Improving to Smart Organization

Purpose – The purpose of this paper is to focus on studying the concept of “Smart Organization” and providing a comprehensive framework for the various factors as barriers for the smart organization, identifying and classifying the key criterion of these factors based on their direct and indirect relationships. Design/methodology/approach – In this paper an extensive literature survey and experts’ opinion have been used to identify major barriers of smart organization. These barriers are then modeled using interpretative structural modeling (ISM) methodology. The model so developed has been further improved and an integrated model has been developed using fuzzy-MICMAC. Findings – Various barriers of smart organization have been identified and a structural model has been developed for barriers using the ISM methodology. The critical barriers have been found out by fuzzy-MICMAC analysis. The driver power and dependence graph has been plotted for barriers. The barriers are classified into four categories which are, autonomous, linkage, dependent and independent according to their driver power and dependence. From the ISM model and the integrated model, and from further discussions with the experts, it has been found that the barriers “(B1) organizational structure” and “(B6) Managerial actions” are the two most important barriers, every other barrier is directly or indirectly driven by these. Research limitations/implications – The basis of developing the ISM model, i.e, the structural self-interaction matrix is based on experts’ opinion, therefore the result may get influenced if there is any biasing in judging the barriers. The future research scope for this paper will be to test the model generated in this paper. The testing of the model can be done by applying structural equation modeling technique, it has the capability of testing the hypothetical model. Further a framework of smart organizations can be created to find out the smartness of different organizations. Practical implications – The paper can be used by organizations in understanding the barriers in becoming “smart” on the basis of their inter-relationships. This model can help manufacturing organization of North India in understanding the barriers which needs to be worked upon and the inter-relationship among these factors. This model-based study may be helpful in understanding and implementing the practices of smart organization by removing the possible critical barriers. Originality/value – This is the first study to identify the barriers of smart organizations and to develop a model of these barriers using ISM and fuzzy-MICMAC.