Determinants of manufacturing productivity: pilot study on labor‐intensive industries
International Journal of Productivity and Performance Management
Purpose -The purpose of this study is to address the impact of three issues: degree of skills, favorable working environment and R&D on manufacturing productivity of labor-intensive industries. Design/methodology/approach -Convenience sampling method has been used to conduct this study. Three categories of labor-intensive manufacturing industries (A, B and C) have been chosen to perform this research. Industrial category A represents the manufacturing operations which are based on skill of
... . Category B is a group of industries which provides a favorable working environment to utilize the potential of skill in manufacturing process. Category C is a specialized group of industries and its manufacturing process is dependent on R&D. Input -output data for manufacturing operations of the sample industries have been analyzed by using standard statistical techniques to establish the relationship between dependent and independent variables. Findings -The degree of skill and productivity is positively correlated, but not strongly (r , 0.5). The study found that productivity is positively (r . 0.5) associated with favorable working environment. However, a significantly positive correlation (r . 0.7) is found between R&D expenditure and productivity. The study concludes that a higher degree of skills, favorable working environment and R&D are important inputs to a labor-intensive manufacturing process, which is positively associated with productivity.