scholarly journals The influence of cost of quality on the performance of food manufacturing companies: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niveen Mohammed Ghunaim ◽  
Ayham A.M. Jaaron
Keyword(s):  
Organizational Performance ◽  
Structural Equation ◽  
Quantitative Research ◽  
Positive Impact ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Food Manufacturing ◽  
Content Type ◽  
Cost Of Quality ◽  
Business Environments

PurposeDue to the ever-increasing competitive and complex business environments, food manufacturing companies have to maintain high-quality products while simultaneously minimizing customers' costs. Cost of quality (COQ) plays a crucial role in enhancing companies' efficiency and reducing expenditures that can contribute to companies' competitive performance. This paper investigates the underlying relationship between the level of COQ practices adoption (prevention, appraisal, internal and external failure costs) and organizational performance in Palestinian food manufacturing companies (PFMCs).Design/methodology/approachA quantitative research methodology using a structured questionnaire collected data from 119 PFMCs. Partial least squares structural equation modeling was used to analyze collected data.FindingsResults indicated that COQ adoption has a significant positive effect on the organizational performance of PFMCs. Besides, prevention, external and internal failure costs were all associated with a positive impact on organizational performance of PFMCs, whereas appraisal cost did not affect organizational performance.Originality/valueThis study is considered one of the first studies to investigate COQ practices' effect on organizational performance in food manufacturing companies in a developing country context. Thus, it adds significant value to the literature responding to calls to tackle competitiveness issues in current complex business environments.

The effects of knowledge creation process on organizational performance using the BSC approach: the mediating role of intellectual capital

2018 ◽  
Vol 22 (4) ◽  
pp. 802-823 ◽  
Author(s):  
Gholamhossein Mehralian ◽  
Jamal A. Nazari ◽  
Peivand Ghasemzadeh
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Knowledge Creation ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Success Factor ◽  
Content Type ◽  
Key Dimensions ◽  
The Relationship

PurposeKnowledge is a key success factor in achieving competitive advantage in the current fast-paced and uncertain economic environment. Several studies in the literature have analyzed the relationship between knowledge creation (KC) and organizational success; however, the mechanisms by which KC leads to accumulation of intellectual capital (IC) and thereby affects various dimensions of organizational performance are understudied. The purpose of this paper is to examine how KC and IC and their relationship influence key dimensions of organizational performance.Design/methodology/approachA research model was developed and tested based on the literature in the areas of KC, IC and organizational performance. This study uses a survey sent to companies in an intensive knowledge-based industry. The balanced scorecard (BSC) approach was used to measure the key dimensions of organizational performance.FindingsThe results from structural equation modeling (SEM) on 470 completed questionnaires received from the pharmaceutical companies in Iran reveal that KC activities lead to the accumulation of organizational IC and IC has a crucial and positive impact on the BSC. Furthermore, the results from the path analysis indicate that IC mediates the effects of KC on the BSC.Practical implicationsThe findings of this study contribute to the extant literature on the relationship between knowledge and organizational performance by demonstrating that knowledge and KC lead to performance when organizations utilize KC activities and leverage them to accumulate IC. Once used effectively, IC will result in a better performance in the knowledge-intensive environments.Originality/valueThis is the first study that investigates how KC contributes to firm performance by incorporating the mediating impact of IC on the BSC. The proposed model and results will help organizations to identify the mechanisms through which KC initiatives improve organizational performance.

scholarly journals Six Sigma enablers in Mexican manufacturing companies: a proposed model

2016 ◽  
Vol 116 (5) ◽  
pp. 926-959 ◽  
Author(s):  
Diego Tlapa ◽  
Jorge Limon ◽  
Jorge L García-Alcaraz ◽  
Yolanda Baez ◽  
Cuauhtémoc Sánchez
Keyword(s):  
Six Sigma ◽  
Structural Equation ◽  
Success Factors ◽  
Positive Impact ◽  
Equation Modeling ◽  
Management Support ◽  
Manufacturing Companies ◽  
Content Type ◽  
Variation Reduction ◽  
Proposed Model

Purpose – The purpose of this paper is to extend the understanding of Six Sigma (SS) and the underlying dimensions of its critical success factors (CSF) via an analysis of the effects of top management support (TMS), implementation strategy (IS), and collaborative team (CT) on project performance (PP) in Mexican manufacturing companies. Design/methodology/approach – Based on a SS literature review, a survey was conducted to capture practitioners’ viewpoints about CSFs for SS implementation and their impact on performance in manufacturing companies. A factor analysis and structural equation modeling were conducted in order to identify and analyze causal relationships. Findings – The results suggest that CSFs grouped in the constructs TMS, IS, and CT have a positive impact on PP as measured by cost reduction, variation reduction, and quality improvement. Research limitations/implications – Although the empirical data collected supported the proposed model, results might differ among organizations in different countries. In addition, the study did not analyze a unique performance metric; instead, general PP dimensions were used. Practical implications – Boosting the TMS, IS, and CT enhances positive PP of SS in manufacturing companies. Originality/value – IS as a construct has not been studied exhaustively; this work contributes to a better understanding of it and its impact on PP. Additionally, studies of SS in Latin America are limited, so this study gives a complementary vision to practitioners and researchers about it.

CRM, service quality and organizational performance in the banking industry: a comparative study of conventional and Islamic banks

2020 ◽  
Vol 38 (5) ◽  
pp. 1081-1106 ◽  
Author(s):  
Hind Lebdaoui ◽  
Youssef Chetioui
Keyword(s):  
Service Quality ◽  
Organizational Performance ◽  
Customer Service ◽  
Structural Equation ◽  
Banking Industry ◽  
Positive Impact ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional And Islamic Banks

PurposeThis paper aims to examine a model that uses customer service quality as an intervening mechanism in the relationship between customer relationship management (CRM) practices and organizational performance in two different banking structures: conventional and Islamic. The study focuses on organizational and technological practices of CRM, as both have been demonstrated to be critical to CRM success.Design/methodology/approachThe analysis is based on responses from 247 managers from conventional banks and 141 managers from Islamic banks operating in Morocco using a self-administered questionnaire. The partial least squares structural equation modeling (PLS-SEM) technique is employed for data analysis.FindingsFindings demonstrate that customer service quality plays a mediating role between CRM practices (organizational and technological) and organizational performance in both conventional and Islamic banks. Our results confirm the positive impact of CRM practices on organizational performance in the two banking structures.Practical implicationsThis study enhances our understanding of how CRM practices contribute to improving customer service quality and organizational performance in both conventional and Islamic banks. Bank managers, who aim to deliver superior service quality and achieve customer satisfaction and retention, should capitalize on the benefits of implementing CRM organizational and technological practices.Originality/valueThe present paper bridges a gap pertaining to key practices and factors that impact CRM success in the banking industry. It is the first of its kind to investigate the effect of CRM practices on organizational performance with customer service quality as a mediating variable. The study also contributes to the field of CRM literature, as CRM has rarely been addressed in an Islamic banking context.

scholarly journals Business intelligence and organizational performance

2020 ◽  
Vol 26 (6) ◽  
pp. 1709-1730
Author(s):  
Dalia Suša Vugec ◽  
Vesna Bosilj Vukšić ◽  
Mirjana Pejić Bach ◽  
Jurij Jaklič ◽  
Mojca Indihar Štemberger
Keyword(s):  
Organizational Performance ◽  
Business Intelligence ◽  
Structural Equation ◽  
Process Management ◽  
Positive Impact ◽  
Measurement Instrument ◽  
Business Value ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact

PurposeOrganizations introduce business intelligence (BI) to increase their performance, but often, this initiative is not aligned with the business process management (BPM) initiative, which also aims to improve organizational performance. Although some findings from the literature indicate that BI implementation has a positive impact on organizational performance, the impact seems to be indirect. Therefore, the purpose of this study is to enhance the understanding of how BI maturity is translated into organizational performance. Alignment of BI and BPM initiatives seems one possible way for creating business value with BI, particularly because BI enables process performance measurement and management, which allows the BI initiative to become more business focused.Design/methodology/approachA questionnaire was prepared and used to collect data in Croatian and Slovenian organizations with more than 50 employees. A BI–BPM alignment measurement instrument was developed for the purpose of this study using the recommended process of scale development and validation. A total of 185 responses were analyzed by the structural equation modeling technique.FindingsOur results provide evidence that the effect of BI on organizational performance is fully mediated by alignment of BI and BPM initiatives, and therefore, BI business value can be generated through the use of common terminology and methodologies, as well as a strong communication between BI and BPM experts, managers and teams in order to coordinate the two initiatives.Originality/valueThis study has responded to the call for better understanding of how the impact of BI on organization performance is realized. It confirmed that BI and BPM initiatives should be aligned in order to give BI a business value.

Developing and validating lean manufacturing constructs: an SEM approach

2018 ◽  
Vol 25 (5) ◽  
pp. 1382-1405 ◽  
Author(s):  
Gusman Nawanir ◽  
Kong Teong Lim ◽  
Siti Norezam Othman ◽  
A.Q. Adeleke
Keyword(s):  
Organizational Performance ◽  
Lean Manufacturing ◽  
Structural Equation ◽  
Equation Modeling ◽  
Target Area ◽  
Manufacturing Companies ◽  
Content Type ◽  
Validity Assessment ◽  
Process Manufacturing ◽  
Implementation Level

Purpose The purpose of this paper is to provide valid and reliable constructs for lean manufacturing (LM) for assessing its implementation level in order to target areas of improvement. Design/methodology/approach Based on an extensive review on LM literature and content validity assessment from practitioners and academicians, nine LM constructs were identified. Measurement items for each construct were developed to become a complete questionnaire. The questionnaire booklets were distributed to large and discrete manufacturing companies in Indonesia. Out of 1,000 survey questionnaires sent, 236 usable responses were returned giving response rate of 23.60 percent. Subsequently, an empirical assessment on the constructs was done by using structural equation modeling approach. Findings The study identified the valid and reliable LM constructs, consisting of nine LM constructs and 64 measurement items. The study found that all the constructs are complementary and mutually supportive with each other. Indeed, it suggests the holistic implementation of all the LM practices. Research limitations/implications Owing the time and resource constraint, this study only involved large and discrete process manufacturing industries in Indonesia. Hence, the generalization of the result is slightly limited. More studies in several different contexts are required. Practical implications This study provided a valuable tool for researchers for gaining deeper understanding regarding the LM and its implementation. For practitioners, it is useful to evaluate the degree of LM employment in their companies, to target area of improvement, as well as to take possible actions in attempting to enhance the organizational performance. More importantly, practitioners should adopt all the LM practices in a holistic manner. Originality/value This study is the first attempt to develop LM constructs for evaluating the LM implementation in Indonesia.

Psychological factors affecting the behavioral intention of the tourist visiting Southeastern Anatolia

2019 ◽  
Vol 2 (4) ◽  
pp. 425-450 ◽  
Author(s):  
Sedat Çelik ◽  
Bekir Bora Dedeoğlu
Keyword(s):  
Behavioral Intentions ◽  
Structural Equation ◽  
Quantitative Research ◽  
Negative Impact ◽  
Positive Impact ◽  
Equation Modeling ◽  
Content Type ◽  
Factors Affecting ◽  
Tourist Behavior ◽  
Travel Motivations

Purpose The purpose of this paper is to reveal the relationship between personality traits, travel motivations, perceived destination quality, overall destination satisfaction and behavioral intentions of domestic tourists. Design/methodology/approach The quantitative research method was used in the study. A survey technique was used to collect data. Data were applied to incoming domestic tourist to Gaziantep and Sanliurfa cities in Southeast Anatolia of Turkey. The data obtained were analyzed by structural equation modeling. Findings The study showed that personal traits “agreeableness” and “conscientiousness” positively affect relaxation motivation. Cultural and relaxation motivations had a positive impact on satisfaction, whereas pleasure-seeking motivation has a negative impact on satisfaction. In addition, overall destination satisfaction is positively affected by destination quality perceptions and affects loyalty in a positive way. Research limitations/implications During the literature review phase, no scale was found according to different destination characteristics (cultural, nature and sea destinations). In this regard, developing new scales to measure destination quality in accordance with different destination types would allow comprehending the subject in a more clear and detailed way. Practical implications The establishment of relationship between variable examined by this study ensures that product and services provided by the destination reach the correct target audience, which brings along the success to destination. For instance, destination management organizations could get information from travel agencies they work with about the characteristics, and motivations of tourists, and could develop their strategies, and plans, accordingly. Originality/value This study has three important contributions. First, revealing the role of personality in tourist behavior; second, their behaviors and attitude before (motivation and personality) during (destination quality and satisfaction) and after visiting (behavioral intentions) were examined; and third, personality, travel motivation, destination quality and satisfaction are discussed together as a model in this study.

Diversity management and OCB: the connection evidence from the Lebanese banking sector

2018 ◽  
Vol 37 (3) ◽  
pp. 233-253 ◽  
Author(s):  
Rima Bizri
Keyword(s):  
Organizational Performance ◽  
Social Exchange ◽  
Organizational Citizenship Behavior ◽  
Structural Equation ◽  
Management Practices ◽  
Banking Sector ◽  
Positive Impact ◽  
Diversity Management ◽  
Equation Modeling ◽  
Content Type

PurposeResearch has shown that organizational citizenship behavior (OCB) has a positive and significant impact on organizational performance at a time when traditional monitoring and supervision practices are showing a declining influence. This has triggered numerous research undertakings exploring the antecedents of OCB, and how it can best be enhanced. Though many variables have been identified as predictors of OCB, the purpose of this paper is to focus on the influence of diversity management on OCB and two of its important antecedents: organizational commitment and work engagement.Design/methodology/approachThe study used a survey instrument of pre-validated scales to measure banking sector employees’ perceptions of their affective and normative commitment (NC), OCB, and diversity management practices at their organizations. Structural equation modeling was used with AMOS (20) to empirically assess the relationships among constructs.FindingsThis study empirically confirmed the positive impact of diversity management on employees’ feelings of affective commitment to the organization and engagement at work, which in turn positively impact employees’ OCB. However, the findings negate any direct influence of diversity management on NC or on OCB.Originality/valueThis study fills a gap in the literature by questioning the validity of applying the social exchange theory to the concept of OCB.

Does transformational leadership influence TQM practices? A comparison analysis between manufacturing and service firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nancy Bouranta
Keyword(s):  
Transformational Leadership ◽  
Leadership Style ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Service Firms ◽  
Manufacturing Companies ◽  
Total Quality ◽  
Empirical Examination ◽  
Content Type

PurposeThe purpose of this paper is to fill a gap in the existing literature that relates leadership style to total quality management (TQM) focus. Specifically, the study evaluates whether and how leadership style may affect the implementation of TQM practices.Design/methodology/approachA structured questionnaire was used to collect data from employees of different organizations operating in the manufacturing (n = 156) and service sectors (n = 147). Exploratory and confirmatory factor analyses as well as structural equation modeling were adopted to test the hypothesized research model.FindingsThe results revealed that transformational leadership has a positive impact in the implementation of TQM practices (e.g., customer focus, process management, human resource management, strategic planning and learning). It was also found that, regardless of industry type, manufacturing or service, transformational leadership has a significantly positive influence on TQM practices. In addition, it was noted that manufacturing companies showed a higher level of TQM practices than did service companies.Originality/valueThis study represents, to the best of the author’s knowledge, the first empirical examination of the relationship between transformational leadership and TQM in the service and manufacturing industries, with the goal of determining the differences between these two sectors. The study's conclusions may be useful for service and manufacturing organizations in achieving more effective leadership in the implementation of TQM.

Does employee willingness to take risks affect customer loyalty? A moderated mediation examination of innovative behaviors and decentralization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohd Ahmad Al-Hawari ◽  
Shaker Bani-Melhem ◽  
Faridahwati Mohd. Shamsudin
Keyword(s):  
Personality Traits ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Frontline Employees ◽  
Content Type ◽  
Mediating Role ◽  
Hotel Managers ◽  
Innovative Behaviors

Purpose This study aims to build on the trait activation and interactionist perspective theories to investigate the effect of frontline employees’ (FLEs) willingness to take risks on hotel guest loyalty by assessing the mediating role of their innovative behaviors. It also examines whether decentralization strengthens the positive impact of willingness to take risks on innovative behavior and, subsequently, customer loyalty. Design/methodology/approach The authors collected multilevel data from various sources – hotel FLEs (n = 183), hotel operation managers (n = 46) and hotel guests/customers (n = 266) – from five-star hotels operating in Dubai. Structural equation modeling and PROCESS macro (version 3.5) were used to analyze the data. Findings The findings showed that willingness to take risks indirectly (via innovative behaviors) affects guest/customer loyalty positively. This effect is strengthened when the hotel is decentralized. Practical implications This study provides insight into how hotel managers can foster customer loyalty. More specifically, they can do so by establishing employees’ innovative behaviors triggered by employees’ positive personality traits and by giving employees more autonomy. Originality/value The present study addresses recent calls to investigate the positive impact of FLEs’ personality traits, attitudes and behaviors on customer loyalty.

The effect of knowledge management on intellectual capital, social capital, and firm innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Mohammad Ali Fahimi ◽  
Grzegorz Zimon ◽  
Saeid Homayoun
Keyword(s):  
Social Capital ◽  
Knowledge Management ◽  
Intellectual Capital ◽  
Chief Executive Officers ◽  
Structural Equation ◽  
Chief Executive ◽  
Equation Modeling ◽  
Capital Social ◽  
Manufacturing Companies ◽  
Content Type

Purpose This study aims to analyze the literature on knowledge management on intellectual capital, social capital and its contribution to Iranian companies’ innovation. Design/methodology/approach To investigate knowledge management’s relationship on intellectual capital, social capital and innovation, using structural equation modeling based on data collected from 205 chief executive officers, production managers and marketing managers of Iranian companies. The research instrument is a standard questionnaire consisting of 109 questions in which 5 of them are demographic questions, 26 questions were asked to reveal the knowledge management process, 40 questions for intellectual capital, 21 for social capital and 17 for innovation. Findings The results show that knowledge management has a positive and significant relationship between intellectual capital and social capital. Knowledge management did not have a significant effect on innovation. However, intellectual capital and social capital have a significant effect on innovation. On the other hand, knowledge management mediated by intellectual capital and social capital has a positive and significant indirect effect on innovation. Originality/value The paper includes the implications for developing knowledge management and intellectual, social capital leading to innovation in manufacturing companies. Knowledge management can improve the innovation performance of a company if it is shared and applied effectively. This study addresses an important subject and the findings may be used by professionals and managers or another person interested in advancing knowledge management that leads to innovation.

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