An application of interpretative structural modeling of the compliance to food standards

Purpose - The aim of this paper is to identify and analyze critical factors/elements influencing standards compliance and their level of influence in a developing country food industry, with specific reference to India. Design/methodology/approach - A total of 13 critical elements were identified and structured using pair-wise comparisons. Structural and reachability matrices were formed and iterated to yield levels of hierarchical influence of each element. MICMAC analysis was also performed to determine dependency and driving power of these elements. Findings - The analysis brought out a compelling need for "sensitive and responsive" action by developing country governments while competing globally. Food industries in developing countries tend to detour while complying with standards, owing to costs involved in setting up systems and procedures. While a strong surveillance mechanism is the high point of a good compliant system this has to be preceded by supporting measures such as linking of domestic and international markets, consolidation of institutional structures, strengthening of legal/regulatory systems, etc. Practical implications - Use of interpretative structural modeling (ISM) is inspired by the versatility displayed by this method, as reported by researchers, across a wide spectrum of economic and competitive complexities affecting businesses. Originality/value - The study is a hitherto unexplored attempt, using interpretative structural modeling, to analyze standards compliance in a developing country's food industry.