Application of interpretive structural modelling and structural equation modelling for analysis of sustainable manufacturing factors in Indian automotive component sector

Abstract

Sustainable manufacturing practices are essential for automotive component manufacturing organisations to ensure competitive advantage. The interrelation between sustainability enablers' namely economic prosperity, environment well-being, social well-being, performance management and research and development need to be analysed for deriving practical insights. Theoretical model development of enablers using interpretive structural modelling (ISM) has been statistically verified using measurement models and structural model of partial least square, structural equation modelling (SEM). In this context, this article presents a combined ISM and SEM approach for building the models with the help of experts for automotive component manufacturing organisation. The measurement and structural model are constructed based on survey among 70 practitioners from automotive component manufacturing organisations in Southern India. The research hypotheses have been formulated to verify the relationship and are analysed. The results of the study indicated that the usage of ISM is very powerful to establish structural relationship between sustainable manufacturing enablers and there exist structural relationship between the enablers.