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

Garg, P, Gupta, B, Sar, A, Graham, G and Shore, AP (2024) Development and validation of an instrument to measure the perceived benefits of digitalization in manufacturing. IEEE Transactions on Engineering Management. pp. 1-20. ISSN 0018-9391

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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.

Item Type: Article
Uncontrolled Keywords: 08 Information and Computing Sciences; 09 Engineering; 15 Commerce, Management, Tourism and Services; Business & Management
Subjects: H Social Sciences > HF Commerce > HF5001 Business
T Technology > TS Manufactures
Divisions: Liverpool Business School
Publisher: Institute of Electrical and Electronics Engineers (IEEE)
SWORD Depositor: A Symplectic
Date Deposited: 22 Apr 2024 10:41
Last Modified: 22 Apr 2024 10:45
DOI or ID number: 10.1109/tem.2024.3390434
URI: https://researchonline.ljmu.ac.uk/id/eprint/23094
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