Digital Transformation and Workforce Retention: Indian Aviation Industry Perspective

Abstract

The rapid digital transformation of the aviation industry is reshaping work practices, skill requirements, and employment relationships. This study examines the causal relationships among disruptive digital technologies, work practices, upskilling, productivity, job satisfaction, and employee turnover in the Indian aviation industry. The study employs a mixed-methods design integrating PLS-SEM with qualitative thematic analysis. Drawing on socio-technical systems theory, human capital theory, and job embeddedness theory, the study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze survey data collected from 600 employees across airlines, airports, operations, maintenance, and overhaul (MRO) organizations. The results indicate that disruptive technologies significantly influence aviation work practices and employee outcomes. Technology-enabled work practices enhance upskilling, productivity, and job satisfaction, with job satisfaction emerging as the strongest predictor of employee turnover. The findings further reveal that the effects of work practices on turnover are largely indirect, mediated through upskilling and job satisfaction. By empirically linking digital transformation to workforce stability in a safety-critical and regulation-intensive sector, the study contributes to air transport management literature and offers practical insights for aviation managers and policymakers seeking to balance efficiency, safety, and employee retention.