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Organizational Incentives and the Returns to Technology Adoption

Author

Listed:
  • Achyuta Adhvaryu
  • Smit Gade
  • Piyush Gandhi
  • Teresa Molina
  • Anant Nyshadham

Abstract

Misaligned incentives within organizations may explain why firms fail to adopt or fully benefit from productive technologies. We conducted a randomized controlled trial in Indian garment factories in which units received an anonymous worker-management communication technology, this technology paired with incentives for HR managers to communicate effectively with workers, or neither (control). We find that the technology alone had no impacts relative to control. But pairing the technology with HR incentives increased productivity by 5%, reduced absenteeism by 13%, and raised worker earnings by 3%. Impacts were driven by greater HR responsiveness and increased worker reporting of production-related issues.

Suggested Citation

  • Achyuta Adhvaryu & Smit Gade & Piyush Gandhi & Teresa Molina & Anant Nyshadham, 2026. "Organizational Incentives and the Returns to Technology Adoption," NBER Working Papers 35445, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:35445
    Note: DEV LS PR
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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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