Impact of ICT on regional supply chains in CEECs

Abstract

Purpose: This paper aims to examine the impact of information and communication technologies and their availability in the Central and Eastern European countries that are members of the EU on regional value chains and regional supply chain management and logistics in CEECs in the context of the growing e-commerce industry.Methodology: We used a balanced data panel of 11 countries over 9 years (2011-2019) to examine the impact of ICT indicators on regional supply chains. Th e analysis included the ordinal Spearman rank correlation coefficient and the panel GMM method, which accounts for endogeneity. We implemented the Arellano-Bond estimator within the GMM framework, considering the ordinal nature of the dependent variable. This approach allowed for an effective analysis of the complex relationships in the data, considering the panel structure and the individual country observations.Results: The findings indicate that the hypothesis claiming that the integration of digital technologies in supply chains in CEEs leads to statistically significant improvements in efficiency, controllability, and cost-effectiveness, cannot be rejected. Enhanced communication, collaboration, and overall logistics performance have led to increased customer satisfaction. Additionally, the study shows a positive correlation between ICT infrastructure and logistics performance, emphasizing the crucial role of digital innovations in shaping supply chain dynamics.Conclusion: Th e study supports the hypothesis that integrating digital technologies into supply chain management in Central and Eastern Europe is associated with enhanced efficiency, resilience, and economic integration through value-added export. Th ese insights offer pathways to foster economic integration in the region.