Differences in the impact of AMO bundles of line managers and frontline workers on the performance of manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alberto Bayo-Moriones ◽  
Alejandro Bello-Pindado

PurposeThe purpose of this paper is to analyse the impact on manufacturing performance of human resource management (HRM) practices across two job levels within manufacturing firms in Argentina and Uruguay: that of line managers and frontline workers. HRM practices are categorised into three bundles defined by the AMO theoretical framework: ability, motivation and opportunity.Design/methodology/approachThe article uses data from a survey to 301 manufacturing plants in Uruguay and Argentina. Given the characteristics of the dependent variable, linear regression models have been estimated in order to test the hypotheses.FindingsThe results show that the ability and opportunity bundles for line managers are positively associated with manufacturing performance. However, only the motivation bundle affects manufacturing performance for frontline workers.Research limitations/implicationsThe main limitations are the use of cross-sectional data, the focus on two specific countries and the analysis of two employee categories that are not completely homogenous. The paper extends the contingency perspective in HRM by examining the relevance of job level as a contingent factor in the HRM-performance relationship in the manufacturing industry.Practical implicationsThe results suggest that manufacturing companies should target HR investments more towards line managers than to frontline employees. More specifically, they should concentrate efforts on the ability and opportunity bundles.Originality/valueThe article contributes to the very limited empirical evidence on the impact of HRM differentiation on firm performance by analysing sub-dimensions in a context not previously analysed.

Author(s):  
Hooshang M. Beheshti ◽  
Pejvak Oghazi ◽  
Rana Mostaghel ◽  
Magnus Hultman

Purpose – This article aims to explore the impact of supply chain integration on the financial performance of Swedish manufacturing firms. Design/methodology/approach – The literature review provided the foundation for the development of the survey instrument and hypotheses for the study. In addition, the survey instrument was tested by the experts in the field and modified before it was sent to the managers in the survey group. Findings – The findings show that supply chain integration at any level is beneficial to the financial well being of the firm. Companies with total supply chain integration reported the highest level of financial performance. Research limitations/implications – Data were collected from Swedish manufacturing firms without regard to the size of the firm. The results show that supply chain integration is beneficial at any level. Practical implications – The findings will assist managers with decisions regarding supply chain integration and its role as a critical factor in improving the financial performance of manufacturing companies. Originality/value – Limited empirical studies have been conducted in this area, especially in Sweden. This study provides insight for manufacturing managers with regard to the importance of supply chain management and the competitive nature of business in the global market.


2020 ◽  
Vol 10 (2) ◽  
pp. 243-260
Author(s):  
Amit Tripathy ◽  
Shigufta Hena Uzma

PurposeThe purpose of this paper is to investigate the increasing demand for corporate liquidity and examines the various factors influencing the cash position of firms in India. The financial policy to hold cash gained impetus after the financial crisis when the companies faced a severe cash crunch. However, the firms operating in emerging nations have an imperfect market mechanism with stringent regulatory norms. Thus, this paper attempts to examine the determinants of corporate cash holdings in an emerging country like India.Design/methodology/approachThe paper focuses on the impact of various factors (leverage, firm size, profitability, growth along with other variables), on the cash structure of all the manufacturing companies listed on the Bombay stock exchange. The study employs panel data methodologies over a sample of 323 firms over a period of eight years from 2010 to 2017.FindingsSignificant estimators affecting cash holdings of a firm are the size of a firm, debt levels, tangibility, sales growth and research and development expense. Overall, the study finds evidence on the existence of Pecking Order theory in explaining the determinants of cash holdings in the Indian market.Research limitations/implicationsThe study attempts to explore the critical determinants of cash in the Indian context which can be useful for managers and academicians to understand how the key theories of cash holdings operate in an emerging economy like India.Originality/valueIndia is an emerging economy and has recently gained global attention and has become a hotspot for foreign investments. Thus, this paper explores pieces of evidence on the critical factors affecting cash holdings in India. The study would provide an understanding of the existing cash policy in the Indian context and attempts to find the changes in the financing structure adopted by the manufacturing industry in the given period.


2016 ◽  
Vol 36 (2) ◽  
pp. 114-134 ◽  
Author(s):  
Jorge Andrés Vivares-Vergara ◽  
William Ariel Sarache-Castro ◽  
Julia Clemencia Naranjo-Valencia

Purpose – Human resource management (HRM) is considered an important issue in operations strategy (OS). Furthermore, OS effectiveness depends on performance in competitive priorities (CP). However, little empirical evidence exists about the relationship between them. Thus, the purpose of this paper is to investigate the impact of HRM on performance in CP. Design/methodology/approach – The research was conducted by surveying a sample of medium and large manufacturing companies in the Colombian coffee region. Three groups of variables were studied: performance in CP, HRM practices and factors related to employees. A regression analysis was conducted to test the hypotheses. Findings – No significant relationship was found between HRM practices and performance in CP. Regarding the factors related to employees, two findings were relevant: first, when the companies involve features about the individuals in OS decision making (motivations, personal goals, abilities, etc.) better performance can be observed in CP; second, when employees reach a higher level of satisfaction and job performance, the performance in CP improves as well. Practical implications – Considering the importance of HRM practices, appropriate adjustment and application should be sought to improve company performance. Furthermore, factors related to employees (features about the individuals, job satisfaction and employee performance), must be properly aligned with the OS. Originality/value – The paper addresses an issue supported by little empirical evidence. Because few studies have considered the total set of CP identified in the literature review, the authors applied an indicator to establish the global performance of the production system according to the market requirements. Traditionally, HRM has been studied from the perspective of management practices, giving little attention to employees. In this research, the authors consider not only this perspective but also the effects of factors related to employees on performance in CP when they are aligned with the OS.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Saleem Butt

Purpose The purpose of this study is to understand how manufacturers (both discrete and process) are managing disruptions amid the COVID-19 pandemic outbreak, using UAE as an empirical context. Design/methodology/approach This research uses a multiple case study approach and undertakes 36 semi-structured interviews with senior management of four discrete and four process manufacturing firms that outsource products/components from overseas and domestic suppliers. Findings Results reveal that manufacturing firms are using six distinct actions to mitigate the effects of the COVID-19 pandemic. For instance, they are relying on the automation process, transferring new and updated knowledge to the current and new suppliers, managing workforce diversity, understanding the impact of demand’s disruption, managing the ecosystem and finally using digital technologies to mitigate the impact of the COVID-19 pandemic. Research limitations/implications This study has some limitations. Firstly, the results of this study cannot be generalized to a broader population as it attempts to build an initial theory in manufacturing supply chains within the context of a pandemic outbreak. Second, the study uses a cross-sectional approach to explore the actions used by manufacturing firms to mitigate the effects of the COVID-19 pandemic. Practical implications Manufacturing firms can replicate the actions proposed in this study to lessen the effect of the COVID-19 pandemic and emerge stronger in the post-COVID-era. Originality/value This study contributes to the manufacturing supply chain literature within the context of pandemic outbreaks by exploring the steps taken by manufacturing firms to minimize the effects of the COVID-19 pandemic. Particularly, it explores such steps by considering both the discrete and process manufacturing industries within the United Arab Emirates.


2014 ◽  
Vol 20 (4) ◽  
pp. 415-435 ◽  
Author(s):  
Kanwarpreet Singh ◽  
Inderpreet Singh Ahuja

Purpose – The purpose of this paper is to evaluate and extract various significant factors influencing the implementation of total quality management (TQM) and total productive maintenance (TPM) on business performance for the following approaches: TPM alone; both TQM-TPM combined for improving manufacturing performance in the Indian manufacturing industry. Design/methodology/approach – In the present study, 94 manufacturing organizations have been extensively surveyed, to ascertain the contributions made by TQM and TPM initiatives in the Indian manufacturing industries toward realizing manufacturing performance improvements. The correlations between various TQM and TPM implementation issues and manufacturing performance improvements have been evaluated and validated by employing various statistical tools. Findings – This paper illustrates how the synergistic relationship of TQM and TPM paradigms can be helpful for Indian manufacturing industries to enhance overall business performance. The major objectives of this research is to examine, the effectiveness of performance parameters (dependent variables) and factors of implementation (independent variables) of companies implementing TPM alone and TQM-TPM combined approach to improve their business performance and how the support of TQM provides a synergetic effect on TPM's contribution in improving better business performance. Originality/value – TQM and TPM, are such popular initiatives employed by the manufacturing organizations as performance improvement techniques. These programs are employed world over for attaining customer satisfaction, reliability, productivity, market share, profitability and even survival. The study stresses upon the need for improving coordination between manufacturing parameters and other organizational quality improvement initiatives through transfusion of TQM and TPM and to examine the impact of experience in terms of time period on effectiveness of performance parameters when TQM is supported by TPM for Indian manufacturing companies.


2014 ◽  
Vol 8 (3) ◽  
pp. 278-294 ◽  
Author(s):  
Gurinder Singh ◽  
Inderpreet Singh Ahuja

Purpose – The purpose of this paper is to create awareness of contributions made by just-in-time manufacturing (JIT) practice towards building performance measures in Indian manufacturing industry. Implications of JIT implementation issues in Indian manufacturing industry have been critically evaluated in this paper. Design/methodology/approach – While conducting this study, survey of reasonable number of manufacturing organisations have been made so as to ascertain contributions made by JIT initiatives in the Indian manufacturing industries for achieving major performance measures. The correlations between various JIT implementation dimensions and performance parameters have been worked out by employing various statistical tools and bringing out significant factors contributing effectively towards achieving manufacturing performance measures. Findings – The study divulges that attitude of management, participation of workers, relationship of organisation with suppliers and customers, adoption of latest manufacturing methods and successful adaptation of effective JIT initiatives can significantly contribute towards enhancing performance measures in the organisation. The study also reveals that the holistic JIT manufacturing methods outscore the traditional manufacturing practices towards improving the manufacturing performance. The study highlights that detailed JIT implementation over a reasonable period can greatly contribute towards achievement in performance of organisation. Originality/value – The present study analyses the impact of JIT manufacturing method on performance of organisation and highlights the need for aligning organisational efforts in establishing manufacturing methods for attaining improvements in performance of manufacturing organisations. The paper highlighted the status of JIT manufacturing initiatives in the Indian context and the preparedness of Indian manufacturing industry to meet the challenges imposed by the Western world by employing aggressive JIT manufacturing strategies.


Author(s):  
Jitendra Kumar ◽  
Vimlesh Kumar Soni ◽  
Geeta Agnihotri

Purpose – The purpose of this paper is to identify the relationship between TPM programme and manufacturing performance in Indian manufacturing industries; to discern the benefits obtained from TPM implementation; to identify common indicators; and to explore the common expectation while TPM implementation. Design/methodology/approach – In this paper acceptability and implementation of TPM programme in Indian manufacturing industry have been elaborated to ascertain the tangible and intangible benefits accrued as a result of successful TPM implementation. A semi-structured questionnaire survey approach has been adopted for the justification of TPM implementation and benefits gained by it in Indian context. Survey has covered mainly automobile and machinery sector throughout India. A total of 57 filled responses have been received and analysed to find the impact of TPM programme on manufacturing productivity. Findings – The paper establishes the impact of successful TPM implementation on manufacturing performance. TPM initiatives have shown marked improvement in the equipment availability, performance and produced quality and have also brought appreciable improvement in other manufacturing functions in the organizations. It has been observed that TPM deployment contributes to improve the manufacturing productivity, quality, delivery, safety, morale, ensuring the cost effectiveness of the manufacturing function within the organization. The paper also indicates that overall equipment effectiveness (OEE) can be used for performance improvement without TPM implementation. Research limitations/implications – Because of the chosen research approach, the research results may lack generalizability. Therefore, researchers are encouraged to test the proposed propositions further. Practical implications – This paper highlights the contribution of TPM programme and OEE measure to ensure enhanced manufacturing productivity. The benefits gained by TPM implementation in selected Indian manufacturing industries have been highlighted, that could be genuine source of motivation to other manufacturing organizations to go in for TPM programme. Originality/value – The present study encompasses systematic identification of factors affecting overall organizational performance and the common expectations of the firms through implementation of TPM programme. TPM initiatives provide regular OEE measure, performance monitoring and improvement, and developing guidelines for achieving enhanced manufacturing productivity.


2018 ◽  
Vol 31 (5) ◽  
pp. 751-770 ◽  
Author(s):  
Veera Pandiyan Kaliani Sundram ◽  
Atikah Shamsul Bahrin ◽  
Zarina Binti Abdul Munir ◽  
Ali Hussein Zolait

Purpose The purpose of this paper is to explain the relationship between supply chain information management, supply chain information system (IS) infrastructure, supply chain integration and the manufacturing performance of firms in manufacturing industry in Malaysia. Therefore, the study addresses a gap in research concerning the effect of supply chain information practices toward manufacturing performance. Design/methodology/approach The research design for this study employed the quantitative method using survey questionnaires that have been developed based on a thorough and detailed analysis of the relevant literature. Based on a sample consist of 248 usable data, mediated multiple regression analysis was used to examine the research model. Findings The findings indicate that supply chain integration fully mediates the relationship between supply chain information management and supply chain information system infrastructure (ISI) toward manufacturing performance. Research limitations/implications This research is limited to a particular sample: i.e. electrical and electronics manufacturing firms in Peninsular Malaysia. Thus, the results need to be generalized to encompass wider samples. Practical implications Organizations interest in making all members in their supply chain to communicate using information network to support managers in better decision making while adopting more enhanced information management and system infrastructure. As a plus, it helps in integrating various internal and external value chain processes across manufacturing firms in the organization’s supply chain network. As result, manufacturing firms could improve their performance in the long run. Originality/value The originality of this study lies in employing a newly developed framework-based existing theoretical argument to examine the effectiveness of supply chain information management and system infrastructure with an improved influence from supply chain integration toward the manufacturing performance.


2015 ◽  
Vol 26 (1) ◽  
pp. 104-130 ◽  
Author(s):  
Dimitrios Kafetzopoulos ◽  
Evangelos Psomas

Purpose – The purpose of this paper is to provide additional evidence of the impact of innovation on three dimensions of a firm’s performance, namely product quality, operational performance and financial performance. Design/methodology/approach – The analysis includes an initial exploratory factor analysis, followed by confirmatory factor analysis and structural equation modelling, in order to investigate the relations between the constructs of the proposed model. A sample of 233 Greek manufacturing firms is used for this purpose. Findings – According to the study findings, “innovation capability” directly contributes to product quality and operational performance. Although it has no direct impact on manufacturing firms’ financial performance, it has an indirect impact through the moderator of operational performance. Thus, innovation is an opportunity for a manufacturing firm to improve its performance. Research limitations/implications – The sample of the responding manufacturing companies is limited to small and medium-sized enterprises from one country (Greece). In addition, manufacturing firms from different sectors have different resources, capabilities and performance. Practical implications – The study offers clear implications for managers who should put additional emphasis on innovation as it is an important element for achieving improved overall firm performance and sustainable competitive power. Originality/value – Based on the multi-dimensional structure of innovation, this empirical study determines the contribution of “innovation capability” to specific performance dimensions of manufacturing companies.


2013 ◽  
Vol 14 (5/6) ◽  
pp. 135-143 ◽  
Author(s):  
Doddy Setiawan ◽  
Lian Kee Phua

Purpose – This study aims at examining the impact of corporate governance on dividend policy among Indonesian companies. There are two theories of the effect of corporate governance on dividend policy: substitution and outcome theory. Substitution theory argue that corporate governance have negative effect on dividend policy, while outcome theory argue that corporate governance have positive effect on dividend policy. Therefore, this study investigates the effect of corporate governance on dividend policy in Indonesia. This study aims at examining the impact of corporate governance on dividend policy among Indonesian companies. There are two theories of the effect of corporate governance on dividend policy: substitution and outcome theory. Substitution theory argue that corporate governance have negative effect on dividend policy, while outcome theory argue that corporate governance have positive effect on dividend policy. Therefore, this study investigates the effect of corporate governance on dividend policy in Indonesia. Design/methodology/approach – The sample of this research comprises 248 firms from Indonesian Stock Exchange during 2004-2006. This research using Transparency and Disclosure Index (TDI) to measure corporate governance in Indonesia Findings – We find that TDI are low among Indonesian firms, with a score of 32 per cent out of the maximum point. This score indicates that Indonesian corporate governance is still low. The results show that there is a negative relation between corporate governance and dividend policy in Indonesia. Thus, the Indonesian companies pay more dividends when corporate governance practice is low. This result confirms applicable of substitution theory in Indonesia. Research limitations/implications – This research focuses on manufacturing industry in Indonesia. Therefore, the conclusions of this research apply on the manufacturing companies in Indonesia Practical implications – This research shows that companies with poor corporate governance pay dividend higher than companies with better corporate governance. Thus, investor can use this information to make investment decision. Originality/value – This research provides evidence on the negative effect of corporate governance on dividend policy in Indonesia (substitution theory).


Sign in / Sign up

Export Citation Format

Share Document