What is Average Variance Extracted

The overall performance of a manufacturing organization can be enhanced by thoroughly examine and monitor the activities of all departments such as production, inventory, maintenance, etc. involved in the manufacturing system. The present study highlights the relationships between different performance measure and overall performance from the perspective of the agricultural tool manufacturing industry. A path model consists of 13 observed variables, and four performance measures (latent variables) was developed and tested using SPSS software package and AMOS 21. The outcome of the present work is reflected by the respondent of 105 valid questionnaires who are occupied with agriculture tool manufacturing firms situated in the northern region of India. The outcome of confirmatory factor analysis showed that operational performance has higher path coefficient. The limitation of this work is that the findings are applicable to the specific sector of manufacturing industry only.