Indian Manufacturing Research Articles

Determinants of financial constraint: a text-based financial constraint index approach

ABSTRACT The study employs a text-based Phrase Matching Method (PMM) index for the financial constraint to identify the key determinants of financial constraints. The study finds that conventional determinants of financial constraint like size, age, dividend payment, long-term borrowing, credit rating, group membership, current ratio, price-to-book ratio, debt-to-equity ratio, capital expenditure, cash flow, and sales growth play a significant role in determining the financial constraint of Indian manufacturing firms. Apart from the conventional determinants, the study also finds that factors like tangibility, R and D intensity, and corporate governance also play an important role in determining financial constraints.

Impact of ISO 14000 on Energy Intensity of Manufacturing Plants in India

Using plant-level data for 2008-2017, we examine the impact of the adoption of ISO 14000 by Indian manufacturing plants on their energy intensity. The propensity-score-matching difference-in-difference (PSM-DID) estimator is used to assess the effect. Our results show that the adoption of ISO 14000 tends to reduce energy intensity in Indian manufacturing plants, especially among the low and low-medium technology industries. ISO 14000 lowers energy intensity in industrial plants in energy-intensive industries, and the effect is stronger for the group of such industries covered under the Perform–Achieve–Trade (PAT) scheme of the Indian government, a market-based compliance mechanism for energy efficiency improvement.

Successful Implementation of Disruptive Innovation by New Entrants: Modeling the Challenges Using Interpretive Structural Modelling

Successful implementation of disruptive innovation involves numerous challenges, especially for new entrants. This study tries to identify and analyze a set of critical challenges that might plague a new entrant to successfully implement disruptive innovation. Multicriteria decision-making (MCDM) technique of Interpretive Structural Modeling (ISM) was used to analyze the identified challenges, as well as to derive their interrelationship. The study was conducted in the context of the Indian manufacturing sector. The findings revealed that the lack of financial resources, lack of non-financial resources, and lack of top management support emerged as the three key challenges impeding disruptive innovation for manufacturing organizations in India. The motivation–opportunity–ability (MOA) model served as the basic theoretical underpinning for the study. The findings of the study are expected to help managers and policymakers to understand possible challenges associated with the implementation of disruptive innovation, and to develop counter strategies accordingly.

MARKETING STRATEGIES OF APOLLO TYRES

Apollo Tyres Limited is an Indian Multinational tyre manufacturing company headquartered in Gurugram, Haryana. It was incorporated in 1972, and its first plant was commissioned in Perambra in Chalakudy, Kerala (India.) The company now has five manufacturing units in India, one in Netherlands and one in Hungary. It has a network of nearly 5,000 dealerships in India, of which over 2,500 are exclusive outlets. The company generates 69% of its revenues from India, 26% from Europe and 5% from other countries. Apollo announced its entry into the two-wheeler tyre segment with contract manufacturing in March 2016. The company's second plant in Europe, was inaugurated by the Hungarian Prime Minister, Viktor Orban. in April 2017. Shares of Apollo Tyres Ltd. rose to their highest in little over two years in February, 2021 trading at ₹253.10.

Evolution of dynamic capabilities for business sustainability performance: Evidence from the Indian manufacturing sector

AbstractFirms can achieve trinomial sustainability goals if they can constantly build and rejuvenate their capabilities to adapt to new situations. However, few studies consider the interrelationships between the distinct capabilities pertinent to sustainable development and the impact of these capabilities on firm performance under diverse contexts, especially in emerging economies. Drawing on dynamic capability theory, we developed a model to test the links between dynamic sustainability capability, theorized as a higher order capability, and relational and managerial capabilities, theorized as lower order capabilities, to the firm's sustainability performance. Data collected from 210 large Indian manufacturing firms is analyzed using PLS‐SEM. Results confirm that dynamic sustainability capability has facilitating effects on environmental and social performance directly and indirectly through managerial capability. Although relational capability partially mediates the link between dynamic sustainability capability and social performance, it does not impact environmental performance. Further, the aforementioned relationships are affected by forces in the firms' environment. Most of the direct and indirect relationships are negatively moderated by organizational inertia and positively moderated by environmental turbulence. By investigating the hierarchically structured capabilities, this study guides firms to make strategic choices regarding resource calibration for sustainability. The study recommends that organizations looking to integrate dynamic sustainability capability as part of their strategic management should look at the sequential combinations of existing resources to achieve different sustainability targets. The study's findings also urge policymakers to consider environmental conditions while developing sustainability reforms.

The role of financial constraints in firm transition—Evidence from Indian manufacturing

AbstractIn developing countries' manufacturing, the prevalence of small firms poses a conundrum, as few successfully transition to larger categories. Scholarly attention to the reasons behind this limited upward mobility remains scarce. This study, focusing on Indian manufacturing, explores the role of limited financial access as a significant obstacle hindering small firms' transition. Analysing data spanning 2001–2016, encompassing both formal and informal firms, we find robust evidence that access to finance is crucial for small firm transition in Indian manufacturing. The findings are robust to alternate specifications and methods, and also to concerns arising from reverse causality.

Empirical analysis of strategies to overcome the barriers of LSS implementation in Indian small manufacturing enterprises: an application of ISM-MICMAC

PurposeThe purpose of this study is to explore and model the strategies to overcome the barriers of Lean Six Sigma (LSS) implementation in Indian small manufacturing enterprises (SMEs).Design/methodology/approachIn this research, 31 strategies of LSS implementation in SMEs have been identified through detailed literature review and out of them, 13 are finalized using statistical tools like CIMTC and Importance-Index analysis. Moreover, the consistency of finalized strategies was examined through reliability test using SPSS software version 22. The finalized strategies are modelled through interpretive structural modelling (ISM) and classified them using MICMAC based on their driving and dependency power.FindingsThe key findings of this techno-managerial study are identification and modelling of 13 strategies to overcome adoption challenges of LSS in context of Indian SMEs. The usage of ISM-MICMAC approach provides the guidance to industrialist consider the mutual interaction of strategies during planning and scheduling for LSS projects.Research limitations/implicationsDue to human involvement and judgements, there may be chance of biasness and subjectivity during construction of self-interaction matrix. Also, the number of identified strategies to overcomes barriers of LSS adoption may vary by altering nature, scope and region of research.Originality/valueLiterature is full of studies regarding LSS barriers and its rankings. Also, few studies explored the solutions of LSS barriers and prioritized them. To the best of the authors’ knowledge, our study is very rare to witness which expose the strategies to overcome the barriers and frame the mutual interaction are per the driving and dependence power of strategies. The application of ISM-MICMAC approach suggests a roadmap for implementing LSS approach efficiently through considering developed ISM model of strategies in context of SMEs.

Examining the impact of Industry 4.0 technologies on industrial performance of manufacturing organisations in India: an empirical study

ABSTRACT Industry 4.0 (I 4.0) technologies can significantly enhance the competitiveness, agility, and sustainability of the Indian manufacturing industry in the global market landscape. However, a lack of awareness about the potential benefits of I 4.0 inhibits its adoption within the sector. This lack of understanding, coupled with the complexities and implementation challenges associated with these technologies, disguises the relationship between benefits and adoption. This study aims to investigate the relationship between the adoption of I 4.0 technologies and the benefits expected from these technologies. A survey of 174 manufacturing organisations operating in India is conducted. The results of the survey suggest that the adoption of I 4.0 technologies has a positive relationship with operational performance benefits. The secondary benefits such as product flexibility, work-life balance and sustainability could only be considered after achieving operational performance. This paper contributes to the growing body of literature on the impact of I 4.0 on the manufacturing industry in India. Further it provides a base for future research on real benefits of I 4.0 technologies for manufacturing organisations from emerging economies.

Accomplishing sustainable development goals through international management system standards and multinational supply chains

AbstractThe United Nations has set up 17 sustainable development goals (SDGs) to be achieved by 2030. This research investigates the role of management system standards and multinational supply chains in achieving SDGs and targets, as well as whether these two paths produce varying degrees of effectiveness in achieving these goals. Questionnaire‐based research is conducted among 264 Indian manufacturing organisations based on their certification status and MNE supplier status. Comparison of the surveyed organisations is carried out on three parameters, namely, number of targets for each SDG, fulfilment levels of these targets and extension of established targets further in the supply chain. Analysis of variance and t‐test methods are used to compare survey responses. Results show that the role of management system standards and auditing frameworks used by multinational enterprises is statistically similar in achieving SDGs. The role of management system standards in achieving each of the SDGs has not yet been attempted so far by using the aforementioned factors. The comparison of management system standards' auditing approaches with the auditing frameworks of multinational enterprises also provides a novel addition. Both multinationals and their supplier organisations can save time, money and effort by following either of the two approaches and avoiding the duplicity that is currently prevalent in practice. The research has theoretical implications for sustainability, modernisation and globalisation theories.

Technical reasons for delay and denial of regulatory approval of Initial applications for (Abbreviated) New Drugs filed by Indian Companies by USFDA, 2005-2022

Indian pharmaceutical companies are one of the leading sources of generic medicine to the United States. The US Food and Drug Administration (US FDA) conduct regular inspections and assessments of manufacturing facilities in order to confer product quality and to ensure a firm's compliance with applicable laws and regulations, such as the Food, Drug and Cosmetic Act and related Acts. Identified regulatory violations and noncompliance are notified by US FDA to the manufacturer in the form of 483s and warning letter. Warning letters led to the unfavourable consequences to the company such as loss of trust, reputation and affects their financial stability. A trend analysis of warning letters may help Indian pharmaceutical manufacturing companies to adopt cGMP practices as per the requirement of US FDA and thus will result in reduced number and frequency of warning letters. Therefore, a trend analysis of warning letters issued to Indian Pharmaceutical sector between 2005 till 2022 by US FDA was carried out by extracting the information from publicly available FDA archives and dashboard. There is an increasing trend in number of US FDA inspections in India post 2012 which could be due to the new regulations, updated laws, also the changed expectations and mindset of FDA inspectors. The FDA major findings included inadequate investigations systems, lack of authoritative quality units, product contamination and inadequate documentation practices. The study reported here enlists the expectations of US FDA from Indian Pharmaceutical sector. This will help Indian pharmaceutical manufacturers to adopt the strategies to minimize US FDA warning letters.

Drug Recalls: Trend analysis of Recalls by Indian Pharmaceutical Industry during the period 2013-2023

With the advanced technologies, increasing complexities of the manufacturing processes, more stringent inspections, and dynamic regulatory environment under which manufacturers work, there are high possibilities that a pharmaceutical firm will undergo a recall of one of its products. A recall can impact a company in product exposure, sales, manufacturing costs, and patients trust. The study presented here explored the drug recalls made by Indian Pharmaceutical Industry during the period of 2013 – 2023. There is an increasing trend in number of recalls post 2017 which could be due to the new regulations and, scientific discoveries. The major reasons for recalls primarily included cGMP deviations, failure to comply with approved specification, labeling mix ups. The study enlists the expectations of US FDA from Indian Pharmaceutical sector. This will help Indian pharmaceutical manufacturers to adopt the strategies to minimize drug recalls.

Demystifying the relationships among green HRM, green work engagement, green innovation and environmental performance: a serial mediation model

PurposeThis study aims to demystify the mediating mechanism behind the relationship between green human resource management (HRM) and an organization’s environmental performance with the support of resource-based view theory and social exchange theory. Specifically, this study investigates the sequential mediation of green work engagement and green innovation on the direct effect of green HRM on environmental performance.Design/methodology/approachThis quantitative study collected data from 311 employees working in various Indian manufacturing firms using an online survey. Structural equation modeling was used to determine the model fit of the serial mediation model, and PROCESS macro was used to test the hypotheses.FindingsThe findings of the study revealed the following important results. First, green HRM positively affects an organization’s environmental performance. Second, green work engagement mediates the effect of green HRM on environmental performance. Third, green innovation mediates the effect of green HRM on environmental performance. Fourth, green work engagement and green innovation sequentially mediate the green HRM–environmental relationship.Practical implicationsThis study offers the following practical implications. First, it improves the managerial comprehension of the processes in enhancing environmental performance. Second, it implies that managers need to implement green HRM in their organizations as they play a pivotal role in improving employees’ green work engagement, organizations’ green innovation and environmental performance.Originality/valueThe present study is one of the primary research works that examined the serial mediating effect of green work engagement and green innovation in the relationship between green HRM and environmental performance. This study enriches the existing literature on green HRM and environmental performance by uncovering the mediating mechanism of green work engagement and green innovation.

An assessment framework to evaluate the critical success factors to Quality 4.0 transition in developing countries: a case experience of sustainable performance of Indian manufacturers

PurposeThe research aims to develop an assessment framework that evaluates critical success factors (CSFs) for the Quality 4.0 (Q 4.0) transition among Indian firms.Design/methodology/approachThe authors use the fuzzy-Delphi method to validate the results of a systematic literature review (SLR) that explores critical aspects. Further, the fuzzy decision-making trial and laboratory (DEMATEL) method determines the cause-and-effect link. The findings indicate that developing a Q 4.0 framework is essential for the long-term success of manufacturing companies. Utilizing the power of digital technology, data analytics and automation, manufacturing companies can benefit from the Q 4.0 framework. Product quality, operational effectiveness and overall business performance may all be enhanced by implementing the Q 4.0 transition framework.FindingsThe study highlights significant awareness of Q 4.0 in the Indian manufacturing sector that is acquired through various means such as training, experience, learning and research. However, most manufacturing industries in India still follow older quality paradigms. On the other hand, Indian manufacturing industries seem well-equipped to adopt Q 4.0, given practitioners' firm grasp of its concepts and anticipated benefits, including improved customer satisfaction, product refinement, continuous process enhancement, waste reduction and informed decision-making. Adoption hurdles involve challenges including reliable electricity access, high-speed Internet, infrastructure, a skilled workforce and financial support. The study also introduces a transition framework facilitating the shift from conventional methods to Q 4.0, aligned with the principles of the Fourth Industrial Revolution (IR).Research limitations/implicationsThis research exclusively examines the manufacturing sector, neglecting other fields such as medical, service, mining and construction. Additionally, there needs to be more emphasis on the Q 4.0 implementation frameworks within the scope of the study.Originality/valueThis may be the inaugural framework for transitioning to Q 4.0 in India's manufacturing sectors and, conceivably, other developing nations.

Industry 4.0 and Indian Manufacturing Companies: Barriers towards sustainability

Industry 4.0 refers to the part of key enabling technologies which includes cyber-physical systems, the internet of things, artificial intelligence big data analytics, and digital twins. Major driving forces behind automated and digital manufacturing settings include these technologies(Castelo-Branco, 2019). Emphasizing sustainability as the cornerstone of business strategy and calling for smart manufacturing, energy-efficient construction, and low-impact industrialization led to the foundation of the United Nations (UN) Sustainability 2030 agenda. Industry 4.0 technology aids in making company processes more sustainable. Few research fields have reported on this technology as it is aimed at improving business sustainability through the innovation of manufacturing processes in different industries (Bag, 2018). These applications are used in a variety of cutting-edge technology to modernize assembly lines. The Internet of Things helps machines to create, process, and transmit data in real-time to both people and other machines, robots can operate independently or in conjunction with humans, manipulate task like grabbing and spinning through its programming and design. On one hand big data and analytics deals with enormous and unstructured data using business intelligence, machine learning and analytics software using cloud computing techniques. Material can be added to solid blocks rather than mechanically removed to create high quality physical items through additive manufacturing (Godina,2020). These technologies are utilized in Industry 4.0 to create cyber physical system that are applied on the production line (Bai, 2020). It supports several sustainability related subfields; advanced manufacturing solutions may be built around the networked systems. It reduces the time to market, improves manufacturing flexibility and make better use of resources (Beier, 2020).

Challenges in Measurement of Low-Value ESL and ESR of High-Performance PFN Capacitors for Klystron Modulator

In the high voltage line type pulse modulators, Pulse Forming Network (PFN) capacitors are one of the important components. These capacitors operate at peak kilo ampere current range and at repetition rate in the range of a few hundred hertz. The performance of these capacitors is critical w.r.t. overall system performance, and they are required to operate at high power density and low losses with high reliability. The Equivalent Series Inductance (ESL) and Equivalent Series Resistance (ESR) are two critical parameters that affect the performance of these capacitors. PFN modulator demands a capacitor of very low ESL and ESR for reliable operation and generation of high-voltage pulses. Higher ESR value adversely affects the performance of the capacitor by raising its temperature and thus deteriorating its life. ESL value does not directly affect life, but it affects the quality of high voltage pulse. In RRCAT, the PFN capacitors purchased from Indian manufacturers were showing high-temperature rise and failures. Therefore, new capacitors were designed to have lower ESL and ESR values. Measurement of ESL and ESR is important to evaluate the performance of the capacitors. The low value of these parameters makes their measurement a challenging task and requires special techniques. For low values of ESL and ESR (less than 100 mΩ) measurement, a differential measurement technique was used in which modification and different layouts were explored to improve the repetitive accuracy of the measurements. The differential ESR and ESL measurement techniques with more emphasis on the low-value ESR measurement will be discussed in the paper.

Investments in Innovations and Market Structure: A Semi-parametric Approach

The economic literature suggests that there is an inverted-U type of relationship between innovation and product market competition. Existing empirical studies assume a quadratic functional form while estimating the relationship between the two variables. Using data on the Indian manufacturing industry, this article contributes by using a semi-parametric approach to test the ‘Inverted-U’ hypothesis without assuming a priori functional form. The estimation results suggest that the functional form of the relationship is contingent upon the choice of product market competition indicator in the model. When product market competition is defined as overall price competition, the empirical evidence confirms the inverted-U hypothesis. This implies that both escape competition and the Schumpeterian effect are observed as price competition increases. However, when product market competition is defined as domestic competition, only the escape competition effect is observed. JEL Codes: L10, L60, O30, O33, F10

Trade, labour reallocation and productivity growth in the indian manufacturing sector

Trade, labour reallocation and productivity growth in the indian manufacturing sector

Do bankers on board fulfill their role? Corporate social responsibility, environmental concerns and firm leverage

AbstractUsing a dataset of listed Indian manufacturing firms for 2010–2020, the study examines their financial response to climate risks in the presence of banker‐directors. The results show that climate sensitivity and vulnerability exert a negative impact on firm leverage and cost whereas climate adaptation has relatively limited impact. These effects broadly resonate across firm ownership, although it differ across firm‐bank equity interlocks. The overall impact of these developments is manifest in a decline in investment. The findings suggest that policymakers need to be more responsive to firm‐bank interactions, as these can impact firm behavior and have real economic consequences.

Industry 5.0 and sustainable manufacturing: a systematic literature review

PurposeIndustry 5.0 (I5.0) is eventually set to supersede Industry 4.0 (I4.0), despite the fact that I4.0 continues to gain ground in emerging nations like India. Now India is aspiring to be a global manufacturing hub, and I5.0 offers enormous potential to position India as a forerunner in intelligent and collaborative manufacturing systems. Therefore, this research article aims to understand the relationship between I5.0 and sustainable manufacturing (SM) thoroughly; pinpoint its impact and implementation challenges; analyze its impact on Triple-Bottom-Line (TBL) sustainability; and present an inclusive framework for I5.0 implementation for Indian manufacturing enterprises.Design/methodology/approachThe coexistence of two industrial revolutions raises questions, which necessitates debates and explanations. Thus, the systematic literature review (SLR) approach is used to address this issue and this study used Web of Science, Scopus, Science Direct and Google Scholar databases. Following a critical SLR, 82 research papers have been cited in this article, and the majority of cited articles were published from 2010 to 2022, to ensure a focused analysis of pertinent and recent scholarly contributions.FindingsI4.0 is considered to be technology-driven, however, I5.0 is perceived to be value-driven. I5.0 is not a replacement or a chronological continuation of the I4.0 paradigm. The notion of I5.0 offers a distinct perspective and emphasizes the necessity of research on SM within the TBL sustainability boundaries. I5.0 introduces a new TBL: resilience in value creation, human well-being and sustainable society. Indeed, I5.0 seems to be economically, socially, and environmentally sustainable while manufacturing products with high productivity.Practical implicationsTheoretical implications pertain to restructuring business models and workforce transformation, whereas practical implications underscore the significance for manufacturing enterprises to embrace I5.0 for their sustainable development. By understanding the nuanced relationship between I5.0 and SM, enterprises can navigate implementation challenges, maximize TBL sustainability and embrace an inclusive I5.0 framework for high productivity and resilience.Originality/valueThe existing literature presents the general notion of I5.0 but lacks in-depth TBL sustainability analysis. This research used a systematic and rigorous SLR approach that evaluates the existing literature, enables an in-depth understanding, identifies research gaps and provides evidence-based recommendations for the decision-making process. Furthermore, this research aims to stand on an unbiased assessment, exploring theoretical and practical implications of I5.0 implementation for manufacturing enterprises and suggesting future research avenues.

Influence of stakeholders on supply chain social sustainability: New insights from small suppliers in the Indian manufacturing sector

Due to intense pressure from multiple stakeholders, the integration of social sustainability in supply networks is steadily gaining momentum in developing countries. However, because this pressure does not necessarily drive the adoption of supply chain social sustainability (SCSS) at the suppliers' end, further investigation is imperative. Additionally, despite the increased academic attention to the supplier base concerning SCSS, small suppliers' perspectives have been insufficiently examined. The objectives of the current study are to explore the positive and negative influences of various small suppliers' stakeholders on SCSS adoption, small suppliers' perceptions regarding stakeholders' demands, and the mechanisms they employ in response to these influences. An exploratory qualitative approach involving semi-structured interviews is used to collect primary data from owners and managers of 28 companies in the Indian manufacturing sector. The findings reveal that positive and negative influences and pressures to espouse SCSS emerge from two categories of stakeholders: primary and secondary. Small suppliers perceive different stakeholders' SCSS expectations as complementary, contrasting, and not-so-essential, and they adopt three mechanisms to manage stakeholders' demands: compliance, trade-off, and avoidance. This study adds new insights to the existing SCSS literature by offering under-represented small suppliers' viewpoints and developing a conceptual model using stakeholder theory. It also provides some practical implications for various stakeholders, including owners of small enterprises.