Development of a Structural Model of Risk Factors involved in E-Supply chain adoption in Indian Mechanical Industries

Abstract

Managing risk in e-supply chain has become an essential field for researchers in this fast-growing market. Many researchers have contributed to this context for managing risks, but it remains uncertain. This study recommends a structural model to analyze the impact of various e-supply chain risk issues over demand risk. This model mainly covers seven categories of risk issues such as demand, organizational, infrastructure, etc. for this study which are related to mechanical manufacturing industries of Delhi region. So, after a detailed study and expert's opinion, 38 Risks factors were included in this study to formulate the survey form or questionnaire. A questionnaire-based survey was conducted for gathering responses from 148 specialists belonging to mechanical manufacturing sector situated in Delhi region. This methodology consists of measurement and mathematical modeling. The technique is based on exploratory and confirmatory factor analysis using SPSS and AMOS software tool. Software tools like SPSS21 used for descriptive statistics and Amos Graphics 21 used for structural equation modeling. Risk related factors and sub-factors have been identified, assigned weight and prioritized in accordance with their importance using expert opinion through well-designed questionnaires. On the other hand, an empirical study was conducted for transforming a conceptual model into structural equation modeling. Structural identification and comparison of various risks related to the e-supply chain. Result finding proposes various e-supply risk issues which create significant positive (0.49) effect over demand risk. Result finding also suggests that sub-factors like Forecast Error and sudden cancellation of order are highly affected by e-supply risks.