Impact of Digitization Potential of Chemical Industry Enterprises on Economic Efficiency
Abstract
The chemical industry is an important element of the world economy, which has a direct impact on the macroeconomic stability and growing industrial base. The possible opportunities in terms of efficiencies and competitiveness have raised great attention among scholars as more enterprises across industries integrate digital technologies. In this context, the chemical industry of emerging economies (Uzbekistan, etc.) faces the challenges of fully attaining the potential benefits of digital transformation. This switching has been facilitated by the “Uzkimyosanoat” JSC which has a substantial network of chemical production businesses in Uzbekistan. Though the worldwide literature proves the beneficial impact of digital technologies on the efficiency of industrial processes, there is little empirical evidence available in regard to the particular effect the technologies have on the Uzbek chemical industry. This is research paper on relationship between adoption of digital technology and performance of the economy in the chemical industry of Uzbekistan in regard to level of production and net profit. The goal is to find out key predeterminants of digitalization, as well as to assess its impact on the efficiency of a business. Using econometric models, the analysis shows that investments in digital technologies, internet coverage, and labor productivity have a great correlation with increased production volumes and the overall net profit, thus proving the importance of digital transformation as the determinant of economic growth. Therefore, the paper can add to the body of literature with its empirical findings on the topic of digitalization in the chemical industry in the Uzbekistan context where the country has been developing through the processes of economic reform. Its results provide the policymakers and the leaders of the industry in Uzbekistan with viable information that can guide in the creation of strategies that will enhance sustainable growth in digitalization and the enhancement of economic performance of the chemical industry.
References
[2] Growth of digital economy outperforms overall growth across OECD, OECD. [Online]. Available: https://www.oecd.org
[3] PricewaterhouseCoopers (PwC), "Global Digital Operations Study: Digital Champions 2025," 2022.
[4] Decree of the President of the Republic of Uzbekistan No. PF-6079, "On approval of the strategy 'DIGITAL UZBEKISTAN - 2030' and measures for its effective implementation," Oct. 5, 2020.
[5] H. Shevtsova, N. Shvets, and M. Kasatkina, "How leading global chemical companies contribute to industry 4.0," in Proc. 61st Int. Scientific Conf. on Information Technology and Management Science of Riga Technical University (ITMS), IEEE, 2020.
[6] A. I. Shinkevich, "Modeling the efficiency of using digital technologies of energy and resource saving technologies at petrochemical enterprises," Int. J. Energy Economics and Policy, vol. 10, no. 5, pp. 1-6, 2020.
[7] K. Ho, "Digital transformation of Business Models in the bank sector: a multiple case study," Johannes Kepler University Linz, Oct. 2020.
[8] G. T. M. Hult, "Disruptive marketing strategy," Academy of Marketing Science Review, vol. 7, pp. 1-12, Oct. 2017, DOI: 10.1007/s13162-017-0097-4.
[9] S. Aral, E. Brynjolfsson, and L. Wu, "Three-way complementarities: Performance pay, human resource analytics, and information technology," Management Science, vol. 58, no. 5, pp. 913-931, 2012.
[10] J. Leng, et al., "Digital twins-based smart manufacturing system design in Industry 4.0: A review," Journal of Manufacturing Systems, vol. 60, pp. 119-137, 2021.
[11] Statistical bulletins of the Uzstat Agency for 2016-2023.
[12] J. M. Wooldridge, Econometric Analysis of Cross-Sectional and Panel Data, MIT Press, 2010.
Scientific literature:
[13] S. S. Gulyamov, et al., Blockchain Technologies in the Digital Economy, Tashkent: Economy and Finance, 2019.
[14] B. B. Berkinov, Institutional Economics, 3rd ed., revised, Tashkent: Iqtisodiyot, 2018.
[15] A. T. Kenzhabayev and D. Kh. Suyunov, Electronic Commerce, Tashkent, 2022.
[16] E. Kh. Makhmudov, Promyshlennost Uzbekistana: Economy, Development, Priority Development, Tashkent: Economy, 2013.
[17] T. Z. Teshabaev and Z. M. Otakuziyeva, Information Economy, Tashkent, 2017.
[18] D. X. Suyunov and M. Z. Kambarova, "Theoretical foundations for optimizing the costs of transport enterprises," Am. J. Mod. World Sci., vol. 1, no. 4, pp. 15-20, 2024.
[19] D. X. Suyunov and N. R. Mamarasulova, "Application of digital technologies in business," Am. J. Mod. World Sci., vol. 1, no. 4, pp. 81-86, 2024.
[20] D. X. Suyunov and N. R. Mamarasulova, "The issue of digital transformation and its relevance," Am. J. Mod. World Sci., vol. 1, no. 4, pp. 75-80, 2024.
[21] D. X. Suyunov and M. A. Paluanova, "Designing the educational process," Am. J. Mod. World Sci., vol. 1, no. 3, pp. 258-263, 2024.
[22] S. K. Tursunov and R. Kh. Ayupov, Digital Technologies: Innovations and Development Prospects, Tashkent: Nodirabegim Publishing House, 2020.
[23] M. L. Tusunhodzhaev, Production and Planning at Enterprises, Tashkent: Uzbekistan, 2017.
[24] M. Huaten, M. Zhaoli, Y. Deli, and W. Hualei, Digital Transformation: Experience of Transforming the Infrastructure of the National Economy, Moscow: Alpina Publisher, 2019.
[25] D. Schallmo and C. A. Williams, Digital Transformation of Business Models: Best Practice, Enablers and Roadmap, University of Applied Sciences Ulm, 2017.
In submitting the manuscript to the Central Asian Journal of Innovations on Tourism Management and Finance, the authors certify that:
- They are authorized by their co-authors to enter into these arrangements.
- The work described has not been formally published before, except in the form of an abstract or as part of a published lecture, review, thesis, or overlay journal.
- That it is not under consideration for publication elsewhere,
- The publication has been approved by the author(s) and by responsible authorities – tacitly or explicitly – of the institutes where the work has been carried out.
- They secure the right to reproduce any material that has already been published or copyrighted elsewhere.
- They agree to the following license and copyright agreement.
License and Copyright Agreement
Authors who publish with Central Asian Journal of Innovations on Tourism Management and Finance agree to the following terms:
- Authors retain copyright and grant the Central Asian Journal of Innovations on Tourism Management and Finance right of first publication with the work simultaneously licensed under Creative Commons Attribution License (CC BY 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the Central Asian Journal of Innovations on Tourism Management and Finance published version of the work (e.g., post it to an institutional repository or edit it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
