Evaluation of Digital Development Indexes Using MEREC and Hybrid MCDM Methods

Abstract

The use of relevant and structured instruments for measuring digital development is essential for policy-making in digitalization. The aim of the research is to compare structural adequacy of the global digital development indexes by means of multicriteria decision-making (MCDM). Theoretical contribution is to develop an evaluation framework and propose a novel methodological integration. Nine criteria were used to quantify six indexes: the Network Readiness Index (NRI), the E-Government Development Index (EGDI), the Digital Economy and Society Index (DESI), the ICT Development Index (IDI), the IMD World Digital Competitiveness Ranking (IMD) and the Global Digital Index (GDI). The criteria's objective weights were evaluated using the Method based on the Removal Effects of Criteria (MEREC) and the weights alterations effect was considered using the Shannon entropy method. The final prioritization was consolidated using five MCDMs scores: Combined Compromise Solution (CoCoSo), Measurement Alternatives and Ranking according to the Compromise Solution (MARCOS), Additive Ratio Assessment (ARAS), COmbinative Distance-based ASsessment (CODAS) and Evaluation based on Distance from Average Solution (EDAS). Practical contribution and originality are presented by proposing first time evaluation framework of digital development indexes based on a recently proposed MEREC and selecting the most appropriate index (NRI) in a neutral MCDM context.