Data normalization and linear ordering of the European Union countries analysed with regard to the level of ICT usage in enterprises Cover Image

Normalizacja zmiennych a porządkowanie krajów Unii Europejskiej pod względem stopnia wykorzystania technologii ICT w przedsiębiorstwach
Data normalization and linear ordering of the European Union countries analysed with regard to the level of ICT usage in enterprises

Author(s): Patrycja Wieczorek, Eliza Frejtag-Mika
Subject(s): ICT Information and Communications Technologies
Published by: Wydawnictwo Uniwersytetu Rzeszowskiego
Keywords: methods of normalization; linear ordering; ranking; EU countries

Summary/Abstract: The main issue of multivariate comparative analysis is the normalization of variables. The literature offers various procedures for data normalization, and therefore the researcher has to choose between them. The article presents and discusses the most commonly used normalizing formulas. The article assesses the impact of data normalization procedures on the results of the linear ordering of European Union countries in terms of the level of ICT usage in enterprises. A hypothesis was formulated that the method of data normalization influenced the position of the objects in the ranking. The study is based on statistical data from Eurostat for the year 2018. Based on the selected diagnostic variables, values for a synthetic measure have been determined for individual countries. The synthetic measure was calculated according to the model-less method of linear ordering using four types of normalization. The method used in the research allowed the creation of rankings for the countries. The compliance of the orders thus obtained was compared using the Spearman’s coefficient of range correlation and the measure of similarity of rankings. As the study shows, the choice of normalization formula influences the result of linear ordering, which is not due to any change in the data structure. It was proven that the quotient transformation with the normalization base equal to the maximum value allowed the most similar ranking to be obtained of the examined objects in relation to the Rother rankings. The results of the study show that Denmark, Sweden and Finland had the highest positions in each ranking while Bulgaria, Romania and Latvia had the lowest positions.

  • Issue Year: 2021
  • Issue No: 65
  • Page Range: 74-89
  • Page Count: 16
  • Language: Polish