The role of employees' participation and managers' authority on continuous improvement and performance

2021 ◽  
Vol 41 (13) ◽  
pp. 34-64
Author(s):  
Ambra Galeazzo ◽  
Andrea Furlan ◽  
Andrea Vinelli

PurposeDrawing on the theoretical concept of organisational fit, this paper questions the relevance of employees' participation in the link between continuous improvement (CI) and operational performance. The literature has long emphasised that to be successful, CI implementation needs to rely on employees' involvement as soon as its inception. This paper argues that this approach is not generalisable.Design/methodology/approachBased on a database of 330 firms across 15 countries, regression analyses were used to hypothesise that the fit between CI and employee participation is positively associated with operational performance, and that the fit between CI and centralisation of authority is negatively associated with operational performance. The authors also ran a robustness check with polynomial regression analyses and the response surface methodology.FindingsCI–employee participation fit is positively associated with operational performance, suggesting that there is less need for employees to be involved when a firm has scarcely developed CI. Employee participation becomes gradually more relevant as CI progresses. Moreover, the results demonstrate that the CI–centralisation of authority fit is negatively associated with operational performance, suggesting that a top-down management approach with centralised authority is preferable when CI is low, whereas a bottom-up management approach is helpful when a firm has extensively developed CI.Originality/valueThis research draws on the concept of organisational fit to explore the relationships between internal practices in the operations management literature. The authors suggest that managers should dynamically balance the practices of employee participation and centralisation of authority as CI improves. This study highlights that CI has different evolutionary levels that require different managerial approaches and practices.

2017 ◽  
Vol 38 (2) ◽  
pp. 229-253 ◽  
Author(s):  
Trong Tuan Luu

Purpose The purpose of this paper is to investigate the role of ambidextrous leadership in fostering entrepreneurial orientation (EO) and operational performance. The research also seeks an insight into the moderating role that organizational social capital (OSC) plays on the relationship between ambidextrous leadership and EO. Design/methodology/approach The responses to the questionnaire survey were collected from 427 managers from software companies in Vietnam business context. Findings The data analysis verified the positive effect of ambidextrous leadership on EO, which was positively moderated by OSC. The research results also shed light on the predictive role of EO for the organization’s operational performance. Originality/value This research contributes to literature through identifying the convergence of entrepreneurship and operations management research streams, and the moderation role of OSC for the ambidextrous leadership-EO relationship.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mikihisa Nakano ◽  
Kazuki Matsuyama

Purpose The purpose of this paper is to discuss the roles of a supply chain management (SCM) department. To achieve that, this study empirically examines the relationship between internal supply chain structure and operational performance, using survey data collected from 108 Japanese manufacturers. Design/methodology/approach Based on a literature review of not only organizational theory but also other fields such as marketing, logistics management, operations management and SCM, this study focused on two structural properties, formalization and centralization and divided operational performance to firm-centric efficiency and customer-centric responsiveness. To examine the analytical model using these dimensions, this study conducted a structural equation modeling. Findings The correlation between centralization of operational tasks and centralization of strategic tasks, the impacts of centralization of both tasks on formalization and the effect of formalization on responsiveness performance were demonstrated. In addition, the reasons for formalization not positively influencing efficiency performance were explored through follow-up interviews. Practical implications Manufacturers need to formalize, as much as possible, a wide range of SCM tasks to realize operational excellence. To establish such formalized working methods, it is effective to centralize the authorities of both operational and strategic tasks in a particular department. In addition, inefficiency due to strict logistics service levels is a problem that all players involved in the supply chain of various industries should work together to solve. Originality/value The theoretical contribution of this study is that the authors established an empirical process that redefined the constructs of formalization and centralization, developed these measures and examined the impacts of these structural properties on operational performance.


2018 ◽  
Vol 25 (5) ◽  
pp. 1319-1332 ◽  
Author(s):  
Shumpei Iwao ◽  
Mihail Marinov

Purpose The purpose of this paper is to examine factors that inhibit and facilitate the contribution of continuous improvement activities to advance performance in “lean” factories. Design/methodology/approach From the perspective of the routine dynamics theory, this paper considers the possibility of changes in the standard operating procedures (SOPs) made in the course of continuous improvement activities being ignored by employees. This paper builds a hypothesis predicting that firms where employees ignore changes in the SOP cannot achieve the intended improvement effect of these changes. This hypothesis is confirmed with comparative case studies of Toyota and Matsuo. Findings At Toyota there is an incentive to perform operations according to the SOP, while at Matsuo this incentive is not present. This difference means that process improvement activities at Toyota generate changes in manufacturing operations, while at Matsuo, although the SOP has been changed, workers continue to perform operations according to the old SOP and fail to advance performance. This paper argues that the presence/absence of an incentive to perform operations according to the SOP is dependent on whether the responsibility of the performance lies with the SOPs or employees. Additionally, this paper finds that the SOP not only limits employees’ creativities but also supports creative activities for the development of continuous improvement as an organizational activity. Research limitations/implications The generalization of our findings requires statistical support for which an extensive subsequent sampling survey including non-Japanese firms is necessary. Originality/value This study makes a new suggestion regarding the theory of routine dynamics and the fields of operations management: adequate management of consistency between the three aspects (material, ostensive and performative) of organizational routines is important for lean manufacturing.


2018 ◽  
Vol 38 (2) ◽  
pp. 424-445 ◽  
Author(s):  
Seyed Mohammad Ebrahimi ◽  
S.C.L. Koh ◽  
Andrea Genovese ◽  
Niraj Kumar

Purpose Although studies have demonstrated the importance of supply chain integration (SCI) strategies in improving firm performance, very little is understood about how the organizational structure (OS) of focal firms affects the successful implementation of SCI initiatives across supply chains (SCs). Taking into consideration the importance of the oil and gas (O&G) industry, as well as the impact of uncertainties on OS and strategy choices, it is important to understand how OS and SCI affect the operational performance of O&G SCs. The paper aims to discuss this issue. Design/methodology/approach Taking a contingency approach and using a global sample of 181 O&G firms, this study examines the mediating role of internal, customer, and supplier integration on the relationship between three main dimensions of OS – the degree of centralization, formalization, and hierarchical relationships and operational performance, using structural equation modeling. Findings Findings reveal that OS dimensions negatively impact operational performance. Further testing for the mediation found that by increasing SCI, O&G SCs can mitigate the negative effect of high centralization, formalization, and hierarchical relationship on operational performance. Research limitations/implications Classifying OS into “structuring” and “structural,” this research provides evidence on which of the two has a stronger negative impact on operational performance. This is significant since it may be difficult for O&G companies to restructure and reform their OS. Originality/value This study examines the impact of OS and SCI on improving the operational performance of the O&G SCs. Theoretical and practical contributions to the field of operations management and organizational studies are also discussed.


2019 ◽  
Vol 31 (3) ◽  
pp. 359-376 ◽  
Author(s):  
Daniel Jurburg ◽  
Elisabeth Viles ◽  
Martin Tanco ◽  
Ricardo Mateo ◽  
Álvaro Lleó

Purpose Companies use continuous improvement (CI) as a strategy to achieve business excellence and innovation. Yet CI initiatives fail mostly due to a lack of employee engagement. The paper aims to discuss this issue. Design/methodology/approach Based on the CI literature and the technology acceptance model (TAM), a comprehensive model called continuous improvement acceptance mode (CIAM) was developed to understand the main organisational antecedents that predict employee intention to participate in CI. The CIAM is based on structural equation modelling using partial least squares and it was validated in a large manufacturing plant in Europe. Findings Emulating the findings of the TAM, this study shows that employee intention to participate can be predicted by two variables called ease of participating and usefulness of participating. The CIAM then relates these constructs with relevant CI enablers found in the CI literature. Practical implications The CIAM could help academics and practitioners to better understand employee participation in CI activities, allowing CI systems to be better designed and achieve long-term sustainability. Originality/value The CIAM presents new variables and interactions that help to understand employee participation in CI activities. Some of these variables and interactions have received scant attention in the CI literature and thus they are worth investigating in greater depth in the future.


2019 ◽  
Vol 39 (6/7/8) ◽  
pp. 860-886 ◽  
Author(s):  
Guilherme Luz Tortorella ◽  
Ricardo Giglio ◽  
Desirée H. van Dun

Purpose The purpose of this paper is to examine the moderating role of Industry 4.0 technologies on the relationship between lean production (LP) and operational performance improvement within Brazil, a developing economy context. Design/methodology/approach One representative from each of the 147 studied manufacturing companies filled in a survey on three internally related lean practice bundles and two Industry 4.0 technology bundles, with safety, delivery, quality, productivity and inventory as performance indicators. As this study was grounded on the contingency theory, multivariate data analyses were performed, controlling for four contingencies. Findings Industry 4.0 moderates the effect of LP practices on operational performance improvement, but in different directions. Process-related technologies negatively moderate the effect of low setup practices on performance, whereas product/service-related technologies positively moderate the effect of flow practices on performance. Originality/value With the advent of Industry 4.0, companies have been channelling their efforts to achieve superior performance by advancing levels of automation and interconnectivity. Eventually, widespread and proven manufacturing approaches, like LP, will integrate such technologies which may, in turn, impair or favour operational performance. Contrary to previous studies, the contingencies appeared to have a less extensive effect. The authors point to various options for further study across different socio-economic contexts. This study evidenced that purely technological adoption will not lead to distinguished results. LP practices help in the installation of organisational habits and mindsets that favour systemic process improvements, supporting the design and control of manufacturers’ operations management towards the fourth industrial revolution era.


2014 ◽  
Vol 31 (5) ◽  
pp. 500-521 ◽  
Author(s):  
Dimitrios P. Kafetzopoulos ◽  
Katerina D. Gotzamani ◽  
Evangelos L. Psomas

Purpose – The purpose of this paper is to analyse the importance of specific, quality-related employees’ attributes to the enhancement of product quality in food companies. The main goal is to examine the synergistic relationships between specific employees’ attributes, which have been related in literature to ISO 9000 successful implementation, to continuous improvement, operational performance and product quality. 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. Findings – The findings reveal that although the examined quality-related “employees’ attributes” do not directly contribute to “product quality”, they influence both “continuous improvement” and “operational performance” of food firms. The results also confirm the impact of both “continuous improvement” and “operational performance” on “product quality” and also that “continuous improvement” helps explain “operational performance”. Research limitations/implications – The domain in which the model has been validated, the restricted use of moderators in the model and lack of empirical validation of the model in non-food sector companies, based on various respondents from each company, are a number of limitations associated with this study which suggest future research proposals. Practical implications – The findings of this study can motivate managers of food companies to focus on certain quality-related employees’ attributes in order to boost continuous improvement of ISO 9001 systems and operational performance of their companies, leading to product quality enhancement. Originality/value – This study finds particular relevance in emphasizing that although specific quality-related employees’ attributes, as these are detected in literature, have a significant contribution towards continuous improvement and operational performance, they are not the only critical factor leading to product quality. More complex relationships need to be considered by integrating other constructs as major antecedents of food product quality.


2018 ◽  
Vol 25 (7) ◽  
pp. 2040-2064 ◽  
Author(s):  
Rawan Ali Saleh ◽  
Rateb J. Sweis ◽  
Firas Izzat Mahmoud Saleh

PurposeThe purpose of this paper is to investigate the impact of hard total quality management (TQM) practices on operational performance dimensions in manufacturing organizations.Design/methodology/approachThe study was designed in the Jordanian manufacturing sector. Organizations that are familiar with hard TQM practices specifically that had already implemented ISO 9001 certificate were randomly surveyed through structured questionnaire, yielded a sample of 40 responding organizations. Principal component factor analysis was used to analyze hard TQM practices implementation and organizations operational performance dimensions. As a result, specific hard TQM practices and operational performance dimensions were extracted. The hard TQM practices that significantly influence operational performance dimensions were tested using simple and multiple linear regression analysis.FindingsThe research findings showed that hard TQM practices in manufacturing sector include; continuous improvement, statistical process control (SPC), process management and quality tools and techniques. Meanwhile, operational performance dimensions include; quality and inventory management performance. Also, the findings showed that continuous improvement and SPC practices play a major role in obtaining the desired results of operational performance.Research limitations/implicationsThree limitations can be identified in this research, using subjective measures of TQM practices and operational performance, low response rate and using a sample of organizations from various industries. This paper can help Jordanian manufacturing organizations to foster proper practices and make the right decisions related to operational performance.Originality/valueThis study describes a reliable hard TQM model that can be used by manufacturing organizations to improve their operational performance. Also, the results of this study contribute to prior literature and recommend some best practices for manufacturing organizations.


2015 ◽  
Vol 9 (2) ◽  
pp. 195-211 ◽  
Author(s):  
Phuong Anh Nguyen ◽  
Alan G. Robinson

Purpose – This paper aims to enhance the understanding of continuous improvement (CI) practices in Vietnamese organizations. Design/methodology/approach – The study reported here is based on field research using in-depth case studies to investigate the factors underpinning CI effectiveness in Vietnam. Data were collected from direct observations, internal company documents and interviews in six leading Vietnamese companies, as well as interviews with 50 business leaders, managers, practitioners and academics in Vietnam. Findings – This paper identifies the cultural conditions that have most shaped, and continue to shape, the management of CI in Vietnam, and suggests ways that practitioners can design effective CI practices in that country. For example, a very strong top-down management approach seems to be necessary to jump-start CI in Vietnamese organizations. Vietnamese organizations can succeed with CI, but they require substantial investment in human capital to give managers and employees at all levels up-to-date CI education and training. Furthermore, contrary to best-practice thinking in many developed countries, Vietnamese organizations may well be unable to motivate employees to participate in CI initiatives without a seemingly heavy-handed system of substantial rewards. Research limitations/implications – Future research in this area should study a broader selection of case companies across a wider selection of sectors, including more in service, and in other industries and in other regions of Vietnam. It should also aim to capture and analyze other factors that determine CI effectiveness. Practical implications – To lead organizational change, leaders must first be able and willing to adjust their leadership styles to match the demands of their changing business environments. Originality/value – While Vietnam is attracting intense interest from the international business community, little research has been done on CI practices there, in part because Vietnamese companies have developed a strong culture of secrecy, and are very wary of granting research access to outsiders. This study offers one of the first “inside views” of Vietnamese management with reliable data focusing particularly on CI.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guven Gurkan Inan ◽  
Zahit Ergun Gungor ◽  
Umit Sezer Bititci ◽  
Sarina Abdul Halim-Lim

PurposeMicro-enterprises have a vital role in the development of a nation by creating employment, encouraging entrepreneurship, balancing social income and educating the workforce. Yet, micro-enterprises face significant operational challenges such as low productivity, high production costs and long changeover times. These challenges are often overlooked by researchers and practitioners but have a drastic impact on micro-enterprises' operational performance. With over 95% of the economy consisting of micro-enterprises, it is vital to improve operational performance and competitiveness of the micro-enterprises.Design/methodology/approachConsidering the data availability and practical challenges of gathering data from micro-enterprises, an action research methodology was selected as a suitable research method. Following the initial diagnostic visits, planned interventions were prepared and results were observed to gather data and draw conclusions.FindingsFindings suggest that commonly adapted performance improvement initiatives by large enterprises cannot be directly applied in micro-enterprises to enhance operational performance. Micro-enterprises lack the critical resources and company culture to easily adapt these initiatives. On the other hand, when these performance improvement initiatives are filtered according to specific needs of micro-enterprises, continuous improvement initiatives were often found to be effective in improving operational performance. Specifically, 5S, single-minute exchange of dies (SMED), suggestion schemes, layout improvements, management coaching, visual management, empowerment were found to be useful and suitable to address command and control culture, low productivity, unorganised workspace, undelegated authority, low skilled employees and unwillingness to take responsibility problems.Research limitations/implicationsFurther research is required to investigate the specific factors that affect the adaptation of continuous improvement initiatives such as culture and industry type.Originality/valueThis research extends and contributes the current literature on continuous improvement initiatives by revealing how performance improvement initiatives need to be filtered according to the specific needs of micro-enterprises, and how these initiatives can be used to address specific problems to improve operational efficiency. It provides a conceptual framework to guide the decision-making process on operational performance improvement in micro-enterprises.


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