Technology adoption and skills changes in Scottish manufacturing small and medium enterprises (SMEs)

Abstract

The aim of this research is to explore and analyse ways in which new technology adoption changes skills utilisation in Scottish manufacturing small and medium enterprises (SMEs). An array of large-scale studies, such as Osbourne and Frey (2013); Arntz et al. (2016); and Thomas and Gunson (2017), examine the disruptive effects of technological innovations on jobs, and consequently, skills. This research, however, highlights the need for a more nuanced view on technologies when examining technology adoption and skills changes. To gain a better understanding of the diverse effects of different technologies, the implementation of two types of technologies (namely management system technologies and automation) and their consequent effects on skills utilisation are compared. Following the social shaping of technology approach (Howcroft and Taylor, 2014), the research explores changes to skills utilisation at the intersection of people, technology and organisational context, to better understand the variety of skills changes that can happen in an organisation after technology adoption. For this, the study adopts a qualitative research method, including interviews with sectoral stakeholders and policymakers in the Scottish manufacturing sector; and case studies on four manufacturing SMEs that recently adopted new technologies. The research finds that across the four case organisations, all group of workers experienced positive skills changes, with the most common skills utilisation change being the higher extent use of workers’ pre-existing skills. In support of the social shaping of technology approach, the research showed that technology-driven outcomes are not pre-determined, and the choices that employers make regarding technology adoption and skills utilisation in the organisation are influenced by an array of contextual factors. Overall, the research contributes to the evidence base on the impact of technology adoption on skills utilisation. By demonstrating the mutual interdependency of technology, people and organisation, the research supported the social shaping of technology literature and further developed the approach by offering an alternative explanation for the key driver behind managerial choices in relation to technology adoption and consequent skills utilisation. In addition, the study also contributes to skills research on the effect of technological change. By exploring the effects of technology adoption at the organisational level, the research highlighted the influential role of contextual factors in the interplay of technology and skills and demonstrated nuanced skills utilisation changes in the case organisations that go beyond the quantitative changes in the division of work between technology and people.