Validation of demand pull strategies for accomplishing sustainable development in manufacturing organizations through structural equation modeling

Abstract

Purpose

The purpose of this paper is to investigate as well as select various significant demand pull (DP) strategies affecting sustainable development (SD) in manufacturing organizations. The study deploys the structural equation modeling (SEM) technique to empirically validate the interrelationships between significant DP strategies and SD indicators in an SEM-DP Model.

Design/methodology/approach

Confirmatory factor analysis approach is applied to generate an effective SEM-DP model using the AMOS 21 (Analysis of Moment Structures) software. The data have been collected from different manufacturing organizations practicing DP strategies, using a well-framed DP questionnaire for the evolution of the SEM-DP model.

Findings

SEM of various DP strategies like stringent implementation of government regulations (SIGR), transforming capabilities, unionized labor (UL), and customer attributes (CA) toward achieving SD in manufacturing industries has been performed. The SEM-DP model has been planned and reports obtained before and after modification indices of the model are correlated, which further establishes improvements in the model’s effectiveness. The research concludes that significant DP strategies, namely, SIGR, UL, and CA support the manufacturing industries in accomplishing SD in terms of competitiveness, business performance enhancements, flexibility, customer satisfaction, and technological development.

Research limitations/implications

In the present study, contributions of DP practices are determined to accomplish SD in Indian manufacturing organizations only. Hence, the results obtained may need some modifications before applying to other countries. Moreover, issue-wise independent modeling can also be performed to assess the importance of DP practices under specific orientations.

Social implications

The results of various interrelationships among DP practices and SD indicators in the SEM-DP model portray the effectiveness of DP practices for achieving organizational goals and social commitments.

Originality/value

The outcomes of the study will help DP practitioners, organizational managers, and HR executives in the manufacturing industries to develop a clear understanding about the significant DP strategies to be followed holistically for accomplishing SD. The manufacturing enterprises will be able to frame and organize their policies, handle their UL issues and CA in a more appropriate way. Hence, the knowledge obtained from present study will help improve the overall performance of manufacturing industries involved in the present context.

Citation

Singla, A., Ahuja, I.S. and Sethi, A.S. (2018), "Validation of demand pull strategies for accomplishing sustainable development in manufacturing organizations through structural equation modeling", Management Decision, Vol. 56 No. 5, pp. 1135-1156. https://doi.org/10.1108/MD-08-2017-0722