FACTORS INFLUENCING COMPETITVE ADVANTAGE OF AUTO PART MANUFACTURERS IN THE EASTREN ECONOMIC CORRIDOR

Abstract

This quantitative research aims to study the influence of innovation transformational leadership and competitive advantage of auto parts manufacturers in the Eastern Economic Corridor and to check goodness of fit of the structural equation model of the competitive advantage. Data was collected from 220 manager in the auto parts manufacturers in the Eastern Economic Corridor and subjected for analysis through SEM. The result were found that transformation leadership and innovation had influenced competitive advantage with the standard regression coefficients of 0.43 and 0.44 respectively. Transformation leadership influences innovation with the standard regression coefficients of 0.66 were statistically significant at the 0.05. The structural equation model of the competitive advantage of auto parts manufacturers in the Eastern Economic Corridor was revealed that the model fit confirms as appropriate Chi-square (χ²) = 48.631, df = 36, p-value = .078, CMIN/DF (χ²⁄df) = 1.351, GFI = .962, AGFI = .931, CFI = .983, RMSEA = .040 and NFI = .938