Instrument Development Using Structural Equation Modelling for Successful Factors for IOT Adoption: An Indian Manufacturing Perspective

Abstract

Businesses are anticipated to be greatly impacted by the Internet of Things (IOT), particularly in terms of how we view the manufacturing sector. However studies on the effective use of IOT in the Indian manufacturing industry are still scarce. Owing to the complex nature of IOT adoption in manufacturing sector and high failure rate, researchers are focusing on the successful factors that could lead to the successful adoption of IOT in manufacturing sector. The primary objective of this study is to develop a scale related to the success factors for IOT adoption in Indian Manufacturing sector. The items related to the success factors for IOT implementation were taken from the previous literature. Exploratory factor analysis was conducted on the collected data to find the constructs. Confirmatory factor analysis (CFA) was performed to validate the constructs and to finally check the model fitness of the measurement model. Hence, model fit indexes like comparative fit index (CFI), the goodness of fit index (GFI), normed fit index (NFI), and root mean square of error approximation (RMSEA) were used. In this study, we empirically identified and verified five dimensions of success factors for IOT adaptation in Indian Manufacturing sector. These dimensions are technical factor, Human factor, Ecosystem partnership factor, management factor and Institutional factor which contribute 73.35 % of CSF.