ASSESSING THE IMPACT OF DIGITAL TRANSFORMATION ON THE COMPETITIVENESS OF INDUSTRIAL ENTERPRISES

Abstract

This article assesses how digital transformation affects the competitiveness of industrial enterprises by focusing on the adoption of digitalization, artificial intelligence (AI), automation, and Industry4.0 elements. Employing analytical and comparative methods, the study synthesizes academic literature and statistical reports from the last five years to evaluate how these technologies impact productivity, cost structures, innovation capability and market positioning. Findings reveal that digital tools and AI improve flexibility and agility, enabling firms to adapt to market changes and shorten innovation cycles. Automation and robotics increase throughput and reduce labor costs; empirical evidence indicates that a 1% increase in robot density correlates with a 0.8% rise in productivity and a 2.7% reduction in hours worked. Digital transformation also enhances supply-chain visibility and forecasting accuracy, thereby strengthening competitiveness. The study concludes that industrial enterprises, including those in Azerbaijan, should prioritize digital transformation as a strategic imperative, and that supportive policies are critical for successful adoption.