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1 – 10 of over 7000Petra Pekkanen and Timo Pirttilä
The aim of this study is to empirically explore and analyze the concrete tasks of output measurement and the inherent challenges related to these tasks in a traditional and…
Abstract
Purpose
The aim of this study is to empirically explore and analyze the concrete tasks of output measurement and the inherent challenges related to these tasks in a traditional and autonomous professional public work setting – the judicial system.
Design/methodology/approach
The analysis of the tasks is based on a categorization of general performance measurement motives (control-motivate-learn) and main stakeholder levels (society-organization-professionals). The analysis is exploratory and conducted as an empirical content analysis on materials and reports produced in two performance improvement projects conducted in European justice organizations.
Findings
The identified main tasks in the different categories are related to managing resources, controlling performance deviations, and encouraging improvement and development of performance. Based on the results, key improvement areas connected to output measurement in professional public organizations are connected to the improvement of objectivity and fairness in budgeting and work allocation practices, improvement of output measures' versatility and informativeness to highlight motivational and learning purposes, improvement of professional self-management in setting output targets and producing outputs, as well as improvement of organizational learning from the output measurement.
Practical implications
The paper presents empirically founded practical examples of challenges and improvement opportunities related to the tasks of output measurement in professional public organization.
Originality/value
This paper fulfils an identified need to study how general performance management motives realize as concrete tasks of output measurement in justice organizations.
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Haftu Hailu Berhe, Hailekiros Sibhato Gebremichael and Kinfe Tsegay Beyene
Existing conceptual, empirical and case studies evidence suggests that manufacturing industries find the joint implementation of Kaizen philosophy initiatives. However, the…
Abstract
Purpose
Existing conceptual, empirical and case studies evidence suggests that manufacturing industries find the joint implementation of Kaizen philosophy initiatives. However, the existing practices rarely demonstrated in a single framework and implementation procedure in a structure nature. This paper, therefore, aims to develop, validate and practically test a framework and implementation procedure for the implementation of integrated Kaizen in manufacturing industries to attain long-term improvement of operational, innovation, business (financial and marketing) processes, performance and competitiveness.
Design/methodology/approach
The study primarily described the problem, extensively reviewed the current state-of-the-art literature and then identified a gap. Based on it, generic and comprehensive integrated framework and implementation procedure is developed. Besides, the study used managers, consultants and academics from various fields to validate a framework and implementation procedure for addressing business concerns. In this case, the primary data was collected through self-administered questionnaire, and 244 valid questionnaires were received and were analyzed. Furthermore, the research verified the practicability of the framework by empirically exploring the current scenario of selected manufacturing companies.
Findings
The research discovered innovative framework and six-phase implementation procedure to fill the existing conceptual gap. Furthermore, the survey-based and exploratory empirical analysis of the research demonstrated that the practice of the proposed framework based on structured procedure is valued and companies attain the middling improvements of productivity, delivery time, quality, 5S practice, waste and accident rate by 61.03, 44, 52.53, 95.19, 80.12, and 70.55% respectively. Additionally, the companies saved a total of 14933446 ETH Birr and 5,658 M2 free spaces. Even though, the practices and improvements vary from company to company, and even companies unable to practice some of the unique techniques of the identified CI initiatives considered in the proposed framework.
Research limitations/implications
All data collected in the survey came from professionals working for Ethiopian manufacturing companies, universities and government. It is important to highlight that n = 244 is high sample size, which is adequate for a preliminary survey but reinforcing still needs further survey in terms of generalization of the results since there are hundreds of manufacturing companies, consultants and academicians implementing and consulting Kaizen. Therefore, a further study on a wider Ethiopian manufacturing companies, consultants and academic scale would be informative.
Practical implications
This work is very important for Kaizen professionals in the manufacturing industry, academic and government but in particular for senior management and leadership teams. Aside from the main findings on framework development, there is some strong evidence that practice of Kaizen resulted in achieving quantitative (monetary and non-monetary) and qualitative results. Thus, senior management teams should use this research out to practice and analyze the effect of Kaizen on their own organizations. Within the academic community, this study is one of the first focusing on development, validating and practically testing and should aid further study, research and understanding of Kaizen in manufacturing industries.
Originality/value
So far, it is rare to find preceding studies proposed, validated and practically test an integrated Kaizen framework with the context of manufacturing industries. Thus, authors understand that this is the very first research focused on the development of the framework for manufacturing industries continuously to be competitive and could help managers, institutions, practitioners and academicians in Kaizen practice.
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Neeraj Yadav and Pantri Heriyati
Generic quality management system standard ISO 9001 and the automotive quality management system standard IATF 16949 both require organisations to demonstrate continual…
Abstract
Purpose
Generic quality management system standard ISO 9001 and the automotive quality management system standard IATF 16949 both require organisations to demonstrate continual improvement in their customer satisfaction and the number of non-conformities identified during quality system audits. However, the long-term trends of these two parameters under ISO 9001 and IATF 16949 standards are not researched so far. It is expected that under continual improvement, organisations will achieve a step-function/stair-case shaped pattern. This study evaluates if this expectation is true when long-term performance of certified organisations is assessed.
Design/methodology/approach
A longitudinal exploration of three organisations certified to ISO 9001 standard and three certified to IATF 16949 standard is done. The observations are further substantiated using secondary data for the same ten years period about customer satisfaction of the major automobile manufacturers.
Findings
It is observed that none of the two indicators, i.e. the customer satisfaction and number of non-conformities, in any of the six organisations show step-wise/stair-case type improvement. All indicators followed random up and down patterns like ocean waves. It is paradoxical that certified organisations are claiming continual improvement and are remaining certified but there is actually no long-term improvement.
Originality/value
Longitudinal studies for the generic quality management standard ISO 9001 and the quality system standard for automotive sector IATF 16949 are rare. The revelation about ocean wave patterns observed in the long-term trends for customer satisfaction and the number of non-conformities in ISO 9001 and IATF 16949 certified organisations is a startling finding. It is outlandishly different from the conventional perception of a staircase-styled continual improvement pattern expected a priori in certified organisations.
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Arnaldo Camuffo and Alberto Poletto
The paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management…
Abstract
Purpose
The paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management systems and “S-curve” effects in lean implementation are used to ground the paper's hypotheses and interpret its findings.
Design/methodology/approach
Using the emerging view of lean as enterprise-wide management systems, this quasi-experimental study uses a difference-in-differences approach to estimate the abnormal profitability (ROIC) attributable to lean management system adoption. The paper leverages a unique data set of lean adopters nested in a panel data set (19 years) of 2,088 industrial firms matched by industry and firm size. It applies a variety of regression methods (two-way fixed effect panel estimator, propensity score matching, instrumental variable two-stage-least squares) to estimate the size of the abnormal profitability attributable to lean management systems, addressing endogeneity issues related to non-random sampling, omitted variable bias and reverse causation. It also analyzes the cross-firm variability of such abnormal profitability and how it accrues over time.
Findings
For the average non-adopter in the sample (44.3 million euro revenues), lean adoption generates abnormal ROIC ranging from 1.4% to 3.9%. These results come into effect approximately three years after starting lean adoption and peak after eight years. While the average abnormal profitability attributable to lean adoption is sizable, it varies significantly across firms and over time. This significant variation is compatible with firms' diverse ability to understand the complex inner workings of lean systems, and to design and implement them so that they improve profitability.
Research limitations/implications
The conceptualization of lean as enterprise-wide management system can be further refined to more effectively categorize the components of lean systems and investigate the nature of their relationships. Lean system adoption measurement can be fine-tuned to better capture cross-firm and longitudinal heterogeneity. Future work can explore other dependent variables of interest to different stakeholders including shareholders' value, employment and environmental and social sustainability.
Practical implications
The financial benefits of adopting lean can be reaped to the extent to which managers embrace lean as a philosophy and implement it pervasively in the organization. A firm can use the study's estimates as a basis for making calculations about the returns of investment in lean adoption. The paper also shows that “getting the lean system right” makes a significant difference in terms of abnormal profitability, which is twice as large for the best lean adopters..
Social implications
Compared with the promises of many lean proponents and supporters, the paper provides a more realistic view of what to expect from lean adoption in terms of profitability. Adopting lean as a comprehensive, enterprise-wide management system is not a universal panacea, but a complex endeavor, characterized by multiple complex decisions that require considerable capabilities, coordinated efforts and consistency of action.
Originality/value
Differently from extant research, this study does not study the correlation between the adoption of lean operation practices and financial performance but focuses on the abnormal profitability generated by the adoption of lean as a pervasive, enterprise-wide management system. Its research design allows to identify the differential profitability attributable to lean adoption and documents that it accrues non-linearly.
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Francesco Arcidiacono and Florian Schupp
Smart manufacturing (SM) lies at the core of Industry 4.0. Uniform adoption of SM across business partners is crucial to exploit its value creation potential. However, firms'…
Abstract
Purpose
Smart manufacturing (SM) lies at the core of Industry 4.0. Uniform adoption of SM across business partners is crucial to exploit its value creation potential. However, firms' willingness to invest in SM is limited by insufficient or inconclusive evidence on its performance-related benefits. To close this gap, this paper develops and tests a model linking SM adoption to firms' financial performance. Improvements along the four dimensions of operational performance (i.e. cost quality, delivery and flexibility) mediate this relation.
Design/methodology/approach
This study follows an empirical research approach. In particular, survey data from 234 automotive component suppliers are analyzed via covariance-based structural equation modeling to explore the link between SM adoption and operational performance. Survey data are then matched with secondary data from balance sheets of 81 firms to investigate the impact of SM on financial performance via partial least square structural equation modeling.
Findings
Findings highlight that adoption of SM results in improvements in cost, quality, delivery performance, thus suggesting that SM is a mean to overcome performance trade-offs. Improvements in operational performance enabled by SM do not give rise to superior financial performance, thus implying that SM might support firms in maintaining the competitive position in the market, but could be insufficient to generate higher margin.
Originality/value
Results have implications for SM research and for manufacturing executives engaged in the adoption of SM, as they provide a detailed analysis of the impact of SM on operational performance and clarify the effect that SM adoption has on financial performance.
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Aqeel Ahmed, Sanjay Mathrani and Nihal Jayamaha
The aim of this paper is to explore the implementation of an integrated lean and ISO 14001 approach in meat industry for environmental performance and examine a proposed…
Abstract
Purpose
The aim of this paper is to explore the implementation of an integrated lean and ISO 14001 approach in meat industry for environmental performance and examine a proposed conceptual framework by capturing insights from lean and ISO 14001 experts in New Zealand (NZ).
Design/methodology/approach
Semi-structured interviews have been conducted with a group of consultants (lean and ISO 14001) to evaluate the suitability of an integrated lean and ISO 14001 approach in the meat industry for environmental performance. A conceptual framework from literature has guided this study leading to its further development based on the empirical evidence collected.
Findings
Findings have illustrated a synergistic positive impact of lean and ISO 14001 implementation as an integrated approach for sustaining environmental performance in the meat industry. A joint implementation program provides more clarity in aligning ISO 14001 operational procedures with lean tools and techniques for an enhanced environmental performance outcome.
Practical implications
The application of an integrated lean and ISO 14001 framework is proposed in this paper, which can help industry practitioners and academia in developing a joint implementation strategy and conducting future research.
Originality/value
To the best of the author’s knowledge, this study is the first to assess the effective implementation of lean and ISO 14001 as an integrated approach in the NZ meat industry.
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Performance framework (PF) is a well-established practice to measure innovation performance and identify improvement opportunities. However, whether PFs academic research are…
Abstract
Purpose
Performance framework (PF) is a well-established practice to measure innovation performance and identify improvement opportunities. However, whether PFs academic research are applicable to companies remains unclear, as well as their support in the definition of improvement actions. This study aims to present the implementation and assessment of a new and updated PF proposed in previous research in a real industrial context.
Design/methodology/approach
The PF was implemented through an in-depth case study carried out in a European machinery manufacturer and further assessed by practitioners.
Findings
The results indicate that the PF enabled the creation of a multidimensional view of the innovation performance and the definition of improvement projects in the company. Additionally, the findings also reveal an overall positive assessment of the PF by senior managers who work with the innovation process.
Research limitations/implications
As a case study, this research is inherently limited in the extent to which results can be generalised. Thus, the analyses are reductive and rationalising. Future research is needed to assess the replicability of the PF.
Practical implications
The study's practical contribution is based on the combination of insights and steps that provide a straightforward and actionable approach for the company to improve performance.
Originality/value
This study aims to advance the importance of implementing the new and updated PF after its proposition, which is often overlooked in preceding research. Furthermore, the assessment of the PF also enables to infer its value to the company's employees.
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Rafael Henao and William Sarache
Sustainability has become a priority for companies due to pressure from multiple stakeholders. In an overly competitive market, shareholders push for economic results, allowing…
Abstract
Purpose
Sustainability has become a priority for companies due to pressure from multiple stakeholders. In an overly competitive market, shareholders push for economic results, allowing lean manufacturing to establish itself as dominant paradigm in manufacturing. However, concerns grow regarding how lean implementation can allow companies to achieve sustainable development goals, or, if the resources required for a successful lean implementation can result in a detriment of environmental and social performance. This paper intends to help close the knowledge gap regarding the effects of lean manufacturing on sustainable performance from a triple bottom line perspective, and how operational, environmental and social outcomes interact between themselves.
Design/methodology/approach
Two models for the interaction between lean and sustainability were proposed. The first is called the “sand-cone” model, which poses that performance improvements derived from lean are cumulative on each one of the sustainability dimensions. The second is called the “trade-offs” approach. In this case, the resources required to improve one dimension of sustainability clash with those required by the others. Data were gathered from a sample of 133 Colombian metalworking companies and processed using structural equations models.
Findings
The results support the cumulative “sand-cone”, which follows a sequence of operational-environmental-social improvement in the presence of lean. For the “trade-offs” model, partial evidence suggests that they can occur in detriment of social performance.
Originality/value
The “sand-cone” and “trade-offs” are empirically tested for the first time in the context of sustainability, providing further knowledge into its interaction with lean manufacturing. The models’ results contribute to practitioners by providing a tested path for companies to improve their performance in a cumulative sequence that will provide better long-term results.
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Syed Abidur Rahman, Seyedeh Khadijeh Taghizadeh, Golam Mostafa Khan and Malgorzata Radomska
The study aims to test the framework that proposes the role of resources (intellectual capital) in mobilizing entrepreneurial orientation that influences the competitiveness…
Abstract
Purpose
The study aims to test the framework that proposes the role of resources (intellectual capital) in mobilizing entrepreneurial orientation that influences the competitiveness improvement of micro-small-medium enterprises (MSMEs) under the lens of resource orchestration theory.
Design/methodology/approach
In this study, 347 respondents from the MSMEs participated through a structured questionnaire. For the data analysis purpose, the structural equation modeling technique was employed using SmartPLS software.
Findings
The results suggest human, structural, and relational capital are significant antecedents of entrepreneurial orientation, which leads to competitiveness improvement. The findings also indicate the mediation role of entrepreneurial orientation between intellectual capital and competitiveness improvement.
Practical implications
The current study presumably will supplement the promising research effort to progress the research orchestration theory and also could be a strategic guideline for the managers/owners of the MSMEs.
Originality/value
This study is possibly a novel attempt to divulge the association between intellectual capital (tripartite model) and competitiveness improvement of firms under the lens of resource orchestration theory.
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Xingxi Li, Su Wu and Huiming Liu
Quality awards are widely considered symbols of successful quality management. The purpose of this paper is to empirically test the effects of the China Quality Award (CQA) on…
Abstract
Purpose
Quality awards are widely considered symbols of successful quality management. The purpose of this paper is to empirically test the effects of the China Quality Award (CQA) on firms' performance. The study further explores how the benefits due to CQA are affected by contextual factors.
Design/methodology/approach
Using the data of CQA winners from 2001 to 2016, the event study method is applied to analyze the abnormal performance of winners. Furthermore, multiple regression models are proposed to evaluate the effects of contextual factors on the relationship between the award and profitability.
Findings
The findings show that CQA has positive impacts on profitability and fixed asset efficiency but not on labor productivity. Besides, state-owned firms and firms with high innovation intensity obtain more profitability benefits than others.
Originality/value
This is the first study to explain the relationship between quality awards and firm performance from a theoretical perspective, providing new insights into the quality management and performance literature. Furthermore, this study deepens the understanding of the relationship between quality awards and performance and reveals new implications. Some of the contextual factors examined, such as innovation intensity, are considered for the first time in quality award research.
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