Technological capability building in Indian manufacturing industry: an empirical study on the role of technology adoption and adaptation process

Advanced Manufacturing Technology (AMT) as a strategy helps improve the performance of a manufacturing firm by integrating various areas of manufacturing, both in terms of materials and information flow. There are many reports that deal with the technological and operational aspects of AMT, but the process of adoption and adaptation as a key objective in the implementation of AMT for developing technological capabilities and achieving flexibilities is not paid due attention. Realising the importance of AMT, an empirical study has been conducted in this paper with the objective of gaining more insights. To achieve flexibilities and develop technological capabilities in the Indian manufacturing industry, the most significant factors established through this study include the human factor in terms of skills, technical expertise, training and attitudes and employees' education. The findings suggest that the various factors may be quite important to manufacturing firms trying to compete through flexibility, competence and technological capabilities. The other significant factors affecting technological capability came out to be the impact of globalisation and the role of top management in technology adaptation. Similarly, the other factors contributing significantly to flexibility were the role of top management in AMT adoption and employees' education. The role of government was found to be insignificant for both dependent variables.