While digital technologies continue to change various industries, many sectors are adopting digital transformation, including logistics, which is critical for the functioning of supply chains and the flow of international trade. At this point, digital transformation has become a strategic tool for the logistics sector and can play a pivotal role in improving its performance. However, little is known about the link between digital transformation and logistics performance from a large-scale perspective. In addition, further quantitative research is needed to derive evidence-based implications. To address these gaps, the effects of digital transformation and its components on the logistics performance of countries are examined through panel regression analysis. The components under consideration include human capital, internet connectivity, digital technology integration in business, and digitalization of public services where relevant indicators about digital transformation are derived from the Digital Economy and Society Index. The analysis employs a panel data estimation technique with Driscoll-Kraay standard errors, applied to a dataset of 25 European Union member states spanning 2017-2022. The findings highlight the power and potential of digital transformation in improving logistics performance. This research offers recommendations for policymakers and practical implications for the logistics sector regarding the relationship between digital transformation and logistics competitiveness.
Keywords: International logistics, Logistics performance, Digital transformation