Inderscience Publishers

Performance measurement of R&D is a vaccine for innovation capability: evidence from Indian manufacturing organisations

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The purpose of this study is to explore the barriers and critical success factors that affect the R&D organisational performance in Indian manufacturing scenario. Reviewing the literatures on R&D performance measurement in manufacturing organisations, this paper first brings out a number of key factors contributing to the R&D organisational performance. Based on these factors, a questionnaire survey was conducted among the different manufacturing sectors. An analysis of the responses to the questionnaire survey, together with the use of principal component analysis and factor analysis, helped in framing five constructs: R&D productivity, TQM index, roadblocks to R&D, technical competency, and effectiveness of R&D. Using these constructs, seven hypotheses were developed and tested in the framework of structural equation modelling. The results indicate that technical competency and TQM index are the key drivers to encourage the performance of R&D, which enhance effectiveness of R&D in manufacturing sectors in Indian scenario.

Keywords: research and development, R&D performance, performance measurement, principal component analysis, PCA, structural equation modelling, SEM, India, barriers, critical success factors, manufacturing industry

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