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.

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.

Supply chain integration and firm performance: an empirical study of Swedish manufacturing firms

2014 ◽  
Vol 24 (1) ◽  
pp. 20-31 ◽  
Author(s):  
Hooshang M. Beheshti ◽  
Pejvak Oghazi ◽  
Rana Mostaghel ◽  
Magnus Hultman
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Well Being ◽  
Survey Instrument ◽  
Global Market ◽  
Manufacturing Firms ◽  
Supply Chain Integration ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact

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

The impact of employees’ attributes on the quality of food products

2014 ◽  
Vol 31 (5) ◽  
pp. 500-521 ◽  
Author(s):  
Dimitrios P. Kafetzopoulos ◽  
Katerina D. Gotzamani ◽  
Evangelos L. Psomas
Keyword(s):  
Factor Analysis ◽  
Product Quality ◽  
Continuous Improvement ◽  
Structural Equation ◽  
Critical Factor ◽  
Operational Performance ◽  
Future Research ◽  
Successful Implementation ◽  
Content Type ◽  
The Impact

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.

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

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alberto Bayo-Moriones ◽  
Alejandro Bello-Pindado
Keyword(s):  
Manufacturing Industry ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Linear Regression Models ◽  
Line Managers ◽  
Content Type ◽  
Frontline Workers ◽  
Hrm Practices ◽  
Manufacturing Performance ◽  
The Impact

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

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.

The impact of technological innovation upon servitization

2019 ◽  
Vol 30 (7) ◽  
pp. 1097-1114 ◽  
Author(s):  
Bang-Ning Hwang ◽  
Mu-Yen Hsu
Keyword(s):  
Service Delivery ◽  
Technological Innovation ◽  
Large Scale ◽  
Manufacturing Firms ◽  
Multivariate Logistic Regression Model ◽  
Technological Innovations ◽  
Manufacturing Firm ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose For most manufacturing firms, technological innovations are usually the key strategies to gain their competitive advantages. However, competing strategically through service provision is becoming an important strategy for most industries. A growing demand for packaged product and service delivery is blurring the traditional boundaries between manufacturing and service firms. This trend is called “servitization.” Prior research had different perspectives on the relationship between technological innovations and servitization. Some argued that as servitization exerts the innovative convergence of products and services, the possession of appropriate readiness and absorption capacity through technological innovations for a manufacturing firm is critical to the success of servitization. In contrast, some argued that the knowledge gained from developing technological innovations cannot be applied to the creation of services due to the fundamental difference between technology and service. These contradicting arguments motivated the authors to study the relationship between technological innovations and servitization a step further. The paper aims to discuss these issues. Design/methodology/approach To address the research gap, the authors conducted an empirical study based on the large-scale samples from the second Taiwan Community Innovation Survey (Taiwan CIS). A multivariate logistic regression model was applied in the research. Findings The authors found that different types of technological innovations, namely product innovation and process innovation, have different impacts on servitization. The innovativeness level of the technological innovation moderates the relationship between technological innovation and servitization. Based on the above findings, this research specifically explains the causes of the contradictory results of the prior research. Originality/value The values of this research are twofold. Its academic contribution rests on bridging the literature of innovation and servitization, and on providing a model to clarify the relationships among technological innovation type, level of innovativeness and servitization. Its practical contribution lies in its establishment of a guideline that illuminates manufacturing firms reinforcing service delivery through their existing technological innovation trajectory.

scholarly journals Managing emergency situations with lean and advanced manufacturing technologies: an empirical study on the Rumbia typhoon disaster

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaodie Pu ◽  
Meng Chen ◽  
Zhao Cai ◽  
Alain Yee-Loong Chong ◽  
Kim Hua Tan
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Operations Management ◽  
Advanced Manufacturing ◽  
Manufacturing Companies ◽  
Content Type ◽  
Emergency Situations ◽  
Advanced Manufacturing Technologies ◽  
Manufacturing Technologies ◽  
The Impact

PurposeThis study aims to examine the impact of lean manufacturing (LM) on the financial performance of companies affected by emergency situations. It additionally explores the role of advanced manufacturing technologies (AMTs) in complementing LM to enhance financial performance in emergency and non-emergency situations.Design/methodology/approachBoth survey and archival data were collected from 219 manufacturing companies in China. With longitudinal data collected before and after an emergency situation (i.e. Typhoon Rumbia), regression analysis was conducted to investigate the effects of LM and AMTs on financial performance in different contexts.FindingsOur results reveal an inverted U-shaped relationship between LM and financial performance in the context of emergency. We also found that AMTs exerted a positive moderation effect on the inverted U-shaped relationship, indicating high levels of AMTs that mitigated the inefficiency of LM in coping with supply chain emergencies.Research limitations/implicationsThrough simultaneous investigation of LM and AMTs as bundles of practices and their fit with different contexts, this study takes a systems approach to fit that advances the application of contingency theory in the Operations Management literature to more complex patterns of fit.Originality/valueThis study illuminates how AMTs support LM practices in facilitating organizational performance in different contexts. Specifically, this study unravels the interaction mechanisms between AMTs and LM in influencing financial performance in emergency and non-emergency situations.

scholarly journals Production competence revisited – a critique of the literature and a new measurement approach

2015 ◽  
Vol 26 (4) ◽  
pp. 536-560 ◽  
Author(s):  
Levente Szász ◽  
Krisztina Demeter ◽  
Harry Boer
Keyword(s):  
Business Performance ◽  
Empirical Support ◽  
Operational Performance ◽  
Manufacturing Strategy ◽  
Manufacturing Companies ◽  
Content Type ◽  
Performance Matrix ◽  
Competitive Factor ◽  
The Impact ◽  
The Way

Purpose – The purpose of this paper is to seek remedy to two major flaws of the production competence literature, which concern: the way the production competence construct is operationalized and the way its effects on performance are measured. Design/methodology/approach – The paper proposes to measure production competence as the two-dimensional operational level construct it actually is, and to use Slack’s (1994) importance-performance matrix to study its business level performance effects. The three hypotheses developed are tested using a subsample of the International Manufacturing Strategy Survey database, which includes 465 manufacturing companies from 21 countries. Findings – The study offers additional empirical support for production competence theory. Going beyond supporting existing theory, the results give more detailed insight by indicating that low operational performance on even one important competitive factor leads to lower business performance (order-losing effect); excessive investment in increasing operational performance on any less important competitive factor does not necessarily lead to higher business performance. Practical implications – Using a large empirical dataset, the study shows that the importance-performance matrix is a useful tool for decision makers to assess and improve their company’s manufacturing strategy: it indicates how to prioritize between improvement efforts to positively contribute to business performance. Originality/value – The paper offers a novel approach to operationalize production competence. The importance-performance analysis approach adopted in this study avoids the two major drawbacks of previous production competence studies and offers an appropriate method to assess the impact of production competence on business performance.

How manufacturing firm characteristics can influence decision making for investing in Industry 4.0 technologies

2019 ◽  
Vol 31 (5) ◽  
pp. 1117-1141 ◽  
Author(s):  
Lisa Bosman ◽  
Nathan Hartman ◽  
John Sutherland
Keyword(s):  
Workforce Development ◽  
Industry 4.0 ◽  
Global Economy ◽  
Rank Order ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Manufacturing Firm ◽  
Content Type ◽  
Industry Type ◽  
The Usa

Purpose Investing in Industry 4.0 is an important consideration for manufacturing firms who strive to remain competitive in this global economy, but the uncertainty and complexity of where to focus technology investments is a problem facing many manufacturers. The purpose of this paper is to highlight a region of manufacturing firms in the Midwest USA to investigate the role of firm size, access to funds and industry type on decision to invest in and deploy various Industry 4.0 technologies. Design/methodology/approach A survey was developed, piloted, and deployed to manufacturing companies located in the Midwest USA, specifically, Indiana, USA. A total of 138 manufacturing firms completed the full survey. The survey participants were requested to rank order the various technology categories with respect to previous historical spending, workforce capabilities and anticipated return on investment. The survey was supplemented with publically available data. Due to the use of rank-order data to identify Industry 4.0 priorities, a non-parametric analysis was completed using the Kruskall Wallis test. Findings The findings suggest that manufacturers with less than 20 employees and/or less access to funds (sales less than $10m) prioritize digital factory floor technologies (e.g. technology directly impacting productivity, quality and safety of manufacturing processes). Larger manufacturers with 20 or more employees and/or access to more funds (sales greater than or equal to $10m) prioritize enterprise support operations technologies. Originality/value Research studies and reports tend to lump manufacturing’s perspective of Industry 4.0 into one homogenous group, and rarely acknowledge the limited participation of “smaller” Small and medium-sized enterprises, which account for the far majority of manufacturing firms in the USA. The value of this study is on the “novelty of approach,” in that the data collection and analysis focuses on heterogeneity of manufacturing firms with respect to size, access to funds and industry type. The findings and recommendations are beneficial and relevant to organizations supporting Industry 4.0 efforts through workforce development and economic development initiatives.

The impact of lean manufacturing practices on operational and financial performance: the mediating role of agile manufacturing

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meriem Khalfallah ◽  
Lassaad Lakhal
Keyword(s):  
Financial Performance ◽  
Lean Manufacturing ◽  
Agile Manufacturing ◽  
Operational Performance ◽  
Equation Modeling ◽  
Just In Time ◽  
Content Type ◽  
Time Production ◽  
The Impact

PurposeThis empirical study aims to explore the link between lean manufacturing practices (total quality management, just-in-time production, just-in-time purchasing, total productive/preventive maintenance), agile manufacturing, and operational and financial performance.Design/methodology/approachData were collected from 205 Tunisian manufacturing firms, and the results were analyzed using structural equation modeling.FindingsThe results indicate that (1) lean manufacturing practices have a direct positive relationship with agile manufacturing except for just-in-time production, (2) agile manufacturing has a positive impact on operational performance and (3) lean manufacturing practices did not seem to contribute directly to operational performance. However, this relationship is significant when it is mediated through agile manufacturing.Research limitations/implicationsThis paper shows practitioners the importance of lean manufacturing practices to support agile manufacturing and the key role of agile manufacturing to ensure operational performance.Originality/valueThis paper presents an innovative approach since it studies simultaneously the three dimensions of lean manufacturing and their relationship with agile manufacturing and organizational performance.

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