1. 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

2. 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

3. 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

4. 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

5. Example of Interpretive Structural
Modeling
5

6. Variables affecting Information and
Communication Technology adoption in SME.
Sl. Variables
No.
Supporting Studies
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
Firm’s 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

7. Variables affecting Information and
Communication Technology adoption in SME.
Sl. Variables
No.
Supporting Studies
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

8. Variables affecting Information and
Communication Technology adoption in SME.
Sl. Variables
No.
9
Extra organizational
situation
Supporting Studies
Winston and Dologite(1999);
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

9. Relative Advantage
Social Expectation
Firm’s Innovativeness
Management Attributes
Organisational Attributes
Usage of Information
and Communication
Technology
Adoption Attributes
End User experience
Owner’s knowledge
Extra organizational situation
Government Support
Financial Resource
9

10. 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.
10

11. 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

12. Structural Self-Interaction Matrix (SSIM)
Elements
11 10
9
8
7
6
5
4
3
2
A
1
Relative Advantage
A
A
A
D
D
B
A
A
A
2
Social Expectation
A
A
A
A
D
A
A
A
D
3
Firm’s 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
12

13. 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
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14. 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
Firm’s 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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15. 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
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16. 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

17. Level of Variables
Level of variables are determined on the
basis of intersection of Reachability Set
and Intersection Set
17

18. Level of Variables
Variable
Reachability
Set
Antecend Intersection Set
Set
Level
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
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19. Variable Hierarchy
Extra Organizational
Situation (9)
Firm’s 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)
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