Development of a Model for the Sustainability of Agri Engineering Manufacturing Companies in Karnataka, India
Usha N1, G. Devakumar2

1Usha N, Ph.D. Scholar, Department of Management and Commerce, Ramaiah University, Peenya Industrial Area, Bengaluru (Karnataka), India.
2Dr. G. Devakumar, Research Centre Head, Department of Management and Commerce, Ramaiah University, House Gnanagangothri Campus, New BEL Road, MSR Nagar, Bangalore (Karnataka), India
Manuscript received on 05 February 2019 | Revised Manuscript received on 13 February 2019 | Manuscript published on 28 February 2019 | PP: 156-164 | Volume-8 Issue-4, February 2019 | Retrieval Number: D2671028419/19©BEIESP
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Abstract: Indian agriculture sector contributes 18% of GDP to the country’s economy and provides employment about 50% of the workforce. Agriculture sector is facing challenges to get integrated with the business sector and to getting timely and convenient information to increase the productivity. Agricultural mechanization helps to overcome this problem. Agri Engineering Manufacturing Companies (AEMC) plays a major role in effective implementation of Agricultural mechanization. Agricultural mechanization has been accepted as an important element of modernization of agriculture by the world. Hence this article focused on the ways to address the contemporary issues for sustainability of AEMC. In this article quantitative research has been carried out and a thorough literature review has been carried out through scholarly Scopus Indexed journals to identify the factors for sustainability of AEMC for the purpose of conducting pilot study. The critical factors such as Entrepreneurial Competency (EC), Business Model (BM), Innovation and Technology (IT) were arrived based on the rating and ranking scale calculation. Survey questionnaire was developed and validated based on the feedback given by the entrepreneurs, academicians, subject experts and industry experts. A total population of 372 numbers of AEMC has been identified through agricultural department websites, trade websites and agricultural events in the state of Karnataka. Census method of sampling has been adopted and the sample was categorised based on their manufacturing activity such as Equipment and implements, Irrigation, Farm Machineries and Processing Machineries. The primary data has been collected through face to face interview, telephonic interview and Google spreadsheet. The collected data has been analysed using Statistical Package for the Social Sciences 25 (SPSS 25) and Analysis of Moment Structures 25 (AMOS 25) software. The data reliability and validity has been analysed through Cronbach alpha value of 0.785 and KMO value of 0.703 respectively which are well within the limit. Further Structural Equation Modelling (SEM) has been used to develop a model consisting of the identified factors such as EC, BM and IT. The obtained Goodness of fit statistics values are well within the acceptable limit. The output of this research is recommended to implement in AEMC such as farm equipment, machineries and irrigation equipment manufacturing companies. As per the research finding, it is recommended to concentrate on the unmet customer need so as to increase the market share and sustain business. Department restructuring enable the entrepreneurs to adopt the new technology as well as meet the growing needs of the customers Adoption of technological forecasting helps the entrepreneurs to sense the future requirement of the market and be equipped to face the competition. It is suggested to the entrepreneurs to participate in the national and international trade fairs and exhibitions to secure maximum market share to attain sustainability.
Keyword: Agri Engineering Flexible Manufacturing Companies, Business Sustainability, Entrepreneurial Competency, Innovation and Technology.
Scope of the Article: Manufacturing Processes