The role of organizational change and vocational skills development programs in enhancing productivity in Ethiopia’s textile and garment industry

This study examines the impact of strategic organizational reforms and vocational skills development programs on productivity in Ethiopia’s textile and garment industry, addressing gaps in understanding their synergistic effects in developing economies. A mixed-methods approach was employed, combining primary data from 64 firms via Kobo Toolbox with semi-structured interviews. Multiple linear regression analysis within the Primary Transformation Model framework tested relationships between competitive priorities, strategic decisions, and implementation practices that influence productivity outcomes. The findings reveal that strategic organizational changes and vocational skills development programs have a significant impact on productivity, with implications for organizational change management theories and practices. Work organizational changes ($$\beta =1.2103, p<0.001)$$ and pre-employment programs for higher-skilled employees ($$\beta =0.638, p<0.05)$$, In-employment programs for middle-skilled employees $$(\beta =0.492, p<0.05)$$, and in-employment programs for higher-skilled employees $$(\beta =1.198, p<0.001)$$ significantly improved productivity. In addition, the industry size has a significant impact on the productivity of the Ethiopian textile and garment industry. A cross-sectional data limits across time causal inferences which indicates future longitudinal studies required. The study integrates critical theory and postmodernism, offering a novel framework for organizational change in developing economies. Industries should adopt advanced work practices and invest in labor market-oriented vocational skills development programs. Policymakers must foster public–private partnerships to align training with industry needs. This study bridges gaps between organizational change, human capital development, and productivity by integrating with social cognitive theory, organizational learning theory, and critical theory, providing a contextualized framework for manufacturing management in developing economies.