Impact of Technological Capabilities and Employee's Capabilities on Productivity of the Small-Scale Industries

Improvement of productivity is crucial for manufacturing industries to remain competitive and achieve breakthroughs. The widespread adoption of technology in the manufacturing industry has been proven to increase productivity through process optimization and operational efficiency. Raising the level of efficiency would be a solution to it, as technical development has an effect on the demand for employees. It is observed that technical development will be a complement with more skilled employees but a substitute with less skilled employees. The main objective of this research is to study the impact of technological capabilities and employees' capabilities on the productivity of the small-scale industries in the Peenya industrial area in Bangalore. The research sample consisted of 107 customers who were involved in the production of auto parts, electronics, and industrial supplies. The study includes the respondents who offered their full cooperation in providing all of the information. A purposive sampling strategy is used in this study. Respondents such as directors, production operators, supervisors, and managers, as well as R&D and IT staff and HR managers, were targeted to make up the sample size. Regression analysis was used as a statistical tool for the study. The research found that both technological capabilities and employees? capabilities are significantly influencing the productivity of the small-scale industries in the Peenya industrial area in Bangalore.