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Quantifying the Digital Divide: A Data-Driven Approach with EFA, Shannon Entropy and Sensitivity Testing

Petkovski Ivana, Vranić Petar

Foundations of Computing and Decision Sciences

2025

Vol. 50, No. 4

511--536

In the digital world, inequalities in digital participation often arise as a consequence of the uneven distribution of digital resources. Therefore, the objective of this study is to develop a digital divide index (DDI) that facilitates the temporal and spatial examination of disparities in the availability and quality of internet access, internet use and outcomes. Empirical data for 27 European countries were collected from online available datasets for 2014 and 2022. Exploratory factor analysis (EFA) was used to identify factors in DDI, while the weight values were calculated using the Shannon entropy method. The average difference in DDI scores indicates a spread of the digital divide facilitated by Finland, Latvia, Estonia, Germany, Poland and Slovakia. States in Northern and Central Europe like Norway, Austria and the Czech Republic are at the forefront of achieving digital equality. Spatial analysis reveals that Benelux countries along with Scandinavian countries show the highest levels of DDI, while Southern Europe lags behind. Sensitivity testing results show a stable index structure with variations in the importance of factors not significantly affecting the ranking results.