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Interpretive Structural Modeling

Dr. G. P. Sahu
(Assistant Professor Information Systems)

School of Management Studies


Motilal Nehru National Institute of Technology, Allahabad.
July 25, 2008 1
Interpretive Structural Modeling
Interpretive Structural Modeling is used for
identifying and summarizing relationship
among specific variables, which define a
problem or an issues.

It is an interactive learning process.

2
Objective of ISM

To identify and rank the variables.


To establish the interrelationship among the
variables.
To discuss the managerial implication of the
research.

3
Steps of ISM Methodology
1. Variables affecting the system under consideration are
listed.
2. The Structural Self Interaction Matrix (SSIM) is
developed for the variables.
3. Reachability Matrix is developed from the SSIM.
4. Reachability Matrix obtained in step 3 is partitioned
into different level.
5. Finally the hierarchies of the variables are formed.

4
Example of Interpretive Structural
Modeling

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Variables affecting Information and
Communication Technology adoption in SME.
Sl. Variables Supporting Studies
No.
1 Relative Advantage Lee and Runge (2001). Khazanchi
(2005); Seyal and Rahman (2003).
2 Social Expectation Lee and Runge (2001). Khazanchi
(2005); Seyal and Rahman (2003).

3 Firms Innovativeness Lee and Runge (2001); Winston and


Dologite (1999); Khazanchi (2005);
Seyal and Rahman (2003).

4 Management Attributes Seyal and Rahman, (2003); Jeon


et.al.(2006); Chahal and Kohali
(2006). 6
Variables affecting Information and
Communication Technology adoption in SME.
Sl. Variables Supporting Studies
No.
5 Organisational Attributes Seyal and Rahman (2003);
Levenburg and Klein (2006).
6 Adoption Attributes Seyal and Rahman (2003); Jeon
et.al. (2006),

7 End User experience Winston and Dologite(1999).

8 Owner knowledge Winston and Dologite (1999);


Ihlstrom and Nilsson (2003);
Seyal and Rahman (2003);
Wymer and Regan (2005).
7
Variables affecting Information and
Communication Technology adoption in SME.
Sl. Variables Supporting Studies
No.
9 Extra organizational Winston and Dologite(1999);
situation Khazanchi (2005).
10 Government Support Jeon et.al. (2006); Wymer and
Regan (2005); Jeon et.al. (2006);
Wymer and Regan (2005).
11 Financial Resource Levenburg and Klein (2006);
Khazanchi (2005)

8
Relative Advantage

Social Expectation

Firms Innovativeness

Management Attributes
Usage of Information
Organisational Attributes and Communication
Technology
Adoption Attributes

End User experience

Owners knowledge

Extra organizational situation

Government Support

Financial Resource 9
Interpretive Structural Modeling

Personal interview is conducted of the two experts, one is


academician and the other entrepreneurship consultant. It is
asked them to establish the relationship between the various
factors as follows:
A, If i is predictor of j.
B, If j is predictor of i.
C, If i and j predict each other.
D, If no predict each other.

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Structural Self Interaction Matrix
(SSIM)
ISM methodology suggest the use of expert
opinions based on the various management
technique in developing the contextual
relationship among the variables.

11
Structural Self-Interaction Matrix (SSIM)

Elements 11 10 9 8 7 6 5 4 3 2

1 Relative Advantage A A A D D B A A A A
2 Social Expectation A A A A D A A A D
3 Firms Innovativeness D D D D D D A D
4 Management Attributes A B D A D A A
5 Organizational Attributes A D A A D A
6 Adoption Attributes B D D A D
7 End User experience B A A A
8 Owner knowledge A D D
9 Extra Org. situation B D
10 Government Support D
11 Financial Resource

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Reachability Matrix
A, If i is predictor of j, then (i,j) is 1 and (j,i)
is 0
B, If j is predictor of i then (j,i) is 1 and (i,j)
is 0
C, If i and j predict each other then (i,j) is 1
and (j,i) is 1
D, If no predict each other then (i,j) is 0 and (j,i)
is 0

13
Reachability Matrix
Elements 1 2 3 4 5 6 7 8 9 10 11

1 Relative Advantage 1 1 1 1 1 0 0 0 1 1 1
2 Social Expectation 0 1 0 1 1 1 0 1 1 1 1
3 Firms Innovativeness 0 0 1 0 1 0 0 0 0 0 0
4 Management Attributes 0 0 0 1 1 1 0 1 0 0 1
5 Organizational Attributes 0 0 0 0 1 1 0 1 1 0 1
6 Adoption Attributes 1 0 0 0 0 1 0 1 0 0 0
7 End User experience 0 0 0 0 0 0 1 1 1 1 0
8 Owner knowledge 0 0 0 0 0 0 0 1 0 0 1
9 Extra Org. situation 0 0 0 0 0 0 0 0 1 0 0
10 Government Support 0 0 0 1 0 1 0 0 0 1 0
11 Financial Resource 0 0 0 0 0 0 1 0 1 0 1

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Reachability Set
Variable Reachability Set
1 1,2,3,4,5,9,10,11
2 2,4,5,6,8,9,10,11
3 3,5
4 4,5,6,8,11
5 5,6,8,9,11
6 1,6,8,
7 7,8,9,10
8 8,11
9 9
10 4,6,10
11 7,9,11
15
Antecend Set
Variable Antecend Set
1 1,6
2 1,2
3 1,3
4 1,2,4,10
5 1,2,3,4,5
6 2,4,5,6,10
7 7,11
8 2,4,5,6,7,8
9 1,2,5,7,9,11
10 1,2,7,10
11 1,2,4,5,8,11
16
Level of Variables

Level of variables are determined on the


basis of intersection of Reachability Set
and Intersection Set

17
Level of Variables
Variable Reachability Antecend Intersection Set Level
Set Set
1 1,2,3,4,5,9,10,11 1,6 1 VII
2 2,4,5,6,8,9,10,11 1,2 2 VI
3 3,5 1,3 3 II
4 4,5,6,8,11 1,2,4,10 4 IV
5 5,6,8,9,11 1,2,3,4,5 5 III
6 1,6,8, 2,4,5,6,10 6 III
7 7,8,9,10 7,11 7 III
8 8,11 2,4,5,6,7,8 8 II
9 9 1,2,5,7,9,11 9 I
10 4,6,10 1,2,7,10 10 V
11 7,9,11 1,2,4,5,8,11 11 II

18
Variable Hierarchy

Extra Organizational
Situation (9)

Firms Innovativeness (3) Owner knowledge (8) Financial Resource (11)

Organizational Attributes (5) Adoption Attributes (6) End User experience (7)

Management Attributes (4)

Government Support (10)

Social Expectation (2)

Relative Advantage (1) 19

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