10th 

International Conference
Jaipuria Institute of Management Jaipur

DIGITAL GOVERNANCE
PERFORMANCE IN THE EU AND
BRICS INTERNET OF THINGS
CONTEXT. A MOUNTAIN AREA
MODEL
Brîndușa Covaci, Mihai Covaci
CBM International University / Oradea University / Hyperion University /
Centre for Mountain Economy
 Abstract
 Purpose: Digital governance evolved considerably in the last decades, especially in the context of
the 6G generation. Information Technology (IT) transformed humanity and the general paradigms of
human beings. More, the Internet of Things (IoT) reframes the socio-economic environment. The
paper analyses the specific context of the European Union (EU) and Brazil, Russia, India, China and
South Africa (BRICS) digital governance.
 Design/methodology/approach: Quantitative data from the United Nations, World Bank, Eurostat,
TradeMap, and other international databases were analysed and simulated through SPSS and Excel.
ANOVA (descriptive and frequency statistics) and forecasting techniques were applied. Qualitative
data were observed, following a thematic analysis path.
 Findings/results: The results revealed that the proposed hypothesis and indicators were validated.
Digital governance offers the right way for leaders to focus on other responsibilities, rather than a
decision-making network. A well-structured IT governance constitutes a strong management tool,
permitting the creativity and development of other different administration skills and jobs to evolve
production and advertising more than establishing the right way for communication (which is a good
IT governance context is developed more than without it).
 Practical implications: Technology development, especially IT, changed the framework of public and
private governance. Digital technologies resolve a multitude of socio-economic entity problems (all
environmental problems) and create new ones (especially connected with information security,
cryptography, and privacy).
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 Highlights

 Research proposes five new indicators for public and private governance, especially
for the IT.
 The EU and BRICS countries could follow common IT governance models.
 Public and private governance becomes a strongest defence system against socio-
economic chaos.
 IT sector is the most powerful tool in implementing private and public governance.

 Keywords: BRICS & EU; digital governance; IT governance; IoT; mountain model
 JEL codes: D73, G34, L86

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 Hypothesis

 H1. If the quality of public and private governance is strong, the economy of that country is
strong; and, more IT governance strength the general governance – Indicator Value added of
the IT governance tangible assets from a country (A)
 H2. The development influences the governance in the RDI sector, the IT part being crucial –
Indicator Value added of the IT governance tangible assets from a country (A)
 H3. Digital governance in an electronic context should develop the resilience of the socio-
economic environment of a country – Indicator Value added of the e-IT governance from a
country (B)
 H4. Public and private governance, especially IT governance, is under the auspices of the
technical development – Indicator Value added of the digital governance technology from a
country (C)
 H5. IT governance and the entire digital governance environment are influencing the business
performance – Indicator Value added of the digital corporate governance technology from a
country (D) and Value added of the digital corporate governance technology in the mountain
area (E)

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 Methodology
 Value added of the IT governance tangible assets from a country (A) (H1 and H2)
represents the totality of the value of the tangible assets from a country, which
could participate in the public or private governance technology. Value added of
the IT governance tangible assets from a country (A) is expressed as value added to
the index of the number of IT intern products () adding value added to the index of
the number of IT imports () and decreasing value added of the index of the number
of IT exports (). Exactly, it is the net value of the IT devices used/commercialized in
a country.
 (1)
 where n – year series of the analysis

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 Methodology
 and where the value added of the index of the number of IT intern production () is
equal to the number of IT intern production () divided by the number of all intern
production () and multiplied by 100 (percent)
 (2)
 and where value added of the index of the number of IT imports () is the expression
of the number of IT imports () divided by the number of all imports () multiplied by
100 (percentage)
 (3)
 and where value added of the index of the number of IT exports () is the expression
of the number of IT exports () divided by the number of all exports () multiplied by
100 (percentage)
 (4)

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 Methodology
 Value added of the e-IT governance from a country (B) (H3) represents the IT
governance from a country applied in an electronic environment, especially the
internet (public governance and private governance) is expressed as value added of
the IT governance tangible assets from a country (A) multiplied by the value added
of the index of internet access (; is calculated as the percent of the population with
internet access as a unitary index (divided by 100)
 (5)
 Value added of the digital governance technology from a country (C) (H4) (the
totality of devices and connections for public governance and private governance)
is expressed as value added of the e-IT governance from a country (B) multiplied
(weighted) by the IoT from a country () (expressed as a unitary value, meaning
divided by 100)
 (6)

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 Methodology
 Value added of the digital corporate governance technology from a country (D)
(H5) (the totality of devices and connections for corporate governance) is expressed
as value added of the digital governance technology from a country (C) multiplied
(weighted) by the value added of the index of the IT active enterprises from a
country ( (expressed as a unitary value, meaning divided by 100)
 (7)
 where the value added of the index of the IT active enterprises from a country ( is
the expression of the IT active enterprises from a country () divided by the all active
enterprises from a country () and multiplied by 100 (percentage)
 (8)

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 Methodology
 Value added of the digital corporate governance technology in the mountain area
(E) (H5) (the totality of devices and connections for corporate governance in the
mountain area) is expressed as value added of the digital governance technology
from a country (C) multiplied (weighted) by the value added of the index of the IT
active mountain enterprises from a country ( (expressed as a unitary value, meaning
divided by 100)
 (9)
 where the value added of the index of the IT active mountain enterprises from a
country ( is the expression of the IT active mountain enterprises from a country
divided by all active mountain enterprises () and multiplied by 100 (percentage)
 (10)

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 Results and discussion
 Value added of the IT governance tangible assets from a country (A) (data
according to the United Nations, TradeMap and IBIS World) in the analysed period
for the EU and BRICS evaluated countries present different values, according to the
belonging interval. Thus, countries belonging to the 0-5 first interval (Austria 4.69,
Bulgaria 4.96, Croatia 3.66, France 3.39, Italy 3.95, and Spain 4.10) must strongly
increase their resilience to IT governance and investment in the IT tangible assets
represent the key for value-added development. Countries belonging to 5-10
second intervals (Brazil 7.83, China 9.33, India 5.71, Poland 7.20, Portugal 5.96,
Romania 6.77, and Russia 8.77) are emergent in IT governance and the investment
in tangible assets could be at fewer values in order to develop general governance
chain. Countries having values over 10-third intervals (Czechia 14.81, Slovakia 12.68,
and South Africa 13.36) present high resilience and value-added IT governance;
these countries already invest significantly in IT production and export, their IT
potential being enormous. Even if the revealed comparative advantage (outputs,
exports, and imports) of China and Czechia present favourable values, Czechia
represents the most emergent among all the analysed countries (table 1).

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 TABLE 1: Value added to the indexes of the IT
production (), imports () and exports ()
Countries Value added to the index of the Value added to the index of the Value added to the index of the
number of IT intern production () number of IT imports () number of IT exports ()
Austria 2.74 4.71 2.76
Brazil 2.66 9.27 4.10
Bulgaria 0.99 4.52 0.56
China 13.93 18.11 22.71
Croatia 0.70 4.01 1.05
Czechia 4.80 16.63 6.62
France 2.96 5.45 5.01
India 2.25 8.85 5.39
Italy 1.13 4.45 1.64
Poland 1.42 6.85 1.07
Portugal 0.44 5.65 0.13
Romania 2.10 6.71 2.05
Russia 02/12/2023 2.53 www.jaipuria.ac.in 8.51 2.27 11
 Results and discussion
 Value added of the e-IT governance from a country (B) (data according to World
Bank), depending on the value added of the index of internet access ( and being
the expression of the IT used in electronic access (internet and, partially, intranet),
presents decreased values for the countries such as Austria 20.51, Bulgaria 16.79,
Croatia 13.82, France 14.15, India 9.07, Italy 13.98, Portugal 22.70, Romania 25.01,
and Spain 18.49 and increased values for Brazil 29.60, China 30.23, Czechia 59.77,
Poland 29.04, Russia 36.18, Slovakia 53.88, and South Africa 44.31. Even if the value
added of the index of internet access ( presents increased or decreased values,
respectively Austria 4.38, Brazil 3.78, Bulgaria 3.38, China 3.24, Croatia 3.78, Czech
Republic 4.04, France 4.17, India 1.59, Italy 3.54, Poland 4.03, Portugal 3.81, Romania
3.70, Russia 4.13, Slovakia 4.25, South Africa 3.32, and Spain 4.51, these does not
mean that a country with high internet access it has more success in the electronic
governance than one with low internet access. Countries with increased values
valorise their IT potential in electronic environment for governance development
better than the others. The success of the B indicator depends not only on the
internet access or the A indicator, but it is influenced by their potential valorisation
for electronic governance.

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 Results and discussion
 Another important indicator in IT governance, proposed to be value added of the
digital governance technology from a country (C) (data according to the Eurostat),
shows the potential of a country in applying the index of the IoT () to electronic
governance (only some devices from electronic governance participate to the
internet of things). According to Eurostat and the authors' calculation, index of the
IoT present high values for Austria 0.32, Croatia 0.2, Czechia 0.44, Italy 0.23,
Portugal 0.2 and Spain 0.2, and low values for Bulgaria 0.12, France 0.1, Poland 0.17,
Romania 0.07, and Slovakia 0.17. Digital governance technology from the EU
analysed countries, in concordance with , situate Czechia 26.30 in the top of the
value added to this indicator, followed by Slovakia 9.16, Austria 6.56, Croatia 2.76,
Poland 4.94, Portugal 4.54, Spain 3.70, Italy 3.22, Bulgaria 2.01, Romania 1.75, and
France 1.41. Countries with a value under 5 should be more resilient in applying the
IoT in public and private governance.

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 Results and discussion
 Value added of the digital corporate governance technology from a country (D)
(data according to the Eurostat), depending on value added of the index of the IT
active enterprises from a country (, presents relevant values for the analysed
countries. Countries with low , respectively Bulgaria 3.66, Italy 2.44, Portugal 1.74
and Spain 2.07, must be more resilient in developing the IT population of active
enterprises. The others, such as Austria 4.93, Croatia 5.09, Czechia 4.33, France
4.05, Romania 4.86, and Slovakia 4.64, should strengthen the activity of the IT
economic entities. Digital corporate governance from the presented countries, D, is
valorised by the IT environment. Some of the countries, Austria 32.38, Czechia
113.90 and Slovakia 42.46, valorise more their IT corporate governance. Other
countries, such as Bulgaria 7.38, Croatia 14.07, France 5.73, Italy 7.86, Portugal 7.89,
Romania 8.51, and Spain 7.67, should persuade in developing the resilience of the IT
corporate governance and in the higher valorisation of digital activities.

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 Results and discussion
 The mountain area presents a series of disadvantaged issues – natural handicaps,
but the most important is connected by IT activities. In this context, the value added
of the digital corporate governance technology in the mountain area (E) (data
according to the Eurostat) represents an important indicator for the development of
the mountain area. The digital corporate governance from a mountain area,
depending on the value added of the index of the IT active mountain enterprises
from a country (, fluctuates considerably in the presented countries. Countries with
low , Croatia 2.70, Czechia 3.02, France 2.76, Italy 2.22, Portugal 1.01 and Spain
1.85, should invest more in the IT environment of the mountain area. The others,
Austria 3.67, Bulgaria 4.47, Poland 3.57, Romania 4.29, and Slovakia 3.54, should
maintain their pole position in IT development of the mountain area. Countries from
the mountain area with high resilience to digital corporate governance (E), such as
Austria 24.11, Czechia 79.35, and Slovakia 32.44, represent a model for the others,
Bulgaria 9.01, Croatia 7.46, France 3.91, Italy 7.15, Portugal 4.61, Romania 7.52, and
Spain 6.83.

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 Results and discussion
 Result 1 (R1) confirm the H1: If the quality of public and private governance is strong, the
economy of that country is strong; and, more IT governance strength the general governance
– Indicator Value added of the IT governance tangible assets from a country (A)
 R2 confirm the H2: The development influences the governance in the RDI sector, the IT part
being crucial – Indicator Value added of the IT governance tangible assets from a country (A)
 R3 confirm the H3: Digital governance in an electronic context should develop the resilience
of the socio-economic environment of a country – Indicator Value added of the e-IT
governance from a country (B)
 R4 confirm the H4: Public and private governance, especially IT governance, is under the
auspices of the technical development – Indicator Value added of the digital governance
technology from a country (C)
 R5 confirm the H5: IT governance and the entire digital governance environment are
influencing the business performance – Indicator Value added of the digital corporate
governance technology from a country (D) and Value added of the digital corporate
governance technology in the mountain area (E)

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 Conclusion
 The paper reveals the importance of digital governance for the public and private sectors, with focus on
the EU and BRICS countries.
 The results validate the hypothesis of the article and confirm the importance of the proposed indicators
for the general governance performance, especially IT governance sustainability. Value added of the IT
governance tangible assets from the EU and BRICS (A) show that the IT sector applied in private and
public governance strengthen the socio-economic environment from the analysed countries. The second
indicator, Value added of the e-IT governance from a country (B) , confirm the importance of electronic
environment in the EU and BRICS area, especially the internet, in public and private governance
sustainability. Value added of the digital governance technology from a country (C) present the effects
of the IoT in developing digital governance from the EU. The performance of the corporate governance is
calibrated in the paper for the EU area through the indicator Value added of the digital corporate
governance technology from a country (D) . Regarding mountain corporate governance, the indicator
Value added of the digital corporate governance technology in the mountain area (E) show that socio-
economic performance from the EU countries is at high standards and could improve considerably.
 This research was limited to existent data and the A and B indicators was fully validated, for both the EU
and BRICS. Indicators C, D and E was validated for the EU area. Future approaches could develop
indicators C, D and E for BRICS area, in respect with governmental extension data. The current paper is an
invitation for BRICS countries to develop similar data with the Eurostat database, regarding IoT, population
of active enterprises and mountain region data.

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 9th International Conference in the Series of Youth 2025

“Envisioning India’s Future: Growth, Innovation, Sustainability, Happiness & Wellbeing

PRESENTED BY:
Brîndușa Covaci, Mihai Covaci
CBM International University / Oradea University / Hyperion University / Centre for Mountain Economy

zealandina.agency@gmail.com

02/12/2023 www.jaipuria.ac.in 20