The Synergy Among Digitalization, Economic Competitiveness, and Sustainability in Business: An Integrative Approach for the European Union

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ABSTRACT Digital transformation is an important driver of economic development and sustainability in the European Union (EU). This study examined the impact of digitization on economic performance and the achievement of the Sustainable Development Goals (SDGs) in EU countries. The research applied quantitative methods such as structural equation modeling against data from the ICT Development Index, Global Competitiveness Index, and SDG Index Score. The results revealed a significant positive correlation among digitization, economic competitiveness, and sustainability. The countries employing advanced digital infrastructure showed better economic performance and progress in implementing sustainable practices than nations with limited digital capacities. The results highlight the need for integrated strategies combining digital transformation and sustainability to maximize economic and environmental benefits. The concept is based on the Triple Bottom Line model and stakeholder theory, and the practical implications can effectively guide policymakers and companies in adopting sustainable digital solutions. Future research should explore long‐term effects and cross‐sectoral differences to expand on these relationships.

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