Productivity In Manufacturing Sector Research Articles

Digital Transformation as a Catalyst for High-Quality Development: Examining Total Factor Productivity and ESG Performance in China's Manufacturing Sector

This study investigates the impact of digital transformation on total factor productivity (TFP) and environmental, social, and governance (ESG) performance in Chinese manufacturing firms, exploring the balance between economic output and sustainability for high-quality development. Results reveal two key mechanisms: innovation and efficiency. Digital transformation boosts productivity through open innovation and data-driven resource allocation while enhancing ESG performance via green technologies and efficient supply chains. The external institutional environment, including business climate and marketization, significantly influences its effectiveness. Over time, digital transformation's impact on TFP diminishes, but its role in promoting ESG performance strengthens as firms advance in sustainability. This research offers insights for enterprises and policymakers on leveraging digitalization to achieve sustainable growth, emphasizing the need to clarify specific pathways within China’s manufacturing sector.

Green Supply Chain Management and Performance of Dairy Manufacturing Firms in Kenya

Purpose: Green procurement practices have attracted the growing interest of professional circles and academician due to its positive impact on brand reputation, competitive advantage and performance of the organisation. Milk needs a unique treatment due to perishability and since it is a consumable product it must be handled with care to ensure health products. The study was guided by the following specific objectives, namely: to establish the effect of green procurement, green manufacturing, and green distribution on the performance of dairy industry in Kenya. Methodology: The study adopted descriptive research design, the population of the study constitute 34 dairy manufacturing firms in Kenya and Purposive and census sampling technique was used. Semi-structured, self- administered questionnaires were used to collect data. Data was analysed by use of both descriptive and inferential statistics and processed by SPSS version 28 and presented using tables. Findings: The findings revealed that green procurement practices had a positive and significant influence on performance of dairy manufacturing firms in Kenya. Unique Contribution to Theory, Policy and Practice: Future research in the manufacturing sector can be grounded in theoretical frameworks. The study advises that managers in the dairy manufacturing industry should establish procedures and policies that enhance their understanding of customer needs to fulfill expectations while promoting sustainability, despite the validation of existing theories. Additionally, it is recommended that regulatory bodies in the dairy sector formulate policies that facilitate collaboration among manufacturers and all stakeholders, which would help reduce potential losses impacting both productivity and sustainability, ultimately benefiting the broader economy. The report also emphasizes the necessity for the government to promote the systematic growth and development of green procurement practices within Kenyan dairy manufacturing firms to enhance overall performance. Moreover, empirical research is essential to assess the impact of green procurement on the productivity of other manufacturing sectors within the economy.

Enhancing Manufacturing Excellence with Digital-Twin-Enabled Operational Monitoring and Intelligent Scheduling

This research examines the potential of digital twin (DT) technology for reformation within China’s traditional solid-wood-panel processing industry, which currently suffers from production inefficiencies and the slow adoption of digital technology. The research centers around developing a digital twin system, elucidating improvements in manufacturing efficiency, waste management, process simulation, and real-time monitoring. These capabilities facilitate immediate problem solving and offer transparency in the process. The digital twin system is comprised of physical, transport, virtual, and application layers, employing a MySQL database and using the Open Platform Communications Unified Architecture (OPC UA) protocol for communication. The application of this system has led to heightened production efficiency and better material use in the solid-wood-panel manufacturing line. Integrating the dynamic selection adaptive genetic algorithm (DSAGA) into the virtual layer drives the system’s efficiency forward. This evolved approach has allowed for an enhancement of 8.93% in the scheduling efficiency of DSAGA compared to traditional genetic algorithms (GAs), thereby contributing to increased system productivity. Real-time mapping and an advanced simulation interface have strengthened the system’s monitoring aspect. These additions enrich data visualization, leading to better comprehension and a holistic process view. This research has ignited improvements in solid-wood-panel production, illustrating the tangible benefits and representing progress in incorporating digital technology into traditional industries. This research sets a path for transforming these industries into smart manufacturing by effectively bridging the gap between physical production and digital monitoring. Furthermore, the adjustability of this approach extends beyond solid-wood-panel production, indicating the capability to expedite movement towards intelligent production in various other manufacturing sectors.

Determinants of Labor Productivity of Turkish Manufacturing Sectors: The Role of Global Value Chain Participation

Purpose: This paper investigates the determinants of labor productivity of Turkish manufacturing sectors by taking into account both the global value chain (GVC) participation and the research and development (R&D) expenditure for the period of 1995-2018. Methodology: To analyze the determinants of labor productivity in Turkish manufacturing sectors, we specify the labor productivity model and estimate this empirical model by the Ordinary Least Squares (OLS) and Two-Stage Least Squares (2SLS) methods. Findings: Our estimation results indicate that while simple forward GVC participation enhances the labor productivity of Turkish high-tech manufacturing sectors if they trade with developing countries, complex forward GVC participation increases productivity regardless of trading partners. For low-tech sectors, there is no significant impact of GVCs or R&D on productivity. There is no significant impact of backward GVC participation and sectoral R&D intensity on labor productivity. These significant results provide strong evidence for the importance of deeper involvement of high-tech sectors in GVCs for higher sectoral productivity. Given the strong heterogeneity in terms of sectors and trading partners, specific policies should be targeted to benefit from the productivity gains of the global value chains. Originality: This study contributes to the current studies by focusing on disaggregated measures of GVC participation indices and enlarges the empirical analysis by considering the heterogeneity in trading partners (developed and developing trading partners).

Leadership Style And Employee Productivity In Manufacturing Companies In Indonesia

This study uses a quantitative approach to investigate the complex relationships between employee productivity and leadership styles in Indonesian manufacturing firms. After 150 participants' data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS), important findings were found. Employee productivity was greatly impacted by the emergence of transformational leadership as the prevailing approach. Positive relationships highlighting the significance of structured rewards were also shown by transactional leadership. Conversely, there was a detrimental impact on production from laissez-faire leadership. According to the findings, increased productivity in Indonesia's manufacturing sector can be achieved by matching leadership tactics with organizational and cultural circumstances.

An Analysis of the Effect of Global Value Chains on the Productivity of the South Korean Manufacturing Sector

An Analysis of the Effect of Global Value Chains on the Productivity of the South Korean Manufacturing Sector

R&D, innovation and labour productivity: Evidence from the manufacturing sector in Ghana

R&D, innovation and labour productivity: Evidence from the manufacturing sector in Ghana

Assessing the Impact of Trade Policies on Growth and Development of the Manufacturing and Agricultural Sectors in Nigeria

This article examines the impact of trade policies in Nigeria (1960–2022) on the manufacturing and agricultural sectors. To set the context, I have grouped the trade policy periods into two categories: (a) the pre–structural adjustment programme (SAP) era (1960–1985) and (b) the post-SAP era (1986–2022). I have then examined economic data and all the existing literature to understand the pattern of manufacturing and agricultural outputs during these policy periods. Pre-SAP and post-SAP trade policies show a shift from protectionism to liberalisation, moderately improving agricultural and industrial sectors but still facing obstacles. Despite policies and agreements to improve trade, economic development remains unrealised. This study demonstrated that trade policies have led to erratic progress in both the agricultural and manufacturing sectors, consequently making a lesser contribution to the overall Nigerian development. Within this debate, three different schools of thought can be distinguished. The first school of thought holds that trade policy reforms benefit the growth of Nigerian manufacturing and agricultural sectors. The second school of thought contends that trade policy reforms (such as trade liberalisation) have a detrimental effect on industrial and agricultural sectors. The third school of thought argues that there is no proof or substantial linkage between trade policy reforms and the productivity and growth of manufacturing and agricultural sectors. Nevertheless, to benefit from trade liberalisation, this article identifies the need to revise the Nigerian trade policy as well as stabilise foreign exchange rates to advance and boost local manufacturing and agricultural sectors and promote active participation in trade agreements and policies.

Impact of Human Capital Development and Manufacturing Sector Productivity in Nigeria

Manufacturing, the process of creating goods through tools, machinery, labour, and formulations, historically drove economic progress in the nineteenth century. While recognised for its pivotal role in economic growth and development, Nigeria's manufacturing sector struggles to significantly influence employment and GDP, despite augmented human capital. This study explores the correlation between human capital development and manufacturing productivity in Nigeria, spanning 2000 to 2022, using an ex post facto research design rooted in the Solow Swan growth model. Data sourced from the World Bank's World Development Indicators underwent analysis through Ordinary Least Square (OLS) and causality tests, with conclusions drawn at a 5% significance level. Findings indicate that primary school enrolment, industrial labour force, and physical capital lack substantial impact on manufacturing productivity, unlike gross secondary school enrolment which positively influences productivity, while tertiary enrolment has a notable negative effect. The study underscores poor human capital development, particularly in primary school enrolment and the labour force, as key factors impeding manufacturing productivity in Nigeria, emphasising the imperative of enhancing the sector's labour force quality to unleash its full potential.

Javno obrazovanje, stalni rashodi i produktivnost u industrijskom sektoru u Nigeriji

The debate on whether governments should increase their human capital investment is a popular topic within the realm of economics. This research seeks to solve this issue by looking into the importance of productivity in the manufacturing output as well as the function of productive expenditure. The study examines how the recurrent expenditure of public education in Nigeria between 1981 and 2019 affected manufacturing productivity. The study employed the Augmented Dickey-Fuller (ADF) unit root test and Auto Regressive Distributive Lags (ARDL) approach to analyse the relationship between public education recurrent expenditure, public health spending, trade openness, inflation rate, and the output of the manufacturing sector. The study reveals that public education recurrent expenditure is not significantly associated with manufacturing productivity. According to the study, the government should also concentrate on implementing policy frameworks aimed at improving manufacturing sector productivity by targeting public recurrent education spending.

Digitalization and Productivity: Evidence from EU Manufacturing Sector

Manufacturing sector productivity is one of main driver for economy grow in Europe. In the context of manufacturing sector digitalization, importance of influencing factors for productivity increase plays a key role. This paper aims to evaluate digitalization impact on EU manufacturing sector productivity, considering variables as relative size measures for the period of 2012-2020. There are strong believe that digitalization is an engine of innovation and competitiveness in manufacturing sector. Changing processes and integration of digital technologies leads manufacturing sector towards productivity increase. We perform OLS regression on sample of 5013 records covering 27 EU countries and 642 manufacturing firms over the years 2012-2020. Analysis consists of such factors as operating revenue, number of employees per company, tangible fixed assets, intangible fixed assets, profit and loss, investment to digitalization. We study ratio of digital investment to total assets as dependent variable to understand how investment decision of company can be evaluated with independent variables, identified in literature review. We build 3 models for regression analysis. Highest value of R-Square calculated for operating revenue as dependent variable is 0.299 and significance level is sufficient. Our results indicate that R-Square is 0.366 for relationship between digital investment and independent variables in analysis. Moreover, intangible assets impact is not significant considering digital investment outlay, which contradict believe stated in literature for direct intangible impact on digitalization. The main variable is number of employees per company with identified significant negative route.

Firm-Learning and Productivity in Nigeria's Manufacturing Sector

ABSTRACT: The manufacturing sector plays a strategic role as a major contributor to economic growth and development. However, the harsh business environment in Nigeria has constrained learning and capability building in the Nigerian manufacturing sector. The present state of the manufacturing sector underscores the need for firm-level learning and strategic policy actions. This paper utilized data from the Enterprise Survey Panel covering the periods 2007, 2009, and 2014/2015 to investigate firm learning and productivity in the Nigerian manufacturing sector. Case study illustrations were also undertaken to further provide insights into the links between learning variables and the productivity of selected firms in the sector. Data were analyzed using descriptive statistics; dynamic panel model (DPM) via ordinary least squares (OLS) and General Method of Moments (GMM) techniques. The results of the estimation show there is a positive and significant relationship between export participation lagged by one period (t-1) and the current firm performance. A one-period lag of the learning variables, namely: skills and training increased the productivity of firms. The case study illustrations revealed that major learning capabilities include customer feedback; through employees, staff training/seminars/workshops, and supplier feedback. The paper provides evidence to conjecture that the STI mode of learning, which involves formal research and development (R&D) in firms is not deep enough, and that domestic firms have less productivity relative to firms with some proportion of foreign ownership. Also, some of the constraints to learning and productivity are an unstable regulatory environment, poor infrastructure and high cost of doing business. The paper recommends both formal and informal modes/mechanisms of learning are important to ensure improved productivity of manufacturing firms in Nigeria Also, learning opportunities may differ within and across manufacturing subsectors. Industry regulators or agencies should organize to provide a forum for firms and relevant stakeholders to regularly interact on learning experiences to learn from each other and collaborate to address obstacles to productivity.

Total Factor Productivity in China's Manufacturing Sector in the Aftermath of the Global Financial Crisis

AbstractThis paper improves the estimation of firm‐level total factor productivity (TFP) by considering energy use and including small‐ and medium‐sized enterprises using data from the Chinese National Tax Survey Database (2008–2011). It analyzes the production efficiency of Chinese manufacturing firms using the improved TFP data and finds that (i) the TFP data frequently used in previous studies overestimated firms' real production efficiency; (ii) the TFP of manufacturing firms decreased from 2008 to 2011 due to declines in both technical efficiency and allocation efficiency; (iii) the lower capacity utilization of production factors led to lower technical efficiency; and (iv) allocation efficiency decreased more in provinces and industries with higher shares of state‐owned enterprises. The findings have policy implications for enhancing growth potential in the long run.

Impact of Macroeconomic Factors on Manufacturing Productivity in Ethiopia

This study examines the main impacts of macroeconomic factors on manufacturing productivity in Ethiopia using a time series analysis from 1980 to 2020. The study reveals short-term and long-term determinants of manufacturing industry development. The Ethiopian manufacturing sector was able to achieve a vast change in value-added, especially between 1999 and 2020. However, from 1980 to 1999, the growth rate was erratic and slow, and around 1995 it recorded its worst performance. In the short term, the vector error correction model (VECM) results show that the first lag of manufacturing value added and real interest rates greatly impact manufacturing productivity, but other variables have no short-term impact. In the long run, variables such as the balance of payments, external debt, and real interest rates contribute to the positive development of the manufacturing sector, while other variables such as the exchange rate, monetary sector credit, and broad money balance affect manufacturing sector productivity negatively. Therefore, the Ethiopian government should pay due attention to improving the sector. Although the government is making great efforts to establish various industrial parks in the country, it lacks policies and subsidies for specific manufacturing sectors that can produce necessities. As the level of inflation and cost of living in the country intensify, targeting and prioritizing the manufacturing sector's production and productivity will be the best and most recommended solution so far. Keywords: Macroeconomic, Productivity and Manufacturing. DOI: 10.7176/IKM/13-1-02 Publication date: January 31 st 2023

Value Added Tax (VAT), Inflation, and Manufacturing Sector Output in ECOWAS Sub-Region

This study was focused on the value added tax, inflation, and manufacturing sector output in ECOWAS countries. The objective of this paper is to investigate the relationship between value added tax (VAT) and inflation on manufacturing sector productivity in ECOWAS countries The National Bureau of Statist ics and the CBN statistics bulletin and World Bank Data bank were utilized to provide aggregate time series data for the years 2000 to 2022 the research study views ten (10) ECOWAS countries such as; Nigeria, Ghana, Burkina Faso, Benin, Cape Verde, Liberia, Mauritania, Senegal, Sierra-Leone, and Mali. Panel ARDL model, and panel GMM estimator method was used to analyze the data. The results of our Panel GMM reveals that that exchange rate's coefficient had a negative relationship with manufacturing Productivity. The depreciation of the Naira to the US Dollar exchange rate discourages firm productivity. Value added tax and inflation coefficient had a negative relationship with manufacturing Productivity. Based on our findings we therefore recommend that as far as the banks are concerned, the authorities should ensure that it regularizes the implementation of Value Added Tax in order that it may not be accused of discriminating practices against banks. The Government should apply strictness in the enforcement activities of Value Added Tax just as it has done to the financial institutions in recent years. By this market force should be allowed to determine the Value Added Tax chargeable, but with or close monitoring.

Effect of time management training programme on millennials in pharmaceutical manufacturing sector

The present study examine that, the effect of time management training program on Millennials in Pharmaceutical manufacturing sector. The source of data was collected from 50 millennials working in various functional working area like production, warehouse, quality control, store and purchase in different pharmaceutical manufacturing sectors from respective human resources department record. However most of the pharmaceutical manufacturing sectors is not conducting /spending the time on time management training programme and most of the multinational pharmaceutical manufacturing sectors are conducting regularly minimum twice and maximum thrice by yearly, based on their schedule. Hence the study was focused on particularly millennials of job performance and attitude between participants and non-participants. Thus , in general the assertions were made about time management training programme in Pharmaceutical manufacturing sector on Millennials Job performance were not supported but attitude were resulted tremendous changes has been observed between participants and non-participants.

THE IMPACT OF PERFORMANCE APPRAISAL ON EMPLOYEES’ PRODUCTIVITY IN ELECTRICAL MANUFACTURING SECTOR AT PENANG, MALAYSIA

The purpose of this study is to examine the relationship between performance appraisal including job knowledge, communication skills, creativity and innovative on employees’ productivity in electrical manufacturing sector at Penang, Malaysia. In order to evaluate the relationship a sample size of 222 respondents taken from 28 electrical manufacturing sector with 6322 populations and 361 samples. A questionnaire was design for data collection to measure performance appraisal included job knowledge, communication skills, creativity and innovative on employees’ productivity. Stratified sampling method was used to analyze the data used SmartPls 3.7.8. The result of the study shown that job knowledge, communication skills, creativity and innovative have a significant relationship on employees’ productivity. The limitation of this study only covers electrical manufacturing sector. Suggested for future study focus on electronic, plastic and fabricated manufacturing sector in order to be more effective result in improving the performance appraisal practices in manufacturing sector.

An analysis of the impact of technological innovation on productivity in South African manufacturing firms using direct measures of innovation

AbstractWhile manufacturing is regarded as important for economic growth, there is evidence that productivity in the South African manufacturing sector has been relatively low compared to international standards. As the international literature shows a positive correlation between innovation and productivity, it is pertinent to investigate the role that innovation plays in this sector. South Africa is lagging behind other emerging market countries in terms of technological progress, and innovation efforts are deemed insufficient particularly in private firms. While there have been studies that measure the impact of R&D (as an innovation input) on productivity, the direct impact of innovation success on productivity has not been estimated in South Africa before. The business innovation survey (BIS) provides data that allow us to estimate these direct effects, thereby enabling this study to make an important contribution to the South African literature in this area of research. We estimate the effect of technological innovations on firm productivity using a sample of manufacturing firms from the BIS 2014–2016 data. Using a variation of the CDM model, we find that the introduction of product or process innovations has significant positive effects on productivity in South African manufacturing firms.

Inward FDI and Manufacturing Sector Productivity: An Empirical Evidence from the Dynamic ARDL Approach.

The real sector for which the manufacturing sector is a part play key role in the quest for achieving economic growth of any country. A high output in the manufacturing sector will connote a high level of GDP all things been equal. However, the productivity of the manufacturing sector is directly dependent on the capital-labour ratio. Thus, this study seeks to examine the impact of foreign capital (FDI) and domestic labour force (population) on the manufacturing sector output in Nigeria. The choice of ARDL approach by this study is informed by the mixed order of integration from the unit root test. The finding indicates that FDI inflow significantly and positively determine the manufacturing output in Nigeria, while labour influence the manufacturing in a positive but insignificant way. Further result prove that the impact of labour force is elastic, indication that little change in the labour force will cause drastically change in the level of output in the manufacturing output. In general, the manufacturing sector is capital-driven rather labour-driven. A recommendation is made of the need for the improvement in education and training to increase the efficiency of labour. Secondly, since FDI capital demonstrate significant positive impact, the authority concern should device policy that will woo more it into the sector for higher productivity. Such policy include, tax holidays, stable exchange rate and lower interest rate to enable smooth flow of investment.

Labour Force, National Savings and the Manufacturing Sector Productivity in Nigeria

The study evaluated the role of sectoral labour force and the national savings on the manufacturing sector output in Nigeria from 1985 to 2019, a period of 35years. Data was sourced from Central Bank Of Nigeria (CBN) statistical bulletin various issues up until 2017, National Bureau of Statistics (NBS), and World Development Index (WDI). Data were analyzed using Vector Error Correction Model (VECM). The VECM result revealed that national savings and labour force have long run positive effect on the manufacturing sector output, while exchange rate and inflation have long-run negative effect on the manufacturing sector output. It could be deduced from this study that national savings, labour force in the industrial sector, inflation and exchange rate are very critical factors that determine the growth and survival of the manufacturing sector. Hence, it was recommended that the government look critically to the manufacturing sector and revamp the sector by making credit facility to the sector, and increase the use of domestic raw materials.