Chapter 3

Research Methodology*

3.1. Introduction
In this Chapter, the research methodology used in this thesis is described. First, the
justification for research methodology employed is described followed by survey design, the
development of questionnaire and its administration. Subsequent sections of the Chapter report
on analysis and validation aspect of the research methodology developed.
The research methodology adopted in this research is based on literature review, expert
opinion, questionnaire based survey and modeling. Thus, Chapter presented the details of
research steps followed for thesis were (I) first stage deals with questionnaire based data analysis
and survey study (e.g. the identification and analysis of key SSC items) and (II) second stage
deals with analytical methods (e.g. AHP, ISM etc.) in robust and secure supply chain.
The subsequent sections present the details of the various tools and techniques along with
the justification

3.2 Justification of the Methodology Adopted for Present work

In this study combination of survey research and modeling techniques are used to study
various practitioners and researcher perspective on secure supply chain. Survey research is an
established method of research and uses a structured questionnaire to gather information from a
sample of respondents (Kerlinger, 1986). Survey research is prominent as a methodology that
has been used to study unstructured organizational problems (http://
dmsweb.badm.sc.edu/grover/survey/ MIS-SUVY.html).

* Part of this chapter is under second review as “Modeling and Analysis of Integrated Supply Chain Risk and
Security Framework" to be considered for publication in the International Journal of Physical Distribution &
Logistics Management and assigned manuscript ID is IJPDLM-12-2013-0304.
* Part of this chapter is published as “Anjali Saxena, Nitin Seth, 2012. Supply chain risk and security management:
an interpretive structural modeling approach, Journal: Int. J. of Logistics Economics and Globalization, 2012
Vol.4, No.1/2, pp.117 – 132.
*Part of this chapter is published as “Supply Chain Risk and Security Management: Interpretive Structural
Modeling”, 16th Conference of SOM (Society of Operations Management), IIT Delhi, December 21-23, 2012.

49
 The research methodology used for the present thesis follows the guidelines prescribed
by Churchill, 1979; Gerbing and Anderson, 1988 and Parasuraman et al., 1988. In the present
study, survey research method has been employed to study the issues of robust and secure supply
chain in Indian automotive industry context. Survey research is an established method which
encompasses the use of structured and unstructured questionnaire to collect information from a
sample of respondents (Kerlinger, 1986). Surveys are fairly related to the study of the
interruption sources (Tang et al., 2006; Chopra et al., 2008) and supply chain research (Niraj et
al., 2002; Mentzer et al., 2005; Abdelraoof et al., 2011; Xiqiang, et al., 2014). Some sub fields
of the Supply Chain (such as manufacturing, strategy, Procurement Strategy and management)
have been researched extensively through survey method but survey research in RSSC is still not
much used. Hence, the survey research is an appropriate method in the present study.
Some established Operations Management sub-fields have been researched extensively,
in past through survey research, and the corresponding bodies of knowledge developed to an
extent enough to allow researchers to embrace theory testing survey research (Handfield and
Melnyk, 1998; Constantin, 2011; Mathiyazhagan et al., 2013). The reported research indicates
high need of secure supply chain framework, modeling and mitigation in various scenarios (Jyri
et al., 2012; Joshi et al., 2013; Lahiri and George, 2013; Jayanth, 2014)
The significance of exploratory research increases when the literature lacks theoretical
models on issues being researched (Nix, 2001; Seth et al., 2006b) and also when the literature
does not fully explain the contours of the problem being examined (Forza, 2002). According to
Batra (2005), the quantitative methods provide a tangible and objective analysis of the problem
situation, where as the qualitative methods helps in providing a fuller perspective of the problem
solution more creatively by considering both tangible and intangible variables involvement.
Since Robust and Secure Supply chain is a relatively less researched area, an exploratory and
explanatory research methods have been adopted for this study.
The use of various modeling tools like (AHP, ANP, etc.) in supply chain is been explored
by various researcher for ex. Yunna, et al., (2012); Lin and Yeh (2013); He et al., 2013; and
Mendoza (2014) for gaining the insights of the subject.
According to Kothari (2007), quantitative methods and help in drawing inference
regarding a population from a sample and qualitative methods involve a subjective assessment of
attitudes, opinion and behavior of the researcher’s understanding. Thus this research used an

50
appropriate combination of various quantitative and qualitative tools viz. a) Reliability
assessment b) EFA, c) CFA, d) AHP, and e) ISM analysis. Further to strengthen the findings,
qualitative approach through Interpretive Structural Modeling was adopted in the analysis of the
data.
Thus, drawing the support from the literature the use of survey and modeling
methodology in the present case is justified. The questionnaire survey for the empirical research
was selected as the basic instruments of research. Further, AHP & ISM based modeling research
is used to evaluate supply chain risk and security in Indian environment. The individual
justification for AHP, ISM is covered along with the respective review on these tools and
techniques in Chapter 5 and 6 respectively. The next section presents the step by step procedure
used to carry out this research.

3.3 Research Objectives

The literature review helped in clearly identifying the gaps from the literature and framing of
objectives. Based on key insights of literature following objectives are framed
1. To understand Robust and Secure Supply Chain in Indian Automobile Manufacturing
environment.
2. To identify the key dimensions of Robust and Secure Supply chain for Indian automobile
industries.
3. To develop a methodology for assessment and comparison of the Robust and Secure
Supply chain of Indian automobile industry.
4. To assess the relationship of identified dimensions of Robust and Secure Supply chain of
Indian automobile industry.

3.4 Research Methodology Design

The research methodology designed for addressing the above objectives of this study
follows the guidelines as prescribed by Churchill (1979), Parasuraman et al., 1988, Gerbing and
Anderson (1988) and O’Leary-Kelly and Vokurka (1998) and is depicted schematically in Figure
3.1. Further, detailed flowchart of methodology is presented in Figure 3.2.

51
 Literature Review

Industry Experts
Expert Opinions /Practitioners/
Academicians

List of Final Measures for

SCR, SCS and SCRSM

Development of Questionnaire

Pilot Study

Execution of Survey 1 Data Collection

Data Analysis

Factor Analysis and EFA and CFA

Validation

Execution of Survey 2
Data Collection

AHP Modeling

Data Analysis and

ISM Modeling Synthesis of
Results

Consolidation of Findings and Learnings

Figure 3.1: An Overview of Research Methodology adopted in Present Context

52
1 2 3
Literature Review Expert Interviews Survey Design
Selection of Practitioners, consultants Development of questionnaire
representative items for and academicians Sampling
RSSC with the final list of items to
measure SCR, SCS and SCRS

10
Correction of NO
Learning and Consolidation
of Findings questionnaire item Pilot
and design that Testing
affect the objective
9
Interpretive Structural Yes
Modeling
Development of model
Showing the linkages of various 4
factors of automotive industries

4
Yes Survey Administration
Select professional at
Model various levels
Consistency 7 Share Questionnaire
Check? Data Collection
NO

8
Analytical Hierarchy Process
Modeling
Multi Criteria evaluation
Improve NO Do item
based on key factors
Scenario Analysis reliability by possess good
correcting reliability
items
7
Survey Administration (Study 2 Yes
for AHP and ISM)
5 5
Select professional at various
levels from 7 Automotive Exploratory Factor
Industries Analysis
Share Questionnaire Principal component
Data Collection Analysis with Varimax
Rotation using SPSS 16)

Yes

6
Establishing Validity Confirmatory
(Content , Construct & 1
Nomological Validity)
Factor Do items
Analysis having high
through SEM loading
(SPSS AMOS)

NO

Removal of items with

6 loadings <0.5

Figure 3.2: Flow chart of research methodology adopted for present work
53
3.4.1. Literature review
Insights from the literature helped identify the gaps in the literature and led to framing of
the research questions and developing a methodology for the present work. Numerous
researchers (Juttner et al., 2003; Christopher and Peck, 2004; Spekman and Davis, 2004;
Norrman and Lindroth, 2004; Juttner, 2005, Wan et al., 2010) have worked in the area of
quantifying and managing the supply chain risk, as a result the literature is replete with studies in
this area.
Literature review was carried out reviewing the scholarly journals and periodicals overall
205 research publication were reviewed. Chapter 2 presented the details of literature reviewed.
Literature review helped in identification of items for supply chain risk (refer Table 2.4 from
Chapter 2) and supply chain security (refer Table 2.5 from Chapter 2). The literature review
helped in assessing the gaps and developing the objectives of this research. These details were
shared with experts. The subsequent section provided the details of the steps followed.

3.4.2. Expert Opinion

Since Literature review may not cover all the aspects of construct under study (Froza et
al., 2002), expert opinion is recommended In the present study expert opinion is gathered to
understand the subject of supply chain risk, supply chain security for robust performance in
automotive manufacturing from the practicing manager’s point of view.
Following the guidelines of the Churchill (1979), Parsuraman et al.,(2006), the list of
issues of Supply Chain Risk and Supply Chain Security was distributed to 13 practitioners from
Indian automotive industry, 8 academicians. The purpose behind the gathering expert opinion
were
• To filter/validate the issues perceived from the literature review
• To enlist those new issues which are relevant for Indian automotive sector and are
not defined from literature
• To understand practitioner view on the importance of issues of supply chain risk
and security
21 Expert (16 practitioners from Industry and 5 academic professionals) were selected
for expert opinion. Parsuraman and Rangtusanatham (1988) also confirm that expert opinions
for minimum 15 experts are acceptable.

54
 Expert opinions were carried out from May, 12 -June, 12. Researcher personally visited
and discussed these issues with selected very experienced professionals. At majority of times
whatever additional and expert suggested /deleted was consulted with the other experts either
through mail or personally visiting them. Experts have been contacted in a conference.

3.4.2.1. Outcome of Expert Opinion

1. Experts appreciated the importance and relevance of identified issues which are
important for robust and secure supply chain for Indian Automotive Industry.
2. Experts suggested the segregation of some issues which are present in both SCR and SCS
category. They suggested that some issues which are viewed from “Supply Chain
Security” perspective can also be viewed as “Supply Chain Risk” perspective and
suggested to form a category as “Supply Chain Risk and Security (SCRS)” separately
(which can be viewed on both SCR and SCS).
3. Expert suggested two additional issues of security and risk which are not reported in
literature were “Patent information R & S” and “Administrative error R & S”.
Finally the expert interviews resulted a consolidated list of items for the measurement /
management of SCR and SCS. Items are presented in Table 3.1.

Table 3.1: Items Identified for each Robust and Secure Supply Chain Category

Robust and Secure Supply Chain Category Total Items Identified

Supply Chain Risk (SCR) 19
Supply Chain Security (SCS) 13
Supply Chain Risk and Security (SCRS) 29

Total 61 issues are undertaken for the study. Following are the key issues identified for robust
secure supply chain. Further Table 3.3 presents the detailed description of the 61 items with their
relevance and literature support.

55
 Table 3.2: Key Issues For Robust Secure Supply Chain

SCS SCR SCRS (After expert interviews)

War Effects (Local And
1 Employee Background Check 1 Global) 1 Cyber Crime R&S
2 Human Resources 2 Government Regulations 2 Software Piracy R&S
Infrastructure and Asset
3 Security 3 Trade Restriction 3 Technology Breach R& S
4 System Threat 4 Political Instability 4 Confidential Data Sharing R&S
Viruses Threats And Spywares
5 Physical Security 5 Service and Social Risk 5 R&S
International or Local Account and Password Breach
6 Certification 6 Customer Behaviour 6 R&S
7 Outbound and Inbound Security 7 Economic Risk 7 Data Control R & S
8 Operational Security 8 Uncertain Demand 8 Fraud and Financial Crime R & S
Incident Reporting and New Technology And Product R &
9 Investigations 9 Volatility 9 S
Crisis Mgt. and Disaster Collaboration with
10 Recovery 10 Suppliers 10 Partner Background R & S
Supplier History
11 Appropriate Employee Training 11 Verification 11 Business Continuity R & S
12 Resources Training 12 Environmental Attacks 12 Platform Enablement R & S
13 Security Benchmark Training 13 Socio-Political Instability 13 Resource Sharing R&S
Collaboration and Competitiveness
14 Epidemic Disruptions 14 R & S
15 Customer Churn 15 Shrinkage and Pilferage R&S
16 Dynamic Market 16 Theft And Shoplifting R&S
17 Supplier Service 17 Corruption R & S
Customer Order And
18 Service 18 Terrorist Attack R & S
19 Financial Stability 19 Transportation R & S
20 Port R&S
21 Marine R&S
22 Hazardous Shipment R & S
23 Unauthorized Access R&S
All items were initially identified from literature 24 Utility Control R & S
All items were validated and approved by experts 25 Work Place Violence R & S
Item 26 and 27 for SCRS was suggested by experts, 26 Patent Information R&S
27 Administrative Error R & S
28 Missing Goods R & S
29 Compliance R & S

The various items along with their source in literature are tabulated. (Table 3.3)

56
 Table 3.3: Item Definition for SC Security, SC Risk and Common Items
Supply Chain
SN Definitions Author, Year
Risk Items
War (Local & Global Political conflicts, internal and external war scenario that influence trade
1 Peck, 2005; Craig et al. 2011; Lee et al. , 2011
Scenario) and logistics
Government Government policies rules and regulation specific to country. This may
2 Aichlmayr., 2002; Peck ,2005; Finch et al. , 2005
Regulations include country specific and globally adopted policies.
Country specific trade rules, treaty, regulations. for ex. Trade among
3 Trade Restriction Peck ,2005; Pfohl, et al. , 2011
European countries
Country specific political scenario and influence of political instability on
4 Political Instability Peck ,2005; Lee et al. 2011
supply chain performance.
Service And Social Company & country specific society risk which will be applicable to
5 Svensson, 2000; Stradley and Karraker,2006
Risk impact supply operation on limited social demographic area.
6 Customer Behaviour Customer demographic and type of customers Svensson, 2000; Williams et al., 2008
Economic condition, barriers and financial liability to nature of specific
7 Economic Issues Svensson, 2000; Salmela et al.2010
geography and demography.
Distortion of demand or change in demand as compare to estimated
8 Uncertain Demand demand higher inventory cost, or unmet demand Ex; Cisco had loss of Tang, 2006 ; Craig et al. 2011
2.1billion
Higher, frequent demand fluctuation .Sudden serge and dip in automotive
9 Volatility Tang, 2006, Lee et al. 2011
product based on new product or campaign.
Collaboration With Collaboration, selection, and agreement between supplier and
10 Peck, 2005; Faisal et al. 2006
Suppliers manufacturer.
Supplier History Ensure history of supplier performance and all details on various
11 Peck, 2005; Pfohl, et al. 2011
Verification parameters
Environmental
12 Natural hazards (force majeure), and terrorist attacks. Svensson, 2000; Williams et al, 2008
Attacks
Socio-Political Socio-political instability, unstable neighbourhood or local politics and
13 Pfohl, et al. 2011
Instability civil unrest
Epidemic dieses and medical problem wide speeded in society i.e. swine
14 Epidemic Disruption Svensson, 2000; Williams et al, 2008
flu, plague.
15 Customer Churn Customer dynamic behaviour which impact of losing business Lee, 2011
Change in market scenario due to any reason for ex. Change in cost,
16 Dynamic Market Giunipero. and Eltantawy, 2004
product variety etc.
Supplier side risk due to various supplier service issues related to on time
17 Supplier Service Peck,2005; Lee et al. 2011
delivery ,cost and capacity

57
 Supply Chain
SN Definitions Author, Year
Risk Items
Customer Order And Fulfilment of customer expectation in line with desired product feature,
18 Peck, 2005
Service cost etc.
Poor Financial
19 Poor financial stability of an Organization and particular region. Lee et al. 2011
Stability

Supply Chain
SN Definitions Author, Year
Security Items
Employee Background Satisfactory routines for security checks on their employees and
1 Svensson, 2000; Salmela et al.,2010
Check prospective employees.
2 Human Resources Checks of employees, suppliers and others to minimize disruption. Svensson, 2000; Aichlmayr, 2002
Infrastructure and Infrastructural and assets security due to inadequate practices, theft, attacks
3 Svensson, 2000; Christian, et al. , 2011
Asset Security etc.
System, processes and assets risk due to inadequate practices, theft, attacks
4 System Threats Svensson, 2000 ; Craig et al. , 2011
etc.
5 Physical Security Security measures to protect the workers, employees and human being. Hallside, 2007; Lee, 2011
International or Local Security measures to protect the process for international logistics for ex.
6 Hallside, 2007; Williams et al., 2008
Certification Marine cargo shipment.
Outbound and Inbound Security measures to protect inbound logistics (receiving material from
7 Lee, 2011; Hallside, 2007
Security supplier) and outbound shipment (delivery to customer).
Security measures to protect the operation environment specially
8 Operational Security Clossa and Mollenkopf, 2004; Hallside, 2007
manufacturing units.
Incident Reporting and Security training programme on proactive Incident Reporting and
9 Tang, 2006; Salmela et al.2010
Investigations Investigations.
Crisis Management Security training programme on business discontinuity. It is useful on
10 Tang, 2006; Lee et al. 2011
and Disaster Recovery disaster management.
Appropriate Employee Employees should be trained for their domain related security measures.
11 Cuneo, 2003;Tang, 2006
Training i.e. procurement, manufacturing, logistics etc.
Security training based on the overall security policies and practise
12 Resources Training followed by the organization. For ex. Environmental health and safety Tang, 2006 ; Craig et al, 2011
dep’t.
Security Benchmark Training of the employees on the security gaps of industry, benchmark
13 Cuneo, 2003; Tang, 2006
Training standards and training to fill that gap.

58
 Supply Chain
SN Definitions Author, Year
Common Items
1 Cyber Issues Internet based leakage, attacks, hacking and various other crime McKinnon, 2006; Stradley and Karraker,2006
Patent Information
2 Leakage of proprietary or patent related information to unauthorized people McKinnon, 2006; Hallside, 2007
Issues
3 Software Piracy Issues Illegal use of the software, protection of the software Cuneo, 2003
Technology Breach Breaching technology and unauthorized change and right to access the
4 McKinnon, 2006; Lee et al. 2011
Issues system
Unauthorized Access
5 Unauthorized access of internet sites, Physical access of the premises. Cuneo, 2003; Giunipero. and Eltantawy, 2004
Issues
Confidential Data Prevent confidential data sharing inside and outside the company. Prevent
6 McKinnon, 2006; Finch et al., 2005
Sharing Issues information leakages.
Fraud and Financial
7 Duplicate claims and forfeit documents. Williams et al, 2008
Crime Issues
Viruses Threats and
8 Virus attacks and spyware which disrupts the system and information flow. McKinnon, 2006; Cuneo, 2003
Spywares Issues
Account and Password
9 Unauthorized access to system, computer or web Salmela et al., 2010; McKinnon, 2006
Breach Issues
New Technology and Any new technology and product comprise risk and security of failure. This
10 Mottley, 2002; Stradley and Karraker,2006
Product happen due to lack of validation and testing in different scenarios
Partner Background History check of collaborative members( production partner, supplier,
11 Clossa.and Mollenkopf, 2004; Mottley, 2002
Issues ancillary units)
12 Data Control Issues Data could be confidential open for all can be shared with predefine group. Mottley, 2002; Cuneo, 2003
13 System Issues System operation continuity and challenging scenarios. Finch et al., 2005; Stradley and Karraker, 2006
Business Continuity Undisrupted business flow and operations continuity disaster or
14 Mottley, 2002; Stradley and Karraker, 2006
Issues challenging scenarios.
Platform Enablement Platform and software enablement is essential (for example middle ware S
15 Mottley, 2002; Mollenkopf, 2004
Issues / W is needed to integrate platform among different companies)
Resource Sharing Resource sharing by multiple companies in collaborative assignment where
16 Mottley, 2002; Cuneo., 2003
Issues lot of precaution is required.
This refers to different supportive mechanism and controls which are
17 Utility Control Issues employed to main process like conveyer, lifts A.C. Any interruption in this Finch et al,. 2005; Lee, 2011
support may halt the overall supply chain
Different supportive mechanism and controls which are employed to main
Collaboration and
18 process like conveyer, lifts A.C. Any interruption in this support may halt Mottley, 2002; Lee et al. 2011
Competitiveness Issues
the overall supply chain
19 Shrinkage and Collaboration and competitiveness with various partners’ suppliers and Norrman and Lindroth, 2004; Finch et al., 2005

59
 Supply Chain
SN Definitions Author, Year
Common Items
Pilferage Issues customers.
Theft and Shoplifting
20 Prevent Inventory shrinkage or losses or ex, goods losses. Giunipero. and Eltantawy, 2004; McKinnon, 2006
Issues
Giunipero. and Eltantawy, 2004; Norrman and Lindroth,
21 Terrorist Attack Issues Frequent terrorist attacks have major impact on business continuity
2004
Work Place Violence
22 Labour unrest, strikes and valance during work Finch et al. 2005; Norrman and Lindroth, 2004
Issues
Supply chain corruption is considered as breaching integrity, bribe and
23 Corruption Issues Salmela et al., 2010
sacrificing organization benefits over individual interest.
Disruption happening specifically during transportation for example
24 Transportation Issues Norrman and Lindroth, 2004; Cuneo, 2003
change in routes, traffic, goods etc.
25 Port Issues Port activities at the time of, operation, loading and unloading of the cargo. Saxena and Wadhwa, 2008; Finch et al., 2005
Cargo hijacking, pirates attacks, Marine life risk are prominent points of
26 Marine Issues Aichlmayr., 2002; Salmela et al., 2010
marine security guideline
Not following the rules, regulations, certification guidelines and policies
27 Compliance Issues Salmela et al,.2010; Saxena and Wadhwa, 2008
adapted by organization.
Missing of goods happens at various points, which is measure risk, satellite
28 Missing Goods Issues Pfohl et al., 2011
tracking, GPS are very much requirement
Hazardous Shipment
29 Shipment of toxic product .Oil leakage, fires on fleet equipment. Aichlmayr, 2002
Issues

60
3.5 Survey Design and Data Collection
This section includes description of all the activity related to sampling, questionnaire
development and survey administration. Suggested guidelines has been followed with
prescribed in the literature for questionnaire development (Flyn et al., 1994; Netemeyer et al.,
2003; Parasuraman et al.,1988, 2005). Mix of affirmative and negative statements to
formulate questions has been used, so as to avoid similar responses. Following Churchill
(1979) and Nunnally (1978), multiple items for measuring the underlying constructs has been
developed. In order to ensure reliable and unbiased responses, all the questions have been
worded carefully (Forza, 2002). Thus, deriving the items of the scale for RSSC from the
literature, and fine-tuning them through exploratory interviews, scale for RSSC in the supply
chain is developed.

3.5.1 Questionnaire Design

Based on the insights from the literature review and feedback from the experts, semi
structured, and disguised questionnaire has been prepared with closed ended questions. The
design of questionnaire comprise of:
a) The items which define the scope in the line of objectives of present work
b) Scale used for the measurement.
a) The items which define the scope in the line of objectives of present work:
Questionnaire comprised of 4 broad sections a) Demographic b) section towards the
assessment of supply chain security c) section towards the assessment of supply chain
risk d) section towards the assessment of supply chain security and risk (combined).
b) Scale used for the measurement. A five-point Likert-type scale anchored from 1
(strongly disagree) to 5 (strongly agree) has been chosen for the measurement of
robust and secure supply chain. This choice is in line with that suggested by Babakus
and Mangold (1992), Collier and Bienstock (2006) and Saleh and Ryan (1991).

Respective break up with number of items in each section is shown Figure 3.3 below:

61
 Questionnaire for assessment of Robust and secure
supply Chain (RSSM)

Demographic Supply Chain Supply Chain Supply Chain

Risk Security Risk and Security

On 5 point
Likert scale

Section 1 Section 2 Section 3 Section 4

Total 8 Total 19 Total 13 Total 29

Questions Questions Questions Questions

Figure 3.3: Questionnaire for Assessment of Secure Supply Chain (Study 1)

Based on the insights from the review of research methodology tools and techniques,
the questionnaire so developed is subjected to pilot testing. The next section covers the
details of pilot testing exercise carried out.

3.5.2 Pilot Testing

Based on recommended guidelines of Hair et al 2005; Collier and Bienstock, 2006
this questionnaire was distributed to 40 people colleagues (10), Sr. experts from industry
(10), and target respondents (20). The role of colleagues is to oversee whether the
questionnaire accomplishes the study objectives (Dillmann, 1978). The role of industry
experts is to highlight the issues in practice that the researcher may have missed. The role of
target respondents is to provide feedback on the understandability of the contents of the
questionnaire.
The responses so received from various respondents were analyzed and item
reliability tests were performed. The reliability scores (0.82) were found to be more then 0.7
and within the acceptable limit recommended by Hair et al 2005 and He, 2013. Further, based
on the feedback received from these groups appropriate improvements were made in the
questionnaire to enhance the comprehensibility and understandability of its items.

62
 All the items were retained after brief testing. The next section covers step by step
process of survey administration.

3.5.3 Survey Administration

Survey administration comprise of
a. Sampling
b. Sampling Frame and Unit
c. Sampling Technique
d. Sample Size
e. Approaching the respondents

3.5.3.1 Sampling
Sampling in survey research involves defining the population, population element,
population frame, sample, subject and sampling (Forza, 2002; Henry, 1990). The sample is
the respondents selected from the population, using a particular sampling approach.
Individual respondents are the subject of study. In order to reach respondents who were
information-rich (Patton, 1987) and willing to participate in the survey, we adopted the
convenience sampling approach. This is in line with the approach suggested by
Rungtusanatham et al. (2001), who argue against the suitability of probabilistic sampling in
operations management context, because of the difficulty in data collection, particularly
reaching information-rich and willing respondents (Forza, 2002). At the first step of
sampling, ten automotive manufacturing organizations in India have been selected and
contacted. Based on the subsequent discussion and follow-up 7 automotive industries were
agreed to support for this research and allow survey based data collection. Different
professionals from varied supply chain areas are identified in these automotive industries.
After providing initial background of the research and context setting questionnaire were
shared with them. Following is the list of the 7 automotive organization agreed to support this
research survey study.
1. Ashok Leyland (Bangalore)
2. Eicher Motors (Indore)
3. Hindustan Motors(Indore)
4. Mahindra & Mahindra(Nasik)
5. Maruti Suzuki (Gurgaon)
6. Tata Motors (Pune)
7. Toyota Kirlosker (Bangalore)

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3.5.3.2 Sampling Frame and Unit
Once sampling method is decided, sampling frame and unit is to decide which helps
in considering right population of professionals to provide inputs.

Sampling Frame:
The research site was confined of 7 automotive industries in and around Delhi,
Mumbai, Indore and Bangalore companies are selected primarily based on nature of work (in
this case automotive manufacturing). Supply chain is broader areas where diversified
professional from different areas are working together to achieve common supply chain
goals. While conducting survey, in this research this fact is considered and diversified
professionals are approached, for instance, Marketing, Operation, Procurement,
environmental health and safety (EHS), distribution or logistics, etc. It is ensured that these
professional are involved in supply chain activities and have meaningful understanding of
supply chain risk and security perspective.

Sampling Unit
Different level of the organization has been contacted to get the wider opinion. The
major respondents are Manager, Senior Manager, AVP and Vice President from automotive
industries. These practitioners are majorly subject matter expert in supply chain and have
diversified experience working with different automotive industries.
The entire sample studied as a whole and independently for supply chain risk, supply
chain security and supply chain risk & security. In this case the sampling unit was the entire
sample.

3.5.3.3 Sampling Technique

An attempt was made to target a total of 7 automotive industry involved in
manufacturing and are part of global supply chain. An attempt was made to target
practitioners who are subject matter expert in this area, so as to be able to gain an insight in to
what /how they perceive the various issues of supply chain security. The study used non
probability convenience sampling for selecting the respondents.

3.5.3.4 Sample Size

The questionnaire that was developed to capture quantitative data for the main study
was administrated to respondent from automotive organizations. 350 respondents have been
contacted for participation. Responses received are 204 in numbers. Only 201 responses

64
found valid and complete for the analysis. Rangtusantham et al 2001, Parsuraman et al., and
1997, Comrey and lee 2005 recommends that sample size of 200 is fair for factor analysis
specifically in operation management.

3.5.3.5 Approaching the Respondents

The data is collected from seven industries including top three Indian automotive
manufacturing companies located in Delhi, Pune, Bangalore (Maruti Suzuki India Limited,
Gurgaon, Toyota Kirloskar, Bangalore, Hindustan Motors, Indore, Eicher Motors Indore,
Mahindra and Mahindra Nasik, Ashok Leyland Bangalore and Tata Motors, Pune). Data was
collected through structured interviews with the aid of questionnaires. Questionnaire were
administered the top, and middle level managers working in supply chain related diversified
areas of these organizations. These included the Production Planning & Control,
Procurement, Materials, and Marketing departments of Maruti Suzuki India Limited,
Gurgaon. Similarly, Production Planning & Control, Procurement, Environmental Health and
Hazards, Operation, Materials, HR, and Marketing departments of Tata Motors, Pune;
Materials, and Marketing departments of Ashok Leyland, Hosur; Environmental Health and
Safety of Toyota Kirloskar, Bangalore; Materials, Supply Chain, and Marketing
Communication departments of Eicher Limited, Indore. In order to improve reliability of
data, we selected the respondents such that they represented various levels in the hierarchy as
also represented various sub-functions. This approach is as suggested by Boyer and Pagell
(2000).
This survey was administered during March, 12 -June, 2012. Data was collected by
various modes (in person, email and telephonic) in the respective organizations. Prior to the
commencement of the data collection, introductory letters were sent out to Human Resource
heads of respective organizations. Human resource heads referred the researcher to the
divisional heads concerned. Discussions with the divisional heads helped identify key
respondents linked with supply chain management, who could be contacted for filling in the
questionnaires. Majority of the respondents themselves filled in the questionnaire at the time
the researcher approached them. While other respondents kept the questionnaires, and
returned them to the researcher in subsequent visits. The purpose of this approach was to
increase the response rate and improve the quality of data. Commitment of plant heads of
respective organizations and personal visits by the researcher helped enhance cooperation of
the respondents thereby increasing response rates. This approach has been endorsed by other

65
scholars in the literature (Flynn et al., 1990; Forza, 2002; Kang and Bradley, 2002).For some
places where hard copy of questionnaire was not possible, there data was collected by visit,
email and phone.

3.5.4 Study 1: For Assessing the RSSC Dimensions

Robust and Secure Supply Chain Items (identified from Literature and Expert Opinion) were
taken as a base (Questionnaire). 350 respondents contacted to provide the responses. 205
Responses received from the respondents after mild reminder cum follow ups. After initial
validation, 201 questionnaires were found valid for the analysis since four questionnaires
were found incomplete. Response rate of 59% has been achieved, which was quite
encouraging.
This high rate of response may be attributed to involvement and commitment of plant
heads of respective organizations and personal visits by the researcher to collect data.
However, through preliminary scanning, we found that some sections had been left
incomplete in a few questionnaires.

3.5.4.1 Profile of Organization and Respondents under study

Profiled the organizations selected for the research on general attributes, such as
market share, product range, quality certificates, employee strength, and foreign
collaborators; and financial attributes, such as gross turnover, gross profit, and profit after
tax. The profile of study organizations is illustrated in Table 3.4 (Adapted from company
annual reports and respective websites).

Table 3.4: Profile of the Organizations Selected for the Study

Organization
Tata Maruti Toyota Ashok Mahindra Eisher Hindustan
Attribute
Motors Suzuiki Kirloskar Leyland and Truck Motors
Mahindra
Establishe 1945 1982 1997 1948 1947 1948 1954
d
Managing Mr Karl J K AyuKava Hiroshi Vinod K Annad G Siddhart Uttam
Director Slym Nakagawa Dasari Mahindra ha Lal Bose
22 include 15 9 5 12 4 4
Products
all
CV (Buses PV (all PV (all CV CV (Buses Volvo CV (Buses
truck etc), segments) segments) (Buses truck etc), truck, truck etc),
Product
PV (all truck PV (all Buses, PV (all
Types
segments) etc), segments) cargo & segments)
and two and two 2 and two

66
 Organization
Tata Maruti Toyota Ashok Mahindra Eisher Hindustan
Attribute
Motors Suzuiki Kirloskar Leyland and Truck Motors
Mahindra
wheelers wheelers wheeler wheelers
No of 62000+ 35000+ 5000+ 12000+ 18000+ 8000+ 12000+
Employee
615000 1.5 Million 150,000 1.5 3940855 (CV) - PV(26298
(CV) million 3,95,180 39)
606,963; units Eicher CV
Production
(PV) Trucks (460283)
Capacity
and
Buses -
48262
spread Gurgaon, Suburb of Chennai, kandivali, Pithampu Pithampur
across NCR Bangalore, Hosur, nasik, ra Indore Kadambat
Jamshedpur, Karnataka Prague igatputi, hur
Pune State (Czech nagpur, Hooghly
Lucknow, Republic jahherabd,
Location
Pantnagar, ) and Ras jaipur,
Sanand Al rudrapur,
and Khaimah haridwar,
Dharwad (UAE). chaken and
mohali
CV 1171434 1,36,150 60,000 398357 CV 1,00,000 PV(26298
593,897; PV units vehicles and 70988 motorcyc 39)
Total 598,082= and three le CV
Units Sold 11,91,968 about wheelers, (460283)
7,000 245700 PV
engines
Jaguar Suzuki Toyota Nissan acquisition Volvo GM,
Land Rover, Motor (Major (Renault of the group, Mitsubishi
Foreign
acquired in Corporation share) Nissan Ssangyong
Collaborat
2008 Japan Group) Motor,
ors
Korea and
Reva
ISO 9001, ISO 9001, ISO 9001, ISO ISO 27001, ISO ISO 9001,
ISO 14001, ISO 14001, ISO 14001, 9001, ISO 9001, 9001, ISO
OSHA OSHA OSHA ISO ISO 14001, ISO 14001,
18001, ISO 18001, ISO 18001, ISO 14001, OSHA 14001, OSHA
TS16949:20 TS16949:20 TS16949:20 OSHA 18001, OSHA 18001,
Certificate 02, ISO/IEC 02, ISO/IEC 02, ISO/IEC 18001, 18001 ISO
1705 1705 1705 ISO
TS16949
:2002,
ISO/IEC
1705
Dealer 6600+ 8000+ 225+ 1000+ 2500+ 200+ 400+
Network
1,89,629 444,003 Cr. $226,106 US $ 2.3 US $ 15.4 1173 Cr 880 Cr
Gross
Cr.( US $ (Overall) billion billion
Turnover
34.7 billion

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3.5.4.1.1 Demographic
Following is diagram of demographic profile considered in this research (Figure 3.4,
3.5, 3.6, 3.7 and 3.8).The respondents have been categorized on the basis of designation,
number of years of experience, qualifications, and functional area of work. Most of the
respondents have work experience in the range 4 to 20 years, hold technical, masters and
PhDs qualification, and work in the various areas of supply chain for ex. materials, marketing
and operation.
A summary of responses received on the questionnaire is presented in Figure 3.4. 30
% valid respondents were from Tata Motors, Pune and 28% were from Maruti Suzuki,
Gurgaon. These two are major automotive industries in India and shows greater interest on
this research.

Figure 3.4: Summary of Rsponses from different Automotive Industries

Further analysis is done on designation of respondents (Figure 3.5) and it is visible that good
participation at AVP and AGM level viz. 17% and 21%.

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 Figure 3.5: Demographic–Designation of Respondents

Similarly, demographic profile (Figure 3.6) is also checked based on experience of

professional. More than 50 % respondents were from more than 8 years experience.

Figure 3.6: Demographic– Experience of Respondents

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 Equal importance is also given to Qualification and shown in Figure 3.7.

Figure 3.7: Demographic–Qualification of Respondents

Professional are selected from diversified supply chain areas and shown in Figure 3.8.

Figure 3.8: Demographic–Focus area of Respondents

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 Figure 3.9 and 3.10 shows the automotive industries current need and maturity
respectively for secure supply chain. This shows that more than 50% population believes that
there is a need for secure supply chain where current preparedness is very low. This justifies
the need of this research work and help automotive industries to improve their current
maturity level.

Figure 3.9: Demographic – Need of Secure Supply Chain in Industry

Figure 3.10 shows the automotive industries maturity level based on RSSC perspective. It is
visible that experienced industry practitioners accepting this fact of low level RSSC maturity
in Indian automotive.

Figure 3.10: Demographic – Maturity of Organization for Secure Supply Chain

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3.6 Data Analysis
Once collect the data from the different respondents, data has been summarized and
prepared in excel sheet. To analyze it in various form this data has been grouped in different
forms.

3.6.1. Data entry

For answering research questions the completed questionnaires are taken up for
analysis. Data entry is done using Microsoft Office Excel 2003. After completion of data
entry, the entire data set is checked for accuracy of information by manually comparing with
the responses in the questionnaire. Total number of complete and correct questionnaires
available for analysis was 201.

3.6.2. Data Analysis and Methods

The items emerged valid and reliable were included in the final questionnaire to be
used for the main study. There are four part of the questionnaire. In the first section,
demographic information about the respondent was sought for. This information helped in
compiling the information about the respondents.
Data is analyzed using SPSS v16 (Statistical Package for the Social Sciences) and
SPSS AMOS. After entry, the data was imported to SPSS and SPSS AMOS for analysis. The
purpose of data analysis was to draw out purposeful inferences and establish relationships
from the data collected.
The robustness of the measurement was assessed through reliability and validity.
While reliability refers to stability and consistency in measurement (Bollen, 1989), validity
refers to whether one is measuring what one is supposed to measure. The various statistical
tests undertaken to analyze the data are discussed in this section.

3.6.3 Reliability
In order to develop valid and reliable measure, the data so collected need to be tested
for its reliability. Reliability is a consistency among the scales in their measurement for a
latent construct (Shin et al., 2000). Reliability is assessed after completion of data collection,
by using any of the following four methods: Test-retest method, alternative forms method,
split halves method and internal consistency method (Forza, 2002). Reliability comprises
dependability, stability, predictability, accuracy and consistency (Forza, 2002), and refers to

72
the extent to which a measuring procedure yields the same results on repeated measurement
(Carmines and Zeller, 1979; Kerlinger, 1986). It is inversely related to the degree to which a
measure is contaminated by random error (Bollen, 1989; Carmines and Zeller, 1979). By
using the split halves method, the items of a measure are subdivided into two subsets and the
answers obtained are statistically correlated. This method assesses the equivalence of
different sets of items measuring the same construct. The internal consistency method
assesses the equivalence, homogeneity and inter-correlation of the items used in a measure.
The most popular test of internal consistency is Cronbach coefficient alpha (Cronbach, 1951).
Coefficient alpha is defined as the proportion of the total variance of a scale that is
attributable to a common source (Kerlinger, 1986). In the present research, reliability
assessed through internal consistency method using Cronbach coefficient alpha. The results
of the reliability tests are shown in Chapters 4.

3.6.3.1 Exploratory Factor Analysis

Exploratory factor analysis (EFA) is an analytic method used to summaries a group of
empirical indicators into a smaller set of composite factors or latent3 variables with a
minimum loss of information (Hair et al., 2010). This is determined by the size of factor
loadings which are the correlation coefficients between the variables and the factors. EFA is
generally used in studies in which there is little or no existing evidence, as in the case of the
present research.
A sample size of five times the number of variables under study is preferred for factor
analysis (Hair et al., 2010). In the present case, the sample size fulfilled this criterion.
Further, the sample needs to be tested for sample adequacy for factor analysis. Sample
adequacy predicts whether data are likely to factor well based on correlation and partial
correlation. This is measured by Kaiser-Meyer-Olkin (KMO) statistics. In EFA, out of
various methods that may be deployed for factoring, principal component analysis (PCA) is
preferred by several researchers (Babakus and Mangold, 1992; Cronin and Taylor, 1992;
Parasuraman et al., 1988; Saleh and Ryan, 1991). In the present research, PCA is applied to
the scale for data reduction. In order to interpret factor structure, rotation is recommended
because it facilitates understanding and interpretability of the output (Hair et al., 2010; Kim
and Mueller, 1978). In the present research, PCA is followed by varimax rotation performed
through Kaiser Criteria and Screen plot. This process of identifying association between
empirical indicators usually centres around one of two basic approaches. One involves the

73
EFA to be used for establishing that a group of empirical indicators are unidimensional with
regard to a predefined latent variable (Schwab, 1980).
In Exploratory Factor Analysis three things are very important: a) sample size; b)
method of factoring; and c) rotation method. These are briefly discussed as follows:
a) Sample size: An important element affecting the stability of factor analytic results is
sample size, the larger the sample the more stable the results obtained from EFA
(Pedhazur and Schmelkin, 1991) and having too small a sample may require that
latent variables be analyzed separately (Dixon, 1992). In general, EFA should not be
conducted on samples with fewer than 50 observations while samples of 100 or more
are preferable (Hair et al., 2010).
Further, the sample needs to be tested for sample adequacy for factor analysis (Kim and
Mueller, 1978). Sampling adequacy predicts if data are likely to factor well, based on
correlation and partial correlation. It is measured by Kaiser-Meyer-Olkin (KMO) statistics
(Hutcheson and Sofroniou, 1999). KMO varies from 0 to 1.0 and overall KMO should be
0.60 or higher to proceed with factor analysis. If it is not, drop the indicator variables with the
lowest individual KMO statistic values, until overall KMO value rises above 0.60 (Kim and
Mueller, 1978). KMO statistics of the data was calculated using SPSS 10.0; the detailed
results are discussed in Chapter 4, and 7.
b) Method of factoring: Exploratory factor analysis offers a choice of different methods
for factoring i) Principal Component Factoring ii) Principal Component Analysis iii) Image
factoring iv) Maximum Likelihood Factoring v) Alpha Factoring vi) Unweighted Least
Squares Factoring and vii) Generalized Least Squares Factoring.
In the present case, Principal Component Analysis (PCA) is taken for factoring as it is
generally used when the research aims at data reduction (to reduce the information in many
measured variables into a smaller set of components). Further, PCA is most preferred by
many researchers (Parasuraman et al., 1988; Cronin and Taylor, 1992; Babakus and
Mangold, 1992).
PCA seeks a linear combination of variables such that the maximum variance is
extracted from the variables. It then removes this variance and seeks a second linear
combination which explains the maximum proportion of the remaining variance, and so on.
This is called the principal axis method and results in orthogonal (uncorrelated) factors
(http://www2.chass.ncsu.edu/garson/pa765/factor.htm). In the present case the factors are
extracted using PCA with Kaiser Criterion (to drop all components with Eigen values under

74
1.0) through SPSS 10.0. For the new subjects and unexplored areas, researchers (Hair et al.,
2010; Kim and Mueller, 1978) have recommended this criterion for extraction of factors.
b) Method of Rotation: In order to have clear interpretation of factor structure
researchers (Hair et al., 2010; Kim and Mueller, 1978) have recommended rotation.
Rotation serves to make the output more understandable and is usually necessary to
facilitate the interpretation of factors. The sum of eigenvalues is not affected by
rotation, but rotation will alter the eigenvalues of particular factors and will change
the factor loadings (http://www2.chass.ncsu.edu/garson/pa765/factor.htm). In the
present case varimax rotation is adopted after PCA. Varimax rotation is the most
common and preferred (Cronin and Taylor, 1992; Saleh and Ryan, 1991) rotation
option. Varimax rotation is an orthogonal rotation of the factor axes to maximize the
variance of the squared loadings of a factor (column) on all the variables (rows) in a
factor matrix, which has the effect of differentiating the original variables by
extracted factor. That is, it minimizes the number of variables which have high
loadings on any one given factor
(http://www2.chass.ncsu.edu/garson/pa765/factor.htm).
c) Also, an indicator is considered as significant, if it has the factor loadings more than
0.4 (Hair et al., 2010; Zhu et al., 2002). In the present case, the varimax rotation
analysis was performed after the Principal Components Analysis using Kaiser Criteria
procedure i.e. all factors with Eigen values less than one are considered insignificant
and are therefore disregarded (Schwab, 1980; Hair et al., 2010).

3.6.3.2 Confirmatory Factor Analysis

Confirmatory factor analysis (CFA) tests the conformance of factor structure
determined through EFA. CFA is a theory-centric method that seeks to determine the
conformance of the factor structure with what is expected on the basis of the theoretical
underpinnings of the domain of the study. Therefore, CFA requires specification of factor
structure in the framework of the study and usually contains an expectation as to which
manifest variables would load on which factors (Kim and Mueller, 1978).
CFA contains inferential statistics that allow for hypothesis testing regarding the
unidimensionality of a set of measures (Schwab, 1980; O’Leary-Kelley and Vokurka, 1998).
Use of CFA requires the specification of CFA-Model (latent constructs and their manifest

75
variables) a priori. In the present research, CFA was performed through structural equation
modeling (SEM) using SPSS 16 software.

3.6.3.2.1 Validity of Construct

Construct validation consists of face validity, content validity, construct validity and
nomological validity (O’Leary-Kelley and Vokurka, 1998). Different validity terms are used
to illustrate various aspects of construct validity. In this research CFA is used to validate the
results obtained from EFA.
For the present analysis, overall validity assessment consists of several tests as outline above.
The details of these validation procedures are described below.

Content Validity
In order to achieve content validity, it is necessary to demonstrate that the empirical
indicators are logically and theoretically related to the construct (Carmines and Zeller 1979;
Kerlinger 1986; Nunnally, 1978; Pedhazur and Schmelkin, 1991).
It is determined through subjective analysis (Kaplan and Sacuzzo, 1993), meaning
thereby that a survey would have content validity if researchers and participants agreed that
the items in the survey adequately covered the domain of the research. In the present
research, content validity was assessed through discussions with scholars, practitioners, and
insights derived from the literature.

Construct Validity
Construct validity is the extent to which an observation measures the concept it is
intended to measure (Schwab, 1980) and comprises unidimensionality, reliability, convergent
and discriminant validity (O’Leary-Kelley and Vokurka, 1998).
Unidimensionality implies establishing that a set of empirical indicators relates to one and
only one construct or trait (Gerbing and Anderson, 1988), and this is a matter of empirical
necessity (Bagozzi and Phillips, 1982). EFA and CFA are common methods for assessing
unidimensionality (Pedhazur and Schmelkin, 1991). In the present research, CFA was used to
assess unidimensionality by examining the closeness by which the individual items in the
model represent the same construct (Ahire et al., 1996). A comparative fit index (CFI) of
0.90 or above for a model represents strong evidence of unidimensionality (Byrne, 1994).

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Convergent and Discriminant Validity
Convergent validity relates to the degree to which multiple methods of measuring
available provide the same results. Discriminant validity is the degree to which measures of
different latent variables are unique. Two commonly used methods for assessing convergent
and discriminant validity are Multitrait-Multimethod Matrix Method, and the CFA (O’Leary-
Kelley and Vokurka, 1998).
Convergent validity can be established using Normed Fit Index (Bentler and Bonett,
1980). A value of 0.90 or above reflects evidence for strong convergent validity. Since CFA
is a superior approach1, we used it to assess convergent and discriminant validity (Bagozzi et
al., 1991; Farh et al., 1984; Pedhazur and Schmelkin, 1991; Schmitt and Stults, 1986) in the
present research.

3.7 Survey 2: For Comparative Analysis of the Organizations

As defined in objective of this research, there is a need to know the priority of
dimensions, interrelationship and comparative evaluation of Robust and Secure Supply Chain
for Indian automobile industries. Hence after identifying the dimensions from the first phase
of the study, second phase of the study (Survey 2) was designed. This follows the similar
steps and survey methodology as described in the last section (i.e. study 2). Same 7
automotive industries were selected for this study; however different sample size is used due
to the nature of the study.
The detail step by step procedure is followed and explained in section 3.3 of this
Chapter. Hence same explanation is not provided in this section, however major differences
are elaborated.
Questionnaire Design is based on the insights from the literature review, feedback
from the experts and outcome of study 1. The design of questionnaire comprise of 3 broad
sections
a) Demographic (same questions used in study 1)
b)Pairwise comparison of criteria (key dimensions) vs. criteria and criteria vs. alternatives
(i.e. automotive industries)
c) Factors of RSSC to establish relationships among them
Based on the insights from the review of research methodology tools and techniques,
the questionnaire so developed is subjected to pilot testing. Based on recommended
guidelines of Thakkar et al., 2005; pilot questionnaire was distributed to 20 people colleagues

77
(5), Sr. experts from industry (5), and target respondents (10). The role of colleagues is to
oversee whether the questionnaire accomplishes the study objectives (Dillmann, 1978). The
role of industry experts is to highlight the issues in practice that the researcher may have
missed. The role of target respondents is to provide feedback on the understandability of the
contents of the questionnaire. The responses so received from various respondents were
analyzed and item reliability tests were performed. The reliability scores were found to be
more then 0.8 and within the acceptable limit recommended by Hair et al., 2010 and He,
2013.
3.7.1 Survey 2 Administration
In this step same survey 1 methodology (described in previous section) is leveraged
and used for survey 2 study. Automotive industries and profile of the organization is same as
provided previous section. In survey 2 studies, Initially 49 senior professional and
practitioners were approached to collect data for 7 automotive industries. These respondents
were selected specifically from the top management labels/ retired persons having served in
different auto companies for more than 20 years. In order to get the unbiased opinion
majority of the persons were recently retired senior professional who has worked more than 3
organizations. 33 Responses received from the respondents after mild reminder cum follow
ups. After initial validation, 31questionnaires were found valid for the analysis since two
questionnaires was found incomplete. Response rate of 65% is achieved. Seven key
automotive industries (same as selected in study 1) are considered for this study which is
explained in another section of this Chapter.
Diagram of demographic profile for study is shown in Figure 3.11(respondent designation)
and Figure 3.12 (respondent’s experience).

Figure 3.11: Demographic–Respondents Designation

78
Figure 3.12 shows that more than 71% professionals were more than 30 years of relevant
experience. This wide participation from experience professional helps this research study
relevant to industry.

Figure 3.12: Demographic–Respondents Experience

In next stage Analytic hierarchy process (AHP) and Interpretive Structural Modeling (ISM)
methodology are used on survey 2 data. Brief introduction is provided in next section and
details methodology is discussed in Chapter 5 and 6. The paiwise data so collected was
analyzed using AHP and ISM. The details are provided in subsequent section.

3.8 The Analytic Hierarchy Process (AHP) Methodology

Analytic hierarchy process (AHP) is a decision tool based on paired comparisons of
both projects and criteria’s, introduced by Saaty (Saaty, 1980), is one of the useful
methodologies and plays an important role in selecting alternatives. AHP is an analytical tool
that enables people to explicitly rank tangible and intangible criteria against each other for the
purpose of selecting priorities (Satty, 1994; Satty, 2000). The AHP and its use of pair wise
comparisons have inspired the creation of many other decision-making methods
(Triantaphyllou and Mann, 1995).
The various advantages of AHP based Multi Criteria Approach over Informal
Judgment as like in this case are: It is open and explicit; the choice of objectives and criteria
that any decision making group may make are open to analysis and to changes if they are felt
to be inappropriate (Karsak and Tolga, 2001); Scores and weights, when used, are also
explicit and are developed according to established techniques. Later, Saaty (1994) accepted

79
the previous variant of the AHP and now it is called the Ideal Mode AHP. However, the AHP
(in the original or in the ideal mode) is the most widely accepted method and is considered by
many as the most reliable MCDM method (Dyer and Wendell 1985). Saaty (1980 and 1994)
provided some axioms and guidelines on how close a near copy can be to an original
alternative without causing a rank reversal. Satty, 1994, suggested that the decision maker has
to eliminate alternatives from consideration that scores within 10 percent of another
alternative. The process involves structuring a problem from a primary objective to secondary
levels of criteria and alternatives. Once the hierarchy has been established, a pair wise
comparison matrix of each element within each level is constructed. The AHP also allows
group decision making, where group members can use their experience, values and
knowledge to break down a problem into a hierarchy and solve it by the AHP steps (Fuller
and Carlsson, 1996). Participants can weigh each element against each other element within
each level, each level is related to the levels above and below it, and the entire scheme is tied
together mathematically. For evaluating the numerous criteria, AHP has become one of the
most widely used methods for the practical solution of multi-criteria decision making
problems (Liu et al., 1999; Chan et al., 2000). The analyses and findings are discussed in
Chapter 5.

3.9 ISM Methodology

Interpretive Structural Modeling (ISM) is a technique is used in this research to
identify inter-relationships among supply chain risks and to classify the risks according to
their driving and dependence power. ISM was proven as a useful methodology to structure
supply chain risks in an easy and distributed approach. The input to the algorithm has to be
well-defined to give the user an exact understanding of all risks that have to be assessed, i.e.
the better the input to ISM is prepared the better the outcome and representation will be.
Finally, when applying the method, a moderated process proved to be more reliable than an
assessment based on questionnaires only.
ISM is a qualitative and interpretive method which generates solutions for complex
problems through discourses based on the structural mapping of complex interconnections of
elements (Malone, 1975; Sage, 1997; Watson, 1978). A structure of the elements results
within the context of the ISM depending on a certain relation type which describes the
connections of the elements to each other (Warfield, 1994). Saxena and Seth,, 2012 assess

80
the supply chain risk and security performance and highlighted the importance in current
supply chain environment.
The method supports the identification and order of the complex relations between the
elements of a system so that the influence can be analyzed between the elements. The
modeling converts the object system into a well-defined and representative system consisting
of directed graphs (digraph). An interpretation of the object system as regards content is also
carried out besides the structural one, i.e. the digraphs are completed with context
(information). The object system mapped as digraphs becomes the “basic structural model”.
The expansion with content finally leads to an “interpretive structural model”. In this research
this method is finding suitable to analyze the robust performance secure supply chain. This
modeling is done based on the specific data collection in second stage. The details of data
collection, along with the justification of ISM and analysis of data have been detailed in
Chapter 6.

3.10 Summary
This Chapter delineates the methodology in terms of the research design, sampling
design, questionnaire design, methods of data collection and the analysis of data. The
research design explains the conceptual framework within which the research study has been
conducted. The pre testing of the questionnaire, its validity and reliability and the techniques
used for analysis of the final data are outlined. The Chapter describes the methodology of the
pilot and the main study and also highlights the method and techniques used for the analysis
of data.
The research methodology adopted is based on a combination of literature review,
exploratory interviews and questionnaire based survey. The expert interviews provided
valuable insights, which helped supplement the literature and understand more fully the
problem under investigation. Scales have been designed to measure robust performance for
secure supply chain at the supplier, manufacturing and distribution in automotive supply
chain. Data has been collected from seven automotive organizations through convenience
sampling. A five-point Likert-type scale anchored from 1 (strongly disagree) to 5 (strongly
agree) has been used for the measurement of both expectations and perceptions of secure
supply chain from robust performance perspective. This research followed the steps of survey
research based on the proven research guidelines. Proper justifications are documented for
selecting survey method, sampling method and sample size. Further, justifications and details

81
of various analysis procedures (reliability, Bartlett test, KMO, exploratory factor analysis,
and confirmatory factor analysis) are given along with sequential process of validation
comprising of validity tests. Modeling approaches like factor analysis, Interpretive Structural
Modeling (ISM), and Analytical Hierarchy Process (AHP) are described to model and
analyze the secure supply chain framework.
The next Chapter presents the details of analysis for the assessment of dimensions for
RSSC.

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