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Organizational Incentives and the Returns to Technology Adoption / Achyuta Adhvaryu, Smit Gade, Piyush Gandhi, Teresa Molina, Anant Nyshadham.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Adhvaryu, Achyuta.
Contributor:
Gade, Smit.
Gandhi, Piyush.
Molina, Teresa.
Nyshadham, Anant.
National Bureau of Economic Research.
Series:
Working Paper Series (National Bureau of Economic Research) no. w35445.
NBER working paper series no. w35445
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2026.
Summary:
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.
Notes:
July 2026.
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