Digital transformation, human capital accumulation, and total factor productivity growth in SMEs: an empirical investigation

Economic Annals-XXI: Volume 215, Issue (5-6), Pages: 41-46

Citation information
Kurbanova, M., Rakhmatullayev, A., Xasanova, N., Bobojonova, Z., Muradova, A., & Mamadalieva, T. (2025). Digital transformation, human capital accumulation, and total factor productivity growth in SMEs: an empirical investigation. Economic Annals-XXI, 215(5-6), 41-46. doi: https://doi.org/10.21003/ea.V215-07

Maftuna Kurbanova
PhD (Management),
Associate Professor,
Department Management and marketing,
Tashkent University of Information Technologies named after Muhammad al-Khwarizmi
108 Amir Temur Str., 100200, Tashkent, Uzbekistan
maftunayusuf2020@gmail.com
ORCID ID: https://orcid.org/0009-0004-7108-3314

Nigora Xasanova
PhD (Economics),
Associate Professor,
Department of Economics in the Field of Information and Communication Technologies,
Tashkent University of Information Technologies named after Muhammad al-Khwarizmi
108 Amir Temur Str., 100200, Tashkent, Uzbekistan
xasanovanigora1984@gmail.com
ORCID ID: https://orcid.org/0009-0001-6419-4655

Alevtina Muradova
PhD (Telecommunication Engineering),
Associate Professor,
Department of Telecommunication Engineering,
Tashkent University of Information Technologies named after Muhammad al-Khwarizmi
108 Amir Temur Str., 100200, Tashkent, Uzbekistan
a.muradova1982@inbox.ru
ORCID ID: https://orcid.org/0000-0003-3619-310X

Adkhamkhon Rakhmatullayev
PhD (Economics),
Associate Professor,
Department of Economics in the Field of ICT,
Tashkent University of Information Technologies named after Muhammad al-Khwarizmi
108 Amir Temur Str., 100200, Tashkent, Uzbekistan
rahmatullayevadhamxon@gmail.com
ORCID ID: https://orcid.org/0009-0004-4233-7063

Zarnigor Bobojonova
PhD (Economics),
Department ICT in Economics,
Tashkent University of Information Technologies named after Muhammad al-Khwarizmi
108 Amir Temur Str., 100200, Tashkent, Uzbekistan
zarnigorbobojonova7@gmail.com
ORCID ID: https://orcid.org/0000-0002-3511-1670

Takhmina Mamadalieva
MA (Social Sciences),
Lecturer,
Department of Social Sciences,
Tashkent State Transport University
25 Sairam Str., Tashkent, 100170, Uzbekistan
mishel.96@bk.ru
ORCID ID: https://orcid.org/0000-0003-1471-6889

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.

Keywords: Digital Transformation; Human Capital; HC; Total Factor Productivity; IT; Small and Medium-Sized Enterprise; SME; Uzbekistan

JEL Classifications: Е24; Е41; Е64; I18; J28; J31

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V215-07

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Received 15.03.2025
Received in revised form 22.04.2025
Accepted 25.04.2025
Available online 27.06.2025