Leveraging Digital Human Capital: Impact of Employee Digital Skills and Platform Engagement on Retail Operations Performance in Nepal

Abstract

The parameters of the study involve business enterprises in the public and private sectors, which mainly focus on the impact of the IT capability of employees on active involvement in the platforms and the effectiveness of the retail enterprises in Nepal. Secondary data were collected from published sources and there was a positive correlation between the implementation of digital transformation in SMEs of Nepal and the dimensions of individual capabilities in the field of Information and Communication Technology (ICT) skills and change acceptance along with technology acquisition. This study also reveal that cost-effectiveness was the most impacting factor upon the revenue growth (0.412, p<0.01) and employee performance, digital culture, new technology adoption and the digital training program were all significantly mediated by self-efficacy. According to the report, public sector banks are more progressive in the technological aspects, whereas investment in digital skills is more in private sector companies. It recommends that employee skills development, promotion of leadership and structured training should be undertaken to boost the engagement level of employees on platforms to improve the operational efficiency of both sectors' platforms in Nepal through investing in human capital in digital platforms.