Structural equation modelling – FTOPSIS approach for modelling barriers to product development in medical device manufacturing industries

Purpose: The purpose of this paper model and prioritizes barriers to product development in medical device manufacturing industries using an integrated “structural equation modelling” (SEM) and “fuzzy technique for order performance by similarity to ideal solution” (FTOPSIS) framework. Design/methodology/approach: Barriers to medical device development (MDD) are adopted from literature. The initial structural model is proposed, exploratory factor analysis and confirmatory factor analysis are used to determine factor loading and model fit, respectively. Further, FTOPSIS is used to rank the barriers and sensitivity analysis is carried to check the robustness of results. The results are discussed in detail and the recommendations to overcome the barriers are presented. Findings: Barriers analysed and prioritized in this research significantly hinder the MDD. The expert survey is used to develop an initial structural equation model of barriers to MDD, find the reliability and validity of the model. Based on the opinion of the experts, the barriers are divided into three categories – internal, policy and induced barriers. FTOPSIS is applied to rank and prioritize the barriers based on views from these three classes of experts. More reliance on imported devices leading to increased imports (B11) and lack of uniform regulatory standards (B6) are found to have the highest rank together, indicating these to be the most important barriers from the perspective considered here. Sensitivity analysis indicates that the factors are less sensitive to the weights of criteria further confirming the reliability of the initial solution. Research limitations/implications: The prioritization of barriers may vary based upon experts. Policymakers, existing and new device developers need to give utmost importance to these barriers, which will help to accelerate the indigenous development of medical devices to overcome the present dependence on imports. Practical implications: This paper demonstrates an integrated structural based modelling and prioritization technique for statistical modelling and prioritization of barriers to MDD. The results and recommendations will help policymakers and manufacturers to increase the indigenous share of medical devices. The integrated methodology can be effectively applied where the need for the combined quantitative and qualitative approach is there. Originality/value: This paper demonstrates an effective structural based modelling and prioritization technique. It can be effectively applied in various fields, it will help policymakers and manufacturers to increase the indigenous share of medical devices.