Enhancing the study of Lean transformation through organizational culture analysis

2016 ◽  
Vol 8 (3) ◽  
pp. 395-411 ◽  
Author(s):  
Kristen Snyder ◽  
Pernilla Ingelsson ◽  
Ingela Bäckström
Keyword(s):  
Organizational Culture ◽  
Performance Measurement ◽  
Phase 1 ◽  
Culture Method ◽  
Measurement Model ◽  
Human Dimensions ◽  
Assessment Model ◽  
Performance Measurement System ◽  
Content Type ◽  
Lean Transformation

Purpose The purpose of this paper is to identify and synthesize approaches to studying Lean transformation to further develop a comprehensive approach that integrates organizational culture analysis and performance measurement systems from a systems perspective. Design/methodology/approach This paper is conceptual in nature and based on a review of the literature in the areas of measuring Lean transformation and studying organizational culture. Three questions guide this conceptual analysis: “What approaches have been used to examine Lean transformation in business and public sector organizations?”; “Is there evidence of a focus on organizational culture in the measurement practices in Lean transformation and, if so, how?”; and “What can we learn from organizational cultural theorists about developing a more comprehensive framework to study Lean transformation?”. The analysis was conducted in two phases: In Phase 1, a database search was conducted using the key words Lean transformation, studying Lean, studying Lean transformation, studying organizational culture in Lean and measuring Lean, from which eight papers were selected. In Phase 2, the authors reviewed two models for studying organizational culture. Findings Findings indicated that the dominant approach to study and measure Lean transformation is based on the performance measurement model. Based on this approach, there was little evidence of a focus on organizational culture, and few integrated the human dimensions with the tools and practices. The authors also found evidence of a greater awareness of the need to develop a balanced performance measurement system that reflects both the subjective soft measures and the objective hard measures. Among the approaches studied, two models did reflect integration between hard and soft measures: Dahlgaard et al.’s (2011) 4Ps and Najem et al. ’s (2012) assessment model for studying organizational culture in Lean. Both of these methods provide a strong framework from which to further enhance the study of Lean transformation by incorporating elements from Bantz’s (1993) organizational communication culture method and Martin’s (1992) Matrix concept. Originality/value This paper furthers the academic dialogue on measuring Lean transformation through its unique analysis of studying organizational culture.

Measuring the success of a performance measurement system in Thai firms

2012 ◽  
Vol 61 (5) ◽  
pp. 548-562 ◽  
Author(s):  
Nopadol Rompho ◽  
Sakun Boon‐itt
Keyword(s):  
Performance Measurement ◽  
Measurement System ◽  
Measurement Model ◽  
The Body ◽  
Performance Measurement System ◽  
Content Type ◽  
Body Of Knowledge ◽  
Proposed Model ◽  
Confirmatory Factor ◽  
A Performance

PurposeThis study aims to identify what managers involved in the design of a performance measurement system (PMS) perceive are the attributes of a successful PMS.Design/methodology/approachA total of 85 managers from Thai firms were interviewed to develop the proposed model to measure the success of a PMS. Results from 269 returned questionnaires from Thai managers were analysed by second order confirmatory factor analysis (CFA).FindingsBased on the study's findings, success of PMS was categorised into two aspects: design success and implementation success. Using CFA the empirical data demonstrate a good fit with the proposed measurement model.Research limitations/implicationsThe results of this study are based on the opinions of managers and therefore their accuracy is open to question. Adding non‐managerial perspectives might demonstrate another picture.Practical implicationsThe findings could well be useful for managers in any organisation. They can assist the manager in judging whether or not the company's PMS is successful according to the discovered criteria. Use of these criteria could lead to better decision‐making in the design and implementation of a PMS framework in any organisation.Originality/valueThis study enhances the body of knowledge by defining what a successful PMS means to managers in Thai firms. The results of this study can be applied to any country, but perceptions of what is important could vary from country to country.

How organizational culture influences performance measurement systems in SMEs

2019 ◽  
Vol 69 (2) ◽  
pp. 217-235 ◽  
Author(s):  
Meriam Jardioui ◽  
Patrizia Garengo ◽  
Semma El Alami
Keyword(s):  
Organizational Culture ◽  
Performance Measurement ◽  
Performance Measurement System ◽  
Structured Interviews ◽  
Content Type ◽  
Study Approach ◽  
Huge Impact ◽  
Performance Measurement Systems ◽  
And Performance ◽  
The Impact

Purpose Literature highlights the impact of culture on managerial processes in general and the performance measurement system (PMS) in particular. However, understanding how organizational culture (OC) influences the PMS remains a challenge, especially in SMEs as in these companies the studies are very limited. The purpose of this paper is to investigate how OC influences PMSs in manufacturing SMEs. Design/methodology/approach To achieve the above purpose, a case study approach has been adopted. Four manufacturing SMEs with heterogeneous OC were investigated by means of companies’ documents reviews, participant observations and semi-structured interviews. A conceptual framework based on the competing value framework proposed by Cameron and Quinn (1999) and the PMS typology proposed by Garengo (2009) has been used to investigate the impact of OC on PMS. Findings According to the results, OC has a huge impact on PMS in manufacturing SMEs. The dimensions of “internal/external focus” influence strategy formalization, monitoring of the external environment and performance review. The “flexibility/control” dimensions influence the adoption of the balanced (or unbalanced) set of performance measures a company uses. Originality/value This paper contributes to clarifying how OC influences PMSs in manufacturing SMEs. Moreover, the study of interplay between flexibility/control dimensions and internal/external dimensions supports the identification of three theoretical propositions and four PMS types related to the four different OCs identified by Cameron and Quinn (1999).

Measuring agri-food supply chain performance: insights from the Peruvian kiwicha industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edgar Ramos ◽  
Phillip S. Coles ◽  
Melissa Chavez ◽  
Benjamin Hazen
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Performance Management ◽  
Food Supply ◽  
Measurement Model ◽  
Performance Measurement System ◽  
Supply Chain Performance ◽  
Food Supply Chain ◽  
Content Type ◽  
Fuzzy Micmac

PurposeAgri-food firms face many challenges when assessing and managing their performance. The purpose of this research is to determine important factors for an integrated agri-food supply chain performance measurement system.Design/methodology/approachThis research uses the Peruvian kiwicha supply chain as a meaningful context to examine critical factors affecting agri-food supply chain performance. The research uses interpretative structural modelling (ISM) with fuzzy MICMAC methods to suggest a hierarchical performance measurement model.FindingsThe resulting kiwicha supply chain performance management model provides insights for managers and academic theory regarding managing competing priorities within the agri-food supply chain.Originality/valueThe model developed in this research has been validated by cooperative kiwicha associations based in Puno, Peru, and further refined by experts. Moreover, the results obtained through ISM and fuzzy MICMAC methods could help decision-makers from any agri-food supply chain focus on achieving high operational performance by integrating key performance measurement factors.

Performance measurement and management in small companies of the service sector; evidence from a sample of Italian hotels

2019 ◽  
Vol 24 (2) ◽  
pp. 133-160
Author(s):  
Alessandro Panno
Keyword(s):  
Performance Measurement ◽  
Measurement System ◽  
Business Performance ◽  
Measurement Model ◽  
Performance Measurement System ◽  
Financial Indicators ◽  
Key Factors ◽  
Content Type ◽  
Effective Performance ◽  
Resources And Capabilities

Purpose This paper aims to examine how modern small-medium enterprises (SMEs) operating in the tourism industry perceive and define corporate performance, and how they measure and monitor businesses’ achievements. Actual performance measurement activities are expected to show how (and if) companies manage the key factors that drive value creation and value erosion processes. Are effective performance measurement activities aligned with main theoretical prescriptions? Design/methodology/approach Theory and previous empirical research on SMEs’ performance is instrumentally used to identify those key factors that are supposed to drive small/medium hotels’ business performance; building on a resource-based view (RBV) framework, which provides the theoretical perspective to link resources, capabilities and actions to firm performance, a model based on the financial, the operational and the organisational dimension of firm’s success is developed through the selection of a set of consistent financial and non-financial indicators. The balanced performance measurement model is then tested via a field research study based on a semi-structured questionnaire sent to 540 selected SMEs active in the tourism sector. Findings The results suggest that small-medium Italian hotels, typically family firms managed by owners, tend to adopt a balanced system of performance measurement that keeps track of the financial and non-financial dimensions of hotel’s performance; customer orientation proves to be an extremely important leading indicator of non-financial corporate performance. Amongst traditional financial indicators, net profits, profitability ratios such as return on investment and return on sales, revenues for available room, occupancy rate and some cost efficiency ratios are found to be relevant, whereas extensive use is made of non-financial metrics such as customer satisfaction, number of complaints, number of new and repeat customers, employee competencies and staff abilities. Furthermore, some interesting results about frequency of measurement and purpose of measurement are also presented. Research limitations/implications Data used in this study do not allow for a comprehensive analysis of the correlation between hotel performance and a specific measurement model implemented. Further future research that is meant to be developed will focus on the issue of addressing the nexus between firm performance and resource and capability used as strategic factors and monitored with an effective performance measurement system. The sample can also be expanded to carry out comparative analysis. Practical implications The results shed some further light on performance measurement activities actually implemented by Italian hotels. The evidence gives a contribution to understanding the relationship between critical resources and capabilities that need to be developed and effectively managed to reach superior business performance. Furthermore, the study highlights the need to design and implement a customised performance measurement model, which accounts for firm-specific resources and capabilities and sector-specific features for the hotel to properly manage those strategical success factors that can deliver sustained competitive advantage to the firm. Originality/value This research paper contributes to performance measurement literature, by suggesting that the development and the implementation of a simplified but structured and complete performance measurement system, designed on the specific needs and features of SMEs, seems to be a sensible way to improve resources and capabilities utilisation and to obtain a holistic understanding of the achievements of these organisations.

Supplier performance measurement system use, relationship trust, and performance improvement: a dyadic perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vieri Maestrini ◽  
Andrea Stefano Patrucco ◽  
Davide Luzzini ◽  
Federico Caniato ◽  
Paolo Maccarrone
Keyword(s):  
Performance Measurement ◽  
Performance Improvement ◽  
Measurement System ◽  
Structural Equation ◽  
Performance Measurement System ◽  
Content Type ◽  
Performance Improvements ◽  
Supplier Performance ◽  
Performance Measurement Systems ◽  
The Impact

PurposeGrounding on resource orchestration theory, this paper aims to study the relationship between the way buying companies use their supplier performance measurement systems and the performance improvements obtained from suppliers, with relationship trust identified as a mediator in the previous link.Design/methodology/approachThe authors design a conceptual model and test it through structural equation modelling on a final sample of 147 buyer-supplier responses, collected by means of a dyadic survey.FindingsResults suggest that the buyer company may achieve the most by balancing a diagnostic and interactive use of the measurement system, as they are both positively related to supplier performance improvement. Furthermore, relationship trust acts as a mediator in case of the interactive use, but not for the diagnostic. This type of use negatively affects relationship trust, due to its mechanistic use in the buyer-supplier relationship.Originality/valueThe authors’ results contribute to the current academic debate about supplier performance measurement system design and use by analyzing the impact of different supplier performance measurement system uses, and highlighting their relative impact on relationship trust and supplier performance improvement. From a methodological perspective, adopting a dyadic data collection process increases the robustness of the findings.

The role of organizational culture in the adoption of customer profitability analysis: a field study

2017 ◽  
Vol 14 (1) ◽  
pp. 38-59 ◽  
Author(s):  
Matthew Fish ◽  
William Miller ◽  
D’Arcy Becker ◽  
Aimee Pernsteiner
Keyword(s):  
Organizational Culture ◽  
Financial Reporting ◽  
Performance Measurement System ◽  
Growth Spurt ◽  
Stage Model ◽  
Customer Profitability ◽  
Content Type ◽  
Implementation Team ◽  
Profitability Analysis

Purpose The purpose of this paper is to examine the role of organizational culture as a company migrates through a four-stage model for designing a performance measurement system (PMS) focused on customer profitability. Design/methodology/approach This is a single-site phenomenological case study, at Growth Spurt Marine Accessories (Growth Spurt), a manufacturing organization headquartered in the USA. Data were collected over a two-year period through interviews with accounting staff, internal company documents and recording observational notes. Findings The paper identifies three major factors that prevented Growth Spurt from transitioning its customer profitability analysis (CPA) reporting package through Kaplan and Cooper’s four-stage model of PMS design: executives exerting their power and spending political capital to prevent implementation without providing rationale, executives believing that the allocation methods were too subjective and executives relying on their own intuition in analyzing customer profitability rather than relying on data. These factors suggest that organizational culture plays an important role in migrating a customer-focused profitability PMS through Kaplan and Cooper’s four-stage model of PMS system design. Research limitations/implications The findings suggest that a PMS focused on customer profitability that does not advance beyond Stage II (financial reporting-driven) may still suit the needs of an organization. Additionally, managers should advocate for a multidisciplinary PMS design and implementation team to minimize potentially adverse effects of organizational culture. Originality/value This paper is unique because it applies Kaplan and Cooper’s four-stage model for PMS design to CPA and it uses a phenomenological case approach to explore impediments to a comprehensive CPA implementation.

Lean readiness assessment model – a tool for Humanitarian Organizations' social and economic sustainability

2020 ◽  
Vol 10 (2) ◽  
pp. 77-99 ◽  
Author(s):  
Muhammad Shafiq ◽  
Kullapa Soratana
Keyword(s):  
Organizational Culture ◽  
Success Factors ◽  
Process Management ◽  
Partial Least Square ◽  
Least Square ◽  
Assessment Model ◽  
Customer Relationship ◽  
Readiness Assessment ◽  
Content Type ◽  
Humanitarian Organizations

Purposepurpose of this study is to present a Lean Readiness Assessment Model (LRAM) for assessing the readiness of Humanitarian Organizations (HO) for adopting Lean Management (LM) (Johanson et al.) practices. Literature reveals that implementation of LM itself is a cost and most organizations have failed to adopt LM techniques due to a non-readiness status and a non-supportive organizational culture. This situation indicates that the assessment of organizations' readiness before implementation of lean techniques is necessary.Design/methodology/approachThis was an empirical quantitative study. Based on a synthesis of the literature, a conceptual model was developed by identifying seven critical success factors (CSFs). The CSFs were validated by HO professionals via a questionnaire-based survey. The data from the responses were analysed by applying partial least square structured equation modelling (PLS-SEM) using the SmartPLS3 software.FindingsA proven LRAM was constructed that consists of CSFs (independent and mediating variables), which have reflected positive coefficients and significant t >1.96 and p < 0.05 values. The CSFs that are significant include process management, planning and control management, customer relationship management, human resource management, communication and coordination management and a positive organizational culture. The CSFs of supplier relationship and top management and leadership had insignificant t and p values and were dropped from the final LRAM.Originality/valueThis is a unique and rare study in its nature which developed LRAM for HO sector. The contribution of this model is to improve the efficiency and sustainability (economic and social aspects) of an HO under scarce resource conditions.

Development of footprint framework of performance measurement system for SMMOs

2020 ◽  
Vol 17 (5) ◽  
pp. 727-756
Author(s):  
G.S. Dangayach ◽  
Gaurav Gaurav ◽  
Sumit Gupta
Keyword(s):  
Performance Measurement ◽  
Business Model ◽  
Measurement System ◽  
Ease Of Use ◽  
Performance Measurement System ◽  
Barriers To Adoption ◽  
Rapid Improvement ◽  
Research Attention ◽  
Content Type ◽  
Design And Implementation

PurposeThe performance measurement system (PMS), recognized as an important tool for rapid improvement, has found wide applications in the larger organizations and has received a lot of research attention in recent past. PMS adoption in SMEs is low even though SMEs have realized its importance and benefits and are now ready to embrace PMS as a tool for improvement. This paper proposes a novel framework, called the footprint framework, for design and implementation of PMS for SMEs. The proposed framework overcomes some of the major barriers to adoption by simplifying the process of design and implementation of PMS.Design/methodology/approachThe theoretical framework was conceptualized and its basis was tested for feasibility using an industry survey. The survey was analyzed using the statistical tools available in the SPSS 24.0 statistical analysis software, and the insights obtained from this analysis were used to shape the proposed framework. The framework was populated for small and medium manufacturing organizations (SMMOs) as a case study. Analytic hierarchy process was used to synthesize the data provided by the survey to build up the proposed framework and its components.FindingsThe footprint framework is a unique framework in the respect that it consists of a set of PMS suited to different company profiles that can be accessed quickly. Any SMMO that desires to determine its future PM requirements has simply to define its probable profile of the future in terms of size, business model and order winner and check the PMS appropriate to that profile from the footprint framework. Thus the SMMO can even prepare for its futuristic PM needs.Research limitations/implicationsThe proposed framework overcomes some of the major barriers to adoption by simplifying the process of design and implementation of PMS. The main advantages of the footprint framework are its simplicity, ease of use, immediate implementation and a built-in knowledge bank.Practical implicationsThis research has proposed a new PMS framework, an out of the box tool that makes it possible for the Indian SMMO to adopt PMS on an instant basis. The footprint framework combines the experience of several researchers and several practitioners to offer a ready-made starter kit that needs no other aid to implement a most appropriate PMS and leverage the industry PM best practices to build the performance measurement knowledge and expertise of the SMMO without going through a protracted learning or training process.Social implicationsThis research has made a novel proposal for a PMS framework by proposing the footprint framework – a PMS framework that is not only an instant, out of the box solution for the SMMOs but also incorporates the know-how to implement the performance measurement complete with information on what to measure, how to interpret and what should be done to improve.Originality/valueThe proposed framework is simple to understand and removes a key barrier of PMS adoption for SMMOs. The user SMMO needs to state its size, business model and order winner from the available options, build up its PMS code, select the matching PMS from the framework and the SMMO is ready to implement the PMS.

scholarly journals Performance measurement for supply chains in the Industry 4.0 era: a balanced scorecard approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guilherme Francisco Frederico ◽  
Jose Arturo Garza-Reyes ◽  
Anil Kumar ◽  
Vikas Kumar
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Supply Chains ◽  
Balanced Scorecard ◽  
Industry 4.0 ◽  
Theoretical Perspective ◽  
Performance Measurement System ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Performance Measurement Systems

PurposeThe purpose of this paper is to present a theoretical approach based on the balanced scorecard (BSC) with regard to performance measurement – PM in supply chains for the Industry 4.0 era.Design/methodology/approachThis paper combines the literature of PM and specifically the BSC with the literature related to the dimensions of supply chain in the context of Industry 4.0.FindingsDimensions extracted from the literature based on supply chains within the context of Industry 4.0 showed a strong alignment with the four perspectives of the BSC, which make it suitable to be considered as a performance measurement system (PMS) for supply chains in this new context.Research limitations/implicationsFrom theoretical perspective, this study contributes to the limited literature on PM for supply chains in Industry 4.0 era. The study proposes a supply chain 4.0 Scorecard and strongly support researchers to conduct future empirical researches in order to get a deeper understanding about PM in supply chains in the Industry 4.0 era. As limitations, the theoretical framework proposed needs further empirical research in other to validate it and obtain new insights over the investigation conducted and presented into this paper.Practical implicationsPractitioners can use this study as a guide to develop more effective performance measurement systems – PMSs in their organizations.Originality/valueThis research is unique as it addresses a significant knowledge gap related to PM in supply chains in the Industry 4.0 era. It brings a significant contribution in terms of understanding how to measure performance in supply chains in this new era.

Big data and performance measurement research: trends, evolution and future opportunities

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alberto Sardi ◽  
Enrico Sorano ◽  
Valter Cantino ◽  
Patrizia Garengo
Keyword(s):  
Big Data ◽  
Performance Measurement ◽  
Performance Measurement System ◽  
Future Research ◽  
Holistic View ◽  
Content Type ◽  
Digital Revolution ◽  
Research Opportunities ◽  
And Performance ◽  
Number Of Publications

Purpose Current literature recognised big data as a digital revolution affecting all organisational processes. To obtain a competitive advantage from the use of big data, an efficient integration in a performance measurement system (PMS) is needed, but it is still a “great challenge” in performance measurement research. This paper aims to review the big data and performance measurement studies to identify the publications’ trends and future research opportunities. Design/methodology/approach The authors reviewed 873 documents on big data and performance carrying out an extensive bibliometric analysis using two main techniques, i.e. performance analysis and science mapping. Findings Results point to a significant increase in the number of publications on big data and performance, highlighting a shortage of studies on business, management and accounting areas, and on how big data can improve performance measurement. Future research opportunities are identified. They regard the development of further research to explain how performance measurement field can effectively integrate big data into a PMS and describe the main themes related to big data in performance measurement literature. Originality/value This paper gives a holistic view of big data and performance measurement research through the inclusion of numerous contributions on different research streams. It also encourages further study for developing concrete tools.

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