INVESTIGATING THE IMPACT OF TECHNOLOGICAL ADVANCEMENTS ON LABOR PRODUCTIVITY IN THE MANUFACTURING SECTOR OF INDIA

Ayushi Singh; Aakanksha Singh; Bhavya Khanduja; Rahul Mishra; Vikas Kumar

doi:10.29121/shodhkosh.v5.i6.2024.4549

Authors

Ayushi Singh Research Scholar, School of Business Management, Maharishi University of Information Technology, Lucknow (U.P.)
Aakanksha Singh Research Scholar, School of Business Management, Maharishi University of Information Technology, Lucknow (U.P.)
Bhavya Khanduja Research Scholar (Commerce), Shaheed Mangal Pandey Government Girls P.G. College, Meerut (U.P.)
Dr. Rahul Mishra Assistant Professor, School of Business Management, Maharishi University of Information Technology, Lucknow (U.P.)
Dr. Vikas Kumar Assistant Professor, Faculty of Commerce, Shaheed Mangal Pandey Government Girls P.G. College, Meerut (U.P.)

DOI:

https://doi.org/10.29121/shodhkosh.v5.i6.2024.4549

Keywords:

Labor Productivity, Automation Technology, Digitalization, Skill Development, Manufacturing Sector, India, Technological Advancements, Regression Analysis, Pearson Correlation

Abstract [English]

Objective/Aim:
This study aims to determine the effects of technological change on Labor Productivity (LP) in the manufacturing sector of India, with particular emphasis on Automation Technology (AT), Digitalization (DT), and Skill Development (SD). This study seeks to understand the influence of technological factors on labor productivity and their interrelations.
Methodology/Approach:
A cross-sectional research study is used with online survey data collection. From October 2023 toMarch 2024, 407 professionals in the manufacturing sector are taken into consideration. Data isanalyzed by using the software SPSS. For all of the dependent relationships, which are H1, H2, and H3, multiple linear regression tests is conducted, and Pearson's correlation is applied on independent relationships H4, H5, and H6.
Findings:
It gives insight into how the independent variables of Automation Technology, Digitalization, and Skill Development impact Labor Productivity in India's manufacturing sector. It also calculates the strength and direction of correlations between these independent variables. This study is novel in the approach taken for the examination of the compounded effects of automation, digitalization, and skill building on labor productivity, in the Indian manufacturing context specifically.
Limitations and Recommendations:
The limitations of the research include convenience sampling, which causes bias, and the data derived from self-reported measures in the respondents. For the future, it could provide a larger sample with broader diversity or a longitudinal study tracking changes over time. Organizations are advised to invest in automating, digitalization of tools, and workforce training for efficiency in labor productivity.

References

Abri, A. G., & Mahmoudzadeh, M. (2015). Impact of information technology on productivity and efficiency in Iranian manufacturing industries. Journal of Industrial Engineering International, 11(1), 143–157. https://doi.org/10.1007/s40092-014-0095-1 DOI: https://doi.org/10.1007/s40092-014-0095-1

Adel, A. (2022). Future of industry 5.0 in society: human-centric solutions, challenges and prospective research areas. Journal of Cloud Computing, 11(1). https://doi.org/10.1186/s13677-022-00314-5 DOI: https://doi.org/10.1186/s13677-022-00314-5

Asravor, R. K., & Sackey, F. G. (2023). Impact of Technology on Macro-Level Employment and the Workforce: What are the Implications for Job Creation and Job Destruction in Ghana? Social Indicators Research, 168(1–3), 207–225. https://doi.org/10.1007/s11205-023-03109-6 DOI: https://doi.org/10.1007/s11205-023-03109-6

Babu, S. M., & Natarajan, R. R. S. (2013). Growth and spread of manufacturing productivity across regions in India. SpringerPlus, 2(1), 1–14. https://doi.org/10.1186/2193-1801-2-53 DOI: https://doi.org/10.1186/2193-1801-2-53

Basole, A. (2022). Structural Transformation and Employment Generation in India: Past Performance and the Way Forward. Indian Journal of Labour Economics, 65(2), 295–320. https://doi.org/10.1007/s41027-022-00380-y DOI: https://doi.org/10.1007/s41027-022-00380-y

Damioli, G., Van Roy, V., & Vertesy, D. (2021). The impact of artificial intelligence on labor productivity. Eurasian Business Review, 11(1). https://doi.org/10.1007/s40821-020-00172-8 DOI: https://doi.org/10.1007/s40821-020-00172-8

Dhanaraju, M., Chenniappan, P., Ramalingam, K., Pazhanivelan, S., & Kaliaperumal, R. (2022). Smart Farming: Internet of Things (IoT)-Based Sustainable Agriculture. Agriculture (Switzerland), 12(10), 1–26. https://doi.org/10.3390/agriculture12101745 DOI: https://doi.org/10.3390/agriculture12101745

Elkomy, S., Ingham, H., & Read, R. (2021). The Impact of Foreign Technology and Embodied R&D on Productivity in Internationally Oriented and High-Technology Industries in Egypt, 2006–2009. Journal of Industry, Competition and Trade, 21(2), 171–192. https://doi.org/10.1007/s10842-020-00349-x DOI: https://doi.org/10.1007/s10842-020-00349-x

Filippi, E., Bannò, M., & Trento, S. (2023). Automation technologies and their impact on employment: A review, synthesis and future research agenda. Technological Forecasting and Social Change, 191(February 2022). https://doi.org/10.1016/j.techfore.2023.122448 DOI: https://doi.org/10.1016/j.techfore.2023.122448

Ghobakhloo, M., Mahdiraji, H. A., Iranmanesh, M., & Jafari-Sadeghi, V. (2024). From Industry 4.0 Digital Manufacturing to Industry 5.0 Digital Society: a Roadmap Toward Human-Centric, Sustainable, and Resilient Production. In Information Systems Frontiers (Issue 0123456789). Springer US. https://doi.org/10.1007/s10796-024-10476-z DOI: https://doi.org/10.1007/s10796-024-10476-z

Groen, W. P. de, Lenaerts, K., Bosc, R., & Paquier, F. (2017). Impact of digitalisation and the on-demand economy on labour markets and the consequences for employment and industrial relations. OECD Economics Department Working Papers, 1–76. https://www.ceps.eu/system/files/EESC_Digitalisation.pdf

Huang, Y., Chen, Z., Li, H., & Yin, S. (2023). The impact of digital economy on green total factor productivity considering the labor-technology-pollution factors. Scientific Reports, 13(1), 1–19. https://doi.org/10.1038/s41598-023-50400-0 DOI: https://doi.org/10.1038/s41598-023-50400-0

J, C. R. K., & Majid, M. A. (2020). Renewable energy for sustainable development in India: current status, future prospects, challenges, employment, and investment opportunities. Energy, Sustainability and Society, 10(1) | 10.1186/s13705-019-0232-1. Energy, Sustainability and Society, 10(2), 1–36. https://sci-hub.se/https://doi.org/10.1186/s13705-019-0232-1 DOI: https://doi.org/10.1186/s13705-019-0232-1

Jamwal, A., Agrawal, R., Sharma, M., & Giallanza, A. (2021). Industry 4.0 technologies for manufacturing sustainability: A systematic review and future research directions. Applied Sciences (Switzerland), 11(12). https://doi.org/10.3390/app11125725 DOI: https://doi.org/10.3390/app11125725

Kotagi, P., Angolkar, M., & Koppad, R. (2023). Comparison of work efficiency in factory workers: pre & post covid lockdown – a cross sectional study. BMC Public Health, 23(1), 1–10. https://doi.org/10.1186/s12889-023-15886-3 DOI: https://doi.org/10.1186/s12889-023-15886-3

Mukherjee, A. N. (2022). Application of artificial intelligence: benefits and limitations for human potential and labor-intensive economy – an empirical investigation into pandemic ridden Indian industry. Management Matters, 19(2), 149–166. https://doi.org/10.1108/manm-02-2022-0034 DOI: https://doi.org/10.1108/MANM-02-2022-0034

Paul, S., & Lal, K. (2021). Technology Intensity and Employment in the Indian Economy. Arthaniti: Journal of Economic Theory and Practice, 20(1), 34–52. https://doi.org/10.1177/0976747919895326 DOI: https://doi.org/10.1177/0976747919895326

Shabbir, M. S., & Yaqoob, N. (2019). The impact of technological advancement on total factor productivity of cotton: a comparative analysis between Pakistan and India. Journal of Economic Structures, 8(1). https://doi.org/10.1186/s40008-019-0160-4 DOI: https://doi.org/10.1186/s40008-019-0160-4

Shayan, N. F., Mohabbati-Kalejahi, N., Alavi, S., & Zahed, M. A. (2022). Sustainable Development Goals (SDGs) as a Framework for Corporate Social Responsibility (CSR). Sustainability (Switzerland), 14(3), 1–27. https://doi.org/10.3390/su14031222 DOI: https://doi.org/10.3390/su14031222

Shen, Y., & Zhang, X. (2024). The impact of artificial intelligence on employment: the role of virtual agglomeration. Humanities and Social Sciences Communications, 11(1), 1–14. https://doi.org/10.1057/s41599-024-02647-9 DOI: https://doi.org/10.1057/s41599-024-02647-9

Upadhyay, A., Balodi, K. C., Naz, F., Di Nardo, M., & Jraisat, L. (2023). Implementing industry 4.0 in the manufacturing sector: Circular economy as a societal solution. Computers and Industrial Engineering, 177(February), 109072. https://doi.org/10.1016/j.cie.2023.109072 DOI: https://doi.org/10.1016/j.cie.2023.109072