Year: 2019 | Month: March | Volume 64 | Issue 1

A Factor Analysis on the Determinants of Industrial Sickness in Small Scale Enterprises

Siva Krishna Golla K. Ramachandra Rao


The study was conceptualized across the emerging small scale industry clusters and locations in the state of Andhra Pradesh in India. As evident, the SSI (small scale industry) plays a crucial role in macro and micro economic development in context of developing economy like India, yet the sector is not aloof from problems, challenges and threats evident as industrial sickness. The research posits across the socially constructed origins of the phenomenon and calls for the identification and classification of the factors that contribute towards industrial sickness in Andhra Pradesh SSI sector. The current research identifies the factors that contribute (directly and indirectly) towards the small scale industrial health(survival or decay) in Andhra Pradesh. At the same time, research seeks to quantify the cross factorial impact on organizational survival or sickness in small scale enterprises and analyze the relationships amongst the factors that shape survival or sickness as well as revival. A sample of 300 ownerscum entrepreneurs or promoters was assumed for the current research from across the three districts of Andhra Pradesh; which was subjected to likert based measurement instrument. The data hence collected was analyzed with aid of SPSS based explorative factor analysis and reliability was established with cronbach alpha estimation. The empirical and statistical analysis across AMOS lead to confirmatory factor analysis and enabled the identification of factors as “internal” and “external” contributions to the “market orientation” development, leading to changes and influences on the “ability to pay” and “threat from sickness”. The sickness was hence attributed to internal, external as well as market orientation based factors that collectively shape the revival or the sickness across the incumbent units.

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Economic Affairs, Quarterly Journal of Economics| In Association with AESSRA

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