Technology Adoption in Manufacturing Firms

Last registered on May 14, 2025
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Pre-Trial

Trial Information

General Information

Title
Technology Adoption in Manufacturing Firms
RCT ID
AEARCTR-0015891
Initial registration date
May 07, 2025

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
May 14, 2025, 10:39 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

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Primary Investigator

Name
Shreya Sarkar
Affiliation
University of California, Berkeley
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Other Primary Investigator(s)

PI Name
Prabhat Barnwal
PI Affiliation
Michigan State University
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Additional Trial Information

Status
On going
Start date
2024-12-01
End date
2027-01-01
Keywords
Firms & Productivity, Labor
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
A persistent challenge in developing economies is the low rate of technology adoption among small firms, despite the availability of affordable and productivity-enhancing tools. This study investigates how the opportunity to use a new technology affects firms’ decisions to adopt a new technology. Using primary survey data, we will further explore the mechanisms and implications.
External Link(s)

Registration Citation

Citation
Barnwal, Prabhat and Shreya Sarkar. 2025. "Technology Adoption in Manufacturing Firms." AEA RCT Registry. May 14. https://doi.org/10.1257/rct.15891-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
We study firms' technology adoption in the context of a cluster of small garment manufacturing firms in Mathura, India, where most firms continue to use outdated “umbrella” sewing machines despite the market availability of the more efficient and reliable “Juki” machine. Firms randomly assigned to the treatment group receive a subsidized 10-day rental of the Juki machine.
Intervention Start Date
2024-12-13
Intervention End Date
2026-05-31

Primary Outcomes

Primary Outcomes (end points)
1. Purchase of Juki machine by firms in the reference period.
2. Willingness to participate and bidding value in a Juki machine auction
3. Subjective assessments of the Juki machine’s productivity, usability, and usefulness.





Primary Outcomes (explanation)
We will collect data on Juki machine purchases by all firms in our sample. We also plan to run an auction for all firms and collect their decision to participate and their bidding values as outcomes. We will also collect data on firm owners' subjective assessment of the Juki machine's productivity, usability, and usefulness, using baseline, midline and endline surveys.


Secondary Outcomes

Secondary Outcomes (end points)
1. Productivity -- measured via standardized stitching tasks,
2. Willingness to upgrade products (e.g., introduction of garments only feasible with the Juki)
3. Labor reallocation or skill upgrading
4. Worker-level occupational health outcomes -- reductions in physical strain or injury
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
The study is a randomized controlled trial (RCT) involving approximately 150 small garment firms in Mathura, India. Randomization is stratified by location (firm hub).

All firms complete a detailed baseline survey capturing firm characteristics, productivity (via standardized stitching tasks), and subjective beliefs about the Juki machine’s price, performance, usability, and repair needs.

Following the baseline, firms are randomly assigned to one of two groups:
Control Group: Firms are offered the opportunity to purchase the Juki machine at a small discount.
Trial Group: Firms are offered a 10-day in-firm rental of the Juki machine at their stated WTP (or a small fixed price), in addition to the same purchase discount as the control group.

Approximately one month after the baseline survey, we conduct a midline survey to measure belief updating, machine use during the trial (if purchased), and productivity (via a standardized one-hour production task).

At the end, the endline survey captures longer-run adoption (including purchases of additional machines), product diversification, labor restructuring, and worker outcomes (e.g., fatigue, health).

Experimental Design Details
Not available
Randomization Method
Computer
Randomization Unit
Firm
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
150 firms
Sample size: planned number of observations
150 firms
Sample size (or number of clusters) by treatment arms
Approximately 60% control and 40% treatment
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
University of California, Berkeley
IRB Approval Date
2024-12-23
IRB Approval Number
2024-07-17611
Analysis Plan