Does the digitalization of municipalities affect the efficiency of universities? An Italian case study using DEA and Malmquist index approaches

Universities are a vital part of society, with both internal and external dimensions. The internal dimension involves crucial aspects, such as research activities, while the external dimension concerns the university's environment. The adoption and implementation of smart technologies have significantly improved the performance of various institutions, particularly universities. Consequently, the two dimensions intersect, allowing technological advancements from the outside to increase efficiency within universities. In this context, it is relevant to evaluate how the level of digitalization in the external environment can affect the efficiency of universities. This study aims to investigate the efficiency levels of Italian universities using three methodological techniques. First, the efficiency level of Italian universities was assessed using Data Envelopment Analysis. Second, Conditional Data Envelopment Analysis was used to estimate the conditioning role of the digitalization level of municipalities where Italian universities are located. Third, a Malmquist analysis was conducted to identify changes in efficiency during the study period. The analysis was based on data from 52 Italian state universities between 2018 and 2021. The study found that the level of digitalization in municipalities has a significant impact on university efficiency. Therefore, universities must reconsider and reorganize their traditional ways of managing public services and adopt new approaches to adapt to these changes.