Business digitalization in Italy: A comprehensive analysis using supplementary fuzzy set approach

Abstract

In an era where digital technologies such as AI, cloud computing and IoT are reshaping global business dynamics, the digital transformation of enterprises has become a pivotal factor for maintaining competitive advantage. This paper provides an in-depth analysis of the digitalization process among Italian firms, leveraging data from the ISTAT ICT survey. Using a fuzzy set approach, we develop a refined index to measure technological deprivation across multiple dimensions, providing a detailed understanding of how digitalization is adopted at the firm level. The results indicate a moderate level of technological development among firms. The dimension related to online sales emerges as the most underdeveloped, highlighting it as a critical area for improvement for Italian companies and underscoring the need for targeted policy interventions to bridge these digital gaps. Moreover, the analysis reveals significant disparities across sectors, geographic areas, and firm sizes, with smaller enterprises and those in certain regions exhibiting lower levels of digital adoption. Our study underscores the utility of the fuzzy set methodology for analyzing high-dimensional big data and provides actionable insights for enhancing digital adoption among firms in Italy.