Developing a robust measurement instrument for the influence of national culture on lean production systems

Purpose The purpose of this study is to provide a robust model to bridge the influence of national culture (NC) on lean production (LP), identifying relationships among their elements and investigating the degree of influence. Design/methodology/approach The culturally sensitive lean production model (CSLPM) is used as a framework to develop a survey questionnaire that captures the information to analyze using partial least squares structural equation modeling (PLS-SEM). A case study to validate the model is presented from a subsidiary with operations in Mexico (MX) and the USA. Findings The CSLPM provides a robust framework for the measurement of the interaction between LP and NC. Multi-group analysis facilitated the comparison among the different groups (MX and USA), highlighting the differences of culture and the corresponding LP implementation within the same company. Research limitations/implications The instrument was validated only within two countries and one organization. A higher sample of respondents, countries and organizations could validate the relationships established and the replication of the model. Practical implications The CSLPM can be used for assessment of the evolution of organizations, highlighting strengths and weaknesses of a particular culture when implementing LP, providing focal points for research and training efforts. Originality/value The CSLPM is a robust instrument to measure expectations for LP practices according to their company’s geographical context. The incorporation of higher order variables and mixed directionality within the variables presented a novel approach to PLS-SEM.

Assessing the impact of supply chain agility on operational performances-a PLS-SEM approach

Purpose This study aims to examine the effect of supply chain agility (SCA) on operational performance (OP) measurements of steel manufacturing firms. It also investigates the role of cost efficiencies concerning enhance OPs. Design/methodology/approach The study is based on an experimental research design by collecting data from responses 398 responses of key officials of India’s steel manufacturing firms. Analyses are carried to explore this modern concept with the help of Smart-partial least square (PLS) version 3.3.2 with confirmatory factor analysis and PLS structural equational modelling. Findings SCA factor (SCAF) directly has influenced the firm’s OP. It also represents cost efficiencies that have partial mediation between the SCAF and OP. The impact of cost efficiencies on OPs is strongly significant as compared to the impact of SCAF on cost efficiencies. Practical implications Management teams in the manufacturing industry should stress the role of SCA as a comprehensive concept in responding to market needs in a volatile environment. SCA reflects one of its winning strategies in today’s dynamic and competitive world. Managers must thoroughly know the ramifications of agility to develop a mechanism for determining the procedures and identifying inequality in SC operation. Originality/value This study speaks explicitly about the linkage between SCAF, OP, CE. It is an addition to the existing theories of RBV. Enhancements in OP measurements, specifically performance and flexibility, will lead to better firm performance. study conceptualizing the complementing effects of SCA (IS capability) and OPs and second cost efficiencies play positive partial mediating effect in between the link. The achievement of SC agile is especially a critical approach to Boost customer satisfaction and differentiate market position.

Building and evolving a culture of excellence: a conceptual exploration

Purpose The purpose of this paper is to conceptually explore building a culture of excellence from the ground up as well as evolving a current culture to one more focused on excellence. Design/methodology/approach This study reviewed extant research related to organizational cultures and cultures of excellence that have implications for building or evolving into these types of cultures. Findings The findings of this study suggest that the “people side” of organizations is crucial to forming a culture of excellence. Specific people-oriented considerations to forming such a culture include leveraging leaders and understanding other influences including diversity as well as external aspects. Changing culture must occur at the assumptions (and not just artifacts) level. Furthermore, there are many barriers to building a culture of excellence, many of which are also related to an organization’s people. Research limitations/implications A qualitative grounded theory approach whereby researchers asked organizational members to define “culture of excellence” could help build a clearer model for the formation of cultures of excellence. Quantitative approaches should also test how successful the influencers, noted in this study are in creating cultures of excellence. This study’s conceptual links between cultures of excellence and performance should also be tested empirically. Practical implications This paper provides practitioners insight into the importance of culture and considerations for how to change an organizational culture. Social implications This paper advocates for the importance of social considerations in the workplace regarding creating a culture of excellence. Originality/value To the best of the authors’ knowledge, this paper is the first that discusses creating a culture of excellence. Furthermore, it is one of only a handful of articles that links people to excellence.

Digital technologies and the balance between control and empowerment in performance management

Purpose This paper aims to explore how manufacturing organisations’ performance measurement and management (PMM) systems are evolving when digital technologies (DTs) are deployed. It focusses on the operational level, asking whether DTs are used to promote command-and-control or empowerment-oriented performance management. Design/methodology/approach The findings are based on a single case study from a department of a Norwegian electrochemical plant. The department recently implemented a performance measurement system (PMS) supported by DTs to capture, analyse and visualise close-to-real-time performance data on individuals and teams. The authors analysed both the management practices associated with the new PMS and how those related to other PMM-subsystems in the organisation. Findings When seen in isolation, the new PMS was used to promote empowerment and operators reported a significant increase in perceived psychological empowerment. However, other parts of the organisation’s PMM system remained control-oriented, so that the overall balance between control and empowerment remained stable. Practical implications New PMSs might be added to support local needs and create arenas for empowerment without disturbing the overall balance in the PMM system. Originality/value Building on the insights from the case study, the authors propose that DTs may be deployed to promote both command-and-control and empowerment within different PMM subsystems in the same organisation. Hence, the deployment of DTs is likely to have contradictory effects, which are best understood through a “system of systems” perspective on PMMs.

Balanced scorecard usage and organizational effectiveness: evidence from manufacturing sector

Purpose This study aims to investigate the drivers and impact of balanced scorecard (BSC) usage on organizational effectiveness in manufacturing companies. The objectives of the paper were to assess the organizational factors affecting the usage intensity of the BSC; the relative benefits of BSC determining its adoption speed; and the extent to which BSC usage enhances organizational effectiveness. Design/methodology/approach The study adopted a survey research design. Data collection was through a structured questionnaire administered on senior accounting/ finance personnel of 300 manufacturing companies that are members of the Manufacturers Association of Nigeria. Binary logistic regression analysis, discriminant analysis and structural equation modeling (maximum likelihood estimation method) were used to analyze survey data obtained from 104 BSC adopters. Findings Result shows that the three organizational factors affecting BSC usage intensity are affiliation to a foreign entity, availability of specialist skills and business strategy (strategic pattern). The strongest predictor is, however, the availability of specialist skills. The strongest determinants of the BSC adoption speed are the need for financial stability and the importance of customer feedbacks. The impact of BSC usage on organizational effectiveness is positive, statistically significant but weak. The inability of BSC usage to contribute appreciably to organizational effectiveness is attributable to the lack of integration among the performance measures in the BSC framework and the shallow usage rate of BSC. Practical implications Although it is commendable that financial stability and customer satisfaction strongly drive BSC adoption speed, the low rating recorded by other factors related to product development, employee development and process improvement suggests that the performance measures in the BSC framework are not used in an integrative manner. This also confirms that the BSC, like other innovative management accounting techniques, is applied at a rudimentary level by organizations in Nigeria. Originality/value The current study contributes to knowledge by exposing the organizational factors and relative benefits driving BSC adoption. It provides empirical evidence on why the BSC may not deliver the optimal benefit of improving organizational effectiveness despite its popularity and potential as an integrated performance measurement (IPM) apparatus that can add value to organizations. The paper adds to the scarce literature on IPM in developing countries. Drawing from the result that availability of specialist skills is the strongest predictor of BSC usage intensity, the practice of enmeshing the management accounting function with general accounting/finance should be discouraged.

Managing positional innovation in small food enterprises. The bakery industry

Purpose The concept of positional innovation – as one of the four innovation types of the Francis and Bessant’s “4P’s” model – is an effective product innovation strategy for producers of mature and credence goods as food products are. Despite the acknowledgement as one of the major industries worldwide, positional innovations about the food products are underexplored in the managerial literature. To fill this gap, this paper first develops a theoretical analysis of the concepts. Then, by adopting a case-study research methodology, it discloses the way a bakery small enterprise manages positional innovation. Theoretical and practical implications are finally introduced and discussed. Design/methodology/approach After a literature review about the role and the characteristics of the positional innovation, the paper presents a case study of definition and implementation of managerial actions and initiatives driven by positional innovation. The aim is not to report on an inductive study, but to use this example as a picture to clarify theory and show how the various conceptual issues may be operatively applied and provide more contextual insights. Findings It emerges how a small food enterprise manages positional innovation to survive and compete in the national and international markets; the positional innovation sources are tapped into culture, social responsibility, tradition and other territorial assets of tangible and intangible nature, effectively combined to innovate the product perception and/or the utility in a use context. Originality/value “Non-technological”, simple products, like food, are underexplored and rarely seen as relevant context to investigate along the strategic and innovation management literature. Nonetheless, positional innovation is a perspective that values and credits the innovation efforts of small food products, revealing interesting managerial concepts and inspiring entrepreneurs and managers for activating and sustaining new strategies of innovation for their businesses.

The relationship between environmental cost on organisational performance and environmental management system: a structural equation modelling approach

Purpose This study aims to examine the relationship between environmental cost (EC) on organisational performance (OPM) through an environmental management system (EMS) as the mediating variable. Design/methodology/approach A total of 2,600 manufacturers were identified and consequently selected as the entire study population. Additionally, this study used the structural equation modelling technique to identify the mediator effects of EMS between EC and OPM. Findings The EC and EMS relationship on OPM produced direct and indirect consequences. Hence, it is concluded that manufacturing industry in Malaysia are focused on the OPM when implementing EC and EMS. Originality/value The model would incorporate EC and EMS implementation on OPM in the Malaysian manufacturing industry. This study could also be advantageous to the industry in improving EC, EMS and OPM.

A composite tourism index for the competitiveness of marginal areas: a pilot application in a Southern Italy province

Purpose Differently from traditional approaches that rely on the analysis of single dimensions of the tourism phenomenon, this study aims to experiment a systemic approach based on structured and unstructured data sources to elaborate a composite index to measure the tourist competitiveness of marginal areas, with the final aim to design and plan proper socio-economic development strategies. Design/methodology/approach The methodology adopted to carry out the study follows a four-step process and relies on indicators that are both relevant and accessible. The first step concerns the analysis of the literature about the existing approaches to calculate a tourism index. The second step concerns the definition of the indicators and the collection of data by using both structured and unstructured sources. The third step focuses on the population of the data set. Finally, the fourth step aims at calculating the tourism index through a composite-based methodology and using it for a pilot application in a Southern Italy province. Findings The study calculates a synthetic tourism index for each of the 97 municipalities of the Province of Lecce (a city located in the southeast of Italy). The proposed index combines administrative, institutional and open data sources to derive a single indicator for each municipality, thus supporting decision-makers in understanding the complex reality and competitiveness level of territories in the tourism industry. Originality/value The main elements of originality of the study are the breadth and typology of data sources considered to calculate the composite indicator of tourism competitiveness (both structured and unstructured); and the use of weighting and aggregation procedures in the methodological issues.

Does structural capital count in human capital-corporate financial performance relationship? Evidence from deposit money banks in Nigeria

Purpose The purpose of this paper is to explore human capital and corporate financial performance link from the perspective of human capital theory, resources-based view and balanced score card approach, and the mediating role of structural capital in this relationship. Design/methodology/approach Overall, a data set was drawn from five-year annual reports of deposit money banks (DMBs) in Nigeria. Additionally, the bootstrap procedure was performed to test the mediating role of structural capital. Findings Specifically, the paper results indicate that whereas human capital has significant positive effect on corporate financial performance and structural capital, structural capital has significant positive effect on corporate financial performance. Additionally, the study finds structural capital to mediate the effect of human capital on organizational financial performance. Research limitations/implications This paper focused on 12 DMBs in Nigeria and their five year annual reports. Accordingly, future studies in this area should increase the number of banks and years, and include firms operating in insurance, manufacturing, telecommunication and oil and gas industries to permit comparability of results and broader basis for generalizability. Moreover, the study results provide insights that would serve as robust empirical basis for policy makers to insist on enhancement of the value of human and structural capital variables. Practical implications The managers of DMBs should commit to development of their employees through improvement in their training and health programs, among others. Also, they should ensure continuous improvement of their structural capital to enable the investments in their employee to translate to enhanced corporate financial performance. Originality/value To the best of the author’s knowledge, this is the first study to explore the mediation effect of structural capital on the human capital-corporate financial performance link using evidence from DMBs in Nigeria and, thus, extends and deepens extant literature on human capital-organizational performance nexus.