Digital transformation by enabling strategic capabilities in the context of “BRICS”

Abstract

PurposeThis study characterizes the scenario of emerging countries (ECs) – “Brazil, Russia, India, China and South Africa (BRICS)” concerning digital transformation and its association with the Industry 4.0 (I4.0) value creation system. For such, the authors developed a discussion paper based on content analysis of 857 journals in business administration, describing in a proposed framework the institutionalization “BRICS” policies that nurture global competitiveness among ECs and development needs to catching up.Design/methodology/approachData from 16 official documents of government, ministries and economic studies were analyzed by applying Atlas TI contrasting theory of 875 papers to develop and discuss the framework. Content analysis showed research gaps, technological needs and governance to enable firms to sustain competitive advantages applying I4.0 value creation system. Results converged into a microfoundation of the agile journey of a digital transformation to global organizations in between BRICS.FindingsThis paper's central question is to understand: How can organizations achieve a sustainable I4.0 value creation system adopting digital transformation in “BRICS”? The reduced transaction costs driven by platforms and ecosystems orchestration and the related or integrated multiple level sources of knowledge could speed benefits of domestic firms and subsidiaries of global organizations. Research gaps could be understood by a new combination of resources and knowledge, exploiting technologies and, also, the discussion of social economic relevance of I4.0.Research limitations/implicationsBecause of the complexity and the novelty of the framework, further studies could be discussed by its elements. New structures and paths for alternative strategic factors may be proposed in the future with the inclusion of new relationships in the adoption of platform business models and ecosystems. Future studies should consider digital knowledge-based assets attained to economic activities across national boundaries; data analytics or data-driven technology adoption and their effects on global attractiveness.Practical implicationsThe paper implicates in evaluating whether dynamic capabilities subsidize performance propitiating the catching up with a focus on the I4.0 system and digital transformation management journey. The proposed framework demonstrates the benefits of digital transformation by enabling strategic capabilities, making efforts to reduce a lack of research paths concerning the policy attributes that define the platform use strategy from an architectural standpoint and its benefits.Social implicationsThe particularities of turning either an I4.0 global organization or a digital organization operate in various environments, allowing access to the activities' digital context. Social implications concerning digital resources as strategic accelerators are determined by the BRICS peculiarities, such as social behavior, consumerism or communication pattern, leadership and workforce skills. Finally, political aspects and interference in the economy are deployed in society what must be considered.Originality/valueThis paper proposes a conceptual framework to better understand whether the heterogeneity of resources could explain I4.0 and digital configurations, while new platforms have driven features in global industrial environments and ecosystems. The seizing opportunities in these countries and sense-making use of platforms and orchestration of ecosystems are found as the critical topics being the main value of this important discussion.