
(Corboș et al., 2022; Triculescu, 2022). This software facilitated the creation of a map of
keywords, allowing a visual representation of the relationships between them.
Furthermore, the paper provides a review of the five most influential articles, determined by
the number of citations they received in both databases used for this study. The five most
influential articles identified in the bibliometric analysis approach significantly reveal the
context and main directions of research on consumer behaviour and market segmentation in
the second-hand clothing industry.
Considering the dominance of business models focused on continuous consumption and
globalised production systems with a major impact on the environment and society, the
consumption of “sustainable fashion” takes on an almost paradoxical quality. This paradox
is explored in the study by Bly et al. (2015), which focuses on a previously under-researched
group of consumers – “pioneers of sustainable fashion consumption”. These pioneers
actively develop and communicate strategies for sustainable behaviour in fashion. They
promote the purchase of fewer high-quality garments, leave the retail market, purchase only
second-hand fashion items, and make or remodel their own clothes. For these consumers,
sustainability involves both reducing measurable environmental or ethical impacts and
incorporating broader concepts to achieve goals beyond sustainability or ethics.
Furthermore, the study by Bick et al. (2018) underlines the negative consequences of “fast
fashion” business models that have led to the growth of clothing consumption and the impact
on the environment and human health. This has created a global environmental justice
dilemma in which consumers benefit from cheap clothes, but those who work near textile
factories bear a disproportionate burden of environmental hazards. Increased consumption
has also generated tons of textile waste in warehouses and second-hand clothing markets,
particularly affecting low- and middle-income countries. In the same direction, Dissanayake
and Sinha (2015) explore the concept of fashion re-manufacturing and the need for
collaboration between key actors for sustainable development.

McNeill and Venter (2019) focus on motivators and barriers to collaborative fashion
consumption, particularly among young women, and point out that in this category, social
and ethical concerns are less motivators than individual identity expression. In addition, the
study by Shrivastava et al. (2021) identified factors driving the adoption of online second-
hand clothing rental platforms that promote circular fashion and sustainability.
Colasante and D’Adamo (2021) address the difference in consumer attitudes toward clothes
made from eco-friendly and second-hand materials, highlighting the need for consumer
awareness of the true meaning of sustainability in sustainable fashion.
The literature highlights the diversity and complexity of how consumers perceive and adopt
sustainable consumption practices in the second-hand clothing industry and propose ways
towards a more sustainable and ethical fashion industry which justifies our approach to
identify the profile, factors of influence and impact of sustainability and circular economy on
consumer behaviour.
Our research topic is relatively unusual, as evidenced by the limited number of published
papers. Comparing the two databases, both highlight a notable focus on business-related
research, with Business and Management topics occupying significant proportions in both
WoS and Scopus. However, WoS gives more importance to Sustainable Green Technology
Sciences and Environmental Sciences, indicating a greater focus on sustainability and
environmental studies compared to Scopus. On the other hand, Scopus covers a wider range
of subject areas, including Computer Science, Psychology, Energy, Arts and Humanities,
Social Sciences, Materials Science and Engineering.
Figure no. 1 presents the results of a co-occurrence analysis performed on the main keywords
related to the central research objectives, namely “second-hand clothes” and “sustainability”,
extracted from WoS.
Therefore, we are talking about a visual representation of the analysis organised into four
distinct groups. To be included in the analysis, keywords had to appear at least three times,
resulting in a selection of 28 keywords out of a total of 272. Each group represents a set of
keywords that frequently co-occur in the reviewed literature.
Group 1 indicates a focus on the various aspects and challenges associated with sustainable
fashion, circular economy practices and the consumer perspective.
Group 2 highlights topics related to market dynamics, business models, and opportunities in
sustainable fashion and the collaborative economy.
Group 3 explores the interplay between circular fashion, consumer behaviour, consumption
patterns, design approaches, information technology, and the acceptance of sustainable practices.
Group 4 focuses on the psychological and behavioural aspects of sustainable consumption,
including consumer intentions, purchasing behaviour and the role of second-hand clothing in
promoting sustainable practices.
Figure no. 2, extracted from VOSviewer, presents the results of the bibliometric analysis
performed on the main keywords related to the central objectives of the research, focusing
on “second-hand clothes” and “sustainability” in the Scopus database. The analysis used a
co-occurrence approach, setting a minimum threshold of three occurrences for keywords. Out
of a total of 327 keywords, 19 met this threshold and were included in the analysis with data
from Scopus.

Figure no. 1. Network viewing of WoS database results in VOSviewer

The analysis identified three distinct groups based on keyword co-occurrence patterns:
Group 1 reflects the interconnections between clothing consumption, consumer behaviour,
the fashion industry, and sustainability. This group suggests a focus on the environmental
and social aspects of sustainable fashion, considering the role of the textile and fashion
industry in sustainable development.
Group 2 highlights the economic and human aspects of the clothing industry and its
connections to sustainability. Keywords in this group indicate a focus on topics such as the
circular economy, economic engagement, and the role of retail in sustainable practices.
Group 3 emphasises the environmental dimensions of sustainability in the context of clothing
and fashion. It includes keywords related to sustainable consumption practices, clothing reuse
through second-hand markets, and recycling efforts in the clothing industry.
The co-occurrence analysis we have performed highlights the importance of consumer
behavior research in the context of sustainable fashion. Both figure no. 1 and figure no. 2
show groups addressing different aspects of second-hand clothing and sustainability.
However, there is a notable research gap regarding the specific behavior of second-hand
clothing buyers and the absence of market segmentation analysis based on consumer
behavior and demographic information in the second-hand clothing market.

Figure no. 2. Network viewing of Scopus database results in VOSviewer

The need to research the behavior of consumers of second-hand clothes is important for
several reasons. First, it helps to understand consumer motivations, preferences, and
concerns, which can inform marketing strategies and communication campaigns to promote
sustainable fashion practices. Second, examining consumer behavior can highlight barriers
and challenges that prevent widespread adoption of second-hand clothing, allowing for the
development of targeted interventions to overcome these barriers. Finally, exploring
consumer demographic and psychographic profiles can help market segmentation, leading to
customized strategies that address specific consumer segments and their unique needs.
The co-occurrence analysis we have performed highlights the importance of consumer
behaviour research in the context of sustainable fashion. Both figure no. 1 and figure no. 2
show groups addressing different aspects of second-hand clothing and sustainability.
However, there is a notable research gap regarding the specific behaviour of second-hand
clothing buyers and the absence of market segmentation analysis based on consumer
behaviour and demographic information in the second-hand clothing market.
The need to research the behaviour of consumers of second-hand clothes is important for
several reasons. First, it helps to understand consumer motivations, preferences, and
concerns, which can inform marketing strategies and communication campaigns to promote
sustainable fashion practices. Second, examining consumer behaviour can highlight barriers
and challenges that prevent widespread adoption of second-hand clothing, allowing for the
development of targeted interventions to overcome these barriers. Finally, exploring

consumer demographic and psychographic profiles can help market segmentation, leading to
customised strategies that address specific consumer segments and their unique needs.
2. Research method
The purpose of the research is to identify the profile of second-hand clothing buyers and the
factors that influence their decisions, which are reflected in the reasons that influence
consumers to choose second-hand clothing products. In this sense, we will carry out a pilot
study on the Romanian market to fulfil the objectives of the study.
The main objectives of our study are the following:
 Identifying the profile of customers who buy second-hand clothing in Romania;
 Identifying the main factors that influence the decisions of these customers regarding
the purchase of second-hand clothing;
 Assessing the impact of sustainability and circular economy principles on consumer
behaviour in purchasing second-hand clothing;
 Market segmentation based on consumer behaviour and demographic information to
identify distinct consumer segments.
As part of this research, we formulated several hypotheses that underlie our analysis of the
second-hand clothing market. These are our initial assumptions about consumer behaviour
and motivations in this market. Our aim is to better understand the characteristics and
preferences of these consumers by testing the following hypotheses:
 Hypothesis 1: There are distinct consumer segments in the second-hand clothing
market, differentiated by purchase frequency, age, income, preferred purchase channel, and
motivations.
 Hypothesis 2: All consumer segments that buy second-hand products are motivated
mainly by the perception of good value for money and the desire to contribute to a circular
economy.
 Hypothesis 3: Younger consumers with lower incomes are more likely to buy second-
hand products.
 Hypothesis 4: Consumers who prefer to buy second-hand products from brick-and-
mortar stores are more likely to be motivated by the sensory experience and the opportunity
to examine the products before purchase.
The first step of our research was creating a questionnaire to identify and understand
consumer behaviour. The questionnaire included 10 questions, 7 of which were related to
their buying behaviour (how often they buy second-hand clothes), the reasons they buy
second-hand clothes, and the places where they usually buy (social media platforms, online
stores, or physical stores), with a list of their preferences. Other 3 questions were related to
age, area of origin, and income.
The second step in our research was to join specific Facebook groups for this type of business,
second-hand clothes, and invite people from these groups to answer the questionnaire, as well
as share it publicly on other social media platforms such as Instagram.

The last step was data collection, with the questionnaire open between October and December
2022. Overall, 16.37% of the respondents come from rural areas, while 83.63% come from
urban areas. Table no. 1 presents in detail the socio-demographic profile of the respondents
and includes as a percentage of the total respondents: the age categories, the environment of
origin, and the incomes by age category.
Table no. 1. The socio-demographic profile of the respondents
Age category
18-24 25-30 31-40 41-50 50-60
(years)
Values (% of total 50% 9.09% 24.55% 13.63% 2.73%
respondents)
Area of origin (% of R = 10.91% R = 1.82% R = 1.82% R = 0.91% R = 0.91%
total respondents) U = 39.09% U = 7.27% U = 22.73% U = 12.72% U = 1.82%
R = rural / U = urban
Income by age
group - RON (% of 18-24 25-30 31-40 41-50 50-60
total respondents)
1600 – 2000 35.45% 1.82% 0% 2.73% 0%
2000 – 3000 7.18% 3.63% 3.67% 0% 0%
3000 – 4000 0.91% 0.91% 2.78% 2.73% 0.91%
4000 – 5000 4.55% 0.91% 6.36% 1.82% 0.91%
5000 – 6000 0% 1.82% 0.91% 3.64% 0.91%
6000 – 8000 0% 0 5.45% 1.82% 0%
>8000 0.91% 0 5.45% 1.82% 0%
To achieve its objectives, the research involved structuring the data in such a way as to obtain
eight variables through which we wanted to identify some elements related to the profile of
customers of second-hand products. This includes information about where they prefer to
buy second-hand items, their reasons for choosing such products, and elements such as
respondents' age, income, and background. In addition, the variables used are inspired by the
main works identified in the specialised literature (Ferraro et al., 2016; Machado et al., 2019;
Mukherjee et al., 2020; Borusiak et al., 2020; Colasante and D’Adamo, 2021; Wang et al.,
2022; Koay et al., 2022) and can be described as follows: Places where consumers most often
purchase second-hand items (POA); The frequency with which consumers buy second-hand
products (AI); The reasons why consumers buy second-hand products (ROA); Consumer
perception on the evolution of second-hand product purchases (BSHB); Consumer
perception of supporting the circular economy by purchasing second-hand products (CEC);
Consumer age group (AGE); The environment of origin of consumers (AREA); Consumer
income range (INCOME).
To identify homogeneous groups of consumers in the form of market segments, we used the
two-stage clustering approach using IBM SPSS 26.0. We assumed that each identified cluster
would represent a market segment, as clusters are formed based on several common elements.
Furthermore, to ensure that we identify homogeneous and strict consumer groups, we used
one-way ANOVA analysis of variance to test for significant differences between the
consumer groups used. Through this pilot study, we aim to identify the main characteristics
of consumers who choose to buy second-hand clothing and their main reasons for buying, so
that we can develop strategic options that can be used in practice by the managers of these
businesses. In addition, we approach the issue of sustainability from the perspective of the
circular economy.

The hierarchical clustering technique used by SPSS’s two-stage clustering approach has two
key stages. The k-means method with a predetermined number of initial clusters is often used
to assign each observation to an initial cluster based on its proximity to the cluster centroid
in the first step (Everitt et al., 2011). Using a similarity metric, such as the Euclidean distance
between cluster centroids, the second step consists of merging the initial clusters into larger
clusters (Milligan and Cooper, 1985; Johnson and Wichern, 2007).
3. Results
In exploratory data analysis, the two-step clustering approach is often used and is particularly
beneficial for large data sets where the conventional k-means technique may be difficult to
automate.
Usually, the two-step clustering approach in SPSS can automatically determine a certain
number of clusters. However, because our goal is to identify market segments and
characterise them, and because we will later use one-way ANOVA to determine differences
between groups, we set a predefined number of five clusters.
An effective technique for assessing the quality of clusters in a clustering investigation is the
silhouette measure (Rousseeuw, 1987). The silhouette measure for cohesion and separation
for our data was 0.2, which can be considered a reasonable value. However, there is no fixed
threshold for a “good” silhouette measure value, as the desired value depends on the context
and specific objectives of the clustering analysis. We consider the value obtained to be
satisfactory, as we aim to identify homogeneous groups of customers, which may not have
identical but rather similar characteristics. Our clustering analysis identified relevant
elements. First, table no. 2 shows the distribution of clusters, where we can observe a fairly
balanced and uniform distribution of them, in relation to our general results.
Table no. 2. Distribution of clusters
N % of Combined % of Total
1 21 19.1% 19.1%
2 25 22.7% 22.7%
3 17 15.5% 15.5%
Cluster
4 21 19.1% 19.1%
5 26 23.6% 23.6%
Combined 110 100.0% 100.0%
Total 110 100.0%
As we can see in Table no. 3, the results of the one-way ANOVA analysis show that there
were significant statistical differences between the clusters (p value < 0.05), demonstrating
the validity of the final clustering in making accurate predictions based on the eight variables
used as dependent variables (Hair et al., 2010).
Table no. 3. Validity of clusters based on one-way ANOVA analysis
Variables Cluster Members F P Value
AI (1-5) 16.404 0.000
AGE (1-5) 32.101 0.000
INCOME (1-5) 36.207 0.000
POA (1-5) 21.244 0.001

Variables Cluster Members F P Value

ROA (1-5) 5.121 0.001
AREA (1-5) 9.382 0.000
BSHB (1-5) 1.636 0.001
CEC (1-5) 1.547 0.004
Cluster analysis revealed five groups. Appendix 1 presents the five groups created and
provides a comparison between them. We will now describe each cluster according to the
results obtained. It should be noted that each cluster represents a homogeneous group of
customers, which can be viewed as market segments.
Cluster 1 represents 19.1% of the results obtained and contains 21 entries. The profile of the
consumer associated with this cluster is predominantly characterised by the purchase of
second-hand products once every two to three months, being 31-40 years old, having an
income of over 8000 RON, buying mainly from Facebook groups created for this purpose,
the reason for the purchase being the perception of a good quality/price ratio, coming mainly
from urban areas and considering that in the future people will buy more and more second-
hand products, which encourages the contribution to a more circular economy by reusing
products.
second-hand products monthly, being 41-50 years old, having an income between 5000-6000
RON, buying mainly from physical stores, the reason for the purchase being the perception
of a good quality/price ratio, mainly coming from urban areas, and considering that in the
future people will buy more and more second-hand products, which encourages contributing
to a more circular economy by reusing products.
second-hand products once every two to three months, being 18-24 years old, having an
income between 1600-2000 RON, buying mainly from physical stores, the reason of
purchase being the lower price, coming mainly from urban areas, and considering that in the
future people will buy more and more second-hand products, which encourages the
contribution to a more circular economy by reusing products.
Cluster 4 represents 19.1% of the results obtained and contains 21 entries. The consumer
profile associated with this cluster is predominantly characterised by the purchase of second-
hand products once a year or less often, being aged 18-24, having an income between 1600-
2000 RON, buying mainly from physical stores and websites, the reason for the purchase
being the lower price, mainly coming from urban areas and considering that in the future
people will buy more and more second-hand products, which encourages contributing to a
more circular economy by reusing products.
second-hand products monthly, being 18-24 years old, having an income between 1600-2000
RON, buying mainly from physical stores, the reason for the purchase being the perception
of a good quality/price ratio, mainly coming from rural areas and considering that in the
future people will buy more and more second-hand products, which encourages the
contribution to a more circular economy by reusing products.

It should be noted that within the characteristics of the market segments there are dominant
elements that determined their belonging to a specific cluster.
Analysing the results, we obtained in relation to the formulated hypotheses, it can be
concluded that there are aspects that do not completely align with our initial expectations.
The results confirm Hypothesis 1, showing the existence of distinct consumer groups in the
second-hand clothing market, differentiated by purchase frequency, age, income, preferred
purchase channel and motivations. This suggests adequate market segmentation and
significant differences between consumer groups. Furthermore, the results do not fully
confirm hypothesis 2. Although the circular economy and the perception of value for money
are important factors for second-hand buyers, there are other complex motivations that
influence the decisions of these consumers. Therefore, not all consumer segments that buy
second-hand products are motivated solely by these two aspects.
Hypothesis 3 is partially confirmed by the results obtained. Younger consumers with lower
incomes are indeed more likely to buy second-hand products, but the reason for their
purchases is not just about lower prices; there are other considerations that influence their
purchasing choices. Finally, the results do not fully confirm hypothesis 4. Although the
preference for buying in brick-and-mortar stores may be related to the sensory experience
and the possibility to examine the products before purchasing, there are other reasons for
choosing this purchase channel. Therefore, not all consumers who prefer brick-and-mortar
stores are motivated solely by the sensory experience.
To sum up, the cluster analysis revealed a diversity of motivations and characteristics of
consumers of second-hand products, indicating that this market cannot be simplified into a
single type of consumer or a single motivating factor. Segmenting and understanding the
complexity of the market can help companies develop more effective marketing strategies
and address the varied needs of different consumer groups.
4. Discussions
The results of this study are consistent with previous research that has identified several
consumer segments with different attitudes and behaviours towards the consumption of
second-hand goods (Guiot and Roux, 2010; Ferraro et al., 2016; Liang and Xu, 2018). The
results of the study of the five most influential articles published in WoS and Scopus suggest
that the reasons why people engage in fashion consumption are aesthetics, creativity, and
novelty, for which they have found new ways to be satisfied, rather than giving up the
pleasure to buy clothes. It also promotes the idea that people living in high-income countries
can support and promote global environmental justice by purchasing high-quality clothing,
repairing their clothing, and shopping at thrift stores. These findings stimulated the present
research to provide the literature with recent findings on the subject.
The five clusters identified in this study suggest that second-hand buyers can be differentiated
based on frequency of purchase, age, income, preferred purchase channel and motivations.
Cluster 1 is consistent with previous research that identified a segment of consumers
motivated by the economic and environmental benefits of second-hand consumption
(Machado et al., 2019).

Cluster 2 is similar to a segment identified by D’Adamo et al. (2022), who found that those
who prioritise ecological concerns, and the circular economy are more likely to engage in
second-hand consumption.
Cluster 3 is consistent with previous research that identified younger consumers likely to
engage in second-hand consumption and being motivated by economic and environmental
concerns (Yan et al., 2015).
Cluster 4 is similar to a segment identified by Haraldsson and Peric (2017), who found that
some consumers engage in second-hand consumption occasionally and are motivated by
economic and environmental concerns.
Cluster 5 is similar to a segment identified by Yan et al. (2015), who found that younger
people prioritise environmental concerns and the circular economy and are more likely to
engage in second-hand consumption.
In terms of frequency of purchase, the results of this study are consistent with previous
research that has found that people buy second-hand products with varying degrees of
frequency. For example, as we have shown, some studies have found that individuals tend to
buy second-hand products occasionally, while others have found that they buy second-hand
products frequently.
In relation to age and income, previous research has also identified these as key factors
influencing second-hand buying behaviour. For example, younger consumers and those with
lower incomes are more likely to buy second-hand products than older consumers or those
with higher incomes.
The fact that some consumers prefer to buy second-hand products from brick-and-mortar
stores is consistent with previous literature that has identified the importance of tactile
experiences and the ability to examine products before purchase as key factors influencing
consumer preferences for brick-and-mortar shopping (Flavián et al., 2017).
A study by Tu et al. (2022) found that perceived value for money and environmental concerns
were important reasons for purchasing second-hand. Another study (Clausen et al., 2010)
found that the desire to save money and contribute to environmental sustainability was the
main motivation for consumers to buy second-hand products. These findings are similar to
the results of the current study, which identified value for money and the desire to contribute
to a circular economy as important reasons for consumers to buy second-hand products.
The findings of this study are consistent with the findings of Borusiak et al. (2020) and Koay
et al. (2022), who also identified a positive relationship between people’s attitudes towards
the positive impact of second-hand purchases on sustainable consumption and their intention
to engage in second-hand purchases. This further supports the idea that people who have
positive beliefs about the environmental and social benefits of second-hand buying are more
inclined to express their intention to participate in this type of consumption.
Other research (Cervellon et al., 2012) found that second-hand purchases were more prevalent
among younger and lower-income consumers. This is consistent with the current study, which
found that younger individuals (18-24 years) with a monthly income of 1600-2000 RON are
more likely to buy second-hand products. The fact that some consumers prefer to buy second-
hand products from brick-and-mortar stores is consistent with other research (Wang et al., 2022;
Wang et al., 2022; Zhang et al., 2022), who found that brick-and-mortar shopping offers a more
immersive and sensory experience than online shopping and that the ability to examine products

before purchase was a key factor influencing consumer preferences for brick-and-mortar stores.
This preference for brick-and-mortar stores was also reflected in the current study, which found
that some consumers prefer to buy second-hand products from brick-and-mortar stores. Other
studies have also shown that the points of purchase of second-hand products are a good
determinant of their purchase (Mukherjee et al., 2020).
Overall, the results of this study add to the body of literature on second-hand consumption
by identifying specific clusters of consumers based on their behaviour and motivations. These
findings can help retailers better understand and address the needs of different consumer
segments to promote sustainable consumption. Furthermore, the results of this study are
largely consistent with previous literature on consumer behaviour related to second-hand
purchases. Previous research has also identified price, quality, and the desire to contribute to
a circular economy as key factors that motivate consumers to buy second-hand products.
Conclusions
The study identified five market segments useful to second-hand sellers based on purchase
frequency, age, income, preferred purchase channel and motivations. These segments include
consumers motivated by good value for money and the desire to contribute to a circular
economy, younger consumers with lower incomes, and those who occasionally buy second-hand
products. The study’s findings could help retailers better target different consumer segments to
promote sustainable consumption. Previous research has also shown that younger people and
those with lower incomes are more likely to engage in second-hand consumption and that some
consumers prefer to buy second-hand products from brick-and-mortar stores.
Retailers should consider the identified clusters when targeting their marketing efforts to
second-hand consumers. They could use different marketing strategies for each cluster to
better satisfy their motivations and preferences. Additionally, retailers could devise different
pricing strategies for each group. For example, cluster 3 consists of younger consumers with
lower incomes who buy second-hand products once every two to three months and are
motivated by lower prices. Therefore, retailers could offer more affordable prices for this
cluster to attract them.
Second-hand retailers may also consider offering second-hand products in brick-and-mortar
stores, as this may appeal to some consumers who prefer a tactile experience and the ability
to examine products before purchase.
Policymakers could promote sustainable consumption by educating consumers about the
benefits of second-hand consumption and by increasing the availability of second-hand
products in brick-and-mortar stores and online platforms. Politicians should also consider
offering incentives to traders selling second-hand products, such as tax breaks or subsidies,
to promote circular economy practices and reduce waste. In addition, policymakers could
also consider implementing regulations to ensure the quality of second-hand products and to
protect consumers from fraudulent or dangerous items.
Overall, these managerial and policy implications aim to encourage more sustainable
consumption practices and promote the circular economy.
Based on the results and discussions, we recognise the existence of a potential new market
segment, which may be represented by consumers of second-hand products motivated by both
economic and environmental concerns, purchase items with varying degrees of frequency (from

monthly to once a year or less) and are either younger consumers with lower incomes or those
with higher incomes. The preferred purchase channel can vary, with some consumers preferring
to buy items in brick-and-mortar stores, while others prefer to shop online.
Research could also examine the impact of sustainability certifications and product labelling
on consumer behaviour in this segment, as well as the potential to incentivise sustainable
behaviours through rewards programs or loyalty schemes.
However, there are some research gaps that this type of study could address in future
research. First, the research only focuses on the Romanian market, so future studies could
expand the field to other regions to gain a broader perspective. Second, the research only
examines the consumer side of the second-hand clothing market and does not explore the
supply side or overall market dynamics. Finally, research could consider conducting a
longitudinal study to track changes in consumer behaviour over time and provide a more
comprehensive understanding of the factors driving second-hand clothing consumption.
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Appendix 1. Comparison between clusters
Notes: FBG = Facebook Groups, W = Websites, PS = Physical Stores. / AI = Purchase Interval, POA
= Place of Purchase, ROA = Reason for Purchase, BSHB = Secondhand Buying Behaviour, CEC =
Contribution to the Circular Economy.

SOCIAL IMAGE IN THE ONLINE ENVIRONMENT – SUSTAINABLE MOTIVE

FOR BOOK SALES DURING THE PANDEMIC
Corina Pelau1* , Valentina Ghinea2 and Bogdan Hrib3
1)2)
3)
National University of Political Studies and Public Administration, Bucharest,
Romania and Bucharest University of Economic Studies, Bucharest, Romania.

Pelau, C., Ghinea, V. and Hrib, B., 2023. Social Image Received: 28 August 2023
in the Online Environment – Sustainable Motive for Revised: 8 September 2023
Book Sales During the Pandemic. Amfiteatru Economic, Accepted: 21 September 2023
25(Special No. 17), pp. 1081-1094.
Abstract
Social distancing and the work-from-home setting have determined the development and
success of online communication platforms. Most of the communication during the social
distancing period took place online, allowing people access to the homes and offices of those
with whom they communicated. Since social image is an important aspect of human
existence, during pandemics there has been a tendency to translate the attention for social
image from real life into the communication carried out through on-line platforms. The use
of books as a background for communication through on-line platforms fosters an intellectual
image of the respective user, and thus becomes a considerable buying reason during the
pandemic. The objective of our research is to determine whether a good-looking, interesting,
and attractive book shelf used as a background on online communication platforms is a good
reason to buy books during the pandemic. In a mediation model, we empirically demonstrate
that the perception that the presence of books confers an intellectual look, mediated by the
fact that a background with books induces an intellectual image, becomes a valid buying
motive for books. This result has important implications for the future book sales strategy
and highlights the major role played by the aspect of book covers in sustainable future sales.
Attention is also driven to a slightly superficial development of the digital society we live in,
where appearance is often more important than essence. For a sustainable development of
our society, it is important to intervene in the educational system and put more emphasis on
content and not just on appearances.
Keywords: Consumer, book, online communication platform, pandemic, buying motives,
snob effect.
JEL Classification: M30, M31
*
Corresponding author, Corina Pelau – e-mail: corina.pelau@fabiz.ase.ro

AE Social Image in the Online Environment – Sustainable Motive
for Book Sales During the Pandemic
Introduction
The COVID-19 pandemic has changed the behaviour of consumers in many ways. From
social distancing and hygiene habits to working from home and the type and quantities of
products bought, the pandemic determined a new normal to which companies had to adapt
(Lazaroiu, Horak and Valaskova, 2020; Guthrie, Fosso-Wamba and Arnaud, 2021; Pop et
al., 2022; Dassel and Klein, 2023). One of the biggest changes concerned the way
communication occurred, given the development of online communication platforms, such
as Zoom, Google Meet, and others (Valaskova, Durana and Adamko, 2021). As a result of
the conversations conducted through them, more or less voluntarily, the interlocutors exposed
their own family environment, thus being put in a situation to get out of their comfort zone
(Tohănean et al., 2020). To avoid the reveal of certain aspects of one's own identity, the
frequent use of books as a background image became popular. However, this is likely to
equally confer the advantage of playing an intellectual person with elevated preoccupations
towards reading and research-oriented.
Regardless of the reasons for buying a book, an increase in this market could be observed
during the pandemic. According to Watson (2023), the US book market does not appear to
have been affected by the COVID-19 pandemic, but rather the opposite. The 757.94 million
books purchased in 2020, 843.1 million in 2021, and 788.7 million in 2022, establish an
upward trend. Not only have sales registered unexpected increases, but also traditional
bookshops that have gained momentum and seem to be booming (Alter and Harris, 2022).
Moreover, some publishing houses have noted a buying tendency of books with colour-
matched covers (BBC, 2021), which reinforces the idea that at least some of them were
purchased for the pleasant look created in the library or as a background image in the
communication through online platforms.
Our empirical research tests whether the use of books as background image for on-line
communication platforms constitutes a sustainable reason for purchasing books. For this
purpose, we developed a mediation model in which we measure the perception of the
intellectual image conferred by the presence of books, the transposition of this perception in
the online environment, and the impact of the two have on the intention to buy books. Our
paper starts with a documentation of the topic in the literature review. In the methodology
chapter, data collection and reliability of the constructs used are presented. In the next
chapter, the mediation model is empirically tested, and the results are presented. The article
ends with discussions and conclusions on the sustainability of the book market, considering
changing buying motives.
1.1. Buying motives for books
We generally consider books to be both educational and entertaining. We buy books to satisfy
our own or a third persons need, for our own use or to give them as a gift, but also for the
simple reason that the cover attracts us, the title makes us curious, or the short description on
the back makes us want to browse its pages. Often, we buy books because we know the author
or because they have been recommended by someone we trust. Studies (Billington et al.,
2012; Billington et al., 2013) indicate a multitude of beneficial effects of reading, such as
direct and indirect learning, reducing the incidence of depression, gaining an overview of

life, and implicitly developing the ability to overcome obstacles. The high level of
concentration that reading entails acts as a protective shield against anxiety, the effect being
much stronger and longer lasting than that of a walk with friends or watching TV.
According to Leitao et al. (2018), approximately one-third of books are purchased only to be
given later as a present. Women reportedly buy and read more books than men, and older and
educated consumers tend to buy and read more books (Leitao et al., 2018). Studies show that
women are more impulsive when buying for themselves, but more thoughtful when giving a
book as a gift, considering in this case well-known authors (Mick and Demoss, 1990; Wu
and Lee, 2016). In addition to preferences related to physical characteristics of books (size,
cover, title, colour, images, etc.) that influence the purchase decision, some authors mention
impulse buying based on title or cover as a behaviour typology (Beatty and Ferrell, 1998).
Beyond the pleasure of reading, there is another kind of satisfaction that the reader
experiences, namely that of feeling smart or posing as a smart person. On the bus, tram, park,
or swimming pool, the right book stimulates not only the intellect and imagination of some
people, but also the infatuation, pride, and vanity of others (Sikora, Evans and Kelley, 2019).
Not to be neglected is the role of books as a social binder: they often trigger reading clubs,
which extend the circle of friends and also stimulate the reasoning capacity and lead to a
better concentration and communication (Lareau and Weininger, 2003; Sikora, Evans and
Kelley, 2019). Last but not least, the pleasure of displaying your book collection in a library
can be a reason enough to purchase books. It feels very good when people see you reading
and label you as an intellectual (Lamont and Lareau, 1988; Jaeger and Breen, 2016) and there
is also a satisfaction triggered by the large number of likes and/or comments to your when
people see you reading or to book posts. This can be seen as a form of snobbery caused, on
one hand, by social pressure that has the power to modify and/or exacerbate attitudes and
behaviours (Lamont and Lareau, 1988; Jaeger and Breen, 2016) and, on the other hand, by a
personal predisposition toward hoarding, which fuels the unbridled desire to purchase books.
The two determining factors are not necessarily independent. There are numerous situations
in which the collected volumes are used as evidence for the passion for reading or an exquisite
taste in literature (Leitao et al., 2018; Sikora, Evans and Kelley, 2019). However, in times of
crisis, reality usually acquires other valences. The deeper the crisis, the greater the volatility
of values and daily routines. Some of the first routines affected by the change are book and
media consumption, as well as the ways to spend free time (Kafi, 2021).
1.2. Books and the personal library
At the level of individual households, Zhou (2018) talks about an average personal library
size (of a teenager today) of about 200 books. Research conducted by Sikora, Evans and
Kelley (2019) indicates a dependence of this number (and, by implication, exposure to
books), to the culture of each country. Thus, households in Scandinavia and some post-
communist countries are shown to have traditionally large libraries. For example, the average
size of a library in Norway is 212 books, while in Sweden it is 210 books, in Denmark 192,
and in Finland only 162. Central and Eastern European countries count even more books:
218, on average, in Estonian households, and 204 in the Czech Republic. In contrast to this,
Turkey can boast no more than 27 books, on average, in a household library (Sikora, Evans
and Kelley, 2019).
According to Zhou (2018), there is a positive correlation between the number of books owned
(at 16 years old) and subsequent literacy skills. The presence of books and study materials

directly and indirectly influences children's education (Evans et al., 2010). Children from
families with personal libraries of approximately 500 books proved to be more interested in
education, registering on average a 3.2 years longer academic path, regardless of the
education or occupation of the parents. According to the study conducted by Evans et al.
(2010) in 27 countries, this is an advantage comparable to having parents with a university
education and twice as important as having a father specialised in a particular field. These
results are stable, confirmed, and maintained equally in rich and poor countries, regardless
of time or political regime. Of course, there is no direct causality between the number of
books owned and the number of books read, but access to education also means access to
books (in the form of a public or personal library). The more the presence of books is
perceived as normality, the better the vocabulary, imagination, ability to understand, and
reasoning is developed (Katz, 2018). Consequently, families are facilitators of education due
to the tangible and intangible resources (associated with an academic culture) they have. This
was also transmitted through online conversations during the COVID-19 pandemic. If in
some situations it was a simple way to avoid revealing certain aspects related to one's identity
(Tohănean et al., 2020), there were also cases of using books as a background image with the
sole purpose of posing an intellectual person, with elevated preoccupations, well-read and
oriented toward research (Hrib, 2020; BBC, 2021; Luders, Dinkelberg and Quayle, 2022). In
both categories, hoarders are found. These are the ones who obsessively buy books that, most
frequently, don't even get to read and to which they attribute, possessively, only sentimental
value (Sikora, Evans and Kelley, 2019).
1.3. Books as an indicator of social and intellectual status
We live in a world obsessed with image and appearances in which, despite the changing
models we aspire to and the access criteria, the psychological mechanisms have remained the
same. Enhanced by the media, the temptation to imitation is greater than ever (Bindra et al.,
2022). Falsehood takes many forms and is triggered by a multitude of reasons. Far from
referring only to the display of a non-existent wealth or professional fulfilment, manifested
through an extravagant lifestyle, this dissimulation is also present on the book market. A
surprising phenomenon is recorded: the purchase of books not for the sake of reading but for
the sake of social integration and for the desire to build a certain personal image. If some
people buy books to read for their own interest, as a recommendation from friends or family,
some others do it just for the feeling of belonging, and others to profile themselves as an
intelligent person, dedicated to study and education (Sikora, Evans and Kelley, 2019). This
is also confirmed by consumer behaviour researchers who include books in the category of
experiential products, with intrinsic utilitarian value but which, along time, have determined
hedonic responses and simultaneously served as a symbol (Chen and Granitz, 2012).
Social influence catalyses the decision to buy books, triggering a mass contagion effect
(Huang and Hsieh, 2012). For example, with the advent of electronic book reading devices,
a segment of buyers emerged who showed interest regardless of cost because of the desire to
improve their image among peers and gain a social status (Lamont and Lareau, 1988; Jaeger
and Breen, 2016). In the same way, the existence of must-have/must-read titles is emerging
as a norm/normality from which only the elderly or middle-aged can escape. This trend for
award-winning book lists can be framed as a new form of snobbery (Leitao et al., 2018).
Generally defined as a form of social mimicry, snobbery represents the elitist attitude by
which aspirants to a certain social or intellectual status seek to appear above their peers,
dissociating themselves from them, and at the same time unnaturally adhering to the category

they consider superior (Leibenstein, 1950; Steiner and Weiss, 1951). Originally used since
the time of Seneca 2000 years ago, the term comes from the phrase "s.nob", a short form for
"sine nobilitate", which means "lacking nobility". In economic decisions, snobbery is
introduced by Veblen (1899) and Leibenstein (1950) by introducing the "snob effect"
motivation, which includes the choice and purchase of luxury products, viewed by the
respective consumers as investments, objects that could be collected or inherited. This
demonstrative consumption (conceptualised since the end of the nineteenth century) is caused
by the desire to be included in certain social categories and implicitly to be different from the
crowd (Leibenstein, 1950; Steiner and Weiss, 1951).
Today, snobbery is frequently associated with the digital environment and on-line
communication networks (Luders, Dinkelberg and Quayle, 2022), which are often used to
create a positive, often exaggerated, or enhanced social image of a user. Moreover, today's
society, influenced by the social network culture, enhance self-praise and the promotion of
the best version of the personal image (Mishra and Samu, 2021; Sampat and Raj, 2022), thus
amplifying superficiality, vanity (Annisette and Lafreniere, 2017) and, implicitly, snobbery.
An increasingly large segment of the population is addicted to the real or virtual appreciations
of those around them (Mishra and Samu, 2021; Sampat and Raj, 2022). Sholomova and
Skorobogatykh (2018) report a change in the motivation behind the snob effect due to an
increased number of digital consumers. Thus, the concept of the "Di-elite effect" is proposed,
coming from the digital elite (Sholomova and Skorobogatykh, 2018).
Considering the increasingly frequent association of snobbery with the intellectual or
academic environment (Weaver, 2013; Martin and Sorensen, 2014) and with the moral
leaders of our society (Henkel and Ade, 2022; Yu et al., 2022), the idea of using books to
create an improved self-image comes as a complement to these new forms of snobbery, even
if nowadays they are mostly manifested in the virtual environment.
1.4. Books and background image of communication platforms during the pandemic
Social distancing has imposed a series of changes in the way consumers communicate,
contributing to the implementation and development of online communication platforms
such as Zoom, GoogleMeet, and others. These communication platforms facilitated people
not only verbal interaction but also the possibility of non-verbal communication (image,
framing, etc.). Thus, users had access to images from the private space of those they
communicated with (Dassel and Klein, 2023). To restrict access to private space, many
platforms developed virtual backgrounds, allowing users to choose from predefined
backgrounds or by blurring their existing one. However, a large number of users chose to
partially expose their private space, selecting a background that represents them or
contributes to their social image (Zoom, 2023). In this context, a number of consumers opted
for backgrounds with libraries or books to create an image of well-read, bookish, and science-
orientated people (BBC, 2021). Moreover, some went so far as to pick out only certain titles
or volumes with a certain aspect (Zoom, 2023). Consequently, some studies during the
pandemic focused on identifying the optimal number of books displayed, the impact of the
titles contained in the library, the combination of colours, and the age of the books viewed in
the background of the online communication platform. According to some theories, an
overcrowded shelf could distract the interlocutor, who could thus become absorbed in
studying the background, neglecting communication. Similarly, a taste mismatch can cause
unwanted and unanticipated effects (Pelta, 2021). Thus, the idea of the need to adapt to each
individual situation emerged. In the present case, the need to adapt the selection of displayed

books to the type of communication, the profile of the people involved, and the subject of the
communication (Warren, 2004; Dabija and Babuț, 2019).
During the pandemic, this identification and delivery of titles suitable for each individual on-
line communication was a means of survival for some bookshops (Acitelli, 2020; McKinsey
& Company, 2020; Alter and Harris, 2022). For example, some libraries provide, for sale or
rent, a wide range of books, from traditional and contemporary to those of a certain age, in a
large variety of colours, cover types, and assortments for display purposes in residential,
commercial, exhibition, and media locations (Acitelli, 2020; Hunt, 2022). There were also
other ways to use a book background, even for free, simply by visiting your favourite local
bookshop and going online from there. Some companies developed free virtual backgrounds
for online communication (Fosslien and Dufy, 2020; Hass, 2020).
2. Methodology of research
The objective of our research is to determine whether the perception regarding an intellectual
image influenced by the presence of books on online platforms influences the buying decision
of the consumer. In this sense, we developed a model in which we tested the relationship
between the role that the socio-intellectual image and the presence of books as a background
image on communication platforms have on the purchase intention. For this model, we
defined the perception of consumers regarding the creation of a socio-intellectual status
through the presence of books as an independent variable. The use of books as a background
image on communication platforms was included as a mediator, and purchase intention as a
dependent variable. Practically through this model, we tried to empirically determine if the
presence of books is associated with socio-intellectual status and if the presence of books in
the online environment enhances this perception, both having an impact on the purchase
intention for books.
For each of the constructs, we used self-determined items that were evaluated with a 7-point
Likert scale, where 7 represents total agreement and 1 represents total disagreement. We
measured perception regarding the creation of a socio-intellectual image based on five
elements, namely, if the presence of a library creates an intellectual profile (M=2.84,
CFA=0.856), reading experienced (M=2.98, CFA=0.927), smarter (M=2.69, CFA=0.902),
well-documented (M=3.00, CFA=0.885) and research-oriented (M=2.82, CFA=0.783). The
validity of this item is given by the Cronbach alpha value of 0.920, the composite reliability
value of 0.941 and the average variance extracted value of 0.760.
The mediator on the presence of books in the background of the online communication
platform was measured with the same five items. The respondents had to evaluate whether a
person looks intellectual (M=2.58, CFA=0.917), is reading experienced (M=2.54,
CFA=0.934), smarter (M=2.37, CFA=0.927), well-documented (M=2.49, CFA=0.937) and
research-oriented (M=2.43, CFA=0.889), if they use a background containing books on on-
line communication platforms. This construct was also validated by the Cronbach-alpha
value of 0.955, the composite reliability value of 0.965 and the average variance extracted
value of 0.848.
The buying decision was initially measured with five items. One of them, related to the
existence of acquaintances who buy books for the background image of communication
platforms, was omitted during the analysis because it had a low significance in the convergent

analysis. The final construct was measured based on four items, namely the intention to buy
(M=1.36, CFA=0.913) and invest (M=1.31, CFA=0.943) in books, to have a book
background, past behaviour (M=1.18, CFA=0.849) and recommendation to friends (M=1.28,
CFA=0.804) to buy books for background. This item also has good significance by having a
Cronbach-alpha value of 0.904, a composite reliability value of 0.931 and the average
variance extracted value of 0.722.
Data collection was carried out with the help of a survey and took place during a book fair in
December 2022. Taking into consideration the place where data collection took place, it must
be mentioned that all respondents are people interested in books, with higher education and
intellectual jobs. After eliminating biased responses, 370 valid responses were collected.
Data analysis was performed with the help of Smart-PLS.4.0 software (developed by Ringle
et al. 2015) by applying structural equation models with the help of a two-tailed bootstrapping
method, based on 5000 distinct samples. Convergent validity was assessed by analysing the
loading in the outer model. Based on this process, an element was eliminated and the final
model, while all other elements proved convergent validity (all p<0.000). The divergent
validity was tested with the help of the heterotrait-monotrait criterion (HTMT), while all
values <0.900 (Henseler and Sarstedt, 2013; Henseler et al., 2015).
3. Results
The results of our proposed mediation model confirm that the background of the on-line
communication platform may be a significant buying motive for books. Although the mean
values of the elements and constructs are not very high (all items < 3.1), there are significant
relationships between the elements and the mediation is also confirmed. The direct relation
between the perception of the presence of books as a sign of intellectual activity and the
intention of buying books is only partially significant. Although the t statistics have an
acceptable significant value of t=1.922 (p=0.055), the confidence interval CI=[0.000; 0.204]
includes the value 0, so it can be concluded that the relation is not significant. The simple
perception that the presence of books makes a person more intellectual does not determine
the intention to buy books. Despite this, the use of online platforms mediates this relationship
and proves to be a total mediation. For the a-path, the perception that the presence of books
makes a person look more intellectual has a significant positive impact on the use of books
as background for online communication platforms, having a β=0.589 (t=14.622, p=0.000,
CI = [0.508; 0.664]). The R-square for this relation has a value of 0.347. For the b-path, the
use of books as a background for online communication platforms positively impacts the
buying intention of books, having a β=0.150 (t=2.612, p=0.009, CI = [0.032; 0.258]. The
total effect is significant, having β=0.188 (t=4.177, p=0.000, CI = [0.103; 0.267]) and the
indirect effect of the mediation is significant, by having β=0.088 (t=2.548, p=0.011, CI =
[0.020; 0.157]). These results confirm the full mediation of the use of books as a background
for online communication platforms. The results of the mediation model can be observed in
table no. 1, while the graphical representation of the model can be observed in Figure no. 1.

Table no. 1. Results of the mediation model

t-
Relation β p CI
statistics
Books as intellectual activity Books as 0.589 14.622 0.000 [0.508;
background (a-path) 0.664]
Books as background Intention to buy (b-path) 0.150 2.612 0.009 [0.032;
0.258]
Books as intellectual activity  Intention to buy 0.100 1.922 0.055 [0.000;
(c-path, direct effect) 0.204]
(c’-path, total effect) 0.267]
(ab-path, indirect effect) 0.157]
Figure no. 1. Graphical representation of the mediation model

Source: Own research results
4. Discussion
The restriction during the pandemic has led to a period of social isolation that has
dramatically increased the use of online communication platforms for both professional and
private interactions. Virtually most professional interactions have taken place using these
platforms, and perhaps for the first time, the pandemic has exposed people's private/personal
environment. Our mediation model confirms that the use of books as a background for online
communication platforms is a good and significant reason to buy books during and after the
pandemic. The results of our research confirm that the presence of books is associated with
a certain intellectual status in both the real and the virtual environment. However, it is the
interaction in the online environment that determines the purchase intention. The mere
perception that the presence of books makes a person appear more intellectual and intelligent
is not enough to make a consumer buy books, but the use of online communication platforms
and the use of books as background is a good reason to make a purchase decision. Our
mediation model shows that it is not just simple perception that determines purchase

intention, but online exposure and interaction with other people. The fact that people are
more visible to the social circle and the public through the use of on-line communication
platforms than through the exposed library at home matters for purchase intention. This
confirms the importance of the social image in the interaction in the digital environment.
Both results, related to the association between books and socio-intellectual image (Weaver,
2013; Martin and Sorensen, 2014; Henkel and Ade, 2022; Yu et al. 2022) and the importance
of social image (Mishra and Samu, 2021; Luders, Dinkelberg and Quayle, 2022) are popular
topics in the present literature, but the connection between the two is hardly investigated.
Therefore, our research contributes to the state of knowledge by highlighting the importance
of social image in the online environment.
Although the mean values of the items used in order to assess the perception regarding the
presence of books as a sign for intellectual activity show rather a disagreement with the
statement, the mediation model shows that in an unconscious way the consumer that a book
background may be a good buying motive for books. Even if it might seem a superficial
reason to buy books, the image of a person, both in real life and virtual environments, is an
important social aspect that can lead to acceptance and appreciation. This activity is similar
to avatars in the metaverse. If people are willing to invest in virtual images of themselves,
they will also be willing to invest in a nice background for the online communication
platform. These results of our research have important implications for book companies and
book retailers. In addition to the titles that they aim to sell, it is important to design good-
looking book covers in order to create a nice background for their owner.
Conclusions
The results of our research have important implications not only for publishers and book
retailers but also for developers of social communication and other platforms. From the book
seller's point of view, the question arises whether this type of behaviour is sustainable. In a
world where social image is becoming more and more important and digitisation tends to
capture the classic book market (Hrib, 2020), buying books for a library or a good-looking
background can become a sustainable reason for reviving the classic book industry. Although
it seems a superficial reason, the typology of book buying during the pandemic has proven
that this is a valid reason for buying (Fosslien and Dufy, 2020; Hass, 2020), which is largely
supported by a snobbery in academia and leadership (Weaver, 2013; Martin and Sorensen,
2014; Henkel and Ade, 2022; Yu et al., 2022). In order to maximise profits from this type of
behaviour, publishers and producers must not only consider the titles they intend to sell, but
also create nice and attractive book covers that fit a library or background as beautifully as
possible. It is important for developers of social or on-line communication platforms to
include books in this virtual environment, as they remain a symbol of science and are used
to enhance the socio-intellectual image of a science-oriented intellectual.
Last but not least, our research has important implications for developing values and defining
behaviour in the society in which we live. Our research indirectly confirms the superficiality
of a society in which appearances are more important than content. This research confirms
the existence of consumers who buy books because they look good, not necessarily because
they want to read them. This behaviour is also confirmed by other studies that show that often
the picture or title posted on a social platform is more important than the activity itself (Pelau
et al., 2023). In an information-overloaded society, we tend to tick certain activities without

having the ability to deepen them (Pelau et al., 2023). For this reason, we align ourselves
with the authors who believe that the first step to reduce this superficiality and digital
snobbery caused by social platforms is to be aware of it (Weaver, 2013).
The limitations of our study are related to the fact that the data for the research were collected
at a book fair. So, the respondents are active book buyers, a fact that can slightly intensify
the phenomenon of intellectual snobbery related to the presence of books in personal libraries
or on online communication platforms. To sustain sustainable development in our society, it
is important that those who buy books to have a good looking background on social media
will have the curiosity to open and browse these books. For a sustainable society, it is
important not only to own books, but also to read them and understand their content. Thus, a
final implication can be for the academic and teaching environment, which must determine
pupils and students to love books, not only because they look well on communication
platforms, but also for their content.
This research expands the field of knowledge on the role of social image in the online
environment. If until now, the social image of an individual was developed through his
presence and appearance in society, along with the development of on-line communication
methods, the social image becomes important in the digital environment, through the pictures
displayed as a profile picture or even through the avatar used for games or virtual realities.
In future research, we will focus more on the importance of this social image in the online
environment and on the motivation of users to develop this image.
Acknowledgement: This paper was also financed from a project supported by CNCS-
UEFISCID grant number PNIII-RU-TE-2021-0795.
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SUSTAINABLE DEVELOPMENT OF E-COMMERCE IN THE POST-COVID

TIMES: A MIXED-METHODS ANALYSIS OF PESTLE FACTORS
Adriana Dima1* , Elena Radu2 , Ecaterina Milica Dobrotă3 , Adrian
Oțoiu4 and Alina Florentina Săracu5
1)2)3)4)
5)
"Dunarea de Jos" University, Galati, Romania

Dima, A., Radu, E., Dobrotă, E.M., Oțoiu, A. and Received: 20 August 2023
Săracu, A.F., 2023. Sustainable Development of E- Revised: 7 September 2023
commerce in the Post-COVID Times: A Mixed- Accepted: 25 September 2023
Methods Analysis of Pestle Factors. Amfiteatru
Economic, 25(Special Issue 17), pp. 1095-1114.
Abstract
E-commerce represents an essential part of modern business, with a significant growth in
recent years. Recent events, such as the COVID-19 pandemic, have led to a surge in online
shopping and a rapid shift towards e-commerce, creating a new normal in the retail industry.
To succeed in this changing landscape, it is important for organisations to understand the
Political, Economic, Social, Technological, Legal, and Environmental (PESTLE) factors that
influence e-commerce. This exploratory research applies a mixed-methods approach to
identify the PESTLE factors that affect the e-commerce landscape in post COVID times. The
study was conducted by developing a questionnaire for organisations that use e-commerce in
their operations and was applied to a sample of 309 Romanian firms, with mixed methods
such as principal component analysis (PCA) and multinomial logistic regression. The results
suggest that the pandemic has intensified the adoption of e-commerce, and businesses are
focused on expanding their online presence and leveraging new technologies to enhance the
customer experience. The findings contribute to understanding the PESTLE factors that
influence e-commerce and can provide valuable insights for policymakers, businesses, and
other stakeholders seeking to make informed decisions that facilitate the sustainable
development of e-commerce. Limitations of this research include restricting the sample to
Romanian organisations, with results that may be less relevant for other economies. Also, the
study focuses on PESTLE factors, leaving other possible influences on e-commerce in the
post-COVID period unaddressed.
Keywords: e-commerce, PESTLE analysis, internet, retail
JEL Classification: L81
*
Corresponding author, Adriana Dima – e-mail: adriana.dima@man.ase.ro

AE Sustainable Development of E-commerce in the Post-COVID Times:
A Mixed-Methods Analysis of Pestle Factors
Introduction
The collaborative economy has emerged as a novel channel for the exchange of products and
services facilitated by technology and digital platforms. This paradigm fosters cooperation
and exchange, which encompasses goods, services, and knowledge, with or without monetary
transactions. Consequently, the Internet has profoundly impacted contemporary living,
enabling easy access to information and a plethora of applications designed to enhance
consumer experiences.
Among many other things, the Internet has influenced the way commerce is performed on
both the seller and the customer. During the COVID-19 pandemic, e-commerce and retail
had a crucial role for the economy and society, compelling retailers to gain expertise with
online services. Thus, the value of European e-commerce increased by 13% to € 718 billion
in 2021 from € 633 billion in 2020 (Lone and Weltevreden, 2022). In Romania, 91% of the
population has Internet access in 2022, as compared to 70% in 2017 and it is estimated that
45% of the internet users bought goods and services online in 2022 (Lone and Weltevreden,
2022). Moreover, in 2021, online sales from Romania represented almost half of those made
in Eastern Europe, estimated at 14 billion euros.
Customers are discovering an improved shopping experience, whether it is product
personalisation, mobile-friendly search, rapid checkout procedures, or easy shipping, and
their expectations are rising quickly as a consequence. Sellers find it easier nowadays to
maintain an online store than a physical one, as the costs are significantly lower, it is easier
to administrate, and the training and competencies needed by the front people are more
affordable in terms of time and costs.
The rapid growth of e-commerce and recent events have also generated several disadvantages
and challenges. E-commerce has increased competition and segmentation in online
businesses. The pandemic increased pressure for alternatives to the typical physical store to
ensure social distancing, and huge amounts of empty commercial space are now visible
across Europe (Lone and Weltevreden, 2022). E-commerce still faces difficulties and hurdles
as it develops, while having a great deal of potential.
Several studies aim to analyse the development of e-commerce through the PESTLE or PEST
(Political, Economic, Social and Technological factors) or factor analysis, but none of them
address the changes generated by the COVID-19 pandemic, and there is also no research of
this type in Romania. For example, Phan (2021) investigates the impact of PESTLE factors
on e-commerce development in Vietnam. His study develops a theoretical model to explain
the development of B2C e-commerce and validates this model in the Vietnamese context.
The results indicate the significant influence of PESTLE factors on e-commerce
development, and recommendations include the need for government and private investment
in technological infrastructure, expansion of electronic public services, and promotion of
investment in online stores and information security. Zhao, Liu and Xue (2019) explore the
development of the e-commerce industry in China and introduce a PEST analysis embedded
in a SWOT analysis to better understand development strategies. The results show that the
development of this industry in China represents a significant opportunity, especially for
small and medium-sized enterprises under the leadership of outstanding internet companies.
However, incomplete infrastructure and the absence of a relevant support system remain
obvious challenges. Al-Bakri and Katsioloudes (2015) study the use of e-commerce by SMEs

in Jordan based on factor analysis using two main variables: internal organisational factors
and internal organisational factors. The results indicate that the adoption of e-commerce
systems in Jordanian SMEs is influenced by internal factors such as training and strategy,
and external factors such as managers' perceptions and pressure from business partners.
Readiness and external pressure are considered crucial to maximise the benefits of e-
commerce adoption. However, the relative importance of these factors can vary depending
on local conditions. Vasić, Kilibarda and Kaurin (2019) investigate e-commerce in Serbia
from the aspect of customer satisfaction and the findings indicate that it depends on 6 factors
(analysis variables): security, information availability, quality, transport, time, and price.
The research problem addressed in this study focuses on the influence of PESTLE factors on
the development of e-commerce in the post-COVID period. The paper falls within the
exploratory research paradigm and aims, starting from the need to examine the field of e-
commerce in the context of recent developments and the contextual underpinnings identified
in previous research, to answer the following questions:
 What are the key PESTLE factors that play a decisive role in shaping the E-Commerce
landscape?
 Which PESTLE factors have an impact on the different levels of online transactions?
 How do different PESTLE factors influence the recurrence of monthly online
transactions?
In this context, the analysis aims to explore and understand the broader implications of the
post-COVID e-commerce landscape, including its potential impact on sustainability and
sustainable development. The use of technology and digital platforms for commerce has the
potential to influence environmental factors, such as resource consumption and waste
generation, and social factors, including consumer behaviour and societal well-being.
Through the mixed methods approach, namely PCA and the application of multinomial
logistic regression, this study provides a detailed insight into the PESTLE factors shaping the
evolution of post-COVID e-commerce in Romanian organisations, a context in which e-
commerce has its own particularities and challenges. This is a significant empirical novelty,
as no other study has focused on this specific aspect and fills an important knowledge gap in
the literature. The relevance of this research is reflected in its contribution to the development
of sustainable strategies for e-commerce and policy makers, thus facilitating the sustainable
development of this field in a rapidly changing environment.
The paper is further structured into the following sections: the Literature Review reviews the
background and existing gaps, the Research Methodology details the data collection and
analysis, the Results and Discussion presents the main findings and their implications, and
the Conclusions highlight the novelty and relevance of this study in the context of sustainable
e-commerce development.
The number of internet users has increased worldwide as a result of the modernisation of
countries, technological improvements, the development of Internet access, and the growth
of smartphone use. Nearly 4.66 billion people use the internet (Johnson, 2021), representing

about 59% of the world's population. Selling through e-commerce platforms has become
increasingly popular in recent times due to the convenience created and the fact that they
offer high accessibility compared to traditional commerce. E-commerce is delivered through
internet services and has a technical infrastructure, which means that users have a certain
standard of living. In areas with a higher standard of living, there is an increased number of
online transactions for home delivery or other online services, as shoppers do not have
enough time to use brick-and-mortar stores, thus resorting to modern and efficient purchases
to satisfy their needs (Suska, 2022). Today's information and communication technology
enables organisations to communicate and share knowledge more effectively on a global
scale, allowing the expansion of the e-commerce market worldwide (Cui et al., 2017). E-
commerce has in this way helped increase social innovation. The analysis of PESTLE factors
facilitates the understanding of how e-commerce-related development strategies are
established (Zhao et al., 2019), highlighting the specific dynamics of international business,
the evolution of e-commerce and other relevant elements related to market competitiveness.
(Kardes et al., 2021).
1.1. Political factors

Political instability causes a disincentive to online sales (Phan, 2021). Increasing taxes
influence the volume of online sales as the tax impact needs to be quantified, and appropriate
strategies developed to cope with tax changes. Customer protection regulations and the
emergence of lockdowns, imposed as measures following the outbreak of the COVID-19
pandemic, are important because of its spontaneous emergence and the need for all to accept
and adapt to the climate generated by this phenomenon.
1.2. Economic factors
The economic downturn is having an impact in terms of massive income reductions,
investment restrictions, and digital decline. Inflation is impacting on e-commerce by
increasing the cost of services and goods traded. Together with these increases, inflation can
also translate into a decrease in consumer purchasing power, with a negative effect on the
volume of online sales and the profits of the selling companies. However, the benefits for
consumers are numerous: quick identification of competitively priced products, easy tracking
of discount periods, use of various vouchers, coupons, loyalty points, etc.
The level of inflation is important because price increases for products/services effect a
reduction in demand due to a reluctance to spend. Consequently, purchasing power is
decreasing, transport, logistics and storage costs are increasing, and a complete restructuring
of marketing strategies is taking place. Increased monthly consumer spending has a
significant impact on sales as purchasing power decreases, consumer preferences change
substantially, and companies are forced to streamline their marketing strategies in order to
attract new customers or increase sales volume. The high level of competition is aimed at all
the conditions generated by increasing diversity, competitive prices, high quality of services
offered, opportunities for innovation, differentiation, and product promotion.
1.3. Social factors
The cost of labour in e-commerce is an important element that is based on a series of basic
pillars, such as: the wage level in the area where the business is carried out, the volume of
work performed, the size and complexity of the basic activities, the necessary technical

infrastructure and other costs related to the business profile. In e-commerce, financing
systems are an essential component for business development as they provide efficient
solutions for processing payments and transactions online.
E-commerce offers career opportunities for employers and digitally savvy individuals.
Educational attainment influences e-procurement as a minimum of professional training is
required to make e-procurement. Consumer behaviour is affected by age, including decision-
making (Cole et al., 2008; Goldberg, 2009; Yoon et al., 2009), but also by cognition and
persuasion (Selwyn et al., 2003; Wilson, 2018), advertising (McKay-Nesbitt et al., 2011),
market reactions (Silvera et al., 2012), and the purchase of luxury goods (Amatulli et al.,
2015). The phenomenon of an ageing population negatively affects e-commerce, as the older
population is more reluctant to use new technologies. Social habits, modified by behaviours
during the COVID-19 pandemic, have clearly favoured the development of electronic
purchases. E-commerce has led to a work-life balance.
1.4. Technological factors
The technical aspects also have a significant influence on the success of e-commerce. Alonso
and García (2018) find that over the last 30 years, the longevity of companies has been rapidly
decreasing, while independent activities have been growing at an accelerating pace due to
the use of electronic infrastructure. Digital entrepreneurship represents the new form of
business. The reshaping of business is mainly due to the evolution of ICT – information and
communication technology (Banhidi et al., 2020), and more specifically to the integration of
digital technology into all business activity.
The security and ease of access to e-commerce force companies to invest in specific
technology (servers, computers, website development, secure payment platform, information
encryption software, etc.). The development of information systems must be permanently on
the national agenda of all countries, as this is a factor is generating economic growth and
development (Shahiduzzaman and Khorshed, 2014). The accessibility to a virtual market is
inextricably linked to the costs of the equipment.
The return policy for products purchased online is regulated and displayed on the e-
commerce platform at the time of placing the order and usually includes elements related to
the product return period, conditions, fees, and return process. In the EU, consumer protection
directives require that returns of purchased products must be processed within 14 calendar
days, even in the absence of justification from the purchasers (Ren et al., 2021).
The development of mobile communications is significantly influencing e-commerce, as
companies increasingly interact, work, and purchase via specialised apps and internet
connections. The existence of a website dedicated to commerce activities, with an attractive
interface, the ability to protect information in the online environment, and low delivery costs,
are elements that influence how websites are built. Thus, an attractive, well-structured
website that protects potential customers' data will definitely influence the growth of online
sales.
1.5. Legislative factors
The trend for large companies to shift their sales online has led to the transformation of many
customs into laws and regulations, as well as bans on those who do not comply with certain
behaviour. In recent years, two events have had a strong political impact on the development
of e-commerce in the EU and, implicitly, in Romania: (i) the adoption of rules on the

collection and processing of personal data, known as GDPR (General Data Protection
Regulation), established by Regulation 679/2016 (EU, 2016) and (ii) the pandemic, with all
its restrictions. Although this Regulation is in force (TFEU, 2012), its provisions have been
effectively applied in our country only after the implementation of Law no. 190/2018.
Under these rules, website owners (and therefore also owners of electronic sales platforms)
are responsible for the security of data collected and processed from individuals. At the same
time, the GDPR rules state that when accessing websites, users should be protected from any
interference with their privacy (EUCJ, 2019), and their consent should be unambiguously
collected. Retailers have an obligation to clearly and fully inform users so that they can easily
determine the consequences of the consent they give and the functioning of the cookies
displayed (EUCJ, 2019).
Given that the majority of payments for online transactions are made by card directly on the
website, the provider must ensure both access to payment services and information security.
The rights and obligations of payers and service providers are set out in Law 209/2019, which
transposes certain provisions of Directive (EU) 2015/2366. Although e-commerce concerns
the sale and purchase of goods, various other economic areas are affected, such as: gambling,
taxation, copyright, consumer protection (EUCJ, 2020).
The increasing number of transactions through online services and platforms has led to the
adoption of Regulation (EU) 2019/1150, which introduces rules governing the relationships,
the links between these platforms and their users, i.e., the companies that use them, the
measures that can be taken by EU states in various situations, such as breaches of time and
conditions requirements and the protection of the identity of traders. Thus, in Romania, the
provisions of the Regulation led to GEO No. 23/2021, which amended the Competition Law
(No. 21/1996).
An easy, clear, and quick return policy for products sold has a positive impact on sales. With
a limited physical presence in traditional stores since March 2020, retailers have had to
explore innovative ways to engage directly with customers, leading to a notable increase in
online transactions (Sardjono et al., 2021). Legislative changes are of importance because,
during the time period under review, legislation has been constantly updated, its application
has required very quick and consistent decisions to be taken by all stakeholders.
1.6 Environmental factors
Environmental factors play a crucial role in the e-commerce industry, where long-term
sustainability is of utmost importance, even though the direct environmental impact of
individual companies may be minimal. Investing in sustainability can yield significant
benefits in various areas of e-commerce, encompassing sustainable packaging, waste
reduction, and the adoption of renewable energy sources. (Rahayu and Day, 2015; Nandonde,
2019).
E-commerce has both positive and negative environmental impacts, as revealed by
transportation-related research in the field. Studies (Carrillo et al., 2014; Chueamuangphan
et al., 2019) suggest that e-commerce contributes to congestion, vehicle fuel consumption,
and emissions due to increased shipments and transportation, especially in car traffic
(Mangiaracina et al., 2015). However, there is a potential environmental benefit as well, with
home delivery reducing emissions from consumers' own vehicle journeys to physical stores
(Carrillo et al., 2014).

E-commerce packaging has a detrimental environmental impact, contributing to plastic waste
generation. Integrating e-commerce into environmental sustainability is essential to mitigate
its negative effects (Nisar and Prabhakar, 2017; Nia et al., 2018; Wang and Huang, 2018).
As consumer purchasing behaviour shifts significantly with increased Internet use (Wagner
et al., 2020), the COVID-19 pandemic has further accelerated the adoption of online
shopping. Many businesses faced challenges transitioning to e-commerce during this period,
attracting new and inexperienced customers to online platforms (Usas et al., 2021).
Sustainability policies, an integrated element of environmental factors, are also important
because it is necessary to identify combined methods to minimise the environmental impact
of product sales.
This study aims to investigate the impact of PESTLE factors on e-commerce in post-COVID
times in Romania. A questionnaire comprising 32 closed-ended questions on the Likert scale
was developed and distributed to organisations with online presence. To ensure the clarity
and relevance of the questions, the questionnaire was pretested with a pilot sample of 16
respondents. The final version was distributed via an online platform between September and
November 2022. The final sample was selected using a probability sampling method that
aimed to include organisations from all geographical regions of the country and from
different sectors of activity. The questionnaires were addressed to managers in firms, which
may indicate that the results may reflect the perspectives and experiences of this specific
group of respondents.
The survey received responses from 309 organisations, a sample size considered sufficient
for factor analysis, as it follows the rule of thumb for this type of analysis, which suggests at
least five times the number of cases of the variables entered into the analysis plus 10
(Sreejesh, Mohapatra and Anusree, 2014; Veith et al., 2022). Data collected from the survey
were analysed using descriptive statistics and advanced statistical methods such as principal
component analysis (PCA) and multinomial logistic regression analysis to answer the
research questions stated above.
The choice of methods aimed to explore the relevance of the PESTLE theoretical framework
for e-commerce. First, we aimed to assess whether a component structure, inferred from
responses to questionnaire items, corresponds to the PESTLE dimensions (theoretically
constructed), using PCA as the extraction method and Promax as the rotation method, both
implemented in SPSS.
Then, using the components obtained corresponding to the PESTLE dimensions, we assessed
their explanatory power on the response variables showing the categories of online
transactions with the help of multinomial logistic regression, implemented in the nnet R
package. To do this, we eliminated companies that did not report any transactions online.
The categorical response variables, denoted by Y, on which the impact of the PESTLE
dimensions was assessed were the number of reported online transactions and the share of
online transactions in total transactions. The categories for these variables are specified in
detail in Table no. 1, and the base/reference categories used in the estimation of the
multinomial logistic regression models were 1 to 49 online transactions and 0 to 20% of total
transactions, respectively.

The multinomial logistic regressions used in our analysis have the following general form
(James et al., 2021) (1):
𝑃𝑟(𝑌 = 𝑘 |𝑋 = 𝑥 ) 𝑝
log ( ) = 𝛽𝑘𝑜 + ∑𝑗=1 𝛽𝑘𝑗 𝑥𝑗 (1)
𝑃𝑟(𝑌 = 𝐾 |𝑋 = 𝑥)
where X is the matrix of components (x1, x2,…, xp) used as explanatory variables, and the
left-hand side of the equation represents the log odds of belonging to the category of online
transactions under analysis, k (Pr(Y=k)|X=x) over the probability of belonging to the baseline
category K (Pr(Y=K)|X=x). For example, for the categorical variable, the probability of
having a share of online transactions between 20 and 40% can be written as
𝑃𝑟(𝑌 ∈ 20 − 40%)|𝑋 = 𝑥)/(Pr(𝑌 ∈ 0 − 20%|𝑋 = 𝑥) (2)
Regression results are transformed from the log-odds, or logit form, corresponding to the
left-hand side term of equation (1), to odds ratios by exponentiating the regression
coefficients β, e.g. 𝑒 ᵝ𝑘1 , for the effect of an increase of 1 unit in the value of Factor 1.
Thus, in the context of the logistic regression, the odds ratios shown in formula (3)
OR=Pr(Y=k│X=x)/Pr(Y=k│X=x) (3)
calculated from the regression coefficients, represent the probabilities of the occurrence of a
certain category over the probabilities of occurrence of the reference/baseline category,
following an increase by one of the value of the component X i, with 𝑖 ∈ (1, 𝑝). A value
exceeding 1 means a higher odds of the outcome, whereas a value below 1 means a lower
odds for the outcome (Szumilas, 2010).
3. Results and discussion

The data obtained from the questionnaire were analysed in SPSS, obtaining the results
presented below (the variables used in the questionnaire are presented in Annex 1). Table no.
1 presents the descriptive statistics for the demographic questions. The majority of surveyed
companies, accounting for 55% of the total, have been in operation for over ten years. Most
companies reported having less than 10 employees and an annual turnover below 250,000
lei. Around 40% of companies indicated having between 1 and 49 online transactions per
month, with a relatively low percentage of returning customers. Only 8% of respondents
mentioned that over 60% of their customers place more than two orders per month.
Furthermore, 78% of the surveyed companies stated that their customers primarily consist of
individuals and private organisations.

Table no. 1. Descriptive Statistics
Frequency Percent Cumulative
(%) Percent (%)
Age of 3< 43 13.9 13.9
company 3-5 28 9.1 23.0
(years) 5 - 10 66 21.4 44.3
>10 172 55.7 100.0
Total 309 100.0
Number of 10< 141 45.6 45.6
employees 10 - 49 61 19.7 65.4
50 - 250 49 15.9 81.2
>250 58 18.8 100.0
Total 309 100.0
Turnover (lei) >250000 116 37.5 37.5
250000 - 500000 51 16.5 54.0
500000 - 1000000 21 6.8 60.8
1000000 - 5000000 38 12.3 73.1
>5000000 83 26.9 100.0
Total 309 100.0
Number of 0 65 21.0 21.0
online 1 - 49 123 39.8 60.8
transactions 50 -99 47 15.2 76.1
(monthly) 100 - 499 25 8.1 84.1
>500 49 15.9 100.0
Total 309 100.0
Clients with 0 - 20% 147 47.6 47.6
more than two 20 - 40% 44 14.2 61.8
transactions 40 - 60% 35 11.3 73.1
per month (%) >60% 26 8.4 81.6
NA 57 18.4 100.0
Total 309 100.0
Type of clients Mostly public institutions 68 22.0 22.0
Mostly private customers 241 78.0 100.0
Total 309 100.0
To provide an answer to the first research question, components were associated with the
PESTLE dimensions based on the correlations between variables and principal components
loading vectors, as shown in the structure matrix table (Table no. 2). Component 1 showed
positive correlations for factors related to technology (TEH1 – TEH5) and moderate positive
correlations for economic (EC1 - EC6) and environmental factors (ENV1 - ENV3).
Component 2 demonstrated strong positive correlations for social factors (SOC2 - SOC4).
Component 3 had substantial positive correlations for political factors (POL1 - POL3).
Component 4 exhibited strong positive correlations for factors related to technology for legal
factors (LEG1, LEG2). These findings provide insight into the relationships between the
PESTLE factors and the identified components, offering valuable implications for
understanding the influence of the external macro-environment on e-commerce development

Table no. 2. Structure Matrix

Component
1 2 3 4 5 6
8) POL1 0.138 -0.054 0.026 0.802 -0.045 0.093
8) POL2 0.099 0.09 0.258 0.773 -0.095 -0.055
8) POL3 -0.209 0.423 0.283 0.438 0.188 0.213
9) EC1 0.127 -0.001 0.122 0.39 0.298 0.558
9) EC2 0.126 -0.136 0.749 0.06 0.032 0.107
9) EC3 0.136 -0.018 0.762 0.253 0.024 0.152
9) EC4 0.049 0.376 0.288 0.106 -0.142 0.527
9) EC5 0.089 0.509 0.027 0.359 0.128 0.011
9) EC6 0.081 0.54 -0.026 0.236 0.248 0.603
10) SOC2 0.182 0.653 -0.032 -0.076 0.03 0.158
10) SOC3 0.168 0.679 0.272 0.015 0 0.07
10) SOC4 0.126 0.585 -0.044 0.008 0.138 0.008
11) TEH1 0.696 0.097 0.065 0.078 -0.058 0.299
11) TEH2 0.76 0.127 0.086 0.088 0.086 0.183
11) TEH3 0.536 0.022 0.052 0.174 0.457 -0.264
11) TEH4 0.758 0.101 -0.06 0 0.249 0.147
11) TEH5 0.625 0.189 0.29 0.085 0.019 -0.105
12) ENV1 0.095 0.03 0.207 -0.162 0.724 0.158
12) ENV2 0.321 -0.061 0.282 -0.268 0.085 0.669
12) ENV3 0.112 0.132 -0.02 0.029 0.84 0.052
13) LEG1 0.031 0.39 0.598 0.034 0.174 0.087
13) LEG2 -0.011 0.314 0.579 0.094 0.474 0.135
Notes: Extraction Method: PCA. Rotation Method: Promax. The values highlighted in bold represent
the statistically significant values, obtained from the influence of the analysed factors (from POL 1 to
LEG 2) on components 1-6.
The PCA showed that the six components extracted from the PESTLE factors (components)
explained a total cumulative variance of 60.458% (Table no. 3). The first component
accounted for 24.181% of the variance, demonstrating the highest explanatory power. The
second, third, and fourth components contributed 9.489%, 7.747%, and 7.497% of the
variance, respectively. The remaining two components each explained around 5% of the
variance. These results indicate that the identified components capture a substantial
proportion of the total variance in the data, providing valuable insights into the underlying
patterns and associations among the PESTLE factors in the context of e-commerce
development. The factor structure only partially supports the theory, revealing that factor
influences can be intertwined, and that the factors and phenomena they quantify do not exist
in complete isolation. For example, policy regulations can target environmental actions that
firms take to comply with legislation.

Table no. 3. Total Variance Explained
Rotation
Extraction Sums of Squared Sums of
Initial Eigenvalues
Compo Loadings Squared
nent Loadingsa
% of Cumulative % of Cumulativ
Total Total Total
Variance % Variance e%
1 5.32 24.181 24.181 5.32 24.181 24.181 2.667
2 2.088 9.489 33.671 2.088 9.489 33.671 2.364
3 1.704 7.747 41.418 1.704 7.747 41.418 2.009
4 1.649 7.497 48.915 1.649 7.497 48.915 1.869
5 1.426 6.483 55.398 1.426 6.483 55.398 1.948
6 1.113 5.06 60.458 1.113 5.06 60.458 1.806
Notes: Extraction Method: PCA. Rotation method: Promax. a. When components are correlated, sums
of squared loadings cannot be added to obtain a total variance.
The influence of the political factor on online sales is significant due to the unpredictability
of economic developments resulting from political instability. Political instability is an
important subfactor (POL1/4 = 0.802) that acts as a hindrance to e-commerce. Political
decisions regarding online commerce are influenced by actions and issues in the online
environment. High taxes on online sales lead to buyer reluctance and a reduction in
transaction volume (POL3/4 = 0.438).
Online sales during economic downturns have a major impact on the entire economy. The
most relevant economic factors affecting online commerce are the inflation level and monthly
expenses allocated to consumption and current needs (EC2/3 = 0.749). Monthly consumption
expenses and sales volume are interconnected, with the former having a decisive impact on
the latter (EC3/3 = 0.762). Additionally, the level of competition among firms and
competition policies contribute to the growth of electronic transactions (EC6/6 = 0.603).
According to the findings of the study on social factors (F2), the use of e-commerce
contributes to the improvement of the work-life balance, as indicated by SOC2/2 = 0.653.
It is predicted to be highly crucial SOC3/2 = 0.679 in the context of the influence that the
amount of training level and preparation employees have on sales. According to the
respondents, the number of elderly people in a population has a moderate impact on internet
commerce (SOC4/2 = 0.585).
From the analysis of the technical factor, it is observed that the presentation and interface of
the website have a significant impact on the customer's decision to make an online purchase
(TEH2/1 = 0.76). The accessibility of the website and the ease of understanding the purchase
process will attract an increasing number of customers. Owning a dedicated website provides
immediate benefits compared to the offline system, as it eliminates several costs associated
with managing physical commercial space and having on-site staff (TEH4/1 = 0.76).
Online orders typically require additional ENV2/6 = 0.669 shipping packaging, resulting in
more packaging waste than in-store purchases. Products must be protected during transport,
requiring the use of cardboard boxes, bubble wrap, air cushions, and paper fillers, packaging,

which is mostly environmentally friendly and regulated. This aspect can be seen from the
analysis of the environmental factor (F5), ENV1/5 = 0.724.
Online retailers should strive to reduce packaging pollution through initiatives such as right-
sized packaging and the use of eco-friendly materials. For this, the interviewed companies
answered that they implement sustainability policies. ENV3/5 = 0.84.
The legal factor is represented by the product return policy, which impacts both economic
and legal activities, as it reinforces customers' trust in the company's reliability, leading to an
increase in reputation (LEG1/3 = 0.598). The element related to safety and health rules is
combined with legal and economic elements, resulting in a set of essential ideas: it is
important for return policies to ensure increased attention to the health of employees and
customers, as well as the security of online transactions (LEG2/6 = 0.135).
Table no. 4 presents the associations between the estimated proportion of recurrence of online
transactions and the PESTLE factors investigated in the study. The odds ratio (OR) represents
the exponential of the parameter associated with the logistic model predictor, as described by
Peng et al. (2002). It provides an estimate of the effect of each PESTLE factor on the odds
of observing a specific proportion of online transactions’ recurrence (De Jong and Heller,
2008). The Wald test in R software was used to calculate the P-values.
Table no. 4. Odds ratios of the influence of PESTLE factors on the estimated
proportion of online transactions
Odds ratios P-values
Factors 20-40% 40-60% » 60% 20-40% 40-60% » 60%
(Intercept) 0.324 0.181 0.217 0.000 0.000 0.000
F1 Technical 0.646 0.578 1.172 0.041 0.024 0.500
F2 Social 0.797 0.611 0.821 0.285 0.027 0.345
F3 Legal + economic 0.791 1.465 1.014 0.273 0.173 0.947
F4 Political 1.128 3.250 1.674 0.557 0.000 0.036
F5 Environmental 0.991 1.231 1.386 0.966 0.381 0.153
F6 Economic 1.754 1.221 0.980 0.007 0.345 0.929
Notes: Reference level: 0-20%. The ordering of factors is based on the statistical significance
of the results (proportion of variance explained), which may be different from the theoretical one.
Under an increase of 1 of the F4 (Political factor), the odds of having between 40 and 60%
customers who place more than 2 online orders per month are 3.250 times greater than the
odds of the reference level (0-20% of customers have more than 2 orders per month) and the
odds of having more than 60% of customers who place more than 2 orders per month are
1.674 times greater than the odds of the reference level. Also, under the influence of F6
(Eonomic factor), the odds of having between 20-40% customers with more than 2 orders
per month are 1.754 times greater than the odds of the reference level. It can be inferred that
government policies, regulations, and socio-political conditions play a significant role in
shaping customer behaviour in online transactions in the case of recurring orders. Economic
considerations, such as purchasing power, consumer confidence, and market conditions, play
a significant role in shaping online transaction behaviour in the post-COVID e-commerce
landscape in the case of a smaller percentage of recurring orders. Significant values were also

recorded in the case of the technical factor (F1), specifically for the: 20-40% category:
p=0.041, and the 40-60% category: p=0.007, highlighting the importance of robust technical
implementations to enhance the online shopping experience and gain a competitive
advantage. Also, F2 (Social factor) recorded statistically significant values for the 40-60%
category, implying that the influences of consumer behaviour, preferences, and trust in online
transactions impacts the success and growth of online businesses.
Although the identified factor structure shows cross-loadings, where some variables are also
strongly correlated with other factors in addition to the dominant factors (e.g., EC1 and EC6
with factor 6), this highlights the complex reality and limitations of the theory when tested
empirically. In statistical analysis, perfect results are rarely obtained, and a recognised
drawback of factor analysis is the frequent indistinguishability of factors, which is confirmed
by our analysis. However, in general, we can say that the results broadly confirm the PESTLE
theory, which is confirmed by the validity of the Bartlett test and the KMO statistic (>0.76).
Table no. 5 presents the associations between the estimated number of monthly online
transactions and the PESTLE factors investigated in the study. The grouping of the results
was done according to the values obtained for the answer options of question 5 in the
questionnaire. Registration responses to the first option (0 monthly orders) were not included
in the analysis due to the insignificant contribution to this research question. A maximum
significance level of 0.1 (10%) was considered, which, although relatively low, confirms the
existence of statistical significance of the results (Ross, 2017).
Table no. 5. Odds ratios of the influence of PESTLE factors on the number
of online transactions
Odds ratios P-values
Factors 50-99 100-499 »500 50-99 100-499 »500
(Intercept) 0.391 0.200 0.359 0.000 0.000 0.000
F1 Technical 1.438 1.370 1.720 0.041 0.193 0.005
F2 Social 0.665 0.650 0.479 0.032 0.070 0.000
F3 Legal + economic 0.824 0.794 0.919 0.248 0.324 0.652
F4 Political 1.119 1.208 0.881 0.530 0.410 0.500
F5 Environmental 1.054 1.498 1.496 0.771 0.095 0.030
F6 Economic 0.759 1.174 0.976 0.128 0.493 0.895
Notes: Reference level: 1-49 orders per month. The ordering of factors is based on the statistical
significance of the results (proportion of variance explained), which may be different from the
theoretical one.
The results indicate that F1 has a significant influence when companies record between 50-
99 orders per month and over 500 orders per month. The odds of having over 500 orders per
month are 1.720 times greater than the odds of the reference level (1-49 orders per month).
This emphasises the significance of prioritising resilient technical implementations,
optimising website usability, and offering advanced features to improve the overall online
shopping experience. F2 has a significant influence for all response categories (p<0.1), while
F5 has an influence when companies record more than 100 and more than 500 monthly orders
(p<0.1). Factors related to societal dynamics, customer preferences, and online interactions
play a critical role in shaping online transaction behaviour. To succeed in the e-commerce
market, businesses must pay close attention to social aspects and adopt a holistic approach
that considers multiple dimensions of consumer behaviour to develop effective strategies and
engage with their target audience more effectively.

Also, environmentally conscious practices and sustainable approaches can positively impact
online transaction volumes in certain contexts. Incorporating environmentally friendly
practices in e-commerce operations can resonate with customers who prioritise sustainability,
thus providing a competitive advantage and boosting customer loyalty. By integrating eco-
friendly initiatives into their business models, e-commerce companies can align with growing
consumer demands for environmentally responsible products and services, contributing to
their long-term success.
Conclusions
Recently, e-commerce has seen a significant evolution, and, according to current trends, a
considerable increase in activities specific to this sector is forecast. The use of large-scale IT
applications, the increasing influence of artificial intelligence, the use of chatbots and
applications in the field of virtual reality, the investments created in logistics, the increasing
access to IT infrastructure are clear elements that point us to the growing development
directions that will facilitate and more the online purchase process.
The research highlighted the importance of political stability in shaping customer behaviour
in recurring online transactions. A politically stable environment instils confidence in
consumers, reassuring them of the continuity and reliability of online transactions. As a
result, customers are more likely to feel secure in making recurring orders, contributing to
the sustained growth and stability of e-commerce in the country.
Additionally, economic factors, such as purchasing power and consumer confidence,
influenced online transaction behaviour in the case of a smaller percentage of recurring
orders, due to their direct impact on consumer spending patterns. When purchasing power is
limited or consumer confidence is low, people can become more cautious about their
expenses, resulting in fewer recurring online transactions. Economic uncertainties may lead
to reduced disposable income and a reluctance to commit to regular purchases, and customers
may prioritise essential or one-time purchases, rather than engaging in frequent online
transactions. Ensuring a stable and prosperous economic environment is crucial for
encouraging consumer spending and fostering a higher percentage of recurring online orders
in Romania.
The technical factor was found to be crucial for companies recording higher monthly online
orders, emphasising the significance of robust technical implementations to enhance the
online shopping experience. Well-designed websites, fast loading times, and user-friendly
interfaces, enhance the overall customer experience and satisfaction. In addition, advanced
technical features, such as secure payment gateways and personalised recommendations, can
further engage customers and build loyalty.
The study emphasised the significance of sustainability in the e-commerce industry, as
environmental factors were shown to play a role in influencing online transaction volumes.
Businesses seeking socially and environmentally responsiveness should place an increasing
emphasis on environmental factors such as sustainable packaging and logistics.
According to the results of the factor analysis, some variables load on different components
than initially assumed and show significant cross-loadings, which highlights the real
complexity and limitations of the theory when approached empirically. Perfect results are
rarely obtained, and a known drawback of factor analysis is the frequent indistinguishability

of factors, which is confirmed by the results presented, suggesting the need for future research
to build on the empirical aspects revealed by our analysis. The usefulness of the results lies
in confirming the influence of some factors on the online commerce variables, not in
obtaining an exhaustive model, a situation often found in the literature.
Overall, the study illustrates how important it is for organisations and policy makers in
Romania to properly consider external PESTLE issues when formulating e-commerce
development strategies. Organisations and government should ensure that they are well
positioned to succeed in this rapidly evolving industry by adopting a holistic approach that
takes into account the political, economic, social, technological, legal, and environmental
issues that impact on e-commerce in Romania. The results of this study are relevant for
organisations, policy makers, and researchers interested in the growth of e-commerce and
can deepen our understanding of the external factors influencing this rapidly changing sector.
Although there are no studies addressing this issue in the post-COVID period, studies on e-
commerce analysis have considered factors other than those covered in this article. They
focus on a specific country or region (Vietnam, China, Jordan, Serbia, etc.), so the
geographical and cultural context differs significantly and leads to differences in the
influence of factors determining the development of e-commerce. For example, the Vietnam
study places greater emphasis on political factors, while the China study stresses the
importance of orienting the industry according to national macroeconomic policies. Although
there are links in terms of critical factors and their impact, there are also significant
differences due to the specific context of each country or region. These highlight the
originality and uniqueness of the present research, which differs from existing publications
in the field.
Limitations of this research include the size and restriction of the sample to Romanian
organisations, which may limit the generalisation of the results for other countries and may
exclude issues specific to other international markets. The study also focuses on PESTLE
factors, leaving other possible influences on e-commerce in the post-COVID period, such as
the impact of emerging technologies or other global events, unaddressed. Also, the use of
mixed methods of analysis, such as PCA and multinomial logistic regression, may have
limitations in terms of interpreting complexity and delving into certain causal relationships.
Future research can explore the influence of e-commerce in various economic sectors and its
implications for the behaviour of sellers and buyers. Given that the study highlighted that
political and social factors play a significant role in shaping customer behaviour in online
transactions in the case of recurring orders, in-depth investigation of these sub-factors can
contribute to setting regulatory directions and socio-political conditions for the sustainable
development of e-commerce. Future research can address the distinction between the positive
(opportunities) and negative (threats) influences of external environmental factors on e-
commerce, thus contributing to a deeper understanding of how these factors shape the
specific dynamics of e-commerce.
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Annex 1. Questionnaire variables

Political Factor
POL 1 Political instability discourages sales.
POL 2 Tax increases affect online sales volume.
POL 3 Customer protection regulations negatively impact online sales.
Economic Factor
EC1 The economic downturn is driving down online sales.
EC2 The level of inflation has led to an increase in the prices of
products/services provided by the company.
EC3 Increased monthly expenditure on consumption and current needs
influences sales volume.
EC4 Expenditure on staff salaries is one reason for the growth in online
sales.
EC5 Financing, credit and guarantee systems are not properly adapted to
the needs of the sector.
EC6 High level of competition drives the company to implement online
sales.
Social Factor
SOC2 The influence of work-life balance is reflected in the growth of e-
commerce.

SOC3 The level of professional training and skills among employees

influences online trade.
SOC4 Ageing population negatively influences e-commerce.
Technical Factor
TEH1 The development of mobile communications contributes to the
growth of online sales.
TEH2 The volume of online sales is influenced by the website interface.
TEH3 Customers trust that by accessing the company's website their
personal data is safe.
TEH4 It is cost-effective to have your own e-commerce website compared to
traditional sales.
TEH5 Delivery costs influence the value of products.
Environmental Factor
ENV1 The packaging of products ordered for dispatch is made of
environmentally friendly materials.
ENV2 More packaging is used for online orders than for physical sales
of products.
ENV3 The company has sustainability policies in place.
Legal Factor
LEG1 The return policy for products sold online makes it difficult for the
company.
LEG2 In the case of e-commerce, health and safety rules impose new
conditions.

IMPLICATIONS OF DIGITALISATION ON SKILL NEEDS

IN A SUSTAINABLE ECONOMY
Monica Mihaela Maer Matei1* , Cristina Mocanu2 , Ana Maria Zamfir3
and Anamaria Nastasa4
1)
2)3)4)
National Scientific Research Institute for Labour and Social Protection,
Bucharest, Romania.
4)
University of Bucharest, Bucharest, Romania.

Maer Matei, M.M., Mocanu, C., Zamfir, A.M. and Received: 17 August 2023
Nastasa, A., 2023. Implications of Digitalization on Revised: 6 September 2023
Skill Needs in a Sustainable Economy. Amfiteatru Accepted: 26 September 2023
Economic, 25(Special No. 17), pp. 1115-1130.
Abstract
Digitalisation and mainly artificial intelligence led to significant disruptions at all levels of
society, changing how we live, communicate, build communities, work, and learn. In
addition, digital technologies offer solutions to achieve sustainable development goals.
Therefore, to benefit from this potential, it is vital to understand the skill needs associated
with sustainable digitalisation. The impact of digitisation on the labour market is largely
documented, but there are still important debates on what future jobs will look like. On the
one hand, some scenarios announce massive shifts and destruction of jobs with rhythms
that cannot be managed well by societies, while others point instead to transformations of
skills needs. Therefore, our article aims to investigate the links between digitalisation and
skills needs among digitalised enterprises, focussing on those implementing artificial
intelligence solutions. In this respect, we use various multivariate techniques to analyse the
data made public for the Flash Eurobarometer 486 (2020). Our findings suggest that
digitalisation leads to skills shortages and skill gaps among companies adopting different
digital solutions. In other words, digitalisation requires more workers with better digital
skills.
Keywords: Digital transformation, skills needs, skills shortage, sustainable digital

economy.
JEL classification: C30, D22
*
Corresponding author, Mihaela Monica Maer Matei – e-mail: monica.matei@csie.ase.ro

AE Implications of Digitalisation on Skill Needs in a Sustainable Economy
Introduction
Recent technological change, which is part of the fourth industrial revolution, expands the
incidence of job automation (Schwab, 2016). At the global level, digital technologies are
changing the way businesses build and deliver their products and services, how they
exchange information and connect, and how they relate to their clients. As a result of the
digitalisation of the economy, the organisation of work is changing fundamentally.
Moreover, digital technologies, in general, and artificial intelligence in particular, are
considered to have great potential to optimise energy production, help climate research, and
control agroecosystem activity (Mondejar et al., 2021). Therefore, digitalisation provides
solutions to achieve sustainable development goals (Ionascu et al., 2022).
ICT technologies have shown, especially during pandemics and economic crises, their
contribution to the resilience of individuals, businesses, and societies becoming more
important, and it is just the beginning of their way in changing the traditional economy
(Xianbin and Qiong, 2021). But the integration of digital technologies into all layers of
society must meet at the same time competitive, economic, sustainable, and social goals.
Hence, a sustainable digital economy must pursue the adoption of ICT technologies but
also to harness the changes following them in order to improve well-being and minimise
negative consequences for individuals and society as a whole. Artificial intelligence and
automation of industrial processes, essential for innovation and increased competitiveness
in a global market, are extremely important, but they also must be ethical and avoid
negative impacts on workers and communities.
In the past, the debate on the future of work anticipated a negative impact of digital
technologies through massive job losses due to automation. More recently, a new theory
emerged that digital technologies are more likely to lead to partial automation of specific
job tasks and less likely to lead to full automation of occupations. Therefore, the main
effect of digital technologies is expected to involve essential changes in the skills needed in
the workplace. Evidence-based findings on the implications of digitisation are now
essential for elaborating appropriate economic development policies capable of supporting
the green and digital transition (Cedefop, 2022). In this context, the present research aims
to understand the patterns of adoption of digital technology in companies and their
implications for skills requirements. Thus, this document aims to investigate the factors that
influence the implementation of digital technologies in companies and the extent to which
they generate changes in the skills needed in the workplace, fuelling skills shortages. The
results provide new evidence supporting the thesis that digitisation is producing significant
changes in the skills needed in the workplace. These findings have important implications
for the policies required for optimal economic development conditions that support green
and digital transitions.
The paper is further structured in 4 sections. The main scientific results on the impact of
digitisation are described in the first section. The second section presents the research
methodology, describing the data set and the principles of PLS-SEM modelling. The
estimation results and discussions are included in the third section, and the last section is
dedicated to conclusions.

1. The scientific literature on the impact of digitalisation
We witness a profound transformation in the way work is performed and in the skills
needed in the workplace. Similar to other industrial revolutions, digitalisation takes the
form of a disruption that presents important challenges to companies and employees
(Chinoracký and Orejová, 2019). Moreover, digital work is conducive to more blurred
employment relationships, bringing specific changes and implications for workers and
businesses (International Labour Organisation, 2022).
A major concern regarding the impact of digitalisation on employment is related to the idea
that digital technologies will determine the closure of jobs. Early debates on the way digital
technologies influence the labour market focused on consequences related to job
polarisation and routine-biased technological change (Autor, Levy, and Murnane, 2003;
Acemoglu and Autor, 2011; Goos, 2018). On the other hand, existing evidence suggests
that digitalisation is associated with an increase in flexible employment, including part-
time, temporary, and self-employment. Thus, digital technologies enable remote work and
flexible work arrangements, allowing companies to access a more global talent pool.
A seminal study of the US labour market revealed that robot usage determines job losses
and wage decline, especially for middle-skilled workers in routine and manual occupations
(Acemoglu and Restrepo, 2020). However, other studies showed that digitalisation is more
likely to automate part of the working tasks rather than entire jobs (Pouliakas, 2012;
Nedelkoska and Quintini, 2018), including in European labour markets (Dauth et al., 2017;
Klenert, Fernandez-Macias and Anton, 2023). While labour displacement is manifest in
some technology-intensive business environments, the net negative impact is diminished by
job growth at the intra-sectoral level and redesign or changes in job tasks allocation
(Cedefop, 2022). Moreover, digitalisation creates new roles and industries. In this respect,
artificial intelligence, cybersecurity, data science, and e-commerce have grown
significantly. Digitalisation creates new job opportunities that require digital skills.
Workers must adapt to the changing nature of work by acquiring new skills and updating
their knowledge. Digitalisation increases the demand for digital skills such as
programming, data analysis, and digital literacy. The growing digitalisation of jobs is
reflected in the higher weight of digital skills in the recruitment process (Cedefop, 2023).
Additionally, digital technologies can improve productivity and efficiency in various
industries. Automation of repetitive tasks allows workers to focus on higher-value
activities. This can lead to economic growth and the creation of new job roles that require
complex problem-solving and creativity.
Thus, more recent research takes into consideration the complex underlying factors and
inter-relationships that shape the links between digitalisation and employment. In this
respect, the adoption of digital technologies is more prevalent in growing companies that
have succeeded to better negotiate various crises and shocks (Cedefop, 2022). Previous
studies showed that better performing companies have a higher propensity for robot
adoption, determining a net job creation rate of around 10% (Koch, Manuylov and Smolka,
2021).
Recognising the importance of sustainable development, economic growth policies have
shifted the focus to sustainability, supporting fair and competitive transformation of
economic sectors. This transformation depends on the extent to which companies introduce
new products and services, restructuring how work is done in response to climate change.

An essential part of this transformation concerns the adoption of digital technologies that
support the green transition. Thus, the implementation of these technologies represents a
primary channel to propagate the green and digital transition. This process can produce
important changes in the skills required for jobs through the reconfiguration of jobs, the
emergence of new required skills, or new occupations (Cedefop, 2023).
Implications of digitalisation on the labour market are complex and multifaceted (Pelau,
Dabija and Ene, 2021), and they can vary across industries, regions, or in relation to other
characteristics of companies. This article aims to investigate the links between digitalisation
and skills needs among enterprises that embrace new digital technologies, focussing on
those who implement artificial intelligence solutions.
2.1. Data used
We used the data set from the Flash Eurobarometer 486: SMEs, start-ups, scale-ups, and
entrepreneurship (European Commission, 2020a) to investigate the implications of
digitalisation on skills needs in European companies. The survey was conducted in the
period February- May 2020.
Eurobarometer 486 is a statistically representative survey. It is considered a valuable tool
for the foundation of the European strategy "An SME Strategy for a Sustainable and Digital
Europe" (European Commission, 2020b). Consequently, the database ensuing from this
survey enabled the empirical validation of theories such as: the adoption of digital
technologies (Omrani, 2022; Holl and Rama, 2023), the correlation between digitisation
and sustainability (Del Baldo et al., 2022), performance in sustainable innovation (Labella-
Fernández, Serrano-Arcos and Payán-Sánchez, 2021; Ardito, 2023) and the development of
the circular economy (Findik et al., 2023). The results showed that the implementation of
digital technologies is positively correlated with access to financing sources and company
turnover (Del Baldo et al., 2022). Digitalisation has also been shown to be influenced by
the quality and performance of the local business environment (Holl and Rama, 2023). In
turn, the degree of digitalisation facilitates sustainable innovation (Labella-Fernández et al.,
2021; Ardito, 2023).
To understand which digital technologies are adopted by companies in the EU, we used an
UpSet representation. This type of plot is used to visualise the intersections between the
adopted technologies. Figure 1 summarises the information provided by the companies'
answers to the question about the implemented digital technologies. The list of possible
answers is as follows: Artificial Intelligence (Ai), Cloud Computing (Cloud), Robotics
(Robot), Smart Devices (ID), Big Data Analytics (BD), High Speed Infrastructure (Hsi),
Blockchain (Bck). The question has multiple possible answers. Therefore, we sought a
representation that simultaneously highlights the number of companies that implement a
specific technology and the intersection of all possible combinations of adopted
technologies. Thus, the horizontal bars associated with each technology show the number
of companies that implemented that methodology, and the vertical bars show the number of
companies that exclusively adopted the technologies marked by dots at the bottom of the
graph. More than 6,000 companies have adopted cloud storage and file processing
technologies. However, of these, 1850 have declared this technology as the only one

implemented, while 1090 have additionally adopted High Speed Infrastructure (Hsi). Cloud
computing is often associated with high-speed infrastructure technology (Hsi) or with smart
devices (ID). AI technology is usually associated with other technologies like smart devices
(ID), high speed infrastructure (Hsi), and Cloud computing (cloud). The size of this set that
comprises companies that adopted only these four technologies, is 92 (see Figure 1). To
focus on companies that implement artificial intelligence solutions and to understand which
are their main characteristics, we performed a correspondence analysis. The following
findings are gathered from its output.
Figure no. 1. UpSet representation of digital technologies adopted by companies
Compared to companies adopting other digital technologies, companies that implement AI

solutions are characterised by a higher share of growth expectations that exceed 20% per
year (both in terms of employment and turnover) (see Figure 2). Therefore, they perform
financially better (Del Baldo et al., 2022) and also aim to perform above the average in the
near future, taking as many advantages as possible from the opportunities generated
through digitalisation.

Figure no. 2. Correspondence between Figure no. 3. Correspondence between

digital technology and growth expectations digital technology and key areas which pose
the biggest problems
Figure no. 4. Correspondence between digital technology and strategies to grow
In terms of growth, either in employment or in turnover, depending on the adopted

technologies, companies' strategies are different. For example, introducing some
innovation-based solutions is more often associated with companies dealing with robotics
or smart devices, meanwhile, while companies adopting AI solutions are more strategic and
driven by a growth plan. Companies that implement cloud computing technology plan to
grow as a result of operating in growing markets or entering new markets (see Figure 4).
Among the problems associated with digitalisation, companies adopting AI technology
identify access to data and internationalisation as the most frequent challenges. Companies

dealing with robotics are more likely to report problems with skills shortages; those
implementing Cloud computing report difficulties with digitalisation in general, while those
adopting High-speed infrastructure are more likely to report problems associated with
access to finance and payment delays. Regulation and administration procedures are
declared as problems by companies implementing cloud computing and smart devices (see
Figure 3).
2.2. Methods
To investigate the impact of digitalisation on skills needs in the business sector, we used a
methodology based on partial least squares structural equation modelling (PLS-SEM). This
is a variance-based partial least squares technique. This means that the explained variance
of the endogenous constructs is maximised. This approach is suitable for analysing multiple
blocks or constructs of variables. Each block is seen as a latent factor, and a set of linear
relations are connecting these constructs. The main arguments that justify the use of this
approach are the following: (i) it allows the use of the categorical variables available in the
database; (ii) it eliminates the shortcomings related to the adequacy of the distributions
since it does not require assumptions regarding the variables or error distributions; (iii) it
combines the principles of factor analysis and regression, facilitating the construction of
latent variables and simultaneously testing their relationships; (iv) it is suitable for the
exploratory research that we are developing to investigate the decision to adopt digital
technologies in companies and their impact on skill needs.
PLS-Sem is based on an iterative approach involving the specification and evaluation of
two elements: an Inner model and an Outer model. The inner model is the structural model,
and it specifies the relationships between the constructs. The outer model is the
measurement model because it establishes the relationships between the indicator variables
within the constructs. Each construct or latent variable is a linear combination of manifest
variables. The coefficients used in this linear combination maximise the explained variance
of the dependent variables (latent and observed) (Hair et al., 2014).
In terms of PLS-SEM modelling, in our investigation, there are four exogeneous latent
variables labelled as: Size, Growth, BusinessEnvironment, and Digitalisation explaining the
variance of the endogenous block labelled SkillsNeed. The Digitalisation construct also acts
as an endogenous factor being explained by the other three exogenous blocks. It is
described below the path diagram of the inner model built with five blocks of variables
(Sanchez et al., 2021).
The causalities illustrated in the model are founded on econometric estimations results
demonstrating that: (i) the adoption of digital technologies is associated with the company
size and growth capacity, (ii) the characteristics of the business environment represent
significant drivers of digitalisation (Labella-Fernández et al., 2021; Omrani et al., 2022;
Holl and Rama, 2023). Furthermore, the growing importance of digital skills in the
recruitment process of workers due to job digitisation supports the dependency between the
Digitalisation and SkillsNeed blocks (Cedefop, 2023). However, empirical evidence
supports that skills shortages are also caused by insufficient or inadequate resources in the
business environment (Van Dijk and Hacker, 2003).

Figure no. 5. Path diagram of the inner model
The outer models of the exogenous/endogenous constructs are described in Table 1

showing the items used to build each of these blocks. For each latent construct, the outer
model is designed in a reflective manner (mode A), meaning that the indicators or the
manifest variables are caused by the construct. Reflective indicators are linked to their
specific construct through loadings. Therefore, the evaluation of the outer model is based
on reliability measures such as the Dillon-Goldstein rho and validity measures based on
loadings.
Table no. 1. Latent and manifest variables - outer model specification
Latent variables Manifest variables Variable name Variable type
Size Number of employees SizeE Categorical, 4

categories.
Levels: micro, small,
medium and large.
Annual Turnover in 2019 SizeT Categorical, 8

categories.
Levels: ranging from
1= 100000 euros or less
to 8= more than 50
million euros.
Growth Growth since 2016 - GrT Categorical, 4

Turnover categories.
Levels: decreased,
stable, increased by
less than 30%, and
increased by at least
30%.

Expected Growth 3 years - EGE Categorical, 4

Employees categories.
Levels: no growth, less
than 10%, 10-20%,
more than 20%.
Expected Growth 3 years - EGT Categorical, 4

Turnover categories. Levels: no
growth, less than 10%,
10-20%, more than
20%.
BusinessEnviron Business Environment - BE1 Categorical, 4

Overall strength categories. Levels:
Very good (1) to Very
Access to finance BE2 poor (4).
Quality of support services BE3
Access/ collaboration BE4
Digitalisation Plan to grow as a result of Strategy Binary.

increased digitalisation in
your enterprise Levels: 0 (No), 1 (Yes)
There is a need to introduce Approach Binary.

advanced digital
technologies and your Levels: 0 (No), 1 (Yes)
enterprise is currently
considering which of them
to adopt or
There is a need to introduce
advanced digital
technologies and your
enterprise has already
started to adopt them
Number of Digital DigitNo4 Categorical, 4

technologies adopted categories. Levels: 0, 1,
2, more than 2
technologies.
SkillNeed Availability of personnel SkillsAv Categorical, 4

with the right skills, categories. Levels:
including managerial skills Very good (1) to Very
poor (4).

Key areas which pose the SkillsProbl Binary.

biggest problems: Skills,
including managerial skills Levels: 0 (No), 1 (Yes)
Barriers to digitalisation: BarrierSkills Binary.

Lack of skills, including
managerial skills Levels: 0 (No), 1 (Yes)
Barriers to innovation: Lack SkillsBarrierInno Binary.

of skills, including
managerial skills Levels: 0 (No), 1 (Yes)
The evaluation of the inner model was based on the estimated path coefficients. The values
of these coefficients are estimated by ordinary least squares regressions and lie in the
interval (-1, 1). A bootstrap-based standard error is computed to test their significance. To
test the significance of these estimations, the standard error is obtained based on the
bootstrap resampling technique. The estimation was performed with the plspm library in R
(Sanchez, 2013).
Figure no. 6. The measurement model

3. Results of the SEM modelling and Discussions
Assessing outer model reliability is traditionally done through measures such as Cronbach's
alpha. However, in the context of PLS-SEM models, up-to-date references demonstrate the
relevance of other internal consistency assessment methods (Hair et al., 2014). The
evaluation based on Cronbach's alpha indicator is sensitive to the number of items included
and the scale, leading to the underestimation of the internal consistency. In this research,
the extent to which the indicators defining a specific block reflect the associated latent
variable is evidenced by Dillon-Goldstein's rho index and the size of the first eigenvalue of
the correlation matrix. Dillon-Goldstein's rho index is considered superior to Cronbach's
alpha index because it quantifies how much the latent variable explains the manifest
variables. The rule of thumb stipulates that a block is considered one-dimensional when
Dillon-Goldstein's rho exceeds 0.7. Regarding the evaluation based on the highest
eigenvalue of the estimated correlation matrix for each set of indicators, one-dimensionality
is ensured by a first eigenvalue above one and lower values of the second eigenvalue
(Sanchez, 2013). Based on these considerations, the blocks that the constructed model
defines are valid.
Table no. 2. Unidimensionality of indicators
MVs DG.rho eig.1st eig.2nd
SIZE 2 0.913 1.680 0.319858
GROWTH 3 0.834 1.889 0.759543
BusinessEnviron 4 0.817 2.109 0.707139
DIGITALISATION 3 0.786 1.651 0.721065
SkillsNeed 4 0.779 1.895 0.898639
MV= number of manifest variables, DG rho= Dillon-Goldstein’s rho,

eig.1st= first eigenvalue, eig.2nd=second eigenvalue
Table no. 3. Cross Loadings

Business DIGITALI Skills
name block SIZE GROWTH
Environ SATION Need
SizeE SIZE 0.89 0.14 -0.13 0.29 0.02
SizeT SIZE 0.93 0.16 -0.15 0.36 0.04
GrT GROWTH 0.18 0.69 -0.14 0.17 -0.01
EGE GROWTH 0.13 0.81 -0.09 0.18 0.01
EGT GROWTH 0.08 0.83 -0.11 0.19 -0.01
BE1 BusinessEnviron -0.12 -0.16 0.68 -0.10 0.24
strategy DIGITALIZATION 0.21 0.13 -0.09 0.67 0.04

Business DIGITALI Skills

name block SIZE GROWTH
Environ SATION Need
approach DIGITALISATION 0.23 0.17 -0.07 0.71 0.03
DigitNo4 DIGITALISATION 0.33 0.20 -0.14 0.83 0.02
SkillsAv SkillsNeed 0.00 -0.03 0.38 -0.02 0.96
ProblSkills SkillsNeed 0.12 0.08 -0.01 0.13 0.33
BarierSkills SkillsNeed 0.11 0.03 0.03 0.14 0.36
SkillBarier
Inno SkillsNeed 0.09 0.06 0.03 0.15 0.40
By analysing the cross-loads, we observe that each manifest variable properly reflects the
latent factor to which it was assigned. The loadings are shown to emphasise that the
manifest variables were selected correctly, taking the most significant coefficients for the
latent factors they define.
Table no. 4. Results of the inner model – path coefficients
DIGITALI
SIZE GROWTH BusinessEnviron SkillsNeed
ZATION
SIZE 0 0 0 0 0
GROWTH 0 0 0 0 0
BusinessEnviron 0 0 0 0 0
DIGITALISATION 0.317 0.168 -0.067 0 0
SkillsNeed 0 0 0.368 0.087 0
The estimated coefficients show that a weak business environment translated by poor
overall strength, access to finance, quality of support services, or collaboration with
business partners, educational institutions, or research organisations has a negative impact
on companies' capacity to adopt advanced digital technologies and intensifies the lack of
skills. A positive impact on digitalisation is attributed to the size and growth capacity of the
company. The latent factor Digitalisation augments the problems associated with the lack
of availability of staff with the matched skills. According to the metrics calculated to assess
the prediction ability of the model, only 4.4% of the latent variability of the SkillsNeed
construct is explained by digitalisation and the strength of the business environment.
Table no. 5. Validation results with bootstrap
Estimate Std.Error perc.025 perc.975
SIZE  DIGITALISATION 0.317 0.01 0.297 0.337
GROWTH  0.168 0.012 0.146 0.191
DIGITALISATION
BusinessEnviron  -0.067 0.011 -0.089 -0.044
DIGITALISATION
BusinessEnviron  0.368 0.017 0.34 0.401
SkillsNeed
DIGITALISATION  0.087 0.021 0.045 0.128
SkillsNeed

The validation results obtained with bootstrap show that the 95% confidence intervals of
our path coefficients do not contain zero. Thus, we can confirm that these coefficients are
significant. The results confirm previous findings regarding the influence of company
characteristics on their adoption behaviour of digital technologies, particularly regarding
the firms' size and growth capacity (Koch, Manuylov and Smolka, 2021; Cedefop, 2022).
These findings have implications for firms' decision to invest in skills development,
including employees' digital skills, which is essential as they simultaneously strengthen
their technological and innovation capabilities (Song, Tao and Shen, 2022). In addition, the
obtained results complement the existing literature regarding the role of the business
environment that can support the dual green and digital transition in companies through
increased access to finance, quality support services, and supporting collaborative
relationships.
Furthermore, the results of the SEM model support the thesis that the adoption of digital
technologies generates changes in the content of tasks, inducing significant transformations
in the skills required in the workplace (Cedefop, 2022). Hence, companies that adopt digital
technologies to a greater extent are affected more by skills deficits and gaps, which are also
fuelled by deficiencies in the business environment.
Conclusions
The research presented within this paper assumes that the adoption of technologies is a key
driver for the green and digital transition. The estimated model provides evidence
supporting the thesis that digital technologies generate transformations in the content of
job-specific tasks, reflected in skills shortages at the company level. These results are
relevant for developing policies and programmes to support companies engaged in the
green and digital transition. Therefore, increased access to financing, quality support
services, and collaborative networks will support companies to accelerate digital
technology adoption. In addition, recognising the critical role of updating and developing
workforce skills to generate and adapt to change, public policies must take into account that
the green and digital transition also involves a skills transition. Based on these findings,
upskilling and continuous learning provided to employees become essential for companies
embracing new digital technologies.
Our study is valuable in complementing the existing literature by bringing findings from
microeconomic analysis (firm level). The results bring empirical contributions regarding
the factors that influence companies' decisions to adopt digital technologies. According to
our findings, a weak business environment is conducive to skills shortages and does not
support digitalisation solutions. And when digitalisation occurs, it intensifies the problems
related to skills shortages. Therefore, for companies to implement more digital solutions,
their size and growth capacity are determinant, and digitalisation increases skills shortages
and skills gaps. Increasing in skills obsolescence and skills needs among companies also
put pressure on increasing training provided, which is time-consuming and costly, with
high shares of the workforce remaining under-skilled and less capable of adapting to the
new challenges of a rapidly evolving labour market.
Furthermore, the changes induced by digitalisation in the labour market have been
accelerated during the COVID-19 pandemic and future evolutions are characterised by
uncertainty. From this point of view, further research is needed for a better understanding

of the complex inter-relations between the adoption of digital technologies and changes of
the skills needs. The central importance of this topic is accentuated by the contributions of
new digital technologies to sustainable growth. Workforce planning, continuing training,
skills development, and promoting a culture of lifelong learning are essential for a
sustainable digital economy, but development also has to find the balance between
technical shifts and skills management both at micro- but also at macro levels.
The potential of the PLS-SEM-based methodology in causality testing is demonstrated
again in this study, developed on a database that reflects the situation of companies in
Europe. Advanced methodological tools specific to this approach, such as moderation and
mediation, should also be tested in future studies. At the same time, updating and
developing the analysis using recent data sets that reflect the determinants of digitisation
and its impact after the pandemic is required to understand the dynamics of the
phenomenon.
Acknowledgment
Article funded under NUCLEU Project PN 22100103.
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THE RELATIONSHIP BETWEEN THE TOURISM INDUSTRY AND

SUSTAINABLE DEVELOPMENT GOALS – WORD CLOUD ANALYSIS
Răzvan-Cătălin Dobrea1 , Aurel Marin2 , Cristina Dima3
and Mădălina-Ioana Moncea4*
1)3)4)
2)
National University of Physical Education and Sport, Bucharest, Romania

Dobrea, R.C., Marin, A., Dima, C. and Moncea, M.I., Received: 16 August 2023
2023. The Relationship Between the Tourism Industry Revised: 4 September 2023
and Sustainable Development Goals – Word Cloud Accepted: 16 September 2023
Analysis. Amfiteatru Economic, 25(17), pp. 1131-1148.
Abstract
The worldwide adoption of sustainable models has been motivated by an increasing
awareness of the negative environmental impacts caused by unsustainable economic
development models. The paper explores the relationship between the tourism industry and
sustainable development goals during the period 2015-2021, using 245 studies from the
Google Academic database. Various approaches, such as Word Cloud analysis, correlation
network, and word network, were used to identify frequently occurring words and word pairs
in the research domain. The R software was used for this research. Empirical results were
used to identify the most relevant journals in the field and the most prolific authors. The
Journal of Sustainable Tourism addresses specific themes such as “food”, “community”,
“sanctions”, and “social”. Sustainability focuses on “culture”, “heritage”, “local”, and
“environment”, while the Worldwide Hospitality and Tourism Themes journal represents a
niche in the field, covering topics such as “community”, “health”, “well-being”,
“investment”, and “growth”. Thus, the results obtained can provide significant contributions
to public policies and independently applied practices within the industry, facilitating more
informed decision-making in support of sustainable development. This research contributes
to the specialised literature by identifying current research trends in the tourism industry and
its relationship with sustainable development goals, highlighting dominant themes based on
the keywords used. These interdisciplinary connections can lead to deeper understanding and
more efficient solutions for sustainable development.
Keywords: Tourism, sustainable development goals, tourism journals, innovation, sustainability
JEL Classification: L83, Q01, Q56, C87, C01
*
Corresponding author, Mădălina-Ioana Moncea – e-mail: madalina.moncea@man.ase.ro

AE The Relationship Between the Tourism Industry
and Sustainable Development Goals – Word Cloud Analysis
Introduction
The analysis of the relationship between the tourism sector and the Sustainable Development
Goals (SDGs) is essential for promoting sustainable practices, mitigating negative impacts,
and maximising the sector’s potential to contribute to economic, environmental, and social
development. It contributes to policy formation, guides investment decisions, and promotes
collaboration among stakeholders to ensure alignment with the core objectives of sustainable
development.
The tourism industry makes a significant contribution to global economic growth, job
creation, and income generation. By examining its relationship with the SDGs, decision
makers can identify opportunities to maximise the positive economic impact of tourism, such
as reducing poverty, increasing social inclusion, and economic diversification. Therefore, the
economic impact should not be neglected. According to the World Tourism Organisation
(UNWTO) report (2019), the tourism sector plays a crucial role in ensuring financial stability
and social balance in a rapidly growing global economy. To revitalise it and harness its
existing potential, a sustainable growth approach is needed.
From an environmental sustainability perspective, tourism can have a significant impact,
including resource consumption, waste generation, and habitat degradation. Analysing the
relationship between the tourism industry and the SDGs helps identify ways to mitigate these
negative environmental effects and promote sustainable practices, such as reducing carbon
emissions, conserving natural resources, and protecting biodiversity. This analysis enables
the development of strategies that balance the needs of tourists with those of local
communities, ensuring that tourism contributes to the overall sustainable development of the
destination.
By aligning policies in the tourism sector with the SDGs, decision-makers can integrate
sustainable development principles into the planning, management, and regulation of the
tourism industry. This alignment promotes coherence and synergy among various policy
areas and encourages a holistic approach to sustainable tourism development. The SDGs
represent a global agenda that involves all member states of the United Nations.
A number of 169 states began a series of actions in 2015 to implement Agenda 2030. Tourism
is one of the critical areas of interest for Agenda 2030. The concept of sustainability has
received significant attention in socio-economic literature because it represents a link
between the expansion of society and economic activities within it, as well as being
influenced by environmental, sociocultural, and economic contexts.
Tourism is explicitly included in two of the 17 SDGs, with the tourism industry closely
related to SDG 8.9 and 12.7b.
Regarding relevance, the study addresses a knowledge gap and informs about the policies
and practices used. The study explores the relationship between the tourism industry and the
SDGs, a significant and timely subject. By exploring this relationship, the study contributes
to a deeper understanding of how the tourism industry can contribute to sustainable
development efforts and align with global sustainability goals.
The conclusions and perspectives of the study have practical implications for decision-
makers, researchers, and industry practitioners. Understanding the overlap between certain
SDGs and the tourism sector can drive the development of targeted policies, strategies, and

initiatives that promote sustainable tourism practices. This knowledge can guide decision-
making and action plans to foster sustainable development in the tourism industry.
Regarding novelty, the study covers the period from 2015 to the beginning of 2021, providing
updated research using Word Cloud analysis to explore the relationship between tourism and
the SDGs. It takes into account recent developments and trends in the field, offering fresh
perspectives on the subject. Analysing 245 studies from the Google Academic database, the
study consolidates and synthesises existing research in the field.
The relevance of the study lies in its focus on the relationship between the tourism industry
and SDGs, informing policies and practices and offering sector-specific insights. Its potential
novelty stems from the timeframe of the research, the comprehensive analysis of multiple
studies, and the identification of key journals and authors.
This paper is organised into four parts. The first part summarises the most significant articles
on this topic, while the second part highlights the study’s purpose and the primary research
questions. The third part is dedicated to the research methodology, while the empirical
findings section is divided into three subsections. The main findings are presented at the end
of the study.
SDGs, and in particular the need to understand the nature and limitations of development,
have been a significant topic in the tourism sector literature over the past decade (Saarinen,
2006), evolving into an “integral component of tourism policy and strategy” (Holden, 2016).
Due to the interconnection between the pressures of the tourism sector and its sustainability
(Gogonea et al., 2017), the challenges of sustainable tourism management (Hall, 2011), an
in-depth study is necessary to explain the significance of tourism sustainability in the
specialised literature. This is because there is a close relationship between the tourism sector,
sustainable development, public concerns about it, security, morality, prosperity, waste,
protection, and conservation (Buckley, 2012). As a result, considering sustainability in the
tourism literature, especially its relationship with income and workforce development, has
become a significant and evolving issue. Popescu (2018) recognised that tourism makes one
of the most important contributions to sustainable development due to its dynamism and
growth, which directly impact economic growth in regions and tourist destinations, as well
as the fact that tourism is based on a direct connection between tourists, industry, the
environment, and local communities.
Even though recent research reveals that the World Trade Organisation (WTO) provides one of
the most commonly used definitions of the term, the research evidence has not established a
widely recognised definition of sustainable tourism (Asmelash et al., 2019). According to the
WTO, tourism is “the development process that responds to the needs of present tourists and
host regions while protecting and enhancing future opportunities” (Fahimnia et al., 2015).
The International Union for Conservation of Nature, the World Wildlife Federation, the
European Federation of National and Natural Parks defined sustainable tourism as early as
1991 as “all forms of tourism development, management, and marketing that respect the
natural, social, and economic integrity of the environment, ensuring the exploitation of
natural and cultural resources for future generations.

Another definition of sustainable tourism is outlined by the United Nations Environment

Programme (UNEP) in collaboration with the World Tourism Organisation (UNWTO) and
represents “tourist activities that fully take into account their current and future economic,
social, and environmental impacts, addressing the needs of visitors, the industry, the
environment, and host communities” (UNDP and WTO, 2005).
The UNWTO also provides a more extensive conceptual definition of sustainable tourism,
expanding on the previously stated definition as follows: “Sustainability principles refer to
environmental, economic, and socio-cultural aspects... and an appropriate balance must be
established among these three dimensions... Sustainable tourism development requires the
informed participation of all relevant stakeholders, as well as strong political leadership to
ensure broad-based participation and consensus building... Sustainable tourism should also
maintain a high level of tourist satisfaction...” (Mihalic, 2020).
In the context of sustainable tourism, responsible tourism refers to the implementation of
sustainability principles and their impact. The historical significance of sustainable tourism
is undeniable, but the true meaning of its implementation depends on responsibility. As some
writers and institutions have used the term “sustainable and responsible tourism” (SRT),
others have used the term “responsible tourism” to describe both responsible and sustainable
tourism. The terms “responsible tourism” and “responsible, sustainable tourism” have been
proposed to avoid ambiguity.
Additionally, the sustainability concept of the Brundtland report has been accepted by many
in the academic, tourism, government, and business sectors. Sustainable tourism research has
considered various variables, including ecological, economic, social, and political
sustainability, as well as fairness and equality across borders. In the tourism business, the
“three pillars of sustainability” have been modified to represent the three elements of
sustainability: economic, social (including cultural), and environmental (Pirtea et al., 2021).
The third pillar of sustainability is the economic environment generated by the tourism
industry. Similar to many examples, there are inconsistencies between the environmental and
economic factors and the values of tourism. Although sustainable tourism is primarily
derived from the general terms of sustainability and sustainable development, it is distinct;
“the notion of sustainability in tourism has emerged as a new paradigm” (Saarinen, 2006).
According to estimates, there are approximately 300 distinct definitions of sustainability
(Johnston et al., 2007). However, the need to preserve precious resources for future
generations is emphasised.
Scheyvens (2018) has suggested using the connections between tourism and sustainable
development in a wide range of contexts. With proper policy and existing planning
mechanisms, local, regional, and national destinations are likely to benefit from the positive
impact of tourism while working towards achieving the SDGs.
Properly managed, tourism can promote economic and social development and accelerate the
achievement of SDGs (WTO and UNDP, 2017). This industry has played a crucial role in
job creation and economic growth (SDG8), responsible consumption and production
(SDG12), and the management of marine resources (SDG14) (Rasoolimanesh et al., 2020;
Trupp and Dolezal, 2020; WTO and UNDP, 2017). It has also contributed to achieving goals
related to poverty eradication, gender equality, and environmental promotion.

Several studies have used bibliometrics to deconstruct the structural elements of long-term
sustainability (Quental et al., 2011; Schoolman et al., 2012; Buter et al., 2013; Linnenluecke
and Griffiths, 2013; Wichaisri and Sopadang, 2018).
In terms of the research gaps addressed in this article, it presents an area with few studies
covering this connection. One of the main research gaps on this topic is the lack of
comprehensive approaches to measuring and evaluating the impact of the tourism industry
on the SDGs. Thus, the research results outline the interconnections between the two
addressed subjects.
Brand positioning is supported by a marketing orientation that recognises the existence of an
infinite number of competing destinations. Tourist destinations can elicit complex emotional
responses from people, both favourable and unfavourable, as they are both physical and
metaphysical, with subjective and intangible aspects. Sustainability can be a concise and
relevant offering, an essential attribute of a tourist destination that sets it apart from the
competition, while also ensuring that the location and business thrive and grow.
Dabija and Băbuț (2013), Popescu (2018), and Popescu et al. (2014) have analysed Romanian
tourism in the context of sustainable development. Using a structural equation model, Dabija
and Băbuț (2013) demonstrated that the main actions taken by tourist accommodation units
could represent real stimuli to build satisfaction among Romanian tourists. On the other hand,
Popescu et al. (2014) recognised the role of economic, social, and ecological factors and the
dimension of tourism, demonstrating the impact of sustainable development on tourism
development.
In Romania, the Master Plan for the Development of National Tourism in Romania for the
period 2007-2026 has been elaborated, with a focus on the efficient use of environmental
resources, respect for the socio-cultural authenticity of host communities, ensuring the
sustainability of economic operations with benefits distributed equitably to all parties
involved, to guide the processes carried out in the tourism industry towards achieving the
SDGs. Furthermore, two other national strategies are in the implementation period, namely
the National Strategy for the Development of Ecotourism and the Strategy for the
Development of Balneology Tourism.
From the strategies developed at the national level, four projects were carried out in the
programming period 2007-2013 that respond to the SDGs, and another four projects were
carried out in the period 2014-2020.
It is a fascinating and stimulating topic, according to Ratten (2019), involving the analysis of
general characteristics of entrepreneurs, such as the willingness to take risks and be open to
both innovation and hard work, as well as an entrepreneurial attitude, in an intriguing context
(tourism as a human interest), as well as multidisciplinary concepts, such as the impact of
technology, economic geography, and cultural impact.
Entrepreneurs and, by extension, tourism service providers should pay increased attention to
the image of tourist destinations, as this is a perceptual impression that tourists will have and
adapt to strengthen the sense of belonging and interaction (Nugraha, Suryaningsih and
Cahyanti, 2021).
According to Davidescu and Manta (2022), research themes such as entrepreneurship, social
issues, and the impact of tourism on academic literature have been proposed by these
concepts: the entrepreneurial ecosystem and informality.

To maximise the sound effects of tourism on the local economy, culture, and the
environment, individuals, businesses, and governments work together to promote responsible
tourism as a means of long-term economic growth.
2. Research objectives and research questions

The aim of the paper is to analyse the field of research in the tourism industry with respect
to the objectives of sustainable development, highlighting major themes using Word Cloud
analysis. Over 245 publications from the Google Academic database, covering the reference
period of 2015-2021, were extracted to achieve the research objective. The use of the Google
Academic database, as well as its additional tools such as Google Scholar Metrics, facilitated
exploration from diverse sources of articles due to the breadth and variety of content.
Out of the total extracted publications, approximately 89% are scientific articles, 2% are
specialised reports, and 9% are book chapters published by various publishers (Springer,
Emerald).
The selection of this time interval was based on the following considerations: alignment with
the adoption of the SDGs in September 2015, covering the initial years after the establishment
of the SDGs, allowing for an examination of the relationship between tourism and sustainable
development objectives in the early years of their implementation. Additionally, the period
from 2015 to 2021 encompasses significant developments and trends in the tourism industry
and sustainable development.
This time frame includes the increasing recognition of sustainability issues, the growth in the
adoption of responsible tourism practices, and the evolution of global discussions concerning
the achievement of the SDGs. Analysing studies from this dynamic period allows us to
understand the relationship between the evolution of tourism and sustainable development
during this period.
This paper will attempt to answer the following research questions:
RQ1. Which journals have the highest number of articles?
RQ2. Who are the most prolific authors in the field?
RQ3. What are the most frequent words in the abstracts of scientific publications?
RQ4. What are the most significant themes in the most relevant journals in the field?
3. Research methods
To discover the main subjects of the tourism industry in relation to SDGs, a systematic search
was conducted on Google Scholar using the search terms “sustainable development goals”
and “tourism.” The term “SDGs” represents the 17 SDGs mentioned in the Agenda 2030,
and it was chosen due to the complexity of information it encompasses.
The study period covered the years from 2015 to 2021, and the search language was English.
To analyse the research field, the methodology included several approaches: Word Cloud
analysis was used to highlight the most prevalent words in representative journals in the field.
This was done by collecting sources of information, extracting relevant terms, and processing

them using the R software for visual representation based on frequency of appearance.
Correlation network analysis helped identify articles and documents that were frequently co-
cited in the specialised literature. This allowed the identification of authors who contributed
significantly to the addressed theme. The word network analysis facilitated the examination
of word pairs that frequently co-occurred, aiming to identify thematic clusters representing
subdomains of research in the tourism and sustainable development industry.
The methodology for constructing networks involved five stages:
 Text preprocessing: Scientific document text underwent initial processing, including
tokenisation, removal of special characters, and common stop words to reduce noise.
 Co-occurrence identification: After preprocessing, the co-occurrences of terms in the
text were calculated. This involved recording the frequency at which two terms appeared
together in the same context, considered as co-occurrence.
 Network graph construction: Using co-occurrence data, a network graph was
constructed, with terms represented as nodes and edges (links) between nodes created to
reflect co-occurrences. A weighted approach was used, where the thickness or intensity of
edges represented the frequency of co-occurrences.
 Significance threshold setting: A filtering process was applied to focus on significant
relationships by establishing specific thresholds, such as a minimum co-occurrence
frequency (at least 200 times) and a minimum correlation coefficient (greater than 0.5)
between terms to be included in the network. These thresholds aimed to reduce noise and
highlight stronger and more significant connections between terms.
 Network visualisation: The network was visualised using R.
The correlation metrics utilised in the co-occurrence network analysis included the Spearman
and Kendall correlation coefficients, as well as the Pointwise Mutual Information (PMI) and
Jaccard coefficients. PMI is a measure of the association between two terms, frequently used
in natural language analysis. The higher the PMI value, the stronger the association between
terms. It can assess how often terms appear together in scientific documents compared to
their statistical expectations. The Jaccard coefficient measures the similarity between two
sets. In network analysis, it can be used to evaluate how many documents contain both term
A and term B in relation to the total number of documents containing either term A or B. A
higher Jaccard coefficient indicates a greater overlap in term co-occurrences.
In analysing the network of publication co-occurrences, co-occurrences with a frequency of
at least 200 times and a correlation coefficient exceeding 0.5 were considered. Overall, Word
Cloud analysis, correlation network analysis, and word network analysis methodologies were
justified based on their ability to summarise textual data, identify relationships between
variables, and uncover patterns and themes within text. The main results of word correlations
with the highest degree of correlation are shown in table no. 1.
Table no. 1. Correlation results between words (highest degree of correlation)
Item1 Item2 Correlation
Higgins Desbiolles 0.975
Covid Pandemic 0.820
Oceans Seas 0.739

Item1 Item2 Correlation

Gender Equality 0.719
Greenhouse Gas 0.713
Female Male 0.696
Fuels Fossil 0.677
It is worth mentioning that the raw data underwent several transformations: string operations
were applied to display raw tests as tokens, and based on these tokens, a document-term
matrix was constructed, representing documents as rows and terms as columns, with each
cell containing the frequency of each data appearing in each record. Additionally, the analysis
included the removal of “stop words”: words that were predetermined to be irrelevant and
were eliminated before analysis. These were removed to reduce redundancy in the data, as
they are very common and have low semantic relevance in content analysis. By eliminating
these words, a more precise picture of the analysed content was obtained, and significant key
terms for research were identified. Davidescu and Manta (2022a,b) provide a detailed
description of the methodology.

4.1. Descriptive statistics
In the context of the 2030 Agenda for Sustainable Development (SDGs), tourism is
increasingly recognised as a key economic force in many countries. This study aimed to
investigate the research field concerning SDGs, highlighting significant themes of interest
based on Word Cloud analysis. To achieve the research objective, 245 publications were
extracted from the Google Academic database, covering the period from 2015 to 2021. The
reference period for this research may exclude recent developments and relevant research
conducted after the beginning of 2021.
To ensure a comprehensive approach and increase the research’s relevance, other categories
of publications were also included in a reduced dimension. Conclusions regarding these
additional categories are similar to those drawn for the analysed journals.
The main limitation can be noted as the use of a single platform, Google Academic.
Additionally, other platforms such as Web of Science (WOS) or Scopus could be utilised.
The use of the Google Academic database, along with its supplementary tools such as Google
Scholar Metrics, facilitated the exploration of articles from diverse sources due to the breadth
and variety of content. It was chosen for this research because it provides a rich basis for
exploring articles from various sources, being the database with the most search results for
the reference keywords.
The second limitation pertains to the use of predefined keywords to clearly define the scope
of the study, avoiding ambiguity or vague interpretations. These keywords also contributed
to improving the relevance and specificity of the research results.
Utilising keyword analysis and the word network to identify key themes and connections
between concepts provides a clear picture of the major research directions and priorities in
the specialised literature. The presentation of the network of co-occurrences of relevant
keywords, such as “climate change”, “United Nations”, and “COVID-19 pandemic”,
illustrates how complex interactions between tourism and SDGs were explored and how

topics like the impact of climate change and the pandemic on the tourism industry were
addressed.
In the analysed period from 2015 to 2021, there is an upward trend in publications related to
tourism hospitality and the SDGs, with nearly 100 publications in 2020, the year of the
pandemic when tourism was heavily affected by COVID-19 measures (Figure no.1).
Figure no. 1. Articles by reference years

Most of these industry research articles have been published in tourism journals. The majority
appear in the Journal of Sustainable Tourism, Sustainability, and Worldwide Hospitality and
Tourism Themes (Table no. 2).
Table no. 2. Sources with the highest number of articles
Journals Documents Impact Database
factor
Journal of Sustainable Tourism 39 9.470 Taylor and Francis
Sustainability 30 3.900 MDPI AG
Worldwide Hospitality and Tourism Themes 10 0.393 Emerald Group
Publishing
Austrian Journal of South-East Asian Studies 5 2.400 Society for South-
East Asian Studies
Tourism Management Perspectives 5 7.608 Elsevier USA
Journal of Outdoor Recreation and Tourism 4 3.800 Elsevier BV
Journal of Cleaner Production 3 11.100 Elsevier Ltd.
Marine Policy 3 4.315 Elsevier Ltd.
Tourism Management 3 12.879 Elsevier Ltd.
The predominance of research articles regarding the relationship between tourism and the
SDGs in tourism-related journals, such as the Journal of Sustainable Tourism, Sustainability,
and Worldwide Hospitality and Tourism Themes, highlights the focus and specific expertise
of these journals. This concentration of publications in tourism journals suggests the
importance and recognition of the role of the tourism industry in sustainable development.

The Journal of Sustainable Tourism, as one of the most significant journals in the field, often
features articles that explore the intersection of tourism and sustainability. It covers a wide
range of topics, including community tourism, sustainable tourism planning, destination
management, and the social, economic, and environmental impact of tourism.
Sustainability, a journal with relevant research in the analysed field, provides a platform for
interdisciplinary research on sustainability-related themes, including sustainable tourism. It
covers a broad spectrum of sustainability issues, from environmental conservation to social
equity, and attracts works that examine the integration of sustainability principles into
tourism practices.
Worldwide Hospitality and Tourism Themes Journal offers a specific niche in the field,
focusing on hospitality and tourism-related themes, including community development,
health, well-being, investments, growth, and inclusion. The inclusion of works in this journal
demonstrates the diverse range of topics explored in the context of hospitality and tourism
and their relationship with sustainable development.
The concentration of research articles on tourism and SDGs in these journals indicates a
dedicated research community interested in advancing knowledge and understanding in this
field.
The most prolific authors in the field, with approximately three published papers each,
include Emma Hughes, Kaitano Dube, Regina Scheyvens, and Stefan Gossling. Scheyvens
and Hughes have made the most significant contributions, underscoring their experience and
influence in the research community (Table no. 3). Furthermore, in terms of citations, the
scholarly discussion has received the most significant contributions from Scheyvens and
Hughes, who play a vital role with 94 and 69 citations, respectively. The significant
contributions of authors such as Emma Hughes, Kaitano Dube, Regina Scheyvens, and Stefan
Gossling in tourism and SDGs indicate their expertise and influence on the research
community.
Table no. 3. List of authors with the most contributions in the field
Author Affiliation Number of
publications
Emma Hughes Massey University: Palmerston North, NZ 3
Kaitano Dube Emirates Aviation University: Dubai, AE 3
Vaal University of Technology: Vanderbijlpark, ZA
Regina Scheyvens Massey University: Palmerston North, NZ 3
Stefan Gössling Linnaeus University, School of Business and 3
Economics, Kalmar, Sweden
C. Michael Hall Kyung Hee University: Seoul, KR 2
Daphne Comfort University of Gloucestershire: Cheltenham, 2
Gloucestershire, GB
Dimitri Ioannides Mittuniversitetet Campus Ostersund: Östersund, 2
Jämtland, SE
Szilvia Gyimóthy Aalborg University: Aalborg, DK 2
Laura James Aalborg University: Aalborg, DK 2
Freya Higgins- The University of South Australia: Adelaide, AU 2
Desbiolles

4.2. Examining major research topics in the field of sustainable tourism research using
Word Cloud analysis
Identifying the most relevant journals in the field of tourism and SDGs provides insight into
the specific research themes and areas that have been prominent in the specialised literature.
In the context of tourism industry development and its implications for SDGs, the Journal of
Sustainable Tourism seems to cover topics such as “food”, “females”, “community”,
“labour”, “sanctions”, “social”, and “local”. This suggests that the journal may explore issues
related to sustainable food practices in tourism, the role of women in the industry, community
involvement, local economic development, social aspects of tourism, and the impact of
policies or regulations (sanctions) on sustainable tourism.
Sustainability appears to be more focused on themes such as “cultural”, “heritage”, “local”,
“tourist behaviour study”, and “environment”. This implies that the journal concentrates on
subjects such as cultural heritage preservation, sustainable management of natural resources,
community-based tourism initiatives, understanding tourist behaviour and preferences, and
the environmental impact of tourism.
Worldwide Hospitality and Tourism Themes Journal provides a niche in the field, addressing
themes such as “community”, “health”, “well-being”, “investment”, “growth”, and
“inclusivity”. This suggests that the journal explores community involvement and
development in the hospitality and tourism industry, the intersection between tourism and
health/well-being, investment strategies and opportunities, industry growth trends, and
approaches to promote inclusivity (Figure no. 2).
Journal of Sustainable Tourism
Sustainability
Worldwide Hospitality and Tourism Themes

Figure no. 2. Relevant topics addressed in the most relevant journals

The analysis of keywords and recurring themes in these journals provides valuable insights
into the research priorities and interests in the field of tourism and the SDGs. Researchers
and practitioners can use this information to identify relevant topics, understand the current
discourse, and explore potential avenues for further research, collaboration, or intervention
strategies aligned with the SDGs.
4.3. Exploring the relationship between words in scientific publication summaries
Investigating the research domain from the perspective of abstracts, it is evident that the most
frequent words found in the abstracts were “sustainable development goals”, “industry”,
“economic”, “objectives”, “growth”, “countries”, “environmental”, “social”, “political”,
“agenda” (Figure no. 3). These provide valuable information about the concepts and key
themes commonly discussed in the specialised literature on the relationship between tourism
and SDGs.
The frequency of words such as “SDGs” indicates a strong emphasis on aligning tourism with
the broader sustainable development agenda. The term “industry” suggests recognition of the
importance of the tourism sector in contributing to sustainable development.
The presence of words such as “economic”, “growth”, and “countries” indicates a concern
for the economic aspects of tourism and its potential to positively impact local and national
economies. The words “environmental” and “social” highlight a dual focus on environmental
sustainability and social well-being in the context of tourism and sustainable development.
This indicates recognition of the need for environmentally friendly practices and
consideration of social aspects, including community engagement and the well-being of local
populations.
Mentions of “politics” and “agenda” suggest a focus on policy frameworks and integrating
tourism into national and international development agendas, such as the 2030 Agenda for
Sustainable Development.
The word network has highlighted key points such as “development”, “tourism”,
“objectives”, “research”, “paper”, “Agenda 2030”, “environment”, “development goals”,
“results”, “policies”, and “approach.” These central points signify key concepts and areas of
interest in the specialised literature, indicating the interconnection and interdependence of
these terms in understanding the relationship between tourism and SDGs.
Figure no. 3. Most frequently used words in the abstracts of scientific publications

Regarding the keywords, the most correlated ones (figure no. 4), the most frequent word
combinations were “climate change”, “United Nations”, “semi-structured”, “Covid-19
pandemic”, “transaction synergy”, “ocean-coastal-marine”, “purpose-limitations-
implications-methodology-approach”.
The presence of keyword combinations such as “climate change” indicates the recognition
of the importance of addressing climate challenges in the context of sustainable tourism
development. This suggests that researchers have explored the implications of climate change
for the tourism industry and its alignment with the SDGs.
The mention of the “United Nations” reflects the influence of the global organisation in
setting the SDGs and guiding the sustainable development agenda. It suggests that the
literature examines the role of the United Nations in promoting sustainable tourism practices
and achieving the SDGs.
The keyword combination “semi-structured” may indicate the use of semi-structured
research methodologies or approaches in the analysed studies. This suggests that researchers
have employed qualitative research methods that allow flexibility and in-depth exploration
of the subject.
The inclusion of “COVID-19 pandemic” highlights the significant impact of the pandemic
on the tourism industry and its implications for sustainable development. It suggests that
recent research has addressed the challenges, opportunities, and responses related to the
COVID-19 pandemic in the tourism industry and the SDGs.
The keyword combinations “transaction synergy”, “ocean-coastal-marine”, and “purpose-
limitations-implications-methodology-approach” represent specific topics or research
aspects that have drawn attention in the specialised literature. These combinations indicate
that researchers have explored topics such as synergies and trade-offs between different
SDGs, the importance of ocean, coastal, and marine sustainability, and discussions related to
the purpose, limitations, implications, methodology, and approach to research in this field.
These findings highlight the multidimensional nature of the subject and the various areas of
investigation in the field of tourism and sustainable development.
Considering the multidimensional relationship between tourism and the SDGs, future research
could explore more interdisciplinary approaches. Investigating the long-term impact of tourism
on achieving the SDGs is crucial. Future research could focus on understanding the sustainability
outcomes of tourism initiatives and policies over extended periods, including their effects on
local communities, ecosystems, cultural heritage, and economic development.
Exploring the role of technology and innovation in promoting sustainable tourism is an important
area for future research. This may include studying the impact of technological advancements
such as digital platforms, databases, artificial intelligence, and blockchain on enhancing
sustainability practices, resource efficiency, and promoting responsible tourist behaviours.
Further research is needed to develop robust measurement frameworks and indicators to assess
the progress and impact of tourism on SDG attainment. This includes exploring innovative
methodologies, data collection techniques, and performance measurement tools to monitor and
evaluate the sustainability performance of tourist destinations, businesses, and policies.

Figure no. 4. The word network and correlation network in the summary
of scientific publications
In investigating the connections between the tourism industry and SDGs, this research
analysed 245 publications from the period 2015-2021, with a focus on identifying relevant
key themes. The analysis yielded results similar to existing literature in terms of the addressed
topics and interconnections between them. Recommendations include developing practices
for sustainable tourism, fiscal incentives, capacity building, public-private partnerships, and
promoting research and knowledge exchange.
These measures should adhere to the Global Code of Ethics for Tourism Industry issued by
UNWTO to promote sustainable tourism and successfully achieve the SDGs. Keyword and
word network analysis revealed major themes addressed in the literature, such as “climate
change”, “COVID-19 pandemic”, “food”, “community”, “culture”, “environment”, and
“social inclusion”. These themes represent key aspects of the interaction between the tourism
industry and SDGs, highlighting the complexity and diversity of the subject.
Conclusions
This research contributes to understanding the relationship between the tourism industry and
the SDGs, providing insights into the relevance of the SDGs for the tourism industry, the
overlap between specific goals and the tourism sector, as well as key themes and research
contributions. The following describes the main practical implications of the research.
 Policy development: Political actors in the tourism sector can use the results to inform
policy and strategy development aligned with the SDGs. Identified objectives, such as SDGs

8.9 and 12.7b, can guide policy formulation related to employment in the industry,
sustainable consumption, production, and responsible tourism practices.
 Industry transformation: The research findings can help shape the future direction of
the travel and hospitality sector. Recognising the sector’s impact on natural systems,
decision-makers and industry stakeholders can explore innovative approaches to enhance
sustainability, promote community involvement, and preserve cultural heritage.
 Research focus: Identifying relevant journals, prolific authors, and specific topics
guides researchers interested in studying the relationship between tourism and sustainable
development. It highlights key areas where research gaps and additional knowledge exist.
 Collaboration and knowledge exchange: The summary underscores the importance of
collaboration and knowledge exchange among stakeholders in the tourism industry.
Researchers, policymakers, and industry practitioners can use this information to identify
potential collaboration opportunities and platforms for sharing best practices, lessons learned,
and innovative solutions.
 Mentioning research results and empirical studies contributes to the knowledge base for
monitoring and evaluating progress toward sustainable development in the tourism sector.
Decision-makers can use this information to track the impact of policies and initiatives, assess
intervention effectiveness, and identify areas for improvement.
Overall, the practical application of this summary lies in its potential to inform policy
development, guide industry transformation, stimulate research, foster collaboration, and
enhance monitoring and evaluation efforts in the tourism sector to achieve SDGs.
Therefore, to enhance the tourism industry’s contribution to the achievement of the SDGs,
decision-makers should promote sustainable practices and partnerships within the sector.
This can be achieved through the following policy measures:
 Developing sustainable tourism practices: Governments and relevant authorities should
collaborate with industry stakeholders to develop comprehensive guidelines for sustainable
tourism practices. These guidelines should address environmental conservation, community
involvement, preservation of cultural elements, and responsible business practices.
 Incentives for sustainable tourism: Decision-makers can introduce incentives, such as
tax exemptions or grants, to encourage tourism businesses to adopt sustainable practices.
These incentives can be tied to specific SDGs, such as promoting the use of renewable
energy, reducing waste generation, or supporting local community development.
 Capacity building and training: Governments should invest in capacity-building and
training programs to educate tourism professionals about sustainable practices. This may
include training in environmental management, cultural sensitivity, community involvement,
and responsible tourism marketing.
 Encouraging public-private partnerships: Policymakers should facilitate partnerships
between public and private entities in the tourism industry to promote sustainable
development. These partnerships can focus on joint initiatives for environmental
conservation, community tourism projects, and corporate social responsibility programmes.
 Knowledge sharing and research: Policymakers should support research and
knowledge-sharing initiatives in sustainable tourism. This may involve funding academic

research, supporting conferences and workshops, and facilitating collaboration between

researchers, decision-makers, and industry practitioners. Promoting the exchange of best
practices and evidence-based decision-making will continually improve sustainable tourism
strategies.
The recommendations presented in the research are based on the results obtained and also
take into account the Global Code of Ethics for Tourism issued by UNWTO, with a focus on
Article 3 of the code on sustainable development practices in the tourism industry.
The ethical aspects of the research provide recommendations considering the four directions
of the article related to the need to protect the natural environment for solid, continuous, and
sustainable economic growth. It is also recommended to stagger tourist flows over time and
space to reduce the pressure of tourist activity on the environment and increase its benefits.
Furthermore, it is recommended to design tourism infrastructure to protect ecosystems and
biodiversity by restricting tourism activity in highly sensitive areas.
By implementing these policy measures, governments can create a favourable environment
for the tourism industry to adopt sustainable practices, reduce its environmental footprint,
and positively contribute to local communities and the achievement of the SDGs.
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ANALYSIS OF THE IMPACT OF ENERGY EFFICIENCY AND RENEWABLE

ENERGY ON GREENHOUSE GAS EMISSIONS AND ECONOMIC GROWTH
IN EU MEMBER STATES
Andra-Nicoleta Mecu1* , Florentina Chițu2 , Georgiana-Ionela Marin3
and Gheorghe Hurduzeu4
1)2)3)4)

Mecu, A.N., Chițu, F., Marin, G.I. and Hurduzeu, G., Received: 15 August 2023
2023. Analysis of the Impact of Energy Efficiency and Revised: 3 September 2023
Renewable Energy on Greenhouse Gas Emissions and Accepted: 20 September 2023
Economic Growth in EU Member States. Amfiteatru
Economic, 25(Special No. 17), pp. 1049-1163.
Abstract
The European Union has set ambitious goals for both energy efficiency and renewable energy
use as part of its strategy to combat climate change. Using a panel data regression model that
spans from 2012 to 2021, this study aims to evaluate how energy efficiency and the use of
renewable energy sources impact greenhouse gas emissions and economic growth in the
member states of the European Union. The findings confirm that energy efficiency and
renewable energy production effectively reduce greenhouse gas emissions while also
positively influencing economic growth. However, it is important to note that the impact of
renewable energy production on economic growth is limited. Therefore, it is crucial to
emphasise the role of energy efficiency policies for sustainable development within the
European Union. In addition, these findings support the implementation of policies that
promote responsible energy consumption and encourage economically and environmentally
sustainable development.
Keywords: climate change, renewable energy, economic growth, energy efficiency.
JEL Classification: O44, Q01, Q42, Q50, Q56.
*
Corresponding author, Andra-Nicoleta Mecu – e-mail: andra.mecu@stud.ase.ro
Acesta este un articol cu acces deschis distribuit în conformitate cu termenii Creative
Commons Attribution License (https://creativecommons.org/licenses/by/4.0), care permite
utilizarea, distribuirea și reproducerea fără restricții în orice mediu, cu condiția ca lucrarea
originală să fie citată corect. © 2023 Toate drepturile aparțin autorilor.

AE Analysis of the Impact of Energy Efficiency and Renewable Energy on
Greenhouse Gas Emissions and Economic Growth in EU Member States
Introduction
The global effort to address climate change is led by the European Union (EU). The EU has
recognised the urgent need to address climate change by establishing ambitious goals for
energy efficiency and renewable energy use. However, the effectiveness of these measures
in mitigating greenhouse gas emissions and promoting sustainable economic development
remains a topic of debate.
The EU's biggest climate target is to reduce greenhouse gas emissions by at least 40% below
1990 levels by 2030. By 2030, the EU wants to have 32% of its energy mix made up of
renewable sources (European Parliament, 2023). These targets reflect the EU's commitment
to reducing its carbon footprint and promoting sustainable economic growth.
Under the Paris Agreement, The Council of the European Union (2023) argues that the EU
and its member states will stimulate global action on climate change, demonstrating that a
path to climate neutrality is not only essential, but also feasible and desirable. The transition
to climate neutrality presents enormous opportunities, including new business models,
growth potential for markets, new jobs, and technological developments (Ministerul
Mediului, 2023).
The use of renewable energy sources and the improvement of energy efficiency are essential
to achieving these goals. Energy efficiency involves optimising energy use in buildings,
transportation, and industrial processes to reduce energy consumption and emissions.
Reduction in overall energy consumption is achieved by incorporating energy-efficient
technologies and processes. Energy-efficient practises must be adopted by both businesses
and individuals if sustainability is to be achieved, as doing so allows the reduction of
ecological footprints, which in turn promotes an environmentally conscious attitude toward
energy use (Clodniţchi and Tudorache, 2022).
Renewable energy entails increasing the share of energy production from non-fossil fuels,
such as solar, wind, and hydroelectric power. Compared to their equivalents that use fossil
fuels such as coal, oil, and natural gas, renewable energy sources have substantially less of
an impact on the environment (Streimikiene, 2022). As a result, this proactive shift towards
renewable energy manifests itself as a crucial and persuasive strategy in ensuring the long-
term sustainability of the planet, supporting the EU's objectives of reducing greenhouse gas
emissions and stimulating sustainable economic growth.
EU countries have the capacity to develop national policies and strategies to mitigate climate
change and to strengthen global decarbonisation efforts, while participating in and complying
with the EU's joint processes. According to Bin Su et al. (2021) study, most of the work on
energy consumption and energy efficiency focusses on trends and drivers in urban
conglomerates, mainly because they are highly populated and allow for the concentration of
activities that present considerable opportunities for optimising energy consumption and
improving energy efficiency, such as the development of public transport systems, grid
integration, and the deployment of large-scale energy storage systems.
Improvements in energy efficiency can lead to significant decreases in energy use if measures
are taken to avoid rebound effects. The most economical strategy to reduce energy use while
maintaining the same level of economic activity is to increase energy efficiency. Critical
energy issues such as climate change, energy security, and competitiveness are also
addressed by increasing energy efficiency.

The uniqueness of our study lies in introducing a new perspective by using energy
consumption as an indicator of energy efficiency, recognising that increased energy
consumption often means decreased efficiency and vice versa. Furthermore, we measure the
adoption of renewable energy through renewable energy production, providing a new lens
through which to examine the impact of these factors on greenhouse gas emissions and
economic growth. This methodology allows us to provide information on the complicated
relationship between energy strategies and sustainability goals.
The goal of this work is to conduct a comparative analysis of the effects of energy efficiency
and renewable energy use on climate change and economic growth in the EU member states.
By conducting a regression analysis of data from 2012 to 2021 for 27 EU member states, we
seek to provide valuable insights on the relative effectiveness of these two approaches in
achieving the EU's targets for fostering sustainable economic growth while lowering
greenhouse gas emissions.
The introduction to the thematic area of our work is preceded by the section that presents the
most important results from the scientific literature, followed by the research methodology,
respectively, results obtained for each model made, and related discussions. The conclusions
of our findings represent the final part of the article and are followed by proposed future
research directions, such as the creation of more complex analysis models.

Several studies have examined the impact of energy efficiency and renewable energy on
greenhouse gas emissions and economic indicators in the EU. A study by Apergis and Payne
(2014) found a significant negative link between CO2 emissions and the use of renewable
energy in the EU countries.
The literature review can be analysed from two perspectives, namely, on the one hand, the
literature that reflects the relationship between greenhouse gas emissions and the variables
analysed in model 1 of our estimates: energy efficiency and renewable energy, and, on the
other hand, the specialised literature that addresses the relationship between economic
growth and the variables analysed in model 2: energy efficiency and renewable energy
production.
1.1. The relationship between energy efficiency, greenhouse gas emissions, and
renewable energy
In addition to these individual studies, several meta-analyses have synthesised the results of
multiple studies to draw broader conclusions. A meta-analysis by Creutzig et al. (2017) found
that renewable energy and energy efficiency measures are complementary and can be used
to achieve both climate and economic objectives. They found that a combination of both
measures can lead to significant reductions in greenhouse gas emissions while promoting
sustainable economic growth.
A study by Wang et al. (2017) claims that the adoption of greenhouse gas emission reduction
systems contributes to increasing energy efficiency. Furthermore, a similar result can be
found in the study by Emir and Bekun (2019), who claim that energy efficiency is an
important pillar to reduce global energy consumption and also global warming.

According to research conducted by Bayar and Gavriletea (2019), there exists a substantial
positive correlation between carbon dioxide (CO2) emissions and both economic growth and
energy consumption within specific African nations. Furthermore, the study underscores the
crucial role of renewable energy consumption in reducing CO 2 emissions, while the use of
non-renewable energy sources is associated with an increase in CO 2 emissions.
Østergaard et al. (2022) provides an overview of research on renewable energy sources,
covering their status, role in sustainable development goals, sustainability of systems, and
integration into low-carbon energy systems.
Overall, these studies suggest that increasing energy efficiency and the degree of use of
renewable energy can have a positive impact on both climate change and sustainable
economic growth. To achieve these two goals, policy makers should think about establishing
measures that stimulate the adoption of energy efficiency measures and the use of renewable
energy sources.
1.2. The relationship between energy efficiency, economic growth, and renewable
energy production
In Africa, economic development and energy consumption are significantly positively
correlated, according to a study by Raihan and Tuspekova (2022). The study discovered that
in some African nations, economic development and energy use significantly reduce CO2
emissions. The study also discovered that while the use of non-renewable energy causes CO2
emissions to increase, the use of renewable energy significantly reduces them, supporting
previous research.
The effect of energy efficiency and renewable energy on economic development in OECD
nations was evaluated in a meta-analysis by Wang and Wang (2022). The results showed that
both energy efficiency and renewable energy had a positive impact on economic growth,
indicating that they can promote sustainable economic development. Furthermore, the study
found that energy efficiency had a greater impact on economic growth than renewable
energy, indicating that it may be a more effective tool to promote sustainable economic
development.
Ayres, Turton and Casten (2007) examined the impact of energy efficiency on sustainability
and energy reduction. It finds that, while initial improvements lead to rebound effects, over
time, they become counterproductive. Energy consumption is increasing due to increased
efficiency, highlighting the need for a coordinated portfolio of energy policies to achieve
environmental improvements.
There is an ongoing debate in the literature on the impact of renewable energy on economic
growth, and these influences are due to multistate analyses where the share of renewable
energy production is significant or not, compared to the EU average. The study by Xie et al.
(2023) presents non-parametric estimates of the link between economic growth as a result of
the expansion of energy production systems, finding that increasing energy consumption
from renewable sources not only improves the gross domestic product of the country, but
also improves the inclusive well-being of the population.
Based on the literature review presented earlier, this study formulates four testable
hypotheses to investigate the relationships between key indicators:

1. Increasing energy efficiency in EU member states will lead to a significant reduction
in greenhouse gas emissions.
2. Increasing renewable energy production in EU member states will lead to a significant
reduction in greenhouse gas emissions.
3. The increase in energy consumption in EU member states will have a positive impact
on economic growth.
4. The increase in renewable energy production in EU member states will have a positive
impact on economic growth.
Based on the analysis of the literature provided and the aforementioned research purpose, the
research objectives are the following:
a. Quantifying the impact of energy efficiency policies implemented by EU states on the
reduction of greenhouse gas emissions;
b. Evaluation of the role of renewable energy production in stimulating economic growth
in EU member states;
c. Identifying an optimal mix of policies for the sustainable development of EU member
states.
Using a fixed-effects panel regression model, we are trying to analyse the relationship
between energy efficiency, renewable energy consumption, economic growth, and
Despite the studies mentioned above, the relationship between energy efficiency, renewable
energy consumption, economic growth, and greenhouse gas emissions in the EU remains an
important research question. To address this gap in the literature, this study uses panel
regression with fixed effects in SAS to examine the relationship between these variables in
the 27 EU member states over the period 2012-2021.
Data for this study were obtained from the Eurostat database and include variables related to
energy efficiency, renewable energy consumption, economic growth, and greenhouse gas
emissions. The data is collected for each EU member state annually from 2012 to 2021,
resulting in a panel dataset with 27 cross-sectional units and 10 time series observations.
The period selected for the study was marked by the COVID-19 pandemic, which had
profound implications for energy consumption patterns around the world and could influence
the results. The data from the International Energy Agency for 2020 indicated a sharp
decrease in energy demand of 5.8% compared to the previous year (IEA, 2020). The global
renewable energy supply chain has faced significant challenges with delays in the
procurement of critical components that have hindered service progress, labour shortages,
and logistical challenges that have led to the postponement of numerous renewable energy
projects (IRENA, 2020). However, governments in several EU states have recognised the
importance of renewable energy for economic recovery and sustainability, leading to
increased investment in clean energy projects. The COVID-19 pandemic caused a transient
reduction in global greenhouse gas emissions as industrial and transport activities were

temporarily stopped during the lockdowns; however, these reductions in emissions were
often short-lived and there was a rapid recovery as economies reopened. It is essential to
recognise that the impact of the pandemic has been temporary and that long-term trends may
not align with short-term disruptions caused by COVID-19.
To determine energy efficiency, we used energy consumption as a proxy, assuming that if
EU member states consume more energy, energy efficiency decreases and vice versa. This
assumption is supported by the fundamental principle of thermodynamics, which states that
energy cannot be created or destroyed, only transformed (Hammond, 2007). Therefore, if
energy consumption decreases, it means that energy is used more efficiently. Energy
intensity, defined as the energy consumption per unit of GDP or other relevant values, is
commonly used as an indicator of energy efficiency. Numerous studies have shown that a
decrease in energy consumption indicates an increase in energy efficiency in economies
(Taylor et al., 2010; Zheng, Qi and Chen, 2011; Paramati, Shahzad and Doğan, 2022). Energy
efficiency programmes led by government and industry have led to positive results in
reducing energy consumption. A study by Allcott and Greenstone (2017) analysed the
effectiveness of energy efficiency programmes and found that they consistently lead to
reductions in energy consumption.
Table no. 1. The panel regression model with fixed effects
Indicator Abbreviations Period Data Assumption Unit of
Source measure
Energy CONS 2012-2021 Eurostat It indicates the Million
Consumption efficiency of the tons of oil
energetic system. equivalent
High consumption
might lead to low
energy efficiency.
Energy PROD 2012-2021 Eurostat The production of Thousand
Production energy from tons of oil
renewable sources. equivalent
Gross GDP 2012-2021 Eurostat Indicator of Purchasing
Domestic economic growth. Power
Product Standards
(PPS)
Greenhouse GHG 2012-2021 Eurostat Indicator of Index,
Gas Emission pollution degree 1990=100
The fixed effects panel regression model is used to estimate the relationship between energy
efficiency, renewable energy consumption, economic growth, and greenhouse gas emissions.
The fixed effects model controls for time-invariant country-specific factors. The model is
estimated using SAS, a statistical software package widely used in data analysis and
modelling. The SAS PROC PANEL procedure is used to estimate the panel regression model
with fixed effects.
We will check unit-root tests to confirm whether the variables are stationary or not. A number
of unit root tests were considered: Levin-Lin-Chu test, Im-Pesaran-Shin test, ADF - Fisher
test and PP - Fisher test. If the test results show that the series are stationary, then the analysis
will proceed with the estimation of the fixed-effects model. Otherwise, we will analyse the
co-integrity test proposed by Pedroni.

Diagnostic tests are performed to test the model assumptions, including the absence of serial
correlation, heteroskedasticity, and multicollinearity. The results of the regression analysis
are then used to draw conclusions about the relationship between energy efficiency,
renewable energy consumption, economic growth, and greenhouse gas emissions in the EU.
Our primary objective is to determine how efficient energy (PROD) and renewable energy
(CONS) affect greenhouse gas emissions (GHC). To do this, we will use a panel data fixed-
effects regression model with the following general specification:
(1)
where:
β0 is the intercept or constant term.
β1, β2, are the coefficients for the independent variables of energy efficiency and
renewable energy use, respectively, which show how much the dependent variable
(greenhouse gas emissions) changes for a one-unit change in each independent variable.
ε is the error term, which accounts for the variation in the dependent variable that is not
explained by the independent variables.
i is the subscript of states and t is the subscript of the time dimension. We have used a
fixed-effects approach to get around the bias caused by omitted variables.
Second, using the same model, we will identify the effect of renewable energy (CONS) and
efficiency energy (PROD) on gross domestic product (GDP).
(2)
3. Results
Table no. 2 provides the descriptive statistics of the variables for the 27 EU member states in
the period 2012-2021. We note that the CONS and PROD variables have leptokurtic
distributions, while the GHG variable has a platykurtic distribution and the GDP variable has
a strongly leptokurtic distribution.
Table no. 2. Descriptive statistics of variables
CONS GHG PROD GDP

Mean 35.84851852 79.45777778 9240.506274 101.1740741
Median 16.45 79.9 4413.0615 90
Standard Deviation 49.49225896 27.87370339 13539.02666 43.96352064
Sample Variance 2449.483697 776.9433408 183305243 1932.791147
Kurtosis 4.660619297 0.163021357 4.384636598 6.343955648
Skewness 2.252925778 0.287213841 2.270310509 2.272124324
Minim 0.5 22.1 73.696 46
Maxim 221 156.5 56063.801 283
Sum 9679.1 21453.6 2494936.694 27317
Count 270 270 270 270

The issue of data instability is an important issue and a point to consider. As the data are
panel-type, Levin, Lin & Chu, Im-Pesaran-Shin, ADF – Fisher, and PP – Fisher tests were
used to determine the stability of the data over the period 2012 – 2021 and to ensure the
robustness of the data. Table no. 3 shows the results:
Table no. 3. Results of panel unit root tests
Variable Levin, Lin & Im-Pesaran-Shin ADF - PP - Fisher
Chu Fisher
CONS -4.00333* -2.42828* -3.79590* -8.10471*
PROD -8.93587* -4.96235* -5.90346* -8.31629*
GHG -5.23088* -2.36813* -3.42944* -7.24475*
GDP -1.39838** -1.25238** -1.83824 -7.50397*
Note: *5% significance level; **10% significance level. The null hypothesis for all tests is that the series has a unit
root.
The results of the stationarity assessments suggest that most variables can be considered
stationary when observed at the level. When we calculate the first difference, we find that we
can reject the unit root hypothesis with a significantly higher confidence level for CONS,
PROD, GHG and GDP; thus all data are stationary, and we can proceed to the estimation of
the fixed effects model.
3.1. Model 1: Fixed One-Way Estimates - Dependent Variable: GHG
The regression model estimates the relationship between greenhouse gas emissions (GHG)
and two independent variables: energy efficiency (CONS) and renewable energy (PROD).
The model uses fixed-effects panel regression to control for unobserved heterogeneity across
EU member states.
Table no. 4. Fixed-effects model statistics
Fixed-effects model statistics
SSE 19145.0228
MSE 79.4399
2
R 0.9084
DFE 241
R - Square 8.9129
Note: SSE = Sum of squares of errors; DFE = Number of degrees of freedom associated with errors: number of
observations in the data set minus number of parameters; MSE = Mean squares of errors.
From Table 4 it can be seen that the value of R2 is 0.9084, which means that the model
explains 90.84% of the variability in greenhouse gas emissions. The very high value of this
indicator may show a false dependence due to the presence of heteroskedasticity and
autocorrelation errors.

Table no. 5. Fixed effects model testing using F-test
F-statistic to test the occurrence of fixed effects
Num DF Den DF F - Value Pr > F
26 241 91.70 <.0001
The F-test for the fixed effects model has a p-value less than 0.0001. This suggests that a
model with fixed effects fits better to the data than a model without fixed effects.
Table no. 6. Fixed effects model parameter estimates
Parameter Estimates
Standard
Variable DF Estimate t Value Pr > |t| Label
Error
Intercept 1 -4.16147 13.1898 -0.32 0.7526 Intercept
CONS 1 0.819719 0.2742 2.99 0.0031 CONS
PROD 1 0.001361 0.00108 1.26 0.2074 PROD
The estimated coefficient for energy efficiency (CONS) is 0.82 and is statistically significant
at the 0.05 level, suggesting that the increase in energy consumption in EU member states
leads to a significant increase in greenhouse gas emissions. This means that a higher energy
consumption suggests a decrease in energy efficiency. The estimated coefficient for
Renewable Energy Production (REC) is 0.001 and is not statistically significant at the 0.05
level. This suggests that renewable energy production does not have a significant effect on
3.2. Model 2: Fixed One-Way Estimates - Dependent Variable: GDP
The regression model estimates the relationship between economic growth (GDP) and two
independent variables: energy efficiency (CONS) and renewable energy production (PROD).
The model uses panel regression with fixed effects to control for unobserved heterogeneity
across EU Member States.
Table no. 7. Fixed-effects model statistics
Fixed-effects model statistics
SSE 12046.2075
MSE 49.9843
R2 0.9768
DFE 241
R - Square 7.0700
Note: SSE = Sum of squares of errors; DFE = Number of degrees of freedom associated with errors: number of
observations in the data set minus number of parameters; MSE = Mean squares of errors.

From Table 7 it can be seen that the R-squared value is 0.9768, which means that the model
explains 97.68% of the variability in economic growth. The very high value of this indicator
may show a false dependence due to the presence of heteroskedasticity and autocorrelation
errors.
Table no. 8. Fixed effects model testing using F-test
F-statistic to test the occurrence of fixed effects
Num DF Den DF F - value Pr > F
26 241 388.29 <.0001
The F-test for the fixed effects model has a p-value less than 0.0001. This suggests that the
fixed effects model fits the data better than a random model.
Table no. 9. Fixed effects model parameter estimates
Parameter Estimates
Standard
Variable DF Estimate t Value Pr > |t| Label
Error
Intercept 1 110.4266 10.4625 10.55 <.0001 Intercept

CONS 1 0.485213 0.2175 2.23 0.0266 CONS
PROD 1 -0.00011 0.000854 -0.13 0.8968 PROD
The estimated coefficient of energy efficiency (CONS) is 0.49 and is statistically significant at
the 0.05 level. This suggests that the increased level of energy efficiency in EU member states
has a positive impact on economic growth. The estimated coefficient for energy production
(PROD) is -0.00011 and is not statistically significant at the 0.05 level. This suggests that
renewable energy production does not have a significant effect on economic growth.
The fixed one-way effects model was evaluated for goodness of fit using several diagnostic
graphs. The Q-Q plot of the residuals showed a long tail on the right, suggesting that the
distribution of the residuals may not be perfectly normal. Although this may be a concern, it
is important to note that the model still provides a good fit to the data overall. One potential
explanation for the long tail could be the presence of outliers in the data, which can have a
large impact on the distribution of the residuals. The histogram of the residuals showed a
bell-shaped curve, which further supports the assumption of normality.
Figure no. 1. Fit Diagnostics Panel for GHG

The Fit Diagnostics Panel for GDP (Figure no. 2) highlights that the Q-Q plot of the residuals
from the fixed one-way effects model showed a pattern where the left end of the points was
above the line and the right end of the points was below the line, with a few points going
above and below the line in each section. This suggests that the distribution of the residuals
may not be perfectly normal, which can be a concern when interpreting the model results.
One potential explanation could be violations of the assumption of constant variance, which
can also cause deviations from normality in the residuals. To investigate this possibility, we
examined plots of the residuals vs. predicted values and found some evidence of
heteroscedasticity in the data. Despite these concerns, we believe that our fixed one-way
effects model still provides a reasonable fit to the data and produces reliable results. However,
it is important to be cautious when interpreting the results and to keep in mind the potential
limitations of the model.
Figure no. 2. Fit Diagnostics Panel for GDP
4. Discussions
There is a significant and positive relationship between energy consumption and greenhouse
gas emissions. As energy consumption increases, greenhouse gas emissions tend to increase.
The positive and significant coefficient estimate for energy consumption suggests that
policies aimed only at reducing energy consumption may not be sufficient to reduce
greenhouse gas emissions. The link between sustainable development and the effective
mitigation of environmental challenges is of primary importance to understand and address
current sustainability concerns. In the pursuit of sustainability and the mitigation of climate
change, a concerted effort is imperative to begin a transition to cleaner and more sustainable
energy alternatives. In this context, an integral and comprehensive strategy to create a
sustainable energy landscape is the convergence of energy-saving measures with the
widespread integration of cleaner and renewable energy sources. Such an integrated
framework promotes a sustainable trajectory for the well-being of both present and future
generations by aligning with the overarching goals of climate change mitigation and long-
term environmental health.
Considering increased energy consumption as equivalent to low energy efficiency, we can
say that there is a significant and negative relationship between energy efficiency, renewable
energy production, and greenhouse gas emissions. This means that when energy efficiency
is low and renewable energy is limited, the result is higher greenhouse gas emissions. By
adopting energy-efficient technologies, we can optimise energy consumption, thereby

reducing the overall environmental burden and promoting sustainability. The evidence
presented validates hypothesis 1 based on the previous assumptions.
There is a significant and positive relationship between economic growth and energy
consumption. As economic growth increases and energy consumption tends to increase, the
third hypothesis is confirmed. However, the relationship poses challenges to long-term
environmental sustainability. Increased energy use driven by economic expansion is a factor
in the climate change crisis, air and water pollution, depletion of natural resources, loss of
biodiversity, and waste production. It is important to create a resilient future that benefits
society and the environment by incorporating sustainability into economic growth strategies.
Therefore, the results suggest that policies and measures aimed at increasing energy
efficiency and renewable energy production could be effective in reducing greenhouse gas
emissions in EU member states. However, efforts to promote economic growth must also
take into account the potential increase in energy consumption and greenhouse gas emissions.
The estimated insignificant coefficient for renewable energy production suggests that
policies aimed at increasing renewable energy production may not have a significant impact
on greenhouse gas emissions or economic growth. The lack of visible impact on gas
emissions indicates that simply expanding renewable energy production without considering
the type of energy source used or its environmental effects may not be an effective way to
combat climate change or reduce emissions. This suggests that other aspects of climate
change mitigation, such as energy mix, energy efficiency, or the use of renewable energy
sources, may be more important. Similarly, the insignificant effect on economic growth
suggests that it is not just energy quantity that may be the sole factor in determining economic
prosperity; other elements affecting economic growth include trade policy, labour skills,
technological advances, and general economic conditions. As a result, the assumptions for
the second and fourth hypotheses are not met.
From a political perspective, the study indicates that policy makers are of great importance
to energy policy, focussing on energy efficiency and renewable energy to achieve the goals
of climate change and economic development. These results support the adoption of policies
that encourage responsible energy consumption and promote sustainable economic and
environmental development. The EU can pave the way for a greener and more sustainable
energy landscape in its member countries by adopting specific policies that encourage energy
efficiency, promote renewables, and discourage overuse. These rules can also support
economic stability, energy security, and a smaller carbon footprint.
Conclusions
This study has evaluated the relationship between energy efficiency, renewable energy
consumption, economic growth, and greenhouse gas emissions for EU member states for the
period 2012-2021. We use a panel regression to verify the assumptions.
Four assumptions were considered: (i) increasing energy efficiency in EU member states will
lead to significant reductions in greenhouse gas emissions; (ii) increasing renewable energy
production in EU member states will lead to significant reductions in greenhouse gas
emissions; (iii) increasing energy consumption in EU member states will have a positive
impact on economic growth; and (iv) increasing renewable energy production in EU member
states will have a positive impact on economic growth.

Notable findings include a significant positive link between energy consumption and
greenhouse gas emissions, highlighting the need for a holistic approach to reducing emissions
beyond simple energy conservation. The importance of integrating cleaner and renewable
energy sources into the energy landscape to achieve sustainable development and climate
change mitigation is highlighted. Furthermore, the study validates the importance of
promoting energy-efficient technologies and the adoption of renewable energy sources to
reduce emissions, aligning with existing theoretical frameworks. The study suggests that
economic growth strategies should incorporate sustainability principles to balance economic
progress and environmental conservation. The insignificant impact of energy production on
greenhouse gas emissions and economic growth underlines the need to consider the quality
and environmental effects of energy sources. It points out that only the expansion of
renewable energy production may not effectively combat climate change or promote
economic prosperity.
The two models show that increasing energy efficiency or renewable energy consumption
leads to a significant reduction in greenhouse gas emissions. The evidence presented not only
validates Hypothesis 1 based on the previous assumptions, but also shows that there is a
positive and significant relationship between economic growth and energy consumption. As
economic growth increases, energy consumption tends to increase.
At the same time, the negligible estimate of the renewable energy production coefficient
suggests that policies aimed at increasing energy production may not have a significant
impact on greenhouse gas emissions or economic growth. Therefore, the assumptions of the
second and fourth hypotheses are not satisfied.
In terms of the limitation of the study, there is no perfect indicator to match energy efficiency,
and therefore we used the proxy variable of energy consumption. A notable limitation of our
analysis is the observed correlation between the independent variables, energy efficiency,
and renewable energy production, which could introduce multicollinearity issues in our
models. Although steps have been taken to address this limitation by using fixed-effects
models that account for unobserved time-invariant heterogeneity, the presence of correlated
independent variables remains a concern. Future research could explore more advanced
statistical techniques to better understand the effects of these factors and provide more precise
estimates. Additionally, expanding the data set to include a more comprehensive set of
control variables or exploring regional variation within the panel data could further enhance
the robustness of our findings and contribute to a deeper understanding of the complex
interaction between the variables analysed.
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Amfiteatru Economic Journal

The Bucharest University of Economic Studies

Amfiteatru Economic Journal

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In the contemporary context dominated by rapid technological advances, sustainable

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948 Amfiteatru Economic

Professor Alina Mihaela DIMA, PhD

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THE SUSTAINABILITY OF DIGITAL NETWORKS AND GLOBALISATION,

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Keywords: resilience, globalisation, digitalisation, networks, sustainability, multivariate

JEL Classification: L14, L26, C01, O52

950 Amfiteatru Economic

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1. Review of the scientific literature

952 Amfiteatru Economic

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Globalisation can be defined as a process of interconnection that creates a global information

Figure no. 1. Principal studies on resilience, networks and globalisation

954 Amfiteatru Economic

Figure no. 2. Word co-occurrence network in WOS publications

Vol. 25 • Special Issue No. 17 • November 2023 955

2. Data and methodology

956 Amfiteatru Economic

Figure no. 3. FM Global Resilience Index - Country Score (2021)

Figure no. 4. Networked Readiness Index - Country Score (2020)

Vol. 25 • Special Issue No. 17 • November 2023 957

Figure no. 5. KOF Globalisation Index - Country Score (overall 2019)

3. Results and discussion

958 Amfiteatru Economic

Vol. 25 • Special Issue No. 17 • November 2023 959

Figure no. 6. Correlogram, European Union countries

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Marković, M.R., 2018. Resilience of Small and Medium-Sized Enterprises in Terms of

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DIGITALISATION AND SKILLS ADEQUACY AS DETERMINANTS

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1. Literature review and hypotheses development

970 Amfiteatru Economic