Reducing distance friction via digital taxation - the Piraeus case

Focusing on the Port of Piraeus as a case of institutional innovation, this study explores how digital taxation reforms can diminish 'distance friction in maritime trade. By integrating Greek myDATA e-invoicing system with the ICISnet Customs single-window, a pre-clearance process markedly accelerates procedural flows and augments institutional trust in Port of Piraeus. Analytically, the study situates these outcomes within a Technology Organization Environment framework and a theory of institution-to-process-to-efficiency. The findings demonstrate that although initial friction may arise, sustained system stabilization delivers amplified efficiency, especially in transshipment hub contexts like Piraeus. Building on these insights, the paper proposes a cohesive strategy combining system-level enhancements. The strategies include UID pre-clearance benchmarks, frequent performance metrics, and crisis playbooks. This integrated model significantly advances digital Customs integration and offers a scalable road map for countries aiming for resilient and efficient port systems, even if the countries are outside the EU. Finally, several limitations are put forward to be studied in the future.