Analyzing the Determinants Affecting the Industrial Competitiveness of Electronics Manufacturing in India by Using TISM and AHP

Abstract

In today’s world, the manufacturing organizations have to plan their strategies differently in order to attain competitiveness. The changing consumer demand, demographic priorities, new technologies, and changing attitudes pose threats to existing business strategies and curtails life cycle of electronics goods. With the emergence of new technologies, most of the organizations are feeling the pressure to deliver the latest technology goods and services in short span of time. This study focuses on the determinants which form the basis for the competitiveness of electronics-manufacturing industries (EMI) in India. Extensive literature studies have been performed to identify such determinants. These determinants are discussed with a group of experts to make the finalized set. The total interpretive structural modeling (TISM) is applied to interpret the complexity of inter-relationships among the determinants. Along with this, the weight of each determinant has been calculated using analytic hierarchy process (AHP). The paper will serve the dual value; first, it explores the EMI competitiveness and second, it prescribes usage of ranking of determinants by TISM–AHP method, a unified approach that can be used in ranking for multi-criteria problems in an interpretive manner. The findings suggest that the determinants such as market demand, government support policies, capital investments with higher driving power have higher weights in AHP model, which are further validated by the findings of TISM. Determinants with high driving power obtained from TISM and AHP draw almost same conclusions in terms of importance and rankings. The study will benefit policy makers, stakeholders, and manufacturing industries to gain competitive advantage by learning and implementing the suggested findings.