Impact of Quality Management on Business Performance of Manufacturing Firms: The Moderated Effect of Industry 4.0

Purpose: The research aims to investigate the individual quality management (QM) factors impact on business performance in manufacturing firms. We then assess their influence and look at how industry 4.0 affects business performance directly. Furthermore, the study will demonstrate the moderate effect of industry 4.0 on the interaction between QM and business performance. Methodology/Approach: The authors used two methodologies. The first is qualitative methods, by interviewing experts to develop a realistically appropriate model. The second is quantitative methods, by carrying out the survey and getting 84 observations. This research used the multivariate data analysis technique PLS-SEM to evaluate three measurement models: formative measurement model, reflective measurement model, and structural model. Findings: The QM was operationalised as a multi–dimensional construct. According to the findings, these individual QM factors significantly affect the organisation’s performance, including customer satisfaction, employee satisfaction and quality performance. Besides, QM and Industry 4.0 have directly impact on performance. The study also shows that industry 4.0 has a positive moderating role in the relationship between QM and business performance. Research Limitation/Implication: The survey was only done in emerging countries and the sample size is limited. There are other QM and business performance measurement parameters that have not yet to be discussed. Originality/Value of paper: The study contributes to the QM literature by building a business quality model, in which the role of Industry 4.0 was explored.

Customers’ Intention to Recommend Takeaway Food during COVID-19 Pandemic

Purpose: The aim of this study is to predict perceived risk and consumer willingness in recommending takeaway food from restaurant served in buffet style. Methodology/Approach: This study used an online survey of 170 consumers who were selected based on purposive sampling method. The research questionnaire was adapted from previous research. The data were analysed using Structural Equation Modelling (SEM), with Smart PLS. Findings: The research findings show that health risk and psychological risk have a positive effect on intention to recommend takeaway food. Meanwhile, quality risk and trust have no effect on intention to recommend takeaway food. In addition, psychological risk and quality risk have no effect on trust. This study also shows that trust does not function as a mediator of the relationship between health risk, psychological risk, quality risk, trust, and intention to recommend. Research Limitation/Implication: This study only uses a self-report questionnaire by customers. For further research, to enrich the discussion, it is recommended to use interviews or FGD. In addition, this study only uses three risk variables. For the future, it is advisable to add other risk variables. Originality/Value of paper: In other countries such as China, Korea and the United States, related research has been carried out, however for the context of RM Padang which is unique with all the menus served (Buffet) on the visiting customers’ table has not been found in literature.

Modelling Customer Satisfaction with Food

Purpose: The subject of the article is the relationship between customer satisfaction, loyalty and personality characteristics. It aims to analyse factors that influence customer satisfaction and loyalty, including their mutual relationships. For this purpose, a comprehensive model of customer satisfaction was created. Methodology/Approach: The research was carried out using a questionnaire survey on a sample of 1,530 customers of food producers (and 103 food business products that were non-durable) corresponding to the Czech population in terms of gender, age and region. The questionnaires were statistically evaluated using Structural equation modelling (SEM). Findings: The results show that a strong link between standard customer satisfaction factors (perceived quality, perceived value, customer expectation) overshadows the influence of weaker factors (personality). However, this effect is fully demonstrated when these strong factors are filtered out. Research Limitation/Implication: The paper focuses on foods that are sold through retail intermediaries, which also affect customer satisfaction. It may be different for other types of products and services and for products sold otherwise. It can also be limited to CR, resp. transition economics, ie. that in developed countries it could be different. Originality/Value of paper: The contribution of the paper is the finding that customer satisfaction is influenced by a personality factors, whose effect is at first glance weaker. It also shows that the factor image can be constructed taking into account the competitive ability of the company as a hybrid and the functionality of the customer loyalty factor influences the way of its construction.

Integration of Waste Assessment Model and Lean Automation to Improve Process Cycle Efficiency in the Automotive Industry

Purpose: This study aims to improve Process Cycle Efficiency (PCE) by reducing waste in the assembly production line. This research is a case study conducted in a four-wheel vehicle manufacturing company to create a Lean production system. Methodology/Approach: This study uses the Waste Assessment Model (WAM) and Lean Automation integration methods carried out by 5 expert judgements in the selected four-wheeled vehicle industry. Findings: Based on the WAM method, this study found the biggest waste on the assembly line, namely transportation with a percentage of 20.44%. Improvements made with Lean Automation can increase the value of PCE from 56.76% to 63.62%. Research Limitation/Implication: This research is limited to one model, namely Multi Purpose Vehicle (MPV). This research provides benefits for companies related to waste reduction. For similar companies, this research can be input for manufacturing practitioners in improving manufacturing performance to compete in the global market. This Lean production can reduce manpower which has an impact on saving production costs. Originality/Value of paper: This paper provides added value related to the application of Lean terminology which aims to improve industrial automation-based manufacturing companies.

Pollution Credit Certificates Theory: An Analysis on the Quality of Solid Waste Management in Brazil

Purpose: This paper aims to introduce an economic instrument called Theory of Pollution Credit Certificates in the management of municipal solid waste in Brazil, in order to create opportunities to achieve the goal established in the above mentioned policy at lowest possible social costs. Methodology/Approach: The methodology adopted has as a starting point the “constructo” of a scenario in which a city comprised of five brazilian districts produces its urban solid waste made up of 50% organic material. In the proposed scenario, similar to what happens in practice, a fee for collection and treatment of organic material would be charged for two different situations. Findings: The result showed that the use of Pollution Credit Certificates Theory has a better cost-effectiveness for solid waste management because it allows reaching the environmental goal at a lower cost to society. Research Limitation/Implication: Subjectivity of the analysis, due to the “constructo” proposition in the studies. Originality/Value of paper: From the results obtained, we inferred that the use of the Pollution Certificates Theory for the management of brazilian municipal solid waste benefits from economies of scale as it allows in the scenario determined, that districts sell their spaces at the landfill and parallel to this, to promote the practice of composting organic waste in the municipality.

Determinants of Performance and Structural Relationships of Rice Processing Industry Performance: Resources Based View Approach

Purpose: Attention to the capacity of rice milling companies is very important because this company is the main business actor that creates added value. This study aims: (1) to identify the determinants of the performance of the rice milling industry based on the Resources Based View (RBV) framework and (2) to formulate the structural relationship that occurs between the resources of rice milling companies on business performance. Methodology/Approach: RBV framework and formulate the structural relationships that occur between company resources and business performance Through the SEM-PLS method. Findings: Structurally, the results of the analysis show that the performance of rice mills is directly determined by reputation with the largest path coefficient of 0.856 and is then followed by marketing differentiation 0.184 and human capital 0.1822, while tangible assets directly have a negative relationship (-0.236) but indirectly through the latent variable the reputation as a mediator has a greater (0.558) and significant positive relationship. Research Limitation/Implication: The research has empirical implications that not all RBV dimensions can predict the performance of the rice industry, especially organizational variables. This illustrates that in reality in the manufacturing industry, organizational function variables do not really affect the produced. Originality/Value of paper: This article becomes an important for policymakers in Aceh Province to develop the rice milling industry based on the RBV.

Quality 4.0 for Processes and Customers

Purpose: Considering the speed of technological development towards the Industry 4.0 era the change is necessary for managerial aspects in industrial companies. In this paper an attempt is made to understand the influence of Industry 4.0 technologies on the Quality 4.0 concept better. Methodology/Approach: Two aspects were analysed in order to achieve the goal – the influence of Industry 4.0 on quality management and the influence of Quality 4.0 on customer satisfaction. The paper is based on a literature review and a pilot study based on questionnaires prepared for research purposes. Findings: It was found out that the emergence of new technologies is beneficial for Quality Management processes and customer satisfaction. Moreover, the influence is greatly described by the amount of data now available for analysis. However, as the concept of Quality 4.0 is in its infancy, the necessary change is still required. Research Limitation/Implication: As the research was conducted in the Czech Republic, the results are limited according to the territory. Also, the study was based on the literature review available from SCOPUS and WoS databases in English, thus further studies of available literature in other languages might be needed. Originality/Value of paper: Although the quality tools that are used in Quality 4.0 are already known and accepted the influence of advanced technologies on quality management is not clear. In this paper an attempt is made to understand the influence.

Identification of Environmentally Friendly Alternative for Laundry Detergent Packaging

Purpose: The objective of the study was to analyse and evaluate two alternative liquid detergent packaging systems from the point of view of their overall environmental impact. Using the LCA method, we have come to the conclusion that cardboard packaging is an alternative with a lower negative impact on the environment than an HDPE bottle. Methodology/Approach: The study is based on the LCA method implemented through the software openLCA, including available databases. Findings: The environmentally friendlier alternative of the detergent packaging is identified. The decisions about individual stages during LCA must be made with caution and well documented to ensure credibility of the results. Research Limitation/Implication: The findings of the presented study are limited by the available data used for the environmental impact assessment. The inventory analysis was performed for the conditions of the central European region. Originality/Value of paper: This study applies LCA methodology to present the details of a decision process involved in selecting better environmental alternative of the product. The information generated by the study is directly applicable in the industry.

Lean Manufacturing Implementation through DMAIC Approach: A Case Study in the Automotive Industry

Purpose: The main objective of this paper is to validate the results of the Lean manufacturing application via the DMAIC concept. This study concerns a case study carried out in an automotive company which aims at improving its flows within the production workshop by pulling the physical flow and minimizing the different wastes. Methodology/Approach: By conducting a literature review to examine the different frameworks for applying the lean method and to extract case studies related to the DMAIC approach which is missing on the selected articles, only one article that addresses this possibility. Findings: DMAIC has allowed a better structuring of the entire project, choosing the right improvement solutions with the right choice of Lean tools and several advantages that are not valid for other frameworks. This implementation shows a spectacular improvement in the production planning, the fluidity of the flow as well as an important financial gain for the company. Research Limitation/Implication: The project duration was not sufficient to apply other beneficial lean tools as the study was limited only to a single production line. Originality/Value of paper: This article demonstrates the added value of the structured DMAIC approach to lean manufacturing methodology and implementation.

Determinants of Innovation Capability: An Exploratory Study of Inclusive Leadership and Work Engagement

Purpose: The purpose of this paper is to explore how innovation capability can be enhanced by inclusive leadership. In particular, the focus is on identifying the key drivers of work engagement and the role of leadership in boosting the innovation capability. Methodology/Approach: This research has a qualitative exploratory nature. The exploratory fieldwork is based on an in-depth interview with the CEO, field observations and on the analysis of relevant corporate sources. Findings: The research provides further confirmation of the link between inclusive leadership, work engagement and innovation capability. Specifically, authentic communication and leadership traits such as trust, courage, humility, empathy and gratitude are considered to be among the most important enablers of an inclusive environment that leads to business success. Research Limitation/Implication: This study contributes to a better understanding of how companies could enhance innovation capabilities by leveraging the power of inclusion. The subjective business evidence coming from only one company constitute the main limitations of the present study. Originality/Value of paper: This paper contributed to leadership and innovation literature. The results of this work provide a thorough understanding of the mechanisms for improving work engagement and, consequently, innovation capability. By grounding our research in both theory and empirical evidence, we provide valuable insight for both academia and practice.