Development and validation of an instrument to measure the perceived benefits of digitalization in manufacturing

Poonam Garg, Bhumika Gupta (), Archana Sar, Gary Graham and Adam Shore
Additional contact information
Poonam Garg: IMT - Institute of Management Technology [Ghaziabad]
Bhumika Gupta: LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]
Archana Sar: G.L.Bajaj Institute of Technology and Management
Gary Graham: University of Leeds
Adam Shore: Liverpool Business School - LJMU - Liverpool John Moores University

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Abstract: Digitalization in manufacturing can help the firm to improve output and reduce costs. This work reports on the development, testing, and validation of an instrument to measure the perceived benefits of digitalization in manufacturing. The item was developed based on a comprehensive literature review and qualitative investigation from practitioners who are actively engaged in taking decisions/implementing digitalization in Indian manufacturing. Exploratory factor analysis of data from 234 practitioners yielded 5 factors of perceived benefits of digitalization in manufacturing: real-time monitoring; data governance; eco-positivity; resiliency and agility; and embedded/automated control. The results of confirmatory factor analysis on a different sample of 235 practitioners supported the stability of this 5-factor structure. The empirical results confirm the high reliability and construct validity of the newly developed instrument by achieving discriminant, convergent, nomological and predictive validity. Furthermore, this research provides a self-diagnostic tool for manufacturing firms to assess the existing capability and prioritize digitalization efforts for maximum benefits over time.

Keywords: Confirmatory factor analysis; Digitalization; Instrument development; Manufacturing sector; Perceived benefits; Sustainable Development Goals (search for similar items in EconPapers)
Date: 2024-04-17
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Published in IEEE Transactions on Engineering Management, 2024, 71, pp.8288-8306. ⟨10.1109/TEM.2024.3390434⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04559687

DOI: 10.1109/TEM.2024.3390434

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