Economic cooperation of BRICS countries in context of digital servitization of agri-machinery

Abstract

Digital servitization has transformed the global economy from a manufacturing-based economy to a service-oriented one. However, the potential for international cooperation in this field has not been fully explored. This paper examines the potential of digital easing for the development of international economic cooperation among the BRICS countries. The study is based on concepts such as product servitization, dynamic capabilities and an ecosystem approach. To assess potential, we used country's digital competitiveness index, the share of service exports in total commercial service exports and the share of agriculture in GDP. Analysis showed that the process of servitizing in BRICS countries is reflected in the development of transportation and commercial services, with grocery services being most prevalent in Malaysia, Indonesia, China, Belarus, and Russia. It is shown that the agricultural machinery market in BRICS countries experiences high uncertainty in demand for products with advanced digital solutions, due to a lack of specialists capable of effectively using and maintaining new machines. Four groups of countries have been identified with varying levels of readiness for digitalization. It is proposed to create an agro-industrial ecosystem, with a description of each participant's role in the value chain. The results can be used to develop international economic relations between BRICS countries, as part of a strategy for providing digital services for agricultural machinery. Theoretical significance lies in expanding understanding of potential for providing digital service in international cooperation.