Identification and Investigation of Value Creation Barriers in Auto Part Industry: An Interpretive Structural Modeling Approach (Case Study)

Subject Areas : Business Management

Houshang  Taghizadeh ¹ (Professor, Department of Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran)

Received: 2016-07-01 Accepted : 2018-06-13 Published : 2018-11-22

Keywords: value, Interpretive Structural Modeling, analytic hierarchy process,

Abstract :

Achieving success in an industrial cluster depends on avariety of variables. A fertile research soil in this regard seems to be investigation of the very concept of value from different perspectives. The aim of this study was thus to identify barriers to value creation in auto part industry of East Azarbaijan and to scrutinize them using ISMtechniqueThe research population comprised 220 managers of auto part manufacturing companies who were members of auto-part manufacturer forum of East Azarbaijan. A sample of 71 was further selected from the population based on Cochran's formula. Two questionnaires were distributed to glean the research data: one focused on identifying the value creation barriers and the other on pinpointing the inter-relationships among those barriers. Value creation barriers were identified via t-test analysis of the research data and the ISM technique was implemented in structuring the identified barriers. The findings emerging from the ISM analysis delineated "nonsufficient experience", "poor inter-personal communication" and "technological changes" as the most influential barriers, and "lack of innovative ideas", "low quality of manufacturing" and "routine thinking" identified as the most influenceable barriers to value creation in the auto part industry. The findings suggest that the barriers could be adequately overcome by promoting work relationships among the personnel, employing experienced experts and reinforcing research and development in monitoring new technologies in automotive industry.

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