Nepalese Journal of Management Research (2021), Vol.

1 Issue 1 9
Nepalese Journal of Management Research
ISSN 2738-9618 (Print), ISSN 2738 -9626 (Online) Website: http://balkumaricollege.edu.np/journal
Volume : 1 Issue: 1 January 2021, Page No. 9-14

Use of Technology and Its Management Issues in Nepalese Industries and Businesses

Dr. Prakash Shrestha

Lecturer, Nepal Commerce Campus, Tribhuvan University
Kathmandu, Nepal
[email protected]

ABSTRACT
This paper presents some of the facts regarding the use of technology in Nepalese industries and businesses.
This is a research of paper. It uses a set of questionnaires to collect the responses regarding technology
management issues. It also reviews and describes scholarly papers, professional research works, and research
reports of different national and international organizations to answer the research questions and draw
results. Results show that Nepal is rich in many types of traditional technologies. Most of rural businesses
are dependent on traditional technology for their activities. The contribution of traditional technology is still
important in Nepal’s social-economic sphere and it cannot altogether be neglected. The results also show that
the uses of modern technologies are also increasing in Nepal. Regarding modern technologies, information
technology (IT), sophisticated technology, biotechnology and tissue culture technology, solar power, computer
technology, automation, e-banking, mobile banking, locker facilities, telephone and television, and e-business
become popular in Nepalese industries and businesses. The results reveal that lack of political commitment,
lack of interactions, the gap between policies and practices, lack of coordination, lack of need assessment, low
quality of practical education, low investment in research & development (R&D), inadequate maintenance
facilities, the rapid pace of technological change, and non-involvement in decision-making are the key issues
related to the management of technology in our context. The focus on R&D is essential for the development
of new technologies in Nepal.
Keywords: Businesses, Industries, Issues, Status, Technology
1. Introduction
Technology includes all aspects of applied sciences for achieving a practical purpose. It deals with the
information, equipment, techniques, and processes required achieving the objectives of transferring organizational
inputs into desired outputs (Pant, 2014). Technology is a key factor in productivity improvement (Agrawal, 2014).
According to the Department of Industry, there are agriculture-based and forestry, manufacturing industries,
export-oriented industries, energy-oriented industries, mining industries, tourism industries, construction
industries, information, and communication technology industries and services industries in Nepal (DOI, 2019).
All these industries use some form of technology to convert their inputs into outputs.
Going to history, Nepal remained untouched until the middle of the twentieth century from the science
and technology (S&T) development. Because of the isolation of the country for over a century, it had made a
late entry to the modem era of development of the S&T (Singh and Bhuju, 2001). However, with the beginning
of democracy in 1950, the country started up to the outside world. This opening also marked the initiation of
activities in S&T (Bajracharya, Bhuju, and Pokhrel, 2006).
The Nepalese industrial sector has a history of pubic sector-led import substitution. Over the decades,
except in some public enterprises, the overall technological system in manufacturing units has remained relatively
simple. The private industrial sector is largely in technologically simple activities, primarily those with a strong
local resource base. Most of these small industrial units depended largely on indigenous technology and the
technology imported from India.
Bajracharya et al. (2006) reported that six decades of effort have brought a number of S&T infrastructures
into existence in Nepal. Policy formulation institutions, education and training, consultancy services, testing
and standardization, research and development, extension services, promotion, and dissemination at different
levels have initiated to build some basis for the development of technological status in Nepal. Likewise, the
establishment of S&T non-governmental organizations and professional societies of many disciplines have also
promoted the environment for technological development in the country. Based on these grounds this paper
10 Nepalese Journal of Management Research (2021), Vol. 1 Issue 1

tries to presents some of the facts regarding the current status of technology used in Nepalese industries and
businesses.
Research Questions
This study raises the following research questions to examine the current status of technology used in our
industries and businesses.
RQ1: What is the status of technology in Nepalese industries from the point of view of traditional technology?
RQ2: What is the status of technology in Nepalese industries from the point of view of modern technology?
RQ3: What are the issues related to the management of technology in Nepal?
Research Methods
This is a research paper. It employs both primary and secondary sources of data. To address the above
two research questions and draw conclusions, it analyses and presents academic articles, technical research
works, and research reports from various national and international organizations. The first section of this paper
explains the status of traditional technology used in Nepalese industries and the next section discusses the status
of modern technology used in our industries and businesses. Such a study is conducted on the basis of published
data from various sources. A questionnaire survey was performed to provide answers to the final research
questions. 280 structured questionnaires were distributed for this purpose to various intellectuals engaged in
the Nepal Academy of Science and Technology (NAST), Tribhuvan University's Engineering and Management
campuses, and affiliated engineering colleges.
Table 1. Response rate from selected institutions
Institutions Response rate (percent)
NAST 7.86
Pulchowk Campus  11.07
Thapathali Engineering Campus 9.64
Nepal Commerce Campus 11.43
Shankar Dev Campus 10.36
Kantipur Engineering College 5.36
Kathmandu Engineering College 6.07
Note: n = 173
173 (61.79 percent) answers were returned and used for the purposes of research. The response rate is set out in
Table (1).
Results and Discussions
This section presents the Status of Technology Used in Nepalese Industries and Businesses and the key
issues related to the management of technology in our context.
Status of Technology Used in Nepalese Industries and Businesses
In this section, the present status of technology used in the Nepalese industries and businesses has been
examined from the point of traditional and modern technology.
(A) Use of Traditional Technology
Nepal is rich in many types of traditional technologies. Some traditional technologies are more than
2,000 years old. In the present time, since modern technologies are increasingly being used, particularly in
urban areas, traditional technologies are being displaced. However, in rural areas, modern technologies do not
seem to have a significant effect. Most of the rural businesses are dependent on traditional technology for their
activities. Historical events have recorded the employment of some advanced knowledge domain and therefore
the adoption of some innovative technologies in areas such as metallurgy, pottery, architecture and construction,
textile manufacture, dyeing, and printing, paper manufacturing, food technology, agriculture, water management,
Nepalese Journal of Management Research (2021), Vol. 1 Issue 1 11

and medicine (Singh and Bhuju, 2001; Bajracharya et al., 2006):

Besides these, the different types of traditional technologies used by Nepalese industries and businesses
are given below:
 Nepalese craftsmen are experts in making the idols of copper, gold, iron, and silver, which can be seen in
Nepalese temples. The old metal workers had also the skill of metal extraction and procession. For example,
Bhojpur was famous in iron extraction and purification, whereas Western Nepal was famous in producing
gold from the sand of the Kaligandaki River. The metal workers, in addition to making idols, are also used to
produce domestic consumer goods such as Karuwa, dadu, Panue, khukuri, and agricultural implements such
as spade, agricultural tools, etc. Patan, Bhojpur, Chainpur, and Palpa are the places famous for metal works.
Till today, there is a great demand for handicraft goods produced in Nepal. Handicraft goods have been an
important item exported to third countries (Joshi, 2069).
 The potters of Nepal are famous for making soil utensils. They make brick, tile, flower pot, and utensils of
domestic use. They provide different shapes to the soil by using ‘potter’s wheel’. Like the technology of
making metal utensils, this technology has also not changed for a long time (Agrawal, 2014).
 Nepalese people have also been found to be experts in architecture and engineering works. The use of this
technology can be seen in the construction of temples, pagodas, and stupas. Kathmandu, Patan, and Bhaktapur,
all three cities of the valley are famous in architecture and engineering works. Due to the unique features,
these areas have been included in the list of world heritage. The craftsmanship had extended up to China. The
pagoda made by Arniko of Nepal in about the 13th century can still be seen in Beijing of China. The basic
concept of the pagoda-style temples seen all over the world is regarded to have originated in Nepal (Joshi,
2061).
 Nepalese people are traditionally expert in weaving cloth by preparing woolen and cotton yarn. Foreigners
like Nepalese woolen products such as carpet, radi, pakhi, sawl, muffler, and pashmina very much. Due to this,
woolen carpet and pashmina have been the important sources of foreign exchange earnings (Shrestha, 2020).
 In foreign countries, there is also a great demand for Nepalese hand-made paper. The raw materials for
Nepalese paper are also available in Nepal. Due to durability and cheapness, Nepalese papers are widely used
in making legal documents, an ancient manuscript, thanka, etc (Bajracharya, 2001).
 In Nepal dying in cloth and paper is also equally in vogue. The traditional technology of dying cloth is still
in use. Nepalese people are expert also in food technology. The traditional technology itself is in much use
in the production and processing of food, fruits, wine, local beer, etc. Likewise, Nepalese people have been
making and using water mill, dhiki, jaato, tiller, and so on from traditional technology for the solution of their
problems (Bajracharya et al., 2006).
Nepal is rich in the traditional technology. They still dominate the rural areas and villages. The
contribution of traditional technology is still important in Nepal’s social-economic sphere and it cannot altogether
be neglected.
(B) Use of Modern Technology
The growth of industries and the business sector in Nepal had started only after the establishment of
the Council of Industry in 1936. Biratnagar Jute Mill established by some of the Indian entrepreneurs is Nepal’s
first modern industry. The Company Act was passed in 1936 and only after that cigarette, match, cloth, paper
industries were established. At that time industries had flourished in Nepal due to the significant rise in price and
scarcity of goods on account of the Second World War (Shrestha, 2018a).
Most of our industries and businesses are in the Terai region (Agrawal, 2013). Grain mill using seller-type
modern technology survived. The number of industries using modern technology in bakery, textiles, medicines, soap,
vegetable oil, printing, plastics, metal, and sugar is increasing. The power-loom revolution in textiles has been powerful.
Our public enterprises are instrumental for the import of modern technology in Nepal for import-substitution.
Nowadays, the private sector has enjoyed fairly free access to modern equipment and know-how from
outside the country. They can collaborate with foreign firms and build up reasonable mastery of the simple
technologies they enjoy. The evidence so far does not, however, suggest that he Nepalese business sector is
12 Nepalese Journal of Management Research (2021), Vol. 1 Issue 1

gaining strength (Pant, 2005). In this regard, the current status of modern technology in Nepal can be assessed
based on the following scenarios:
 Growing Use of Modern Technology. Nowadays, the use of modern technology is increasing in Nepalese
industries and businesses. Information technology (IT) industries are growing in Nepal (Pradhan, 2002).
Telecommunications and internet providers are using satellite-based technologies. The use of sophisticated
technology is increasing in the hydropower industry of Nepal. Improved cooking stoves are used to save energy.
Biotechnology and tissue culture technology are used in agro-based industries.
Health-related service industries use highly sophisticated technology. The use of solar power is also in increasing
trends. The use of computer technology is also becoming common for teaching purposes.
Automation is increasing in Nepal. The use of ATM by banks is a very healthy development in Nepal (Shrestha,
2019). Nepalese banks and financial institutions are offering banking services through the use of ATM Card,
Debit Card, Credit Card, E-banking, Mobile banking, locker facilities, etc. Business houses are increasingly using
electronic communications through the Internet. Technology has effectively touched the product packaging
system in Nepal.
Manufacturers are found to use more plastic, paper, and tetra (metallic paper) packages in places of glass and
tin package. Nepal's Transport and communication system has achieved rapid growth in the last two decades.
Nepalese business firms have also benefited from new technology in a promotion (advertising) of their
products. Telephone and television marketing is already in use. Nepalese firms also have started e-business
(Shrestha, 2018b).
 Basic Skills for Modern Technology. The skills base for modern technology is low. Most industries are using
foreign labor for highly skilled jobs. However, the demand for technical education is growing fast in Nepal.
The most critical demand in the country is for mechanical skills, electricians and electrical engineers, IT
professionals, chemical technicians, and entrepreneurial and managerial skills.
However, the supply of these human resources is much below the level of the required quantity (Pant,
2014). That is why different colleges are offering technical education. Tribhuvan, Kathmandu, Pokhara, and
Purvanchal Universities offer technical degrees in higher education (UGC, 2017-2018).
 Research and Development Budget. Nepalese companies allocate very little budget for research and development
in their business plans because they want to make money fast and they do not see the necessity to spend anything
on research and development activities.
R&D activities are dominated by universities and government research agencies in Nepal. But, these activities
have little relation with the technological efforts in the industrial sector.
Most of the industrial units remain passively dependent on imported and low-graded technologies. Business
firms in Nepal show little awareness of the need for formal research as an absorptive base for new technologies.
 Technology Transfer. Technology transfer is growing in Nepal. The typical patterns of technology transfer
in Nepal are foreign direct investment (FDI), joint ventures, turnkey projects, licensing and capital transfers,
contract manufacturing, and franchising. Unilever Nepal, Colgate-Palmolive, Tuborg beer, Joint Venture
Banks, etc. are some examples that have transferred modern technology in Nepal. Likewise, donor-funded
projects and foreign consultants have also facilitated technology transfer in Nepal.
Technology Management Issues in Nepal
In this section, some of the key issues of technology management (see table 2) in our context are presented
based on the views of different intellectuals engaged in the above-mentioned institutions.
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Table 2. Technology Management Issues in Nepal

S. No. Issues Percent Rank
1 Lack of political commitment 13.87 3
2 Lack of interactions 8.67 6
3 Gap between policies and practices 9.83 5
4 Lack of coordination 6.94 8
5 Lack of need assessment 8.09 7
6 Low quality of practical education 15.03 2
7 Low investment in research & development 19.65 1
8

Inadequate maintenance facilities 2.89 10

9 Rapid pace of technological change 11.56 4
10 Non-involvement in decision-making 3.47 9
Note:
n=
173
The results show that the desirable priority is not found to have been given to science and technology in
Nepal. The investment in R & D is very low. There is a lack of proper environment for research. Higher education
has been producing only science teachers instead of scientists. Such manpower is also very low in the country due
to less research programs. Therefore, it is necessary to set up an independent agency for promoting, coordinating,
and financing R & D. The political commitment for the development of science and technology is not found on
the part of the government. The promises made are rarely translated into action. Technology is changing at a rapid
pace. Nepal has not been able to keep with technological changes. Although there are programs of government
relating to science and technology, they are rarely implemented. The interaction between policy-makers and
lawmakers and scientists/technologists is lacking. Long-term technical human resource development strategy is
lacking. There is a lack of coordination and assistance between the institutions related to science and technology.
These institutions have been doing works alone. The system of not involving scientists and technicians in the
decision making process regarding science and technology is found in Nepal. There is lacking adequate workshop
facilities for repair and maintenance of equipment and machinery in Nepal. Outdated technology has made
repairs difficult.
Conclusion
During recent years, significant changes have been observed in the growth of the industrial sector (Pant,
2011). New sub-sectors are being established and others rapidly expanding in the manufacturing sector. New
technology is being introduced and the product range of goods and services is widening. The village and cottage
industry is being encouraged to grow and become more skillful.
In the same way, transport, communication, electricity, and electronics are the major areas in which
technological changes are taken place. Despite these changes, most of our industries, comprised of small and
medium enterprises, have not yet reached even the level of efficient mastery. They continue to use technologies
at low levels of technical efficiency, lagging well behind international frontiers of productivity. They generally
focus on serving local markets with low-price and low-quality products, investing little in training or upgrading
process or product technologies (Pant, 2014).
As discussed earlier, traditional technology is still making a significant contribution to Nepal's
development. However, enough efforts are lacking to preserve, promote, and improve traditional technologies.
Such technologies are fast disappearing.
Technology plays an important role in company operations. Nearly every company and industry wants
to use some kind of technology in its business operations. It plays a key role in manufacturing, commercial, and
14 Nepalese Journal of Management Research (2021), Vol. 1 Issue 1

trade development. But proper technology usage and management is a key issue in Nepal. Such an issue is needed
to correct for taking benefits of using appropriate technologies in our industries and businesses. Research and
development (R&D) are very low in traditional technologies. In recent years, foreign direct investment by
multinational companies has transferred modern technology in Nepal. Since R & D play major roles in the
development of new technology, it is necessary to make our industries; businesses, and even the government
understand that such efforts yield large benefits. It is also necessary to build a favorable environment in order to
make an increase in such efforts.

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