Abstract
The objective of the study is to identify the factors that contribute to the research and development practices in Indian manufacturing firms, to categorise the dominating factors into different constructs, and to establish a causal relationship among the constructs. The structural equation modelling methodology using the AMOS 4.0 program has been adopted as the primary methodology for the study to possess causal relationship among five constructs, such as innovative competency, market focus, financial measures, R&D management strategy, and roadblocks to R&D. The results indicate that R&D management strategy holds the key to achieve the innovative competency in Indian manufacturing firms.
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