Digital transformation, human capital accumulation, and total factor productivity growth in SMEs: an empirical investigation
Abstract
In this study we attempted to analyze the impact of digital transformation and human capital accumulation on total factor productivity growth of small and medium-sized enterprises in Uzbekistan. The present study is descriptive-correlational in nature and applied in purpose. The necessary information was collected from 380 small and medium-sized businesses from the three cities of Tashkent, Samarkand, and Bukhara during the period 2021-2024. Structural equation modeling with a partial least squares approach was used to analyze the data. The findings revealed that digital transformation with a path coefficient of 0.32 and human capital with a coefficient of 0.41 had a direct and significant effect on productivity growth. Digital transformation’s mediating role through human capital on productivity was also confirmed with an indirect coefficient of 0.21. Further analysis revealed that the effect of digital transformation on small business and the human capital effect on medium-sized business is more significant.