Technical and economic impact of digital transformation in Azerbaijan’s mining industry: A qualitative study
Keywords:
Azerbaijani economy, Digital technologies, Mining industry, Thematic analysisAbstract
Since 1991, mining has continuously contributed more than 80% to the gross domestic product (GDP) in Azerbaijan and has achieved the status of a key economic sector. Today, the mining industry is driving digital transformation as it faces ever new challenges, and the government has a vested interest in remaining profitable in global markets. The main objective of this paper is to qualitatively analyze the technical and economic impact of the ongoing digital transformation in Azerbaijan’s mining industry. This analysis is conducted through a six-stage thematic analysis (TA) of expert interviews (n = 7) conducted in July 2024. The results show that digital transformation in Azerbaijan’s mining industry is progressing rapidly and holds significant potential for economic and technological advancements that could benefit the entire economy, albeit on a limited scale. There are specific technologies that improve operational efficiency and safety, with moderate economic impact. Despite the efficiency and productivity driven by private and multinational companies (MNCs), the country’s long-term economic dependence on the mining sector needs to be reduced. This topic has not yet been thoroughly explored in academia, making the findings valuable for both researchers and policy makers seeking deeper insights into the digital transformation of Azerbaijan’s mining industry.
References
1. G. Vial, “Understanding digital transformation: A review and a research agenda,” The Journal of Strategic Information Systems, vol. 28, no. 2, pp. 118–144, 2019. http://dx.doi.org/10.1016/j.jsis.2019.01.003
2. Young and P. Rogers, “A review of digital transformation in mining.” Mining, Metallurgy & Exploration, vol. 36, no. 4, pp. 683–699, 2019. https://doi.org/10.1007/s42461-019-00103-w
3. S. S. Bhattacharyya and Y. Shah, “Emerging technologies in Indian mining industry: An exploratory empirical investigation regarding the adoption challenges,” Journal of Science and Technology Policy Management, vol. 13, no. 2, pp. 358–381, 2022. https://doi.org/10.1108/JSTPM-03-2021-0048
4. M. Ghobakhloo, “The future of manufacturing industry: A strategic roadmap toward Industry 4.0.,” Journal of Manufacturing Technology Management, vol. 29, no. 6, pp. 910–936, 2018. http://dx.doi.org/10.1108/JMTM-02-2018-0057
5. S. Kraus, P. Jones, N. Kailer, A. Weinmann, N. Chaparro-Banegas, and N. Roig-Tierno, “Digital transformation: An overview of the current state of the art of research,” Sage Open, vol. 11, no. 3, 21582440211047576, 2021. http://dx.doi.org/10.1177/21582440211047576
6. Y. Hasanli and G. Rahimli, “Assessment of the multiplicative effects of the mining and manufacturing sectors in Azerbaijan,” Journal of Economic Sciences: Theory & Practice, vol. 80, no. 2, pp. 28–46, 2023.
7. H. Onder, Azerbaijan: Inclusive growth in a resource-rich economy. Washington DC: World Bank Publications, 2013. http://dx.doi.org/10.1596/978-0-8213-9759-6
8. G. Bayramli, “The environmental problems of Azerbaijan and the search for solutions,” Wseas Transactions on Environment and Development, vol. 16, pp. 423–433, 2020. http://dx.doi.org/10.37394/232015.2020.16.42
9. [N/A], “The Strategic Roadmap of Azerbaijan,” 2016. Available: https://static.president.az/pdf/38542.pdf [Accessed: Oct. 12, 2025]
10. C. Jin and Z. Zhang, “Regarding the role of oil & gas industry on social infrastructure development in Azerbaijan and the solution of ecological problems,” IOP Conference Series: Earth and Environmental Science, vol. 189, no. 5, 052004, 2018. http://dx.doi.org/10.1088/1755-1315/189/5/052004
11. T. Matsose and S. M. Seeletse, “Biases from poor data analysis,” American Journal of Applied Sciences, vol. 13, no. 10, pp. 1053–1059, 2016. http://dx.doi.org/10.3844/ajassp.2016.1033.1039
12. T. R. Makin and J. J Orban de Xivry, “Ten common statistical mistakes to watch out for when writing or reviewing a manuscript,” Elife, vol. 8, e48175, 2019. http://dx.doi.org/10.7554/eLife.48175
13. J. Cresswell, Qualitative inquiry & research design: Choosing among five approaches (3rd. ed.). Thousand Oaks: SAGE Publications, LTD. 2013.
14. E. Dzhhioshvili and J. Litvin, “Analytical coding of in-depth interviews for studying the identities of Karelian and Pomor women,” KnE Social Sciences, vol. 2022, pp. 55–61, 2022. http://dx.doi.org/10.18502/kss.v7i3.10423
15. G. R. Gibbs, Analyzing qualitative data. Thousand Oaks: SAGE Publications, Ltd., 2007. http://dx.doi.org/10.4135/9781849208574.n4
16. E. S. Yanto, “The what and how of essential thematic analysis,” The Qualitative Report, vol. 28, no. 11, pp. 3120–3131, 2023. http://dx.doi.org/10.46743/2160-3715/2023.6744
17. H. S. A. Nawi, O. Ibrahim, and A. A. Rahman, “Applying thematic analysis in discovering public e-service sustainability criteria,” ARPN Journal of Engineering and Applied Sciences, vol. 10, no. 23, pp. 17796–17807, 2015.
18. V. Braun and V. Clarke, “Thematic analysis,” in APA handbook of research methods in psychology, vol. 2. Research designs: Quantitative, qualitative, neuropsychological, and biological, H. Cooper, P. M. Camic, D. L. Long, A. T. Panter, D. Rindskopf, and K. J. Sher Eds., Washington DC: American Psychological Association, 2012, pp. 57–71. https://doi.org/10.1037/13620-004
19. L. Montrone, N. Ohlendorf, and R. Chandra, “The political economy of coal in India –Evidence from expert interviews,” Energy for Sustainable Development, vol. 61, pp. 230–240, 2021. http://dx.doi.org/10.1016/j.esd.2021.02.003
20. J. E. Trinidad, “Interviewing K-12 education experts and elites,” Frontiers in Education, vol. 9, 1286151, 2024. http://dx.doi.org/10.3389/feduc.2024.1286151
21. L. Van Audenhove and K. Donders, “Talking to people III: Expert interviews and elite interviews,” in The Palgrave handbook of methods for media policy research, H. Van den Bulck, M. Puppis, K. Donders, and L. Van Audenhove, Eds. Cham: Palgrave Macmillan, 2019, pp. 179–197. http://dx.doi.org/10.1007/978-3-030-16065-4_10
22. E. G. Orudzhev and N. S. Ayyubova, “Empirical analysis of the factors affecting the balance of payments in Azerbaijan,” Actual Problems in Economics, vol. 7, no. 181, pp. 400–410, 2016.
23. E. Ahmadova, L. Hamidova, and L. Hajiyeva, “Diversification of the economy in the context of globalization (case of Azerbaijan),” SHS Web of Conferences, vol. 92, 07002, EDP Sciences, 2021. https://doi.org/10.1051/shsconf/20219207002
24. E. G. Orudzhev and L. M. Mamedova, “On the assessment of the long-term relationship between the AZN/RUB and USD/RUB rates against the backdrop of increasing sanctions against Russia,” Studies on Russian Economic Development, vol. 35, no. 2, pp. 308–318, 2024. http://dx.doi.org/10.1134/S1075700724020114
25. E. Bağırzade, “The post-pandemic economic development perspective of Azerbaijan,” Türk Dünyası Araştırmaları, vol. 133, no. 263, pp. 187–206, 2023. https://doi.org/10.55773/tda.1283877.
26. J. Fakhriddin, E.G. Atajonovna, Z. Saidjanova, and M. Ahmad, “Conversational intelligence: Understanding LLMs in customer service,” In Innovations and Ethical Dimensions of Large Language Models, Shafiq Ul Rehman, Ed., Hershey and New York: IGI Global Scientific Publishing, 2026, pp. 165–192. http://dx.doi.org/10.4018/979-8-3373-5017-2.ch006
27. S. Gupta, N. Behare, and K. Jain, “Conscious code: Reconciling innovation and integrity in the age of large language models,” In Innovations and Ethical Dimensions of Large Language Models, Shafiq Ul Rehman, Ed., Hershey and New York: IGI Global Scientific Publishing, 2026, pp. 41–72. http://dx.doi.org/10.4018/979-8-3373-5017-2.ch002
28. R. I. Hasanov, Z. Giyasova, I. Mahmudova, J. Marchwiński, and N. Karimova, “Examining the relationship between manufacturing value added and environmental impact in Azerbaijan,” International Journal of Energy Economics and Policy, vol. 15, no. 2, pp. 84–89, 2025. https://doi.org/10.32479/ijeep.17349
Downloads
Published
Conference Proceedings Volume
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.