Abstract

The purpose of this paper is to identify the critical success factors influencing the performance of power loom textiles, to evaluate their impact on the organizational performance and to find out the effect of these factors on the organizational performance of small and medium-sized enterprises (SMEs) in the Solapur (Maharashtra) industrial sector using AHP. In the methodology adopted, factors are identified through the literature survey and finalization of these factors is done by taking the opinion of experts in the Indian context. By cognitive map, the relation between these factors (direct and indirect effect) is determined and cause and effect diagram is prepared. Then these factors are arranged hierarchically and tree diagram is prepared. A questionnaire was designed and distributed among the experts; data is collected. Using expert choice software data is filled to quantify by pair-wise comparison of these factors and are prioritized. The weights demonstrate several key findings: local and global priority reveals that there is a substantial effect of the human resource, product style, and volume on the organizational performance. The skills and technology upgradation impact on organizational performance. Maintenance plays an important role in improving the organizational performances of the SMEs. Overall, the results showed the central role of the operational factors are important. The research is subject to the normal limitations of AHP. The study is using perceptual data provided by Experts which may not provide clear measures of impact factors. However, this can be overcome using more experts to collect data in future studies. Interestingly, the findings here may be generalisable outside Solapur like Ichalkarnji, Malegaon, and Bhiwadi (Maharashtra). Solapur power loom SMEs should consider AHP as an innovative tool for quantification of factors impacting on performance and improving operational and organizational performance in today’s dynamic manufacturing environment. The finding suggests the notion that these critical success factors (CSFs) are to be studied carefully and improvement strategy should be developed. Moreover, the study emphasizes the need to link priority of factors to organizational performance and improvement. The study integrates the CSFs of performance and its quantification using AHP and its effect on performance of power loom textiles. The indirect impacts of underlying and fundamental factors are considered. Very few studies have been performed to investigate and understand this issue. Therefore, the research can make a useful contribution.

Highlights

  • Among many developing countries that actively participate in textiles and apparel trade, the Indian textile industry is exhibiting significant growth potential in the global market with its advantage as low production costs, abundant resources of raw material and cheap labor forces

  • The purpose of this paper is to identify the critical success factors influencing the performance of power loom textiles, to evaluate their impact on the organizational performance and to find out the effect of these factors on the organizational performance of small and medium-sized enterprises (SMEs) in the Solapur (Maharashtra) industrial sector using AHP

  • The findings showed that exogenous variables, such as the nature of the economy and polity and the inadequacy of electricity have more impact on organizational performance than endogenous variables, such as size, organizational culture, organizational structure, and technology

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Summary

Introduction

Among many developing countries that actively participate in textiles and apparel trade, the Indian textile industry is exhibiting significant growth potential in the global market with its advantage as low production costs, abundant resources of raw material and cheap labor forces. Competition is much more intense in the textiles and apparel exports business after the quota cancellation as stated by Clark (2005) It became crucial for textile product manufacturers to respond to the new challenges with new strategies and solutions. In the economic survey conducted by Government of India (2012–2013) states that, these power looms have flourished prominently at various centers in Maharashtra, such as Bhiwandi, Ichalkaranji, Solapur, and Malegaon. These power loom centers work in decentralized sector and play an important role in the growth of power loom industry. The paper proposes a systematic work on identification of factors and its effect, quantification of these factors using AHP in the textile domain

Literature review
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Results and discussion
Objectives
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