A Framework of Strategic Role for Developing Sustainable Products: Structural Equation Modeling Approach

Abstract

Sustainability in a global competitive market environment seeks the development of innovative products for achieving overall success. New product development (NPD) has become an inevitable activity to all type of industries irrespective of their size and capacity. Recently, ‘Swachh Bharat Abhiyan’ has introduced as an enormous movement that seeks to create a clean India. Cleanliness is not about cleaning the streets and surroundings. It is also about the effect of the new products developed for fulfilling customer needs and also the impact it lefts during the development process. In past era, environmental factors are one of those critically vital factors which have been mostly neglected during the product development process. In past few decades, the global warming reaches to the alarming condition. This makes the world be concerned about the environmental hazards created by the developed products and during their processes as well. Strategic management of managers and leaders is essential to make the firms aware of the environmental factors for NPD. The proper strategic planning helps to control the environmental factors for achieving NPD success. This study develops the structural model depicting the control of strategic management over environmental factors to achieve NPD success which in turn is measured by environmental aspects. Structural equation modeling approach has been applied to build the interrelationship model by using IBM SPSS AMOS 21.0 software. This empirical study has been followed by a detailed questionnaire survey which is performed by collecting primary data from 72 experts of Indian engineering manufacturing industries. The reliability of these real-life data has been analyzed by composite reliability, average variance extracted, and Cronbach’s alpha reliability testing by using IBM SPSS 21.0 software. The developed model portrays the influential role of strategic management to control the environmental factors through tuning their antecedents which finally motivates NPD success which in turn is measured by environmental measures essential for sustainable NPD.