Agile manufacturing and business performance

2019 ◽  
Vol 25 (4) ◽  
pp. 647-666 ◽  
Author(s):  
Esraa Hussein Nabass ◽  
Ayman Bahjat Abdallah
Keyword(s):  
Structural Equation ◽  
Business Performance ◽  
Agile Manufacturing ◽  
Performance Outcomes ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Mediating Effects ◽  
Cost Performance ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this paper is to examine the effect of agile manufacturing (AM) on business performance and operational performance (OP) dimensions in manufacturing companies in Jordan. It also explores the indirect effect of AM on business performance through OP dimensions of cost, quality, delivery and flexibility.Design/methodology/approachThe study analyzes survey data collected from 282 manufacturing companies from different industries in Jordan. Validity and reliability analyses were performed using SPSS and Amos, and the research hypotheses were tested using structural equation modeling.FindingsThe results demonstrated that AM positively and directly affected business performance. It also positively affected OP dimensions of quality, delivery and flexibility. However, cost performance was not significantly affected by AM. In addition, quality performance and flexibility performance fully mediated the relationship between AM and business performance, whereas cost performance and delivery performance did not show mediating effects.Originality/valueTo the best of the knowledge, this is the first study that investigates the mediating effects of OP dimensions on the relationship between AM and business performance. In addition, a limited number of previous studies investigated the performance outcomes of AM. Furthermore, this area is under-investigated in the Middle East in general and in Jordan in particular.

Exploring loyalty to specialty foods among tourists and residents

2018 ◽  
Vol 120 (5) ◽  
pp. 1120-1131 ◽  
Author(s):  
Dwi Suhartanto ◽  
Brendan T. Chen ◽  
Zurinawati Mohi ◽  
Adila Sosianika
Keyword(s):  
Structural Equation ◽  
Business Performance ◽  
Perceived Quality ◽  
Equation Modeling ◽  
Content Type ◽  
Motivation Factors ◽  
Perception Of Quality ◽  
Retail Managers ◽  
Internal And External Factors ◽  
The Relationship

PurposeThe purpose of this paper is to examine a specialty food loyalty model which includes perceived quality, satisfaction, and motivation, and to assess the model’s applicability in two distinct groups of customers: tourists and residents.Design/methodology/approachData were collected from 455 specialty food customers in Bandung, Indonesia. Variance-based structural equation modeling (partial least squares (PLS)) was used to examine the relationship between the drivers (perceived quality, satisfaction and motivation) and loyalty according to the data presented by tourists and residents.FindingsThis study indicates that the perception of quality is an important factor affecting tourists’ and residents’ satisfaction with, and loyalty to, a product. Furthermore, this study suggests that motivation factors are important for tourists and residents in regard to developing loyalty to specialty foods.Practical implicationsThis study provides a venue for retail managers and producers to improve their business performance by developing specialty foods of high quality. To improve their quality, this research suggests that managers and retailers focus on innovation based on exotic and unique traditional food reflecting the richness of local culture. To ensure their loyalty, customers of specialty foods need to be motivated by internal and external factors.Originality/valueThis study is one of the first to examine the formation of specialty food loyalty in two distinct groups of customers: tourists and residents.

Extending cumulative capability models: the role of innovation in the accumulation of competitive performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mantas Vilkas ◽  
Inga Stankevice ◽  
Rimantas Rauleckas
Keyword(s):  
Structural Equation ◽  
Statistical Significance ◽  
Theoretical Explanation ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Competitive Performance ◽  
Cost Performance ◽  
Content Type ◽  
Performance Dimensions

PurposeCumulative capability models are dominating frameworks explaining how manufacturing organizations gain their performance capabilities, such as quality, delivery, flexibility and cost. When innovation capabilities are excluded from the framework, the models are incapable of explaining how companies sustain substantive capabilities in a changing environment. Responding to this gap, the purpose of this paper is to propose and test a “sand cone” cumulative capability model that includes the innovation competitive performance alongside the competitive performance of quality, delivery flexibility and cost.Design/methodology/approachTwo competing cumulative models were proposed. The extended cumulative capability model hypothesizes the development of innovation in sequence with other competitive performance dimensions. The affected with innovation cumulative model hypothesizes innovation performance as a predecessor of other performance dimensions. The models were tested using a multimethod approach on a representative sample of 500 manufacturing companies. An analysis of correlations among competitive performance, frequencies of plants following prescribed sequences, fit statistics of covariance-based structural equation modeling and analysis of strength and statistical significance of path coefficients enabled us to select a model that best represents the collected data.FindingsThe findings reveal that innovation competitive performance operates as a predecessor of quality, delivery, flexibility and cost and is developed in relation to these performance dimensions. The modified model also provides a theoretical explanation of how innovation performance helps to sustain reliable production systems that can perform consistently over time within a tolerable range of quality, delivery, flexibility and cost performance.Practical implicationsThe results are significant for practitioners, especially for companies that are operating in volatile environments because the results provide insight on how to develop innovation competitive performance in relation to quality, delivery, flexibility and cost performance.Originality/valueThis study extends the cumulative capability models with innovation competitive performance. It advances the contingency approach on cumulative capability models.

Innovation orientation and its relationship with business performance: moderating role of firm size

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rayees Farooq ◽  
Sandeep Vij ◽  
Jaspreet Kaur
Keyword(s):  
Firm Size ◽  
Structural Equation ◽  
Business Performance ◽  
Equation Modeling ◽  
National Capital Region ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
National Capital ◽  
Managerial Level ◽  
The Relationship

Purpose The study aims to test the relationship between innovation orientation (INO) and business performance. It also explores the moderating effect of firm size on the relationship between INO and business performance. Design/methodology/approach A purposive sample of 278 firms (manufacturing and service) was taken from the National Capital Region and the Punjab state of India. The survey questionnaire was administered to two to three managerial-level employees from each of the 278 firms. Exploratory and confirmatory factor analyses were used to validate the INO and business performance scales. The hypotheses were tested using multi-group moderation analysis and structural equation modeling. Findings The study shows that INO has a significant positive effect on business performance. The results have indicated that firm size (based on the number of employees) moderates the relationship between INO and business performance. However, firm size (based on investment) does not moderate the relationship between INO and business performance. Originality/value The study is an attempt to synthesize the fragmented results testing innovation–performance relationship using firm size as a moderator on the relationship between INO and business performance and provides insights for both academicians and practitioners.

Narratives of environmental munificence of 3PL firms on the relationship between dynamic capabilities, strategic management and organizational performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Korhan Arun ◽  
Saniye Yildirim Ozmutlu
Keyword(s):  
Strategic Management ◽  
Organizational Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Performance Outcomes ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Environmental Munificence ◽  
The Relationship

PurposeThe purpose of this paper is to examine how the mediating effect of strategic management impacts the relationship between dynamic capabilities and firm performance concerning environmental munificence in 3rd party logistics (3PL) firms operating in Turkey.Design/methodology/approachVariance-based structural equation modeling algorithm and correlation analysis were applied to survey data obtained from (n = 482) a top manager from 3PL companies.FindingsResults revealed that dynamic capabilities were a strong predictor for organizational performance, environmental munificence also emerges as a key predictor for dynamic capabilities and strategic management, and strategic management fully mediates the link between dynamic capabilities and organizational performance, suggesting that they function as substitutes in affecting performance outcomes.Research limitations/implicationsThis paper provides empirical evidence of the relationship between the dynamic capability adaptation, strategic management, environment and performance of 3PL firms. As a limitation, the results are based on survey research with a limited sample size.Practical implicationsOrganizations should manage not only dynamism but also the scarcity of environmental resources found to be significant on both dynamic capabilities and strategic management. Additionally, in the logistics sector, managers should focus on the big picture while they empower and lead capable followers to transform this strategic view into operational-level changes.Originality/valueDepending on the relationships between constructs, studying environmental munificence is a different topic than the dynamic environment concept in the effectiveness of dynamic capabilities of 3PL firms. As well as dynamic capabilities at the level of individual and strategic management relationship on organization performance are confirmed.

Enhancing organizational performance of Malaysian SMEs

2014 ◽  
Vol 35 (7) ◽  
pp. 973-995 ◽  
Author(s):  
Lai Wan Hooi ◽  
Kwang Sing Ngui
Keyword(s):  
Structural Equation Modeling ◽  
Structural Equation ◽  
Performance Outcomes ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Learning Capability ◽  
Content Type ◽  
Hr Practices ◽  
Cross Sectional Design ◽  
The Relationship

Purpose – The purpose of this paper is to examine organizational learning (OL) capability as a mediator of the relationship between human resource management (HRM) and performance of Malaysian small and medium enterprises (SMEs). Design/methodology/approach – A cross-sectional design was adopted, where data were collected from a sample of 286 manufacturing and service SMEs, utilizing a survey questionnaire. Hypotheses were tested using structural equation modeling. Findings – Results from a two-stage structural equation modeling analysis suggest that the use of human-capital enhancing HR practices strengthen SMEs’ learning capability. Furthermore, SMEs’ learning capability mediates the effect of the HR practices on firm performance. Research limitations/implications – It uses a cross-sectional design which has prevented the examination of cause and effect relationship between two constructs. It also did not include large organizations in the sample population. It also did not consider other SME contextual variables which may otherwise exert significant impact on OL capability, or moderate the relationship between the constructs under study. Practical implications – A profound understanding of HR practices’ holistic effect on performances would assist organizations to implement strategies to sustain competitive advantage. Company capabilities embedded in employee behavior are less likely to be inimitable and organizations could effectively nurture the needed employee capabilities to achieve the desired performance outcomes. Originality/value – The study advances knowledge on HRM among SMEs by proposing that decisions on selection of HR practices can be guided by the objective of developing the OL capability of the firm.

Supply chain antecedents of agile manufacturing in a developing country context

2018 ◽  
Vol 29 (6) ◽  
pp. 1042-1064 ◽  
Author(s):  
Ayman Bahjat Abdallah ◽  
Israa Hussein Nabass
Keyword(s):  
Supply Chain ◽  
Developing Country ◽  
Structural Equation ◽  
Manufacturing Sector ◽  
Agile Manufacturing ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Validity And Reliability ◽  
Content Type ◽  
Internal Integration

Purpose The purpose of this paper is to determine supply chain practices that contribute most to the success of agile manufacturing (AM), and to examine their effects on its implementation levels in the Jordanian manufacturing sector. It also investigates the effect of AM on operational performance (OP). Design/methodology/approach The study is based on survey data collected from 294 manufacturing companies from different industry types in Jordan. Validity and reliability analyses were performed using SPSS and AMOS, and the study hypotheses were tested using structural equation modeling. Findings The results revealed that supplier involvement, internal integration, and modularization of products positively and significantly affect AM. Customer involvement and postponement were insignificantly related to AM. Further, the results demonstrated that AM positively and significantly affect OP. Originality/value A limited number of previous studies investigated supply chain antecedents of AM. Further, there is no consensus among researchers on these practices. In addition, this area is underinvestigated in the developing countries in general and in Jordan in particular. The current study contributes to the literature by determining the most commonly linked supply chain practices to AM and examining their effects on its implementation levels in the context of a developing country, Jordan.

Entrepreneurship in Islamic communities

2019 ◽  
Vol 13 (5) ◽  
pp. 557-583 ◽  
Author(s):  
Farooq Rehan ◽  
Joern Block ◽  
Christian Fisch
Keyword(s):  
Structural Equation ◽  
Entrepreneurial Intentions ◽  
Religious Communities ◽  
Primary Data ◽  
Equation Modeling ◽  
Mediating Effects ◽  
Content Type ◽  
Fine Grained ◽  
The Relationship ◽  
Islamic Values

Purpose Prior research has investigated the development of Islamic communities. The authors contribute to this line of research by analyzing the effects of Islamic values and Islamic religious practices on entrepreneurship intentions in Islamic communities. Using theory of planned behavior as a theoretical lens, they also take into account that the relationship between religion and entrepreneurial intentions can be mediated by individual’s attitude toward entrepreneurship. Design/methodology/approach The authors analyze primary data obtained from a sample of 1,895 Pakistani university students. They also use structural equation modeling to perform a nuanced assessment of the relationship between Islamic values and practices and entrepreneurship intentions and to account for mediating effects. Findings The results show that both Islamic values and Islamic practices positively influence entrepreneurship intentions. Both effects are mediated by the attitude toward entrepreneurship. Originality/value The authors contribute to prior research on entrepreneurship in Islamic communities by applying a more fine-grained approach to capture the link between religion and entrepreneurship. Further, they contribute to the literature on entrepreneurship intentions by showing that the influence of religion on entrepreneurship intentions is mainly due to religious values and practices, which shape the attitude toward entrepreneurship and thereby influence entrepreneurship intentions in religious communities.

Sustaining Thai SMEs through perceived benefits and happiness

2017 ◽  
Vol 40 (5) ◽  
pp. 556-577 ◽  
Author(s):  
Warat Winit ◽  
Sooksan Kantabutra
Keyword(s):  
Firm Performance ◽  
Relationship Quality ◽  
Structural Equation ◽  
Positive Impact ◽  
Corporate Sustainability ◽  
Performance Outcomes ◽  
Equation Modeling ◽  
Perceived Benefits ◽  
Content Type ◽  
The Relationship

Purpose This paper aims to examine the relationship between stakeholders’ perceived benefits and happiness of small and medium-sized enterprises (SMEs) that follow Thai’s corporate sustainability practices, called sufficiency economy, and their impact on stakeholder–company relationship quality and firm performance outcomes. Design/methodology/approach Derived from the literature, a structural model, expressing the relationship between stakeholders’ perceived benefits and happiness of SMEs and their impact on stakeholder–company relationship quality and firm performance outcomes, was developed. A questionnaire survey was conducted with 636 stakeholders from sufficiency economy SMEs in Thailand. Structural equation modeling was used to test the model. Findings Results indicate that utilitarian benefits, and hedonic and eudaimonic happiness impact enhanced stakeholder–company relationship quality with the firm to varying degrees. Different levels of relationship quality also impact perceived corporate reputation and perceived brand equity differently. Originality/value This study is among the first that identifies the positive impact of happiness on corporate sustainability performance.

Mediating roles of capabilities between R&D-marketing integration and business performance

2018 ◽  
Vol 12 (1) ◽  
pp. 81-98 ◽  
Author(s):  
Abdul Ali ◽  
Ken Matsuno
Keyword(s):  
Structural Equation ◽  
Business Performance ◽  
Equation Modeling ◽  
Future Research ◽  
Marketing Capability ◽  
Manufacturing Companies ◽  
Performance Impact ◽  
Cross Sectional ◽  
Content Type ◽  
Technical Capability

Purpose Following the resource-based view, this paper aims to investigate the business performance impact of R&D–marketing integration and marketing and technical capabilities at the organization level in a non-Western context. Specifically, this work explores the mediating role of the two capabilities, while accounting for potential moderating effects and under the contingency of technological turbulence. Design/methodology/approach Survey data were collected from the paired marketing and R&D executives of 207 Japanese manufacturing companies. Data were analyzed using structural equation modeling. Findings The results show that marketing capability – by itself and also coupled with technical capability – mediates the relationship between R&D–marketing integration and business performance, while technical capability alone does not. Research limitations/implications This study’s subjective performance measures and cross-sectional design have inherent limitations. The exploration of antecedents and other contingency variables would provide ample scope for future research. Practical implications The findings suggest that managers need to build these two capabilities, especially marketing capability, because R&D–marketing integration by itself will not be sufficient to improve business performance. Originality/value This study provides empirical evidence for a new theoretical link through which R&D–marketing integration impacts business performance at the program level. The findings may also partially explain the mixed and conflicting results often found in past studies.

scholarly journals Linking Halal food certification and business performance

2017 ◽  
Vol 119 (7) ◽  
pp. 1606-1618 ◽  
Author(s):  
Mohamed Syazwan Ab Talib ◽  
Thoo Ai Chin ◽  
Johan Fischer
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Business Performance ◽  
Study Data ◽  
Operational Performance ◽  
Manufacturing Companies ◽  
Content Type ◽  
Business Outcomes ◽  
Halal Food ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between Halal food certification (HFC) and business performance. This study argues that Halal food certificate implementation positively influences business performance. Design/methodology/approach A total of 210 Halal certified food manufacturing companies in Malaysia participated in the study. Data were gathered through a structured questionnaire and were analysed using partial least squares structural equation modelling technique. Findings The study proved that HFC has a positive relationship with operational performance. Additionally, operational performance mediates the relationship between HFC and financial performance. Altogether, this signifies that Halal food certificate implementation positively influences business performance. Practical implications By linking HFC and business performance, managers may be aware of the significant role of HFC in influencing operational and financial performance. It would entice more food companies to become Halal certified that opens up an opportunity to a lucrative Halal food industry. It also empirically justifies that a religion-based food certification has the ability to influence business performance, consistent with other established food standards such as ISO 22000 or HACCP. Originality/value Although numerous studies have concentrated on well-established food certifications, the expanding Muslim population, rising demand for Halal food, and lucrative Halal food market have raised the attention on HFC research among academicians and practitioners. This research is able to highlight the importance of implementing HFC among food companies as it could potentially lead to superior business outcomes.

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