Improving the operational effectiveness of distributors of low voltage switchgear in India by adoption of internet - a structural equation modelling approach

Low voltage switchgear products are standard products used for distribution and control of electric power in industries, farms, commercial buildings and residential homes. The products are supplied by the manufacturers through distribution channels consisting of resellers who perform a variety of selling and logistics functions. Manufacturers have used IT solutions including ERP for compressing the manufacturer to market cycle times. Internet further enhances the effectiveness of distribution channel by enabling seamless flow of information and online transactions. Other benefits of adoption of internet are reduction in working capital and improvement in customer service. This paper attempts to study the factors which facilitate adoption of internet by the distributors and how the adoption of internet improves the operational effectiveness of distributors of LV switchgear manufacturers in India. Based on the findings of a case study of the Indian LV switchgear industry carried out by the author, a conceptual model has been developed. Data has been collected from the distributors through a questionnaire survey and structural equation modelling has been used test the hypotheses and validates the structural models.