Title: Structural equation modelling of technology innovation model using AMOS for Indian MSMEs

Authors: Davinder Singh; J.S. Khamba; Tarun Nanda

Addresses: Mechanical Engineering Department, Punjabi University, Patiala, India ' Mechanical Engineering Department, Punjabi University, Patiala, India ' Mechanical Engineering Department, Thapar University, Patiala, India

Abstract: Small enterprises typically make a large contribution to manufacturing employment in poor countries. However, the developmental contribution of most of them is limited to generating subsistence employment of last resort. Hence, in the face of fast labour force growth and limited employment absorption in other sectors, developing country governments have mounted efforts to improve productivity and earnings in these firms. Technology innovation is considered to be essential for the survival and growth of individual firms. It is not only the means to increase production, improve quality and develop new products but also increases competitiveness, expands exports and ultimately ensures uninterrupted economic growth. The present study is directed towards justifying the support of technology innovation initiatives (TII) in improving manufacturing performance of MSMEs. Using AMOS 22.0 software structural equation modelling (SEM) of TI model was done. After constructing the model, it was analysed that SEM_TI model values was obtained to near fit values. This implies that the TII can be helpful for Indian small firms in improving the overall manufacturing performance in terms of reduction in the cost of production, extension in range of products, improvement in product life cycle, market share and mean sales profitability.

Keywords: technology innovation initiatives; TII; manufacturing performance; confirmatory factor analysis; CFA; structural equation modelling; SEM; analysis of moment structures; AMOS; India; MSMEs; micro enterprises; small and medium-sized enterprises; SMEs; manufacturing industry.

DOI: 10.1504/IJPQM.2017.083283

International Journal of Productivity and Quality Management, 2017 Vol.21 No.1, pp.72 - 96

Received: 15 Oct 2015
Accepted: 05 Dec 2015

Published online: 19 Mar 2017 *

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