Improving business processes or human resources? The performance implications and contingencies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ying Li ◽  
Qiang Wang ◽  
Zhiqiang Wang ◽  
Lujie Chen
Keyword(s):  
Life Cycle ◽  
Human Resources ◽  
Business Processes ◽  
Business Environment ◽  
Manufacturing Firms ◽  
Operational Performance ◽  
Equation Modeling ◽  
Maturity Stage ◽  
Manufacturing Companies ◽  
Content Type

PurposeThe purpose of this study is to examine both the separate effects and the interaction effects of business process improvement (BPI) and human resource enhancement (HRE) on operational performance in manufacturing firms and to examine the moderating effect of product life cycle (PLC).Design/methodology/approachThe conceptual model was based on the resource-based view, the dynamic capabilities perspective and contingency theory. Using survey data from 215 manufacturing companies and structural equation modeling, the hypothesized relationships were tested.FindingsThe empirical findings suggest that the performance implications of HRE and the interaction of HRE and BPI are contingent on PLC. HRE and its interaction with BPI have stronger effects on operational performance in the maturity stage than in the growth stage. The effect of BPI on operational performance is equally important in both stages of PLC.Practical implicationsThe results of this empirical study can help to guide manufacturing firms to enhance their performance through improvements in their business processes and human resources at the different life cycle stages of their products. First, firms should upgrade both their processes and people to keep pace with the changing business environment and to sustain their competitive advantage. Second, the performance implications of improving processes and people are contingent on PLC, which suggests that managers should emphasize different things according to their roles.Originality/valueA simultaneous examination of the performance implications of HRE and BPI practices and their contingencies reveals the roles that people and processes play in achieving organizational objectives. The results contribute to our understanding of how firms leverage their resource allocation between processes and people at different stages of PLC to effectively improve their performance.

The impact of quality management systems on the performance of manufacturing firms

2015 ◽  
Vol 32 (4) ◽  
pp. 381-399 ◽  
Author(s):  
Dimitrios P. Kafetzopoulos ◽  
Evangelos L. Psomas ◽  
Katerina D. Gotzamani
Keyword(s):  
Factor Analysis ◽  
Product Quality ◽  
Business Performance ◽  
Business Environment ◽  
Manufacturing Firms ◽  
Iso 9001 ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to provide additional evidence of the impact of ISO 9001 effectiveness on three dimensions of a firm’s performance, namely product quality, operational performance and business performance. Design/methodology/approach – The analysis includes an initial exploratory factor analysis (EFA), followed by confirmatory factor analysis (CFA) and structural equation modeling (SEM), in order to investigate the relations between the constructs of the proposed model. A sample of 287 ISO 9001 certified Greek manufacturing firms is used for this purpose. Findings – According to the study findings, ISO 9001 effectiveness directly contributes to product quality and operational performance. Although it has no direct impact on manufacturing firms’ business performance, it has an indirect impact through the moderator of operational performance. Research limitations/implications – The sample of the responding manufacturing companies is limited to small- and medium-sized enterprises (SMEs) from one country (Greece). In addition, the effects of the internal business environment and endogenous business factors have not been assessed through the present study. Practical implications – The study offers clear implications for managers who focus on elements that will increase the ISO 9001 effectiveness and desire to choose strategies, allocate resources and improve their firm’s performance. Originality/value – The present study contributes to the literature gap aiming at examining the degree to which ISO 9001 effectiveness influences the performance of certified firms. The concept of “ISO 9001 effectiveness” is introduced as the extent to which its prescribed quality objectives are met.

Innovation mediating relationship between TQM and performance: cases of industrial certified companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meriem Khalfallah ◽  
Anis Ben Salem ◽  
Hajer Zorgati ◽  
Lassaad Lakhal
Keyword(s):  
Financial Performance ◽  
Product Innovation ◽  
Process Innovation ◽  
Reciprocal Relationship ◽  
Mediating Effect ◽  
Operational Performance ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Content Type ◽  
Research Studies

PurposeThe purpose of this research is to analyze the reciprocal relation between total quality management (TQM) and innovation (product innovation and process innovation) and their impact on operational and financial performance.Design/methodology/approachThe data were obtained from a survey of 205 manufacturing companies. Structural equation modeling (SEM) was performed to evaluate the research model.FindingsThe results reveal that there is a reciprocal relationship between TQM and innovation. Moreover, the findings indicate a significant positive effect of product innovation and process innovation on operational performance and insignificant direct impact of TQM on operational performance. However, this effect is significant when it is mediated through product innovation and process innovation.Research limitations/implicationsThis paper helps practitioners to understand how TQM practices support both product and process innovation and the role of the latter in promoting the implementation of TQM practices and ensuring operational performance.Originality/valueThis study presents an innovative approach since it is among the first research studies that provide empirical evidence to a reciprocal association between TQM and innovation. Additionally, this paper examines the dimensions studied in different aspects. It considered financial performance and operational performance, and with respect to innovation, this dimension was analyzed through two different perspectives, namely product innovation and process innovation. This study is also among the first and few research studies that have studied the mediating effect of innovation.

scholarly journals Environmental scanning, supply chain integration, responsiveness, and operational performance

2019 ◽  
Vol 39 (5) ◽  
pp. 787-814 ◽  
Author(s):  
Wantao Yu ◽  
Roberto Chavez ◽  
Mark Jacobs ◽  
Chee Yew Wong ◽  
Chunlin Yuan
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Business Environment ◽  
Supply Chain Integration ◽  
Operational Performance ◽  
Equation Modeling ◽  
Environmental Scanning ◽  
Content Type ◽  
Processing Theory ◽  
The Relationship

Purpose It remains unclear how environmental scanning (ES) can generate firm performance through supply chain management (SCM) practices. The purpose of this paper is to investigate the effects of ES on operational performance through supply chain integration (SCI) and supply chain responsiveness (SCR). Design/methodology/approach The scanning–interpretation–action–performance (SIAP) model and organization information processing theory (OIPT) are used to explain the ES–SCI–SCR–performance (S–I–A–P) relationships, which were tested by structural equation modeling of survey data of 329 manufacturing firms in China. Findings The results indicate that ES has a significant positive effect on SCI and SCR. SCI is significantly and positively related to SCR. SCR partially mediates the relationship between ES and operational performance, and fully mediates the relationship between SCI and operational performance. Practical implications Supply chain managers should collaborate with senior executives to obtain signals from ES activities, as input for building SCI and SCR and use SCI as a joint interpretation mechanism of ES signals for developing SCR to reap operational advantages in the rapidly changing business environment. Originality/value Strategic management academics and practitioners have explicitly emphasized the importance of ES in developing strategic plans but are unsure about the role of SCM in creating operational advantages through ES. Using the SIAP model, this study theorizes and demonstrates how SCI and SCR transform signals from ES into operational performance. In doing so, a more precise application of OIPT is explicated in the supply chain context.

Antecedents of kaizen culture and its effect on operational performance: perspective of manufacturing companies in Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kong Siew Mui ◽  
Rajendran Muthuveloo ◽  
Josephine Ie Lyn Chan
Keyword(s):  
Structural Equation ◽  
Design Methodology ◽  
Online Survey ◽  
Dynamic Capabilities ◽  
Organizational Innovation ◽  
Operational Performance ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Content Type ◽  
Electronic Manufacturing

PurposeThe purpose of this research is to examine the effect of kaizen culture on innovation and operational performance of electrical and electronic manufacturing companies in Malaysia. A research framework, with underpinning theories of dynamic capabilities and socio-technical systems, was conceptualized to investigate the interplay of these relationships.Design/methodology/approachData were collected from 123 manufacturing companies using an online survey and analyzed with IBM SPSS Statistics version 24.0 and the partial least squares structural equation modeling (PLS-SEM) (SmartPLS) version 3.2.8.FindingsUltimately, the findings proved that kaizen culture is crucial for organizations to optimize their operational performance and can be nurtured through the implementation of process innovation and organizational innovation.Originality/valueUnlike past studies, this research examines the concepts of innovation, kaizen culture and operational performance in a single study; thus, provides further opportunities for new discoveries through such relationships. Also, the novelty is identifying that kaizen culture can be nurtured via innovation.

Quality management, innovation capability and firm performance

2019 ◽  
Vol 31 (6) ◽  
pp. 1003-1027 ◽  
Author(s):  
Saumyaranjan Sahoo
Keyword(s):  
Firm Performance ◽  
Quality Management ◽  
Operations Management ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Future Research ◽  
Innovation Capability ◽  
Manufacturing Companies ◽  
Senior Managers ◽  
Content Type

Purpose Many organizations are facing competitive challenges due to the rapid pace of technological changes. Both quality management (QM) and innovation are the competitive factors that are intensely embedded into organizational products, services and processes. In order to achieve higher firm performance, manufacturing firms are needed to adopt QM practices as well as develop innovation capability. Therefore, the purpose of this paper is to examine the relationship among QM, innovation capability (IC) and firm performance under both mediation and moderation models using structural equation modeling. Design/methodology/approach The approach of this study is quantitative. The data used to test the hypotheses were gathered from Indian small- and medium-sized enterprises (SMEs) interviewing senior managers with a structured questionnaire. These hypothesized relationships are tested with data collected from 134 Indian manufacturing firms by using SPSS and AMOS statistical software. Findings Overall, the findings clearly show that QM through the firm’s IC is indirectly associated with a firm’s business performance. It supported the notion that QM practices encourage the definition of innovation strategies of products and processes within a manufacturing setup, which positively affected different aspects of firm performance. More importantly, this study supports the findings of past studies that questioned the role of QM practices in improving a firm’s IC. Research limitations/implications Some limitations of this study include: although a cross-sectional survey has been applied, the research does not permit us to account for the lag between implementation and performance. It also brings the opinion of a limited number of senior managers of Indian manufacturing SMEs, and hence both the sample size could be increased and the nationality of the respondent/responding firms could be expanded for future research. Practical implications In light of the obtained results, several recommendations were introduced to assist decision makers in manufacturing companies. The paper contains suggestions for improving manufacturing firm’s performance through developing IC and adopting QM practices. Originality/value This paper extends theoretical contribution in production and operations management literature, highlighting how QM practices and firm’s IC have to interact in determining an organization’s success and sustaining its global competitiveness.

The impact of innovation capability on the performance of manufacturing companies

2015 ◽  
Vol 26 (1) ◽  
pp. 104-130 ◽  
Author(s):  
Dimitrios Kafetzopoulos ◽  
Evangelos Psomas
Keyword(s):  
Factor Analysis ◽  
Financial Performance ◽  
Product Quality ◽  
Manufacturing Firms ◽  
Operational Performance ◽  
Innovation Capability ◽  
Manufacturing Companies ◽  
Manufacturing Firm ◽  
Content Type ◽  
The Impact

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.

Relationships among advanced manufacturing technology, innovation, export, and firm performance

Kybernetes ◽  
2018 ◽  
Vol 47 (9) ◽  
pp. 1836-1856 ◽  
Author(s):  
Serkan Altuntas ◽  
Omer Cinar ◽  
Selahattin Kaynak
Keyword(s):  
Firm Performance ◽  
Conceptual Model ◽  
Manufacturing Firms ◽  
Manufacturing Technology ◽  
Equation Modeling ◽  
Advanced Manufacturing Technology ◽  
Advanced Manufacturing ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this study is to find the relationships among advanced manufacturing technology (AMT), innovation, export and firm performance by using data obtained from 310 Turkish manufacturing firms. Design/methodology/approach A survey study was performed to obtain data from manufacturing firms. Multiple-item scales were adapted from the literature to conduct the survey in this study. Data were collected from five cities located in the Southeastern Anatolia Region in Turkey (Gaziantep, Adiyaman, Kilis, Diyarbakir and Sanliurfa). Structural equation modeling was utilized to investigate the relationships among AMT, innovation, export and firm performance in Turkish manufacturing firms operating in several industries. The direct and indirect relations between these variables are examined in the proposed conceptual model. In addition, the complex relations including in the proposed model are assessed in detail through the mediation analysis. Findings Six of the proposed ten hypotheses related to manufacturers are validated by the empirical evidence from manufacturing companies in Turkey. Significant findings obtained in this study include the following: there are strong positive associations between the use of AMT and innovation and between export and firm performance. In addition, innovation mediates the relationship between AMT and firm performance and between AMT and export. Finally, export mediates the relationship between AMT and firm performance and between innovation and firm performance. It is expected that the results obtained from this empirical analysis will help decision makers and managers to construct a good technology and production management strategy for manufacturing systems. Originality/value In this study, a novel conceptual model is proposed to examine the relationships among AMT, innovation, export and firm performance via the use of survey responses from 310 Turkish manufacturing firms. To the authors’ best knowledge, this is the first study that proposes such a conceptual model in the literature.

Supply chain learning and organizational performance: evidence from Chinese manufacturing firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zia Ul Haq
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Financial Performance ◽  
Organizational Performance ◽  
Manufacturing Firms ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Different Types ◽  
The Relationship

Purpose Despite the significance, no study examines the relationship between supply chain (SC) learning components and focal firm performance. This study aims to investigate different types of SC learning (supplier, customer and internal learning) and their influence on the focal firm’s operational and financial performance. Design/methodology/approach Grounded in knowledge-based view and absorptive capacity theory, this study applies structural equation modeling to test the conceptual model based on data collected from 213 manufacturing firms in China. Findings The findings indicate that supplier and customer learning improve internal learning. Customer and internal learning have direct influence on operational performance, whereas internal learning mediates the relationship between supplier learning and operational performance. Moreover, all three dimensions of SC learning do not affect financial performance directly but operational performance plays the mediating role in their relationship. Research limitations/implications This study only investigates SC learning outcomes without exploring its antecedents. In addition, SC learning and their impacts on firm performance are tested empirically with cross-sectional data collected only from manufacturing firms in China. Practical implications The findings furnish managers to seek for competitive advantages through different types of SC learning. Originality/value This study offers new insights concerning the performance implications of SC learning. It divides SC learning into dimensions and shows the distinctive impacts of these dimensions on focal firm’s performance using an empirical method.

The performance impact of industrial services and service orientation on manufacturing companies

2015 ◽  
Vol 25 (4) ◽  
pp. 463-485 ◽  
Author(s):  
Marko Kohtamaki ◽  
Henri Hakala ◽  
Jukka Partanen ◽  
Vinit Parida ◽  
Joakim Wincent
Keyword(s):  
Manufacturing Firms ◽  
Equation Modeling ◽  
Service Orientation ◽  
Manufacturing Companies ◽  
Content Type ◽  
Industrial Services ◽  
Industrial Service ◽  
Profit Performance ◽  
The Impact ◽  
The Relationship

Purpose – Product-manufacturing firms are increasingly positioning themselves as providers of industrial services and solutions. Despite the increasing conceptual interest in industrial services, empirical evidence about the factors that mediate the relationships between industrial services and firm performance remains limited. The purpose of this paper is to investigate the relationship between industrial service offerings, service orientation and firm sales and profit performance. Design/methodology/approach – The study uses data from 115 manufacturing firms and adopts a structural equation modeling technique to test a set of hypotheses on service offerings, service orientation and company sales and profit performance. Findings – The results underline the importance of implementing service orientation in employees’ behavior, recruitment, training, and assessment. Service orientation is demonstrated as an essential mediator for the relationship between service offerings, revenues, and profits. The results therefore suggest that both service offerings and service orientation are important when manufacturing companies attempt to position themselves as industrial service providers. Research limitations/implications – Given the limitations of the sample collected from the Finnish manufacturing industry, future studies could refine the measures and investigate the applicability of the results in other contexts. Practical implications – The results suggest that developing a service orientation is vital for manufacturing companies to profit from increased offerings of industrial services. Because nurturing service orientation is a central enabler of the impact of service offerings on sales and profit performance, it is in the interests of manufacturing firms moving towards a servitized business model to develop training, compensation, and recruitment policies. Originality/value – The study establishes a link between service offerings, service orientation, sales, and profit performance in manufacturing firms. This is among the first studies to provide statistical evidence to support claims that even manufacturing firms can benefit from developing integrated product-service solutions.

Analysis of manufacturing strategy in developing countries

2016 ◽  
Vol 27 (2) ◽  
pp. 234-260 ◽  
Author(s):  
Ike Ehie ◽  
Obinna Muogboh
Keyword(s):  
Environmental Factors ◽  
Developing Country ◽  
Structural Equation ◽  
Survey Methodology ◽  
Business Environment ◽  
Government Policies ◽  
Equation Modeling ◽  
Manufacturing Strategy ◽  
Manufacturing Companies ◽  
Content Type

Purpose – The purpose of this paper is to formulate the manufacturing strategy in a developing country with particular reference to Nigeria in sub-Saharan African country. Design/methodology/approach – Using survey methodology and the partial least squares – structural equation modeling technique, The authors find that in addition to the four basic environmental factors – business cost, labor availability, competitive hostility and environmental dynamism, both government policies and the adopted manufacturing practices have significant effects on the manufacturing strategic priorities. Findings – Among other findings, the environmental factors of government policies and the type of manufacturing practices adopted have significant effects on manufacturing strategy. Research limitations/implications – Further studies should explicitly look into the effect of the adopted manufacturing strategy on company performance. Possibly, a case study research might be considered to establish this relationship. Practical implications – As manufacturing firms continue to experience greater competition, especially from China, and given the technological advancement in manufacturing, the business environment facing Nigerian manufacturing companies is likely to become more dynamic, complex, diverse and even hostile. Under such a turbulent climate, the configuration and effective deployment of manufacturing strategies is imperative to achieving superior business performance. Social implications – A more effective strategy will make companies more competitive in the market place, thus creating employment in a sector that has witnessed declining growth in employment. Originality/value – The linkage between environmental factors and manufacturing strategy has been studied widely. However, this study reveals the role of government policies and manufacturing practices in formulating manufacturing strategy in a developing country context.

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