Can EU Countries Balance Digital Business Transformation with the Sustainable Development Goals? An Integrated Multivariate Assessment

The aim of the study was to evaluate the digital business transformation across EU countries and its relationship with key Sustainable Development Goals (SDGs): SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action). The Digital Business Transformation Index, developed from eleven digital technology indicators related to e-business and e-commerce, is constructed using Principal Component Analysis to provide a comprehensive framework for assessing digitalization at the enterprise level. The results reveal substantial disparities among member states, with northern and western countries leading, while southern and eastern countries are lagging behind. Regression analyses show a strong positive relationship between digital business transformation and SDG 9 and a negative association with SDG 13. Cluster analysis identifies six groups of countries with varying levels of digital and sustainability performance and emphasizes the need for tailored policy responses. Evidence confirms a digital–green trade-off in many EU countries; however, strategic policy integration can mitigate this challenge. The findings underline the importance of targeted investments in R&D, digital infrastructure, and ICT training, particularly in underperforming regions. Tailored measures are essential to ensure that digital business transformation aligns with inclusive and sustainable development across the EU.