SITI NUR DAYANA BINTI HAINULAH Pusat Jaringan Komuniti, Jabatan Jaringan Industri, Komuniti & Alumni (ICAN) UiTM Shah Alam
Digital transformation refers to the process of using digital technologies to create new or modify existing business processes, organizational culture and customer experiences. In this study, public administrations are facing increasing demands to improve their efficiency. However, public sector companies often work with limited resources and have to deal with complex and diverse customer demands. Therefore, the use of Data Envelopment Analysis (DEA) is very useful in rapidly transforming digital world today to provide a structured and objective method to evaluate efficiency levels among different countries.In addition, the purpose of this study is to evaluate the performance of digital transformation in European countries. A total of 27 countries in Europe were analyzed using the Bi-Objective MCDEA BCC Output-Oriented Model, Super Efficiency (SE) Model and Slack-Based Measure (SBM) Model to determine the efficiency score and suggest the most efficient digital transformation in European Countries. As a result, the findings reveal that Portugal emerged as the most efficient country in terms of digital transformation with a score of 1.009678 according to both the Bi-Objective BCC Output-Oriented Model and the SE Model calculation. This indicates that Portugal has successfully optimized its digital transformation efforts compared to its European counterparts. At the same time, Cyprus has the lowest SBM score at 0.2117047, making it the most inefficient European country. In conclusion, this research aims to provide valuable insights through a case study on digital transformation performance in 27 European countries. Therefore, by measuring and comparing efficiency, identifying the top performing countries and offering recommendations for improving the less efficient ones using the SBM model to enhance digital competitiveness and foster more efficient transformation strategies across the region and globally.