The increase in studies on how digital transformation based on the application of digital technologies affects the sustainable development of various sectors of the economy has been observed. Although digital transformation is important for the financial sector sustainable development, the drivers and links between them are weakly addressed by researchers. The study is aimed at exploring how digital transformation due to the application of innovative technologies and solutions, especially digital payments, is leading to the financial sector sustainable development through financial inclusion and operational efficiency. The current research presents the study of the financial sector digital transformation and its sustainable development based on a systematic literature review, a secondary data analysis, and expert interviews to provide further research directions and draw practical suggestions for professionals on the financial sector digital transformation toward sustainable development in the future. A systematic literature analysis is performed based on text analytics, a bibliometric analysis, and network maps aimed at acknowledging the existing research outcomes and identifying the research gaps on the digital transformation agenda in the financial sector. The collected data on the digital payments’ dynamic in the EU were analyzed with the use of statistical methods, including a correlation and regression analysis. Structured expert interviews were used to validate research findings and to highlight key issues of the digital transformation in the financial sector of Baltic countries. The authors have paid special attention to the sustainable development of the financial sector’s economic dimension and its efficiency indicators, such as financial inclusion and digital payments’ intensity. A social dimension is limited toward financial inclusion based on digital payments’ offering. The research results indicated recent trends in digital transformation and types of usage of digital technologies in the EU and Baltic countries to ensure the sustainable development of financial institutions. Furthermore, the results revealed a significant increase in the digital payments’ intensity during the last years in the EU, as well as a close relationship between digital payments with financial inclusion and operational efficiency of financial institutions.

The objective of this study is to conduct an analysis of regional development and competitiveness in the EU and Latvia under current conditions of economic globalization. This paper makes an attempt to evaluate a theory of regional development and regional competitiveness concept in relation to regional competitiveness in the light of current global economic changes. The authors emphasise that the regional development is based on competitive advantages, which has been a subject of fundamental research by Michal Porter and that serves as a basis for the current scientific methodology to assess competitiveness of regions and countries. The authors support a view of many scholars to consider regional competitiveness as the capacity of a region (or country) to create and support competitive economic environment. Further research reveals the impact of globalization on regional development by analysing interaction between the Globalization Index (GI) and the Global Competitiveness Index (GCI). Quantitative and qualitative analysis, i.e. literature analysis, comparative analysis and correlation analysis performed for this study reflect that competitiveness under global economic conditions is determined by the development stage of each region – competitiveness of a less developed region is more dependent on production factors, while competitiveness of a higher developed region is based on innovation. The correlation analysis reveals that the impact of globalization is stronger for those EU countries, which are in the efficiency-driven stage of development thank for those, which are in the innovation-driven stage. The results of this research could be useful for economic policy makers to determine the role of institutions, policy instruments and factors, which are necessary for attaining higher productivity, efficiency and profitability better withstand forces of competition on global and regional markets.

Digital trust is increasingly crucial for successful interactions in modern digital environments. However, the existing literature lacks a unified definition and a comprehensive understanding of its core factors. This study addresses these gaps by conducting a systematic literature review to explore and synthesise existing definitions of digital trust and identify the fundamental factors that shape it. A total of 86 relevant sources were analysed, revealing that digital trust is typically conceptualised as confidence in people, processes, and technology aimed at ensuring a secure digital environment, with data protection and privacy playing critical roles. Through thematic analysis, “openness” emerged as an additional factor complementing previously established elements of the integrative model of organisational trust, such as ability, benevolence, and integrity. Based on 42 definitions, we developed a new holistic definition of digital trust. The authors evaluated its content validity, confirming its alignment with the essential factors shaping digital trust’s essence. The findings highlight the multidimensional nature of digital trust and offer an operationalised framework for future measurement and application.

In this paper, we identify the synergic link between the organisational elements sustainability and digitalisation by implementing digital sustainability reporting (DSR) in the context of the Corporate Sustainability Reporting Directive (CSRD). Founded on bibliometric analyses and a literature-based scientific discussion, this conceptual paper provides modern definitions of sustainability, digitalisation, and digitainability. Additionally, based on analyses of the CSRD regulatory framework, a definition of DSR is suggested. Our findings align with those of other scholars who highlight the crucial role of digitainability in successfully executing organisational changes. Furthermore, the CSRD’s role in providing a digital framework for sustainability reporting (SR) and shaping organisational digitainability is outlined. This study uncovers a novel collection of emerging digitainability concepts compliant with the DSR requirements under which organisations can pursue organisational transformation. This paper also provides DSR-related recommendations to top management for adopting organisational systems to comply with CSRD reporting requirements.

This conceptual paper aims to discuss the crucial transformation of the impacts of big data analytics capability (BDAC) elements on business performance using the framework of sustainability reporting. The authors applied a literature review, content analysis, and bibliometric analysis as the core methodology for this study to define the key success factors for BDAC development in the organisation. The results are based on the theoretical framework of resource-based theory and knowledge-based theory and illustrate the link between BDAC elements and the financial and sustainability conceptualisation of business performance presented in the novel conceptual model. This study contributes to the literature by presenting a sustainability reporting diamond that defines BDAC elements’ key success factors necessary to integrate sustainability reporting in the organisational processes.