Lean service, business strategy and ABC and their impact on firm performance

Abstract

This paper aims to address an underdeveloped area in the lean system literature by developing and testing a model which clarifies the current confusion on the role of different costing systems and business strategies in the implementation of lean service practices and their impact on financial performance. Using data from UK service firms, the proposed positive effect of lean service on financial performance is supported. Further, ABC has a positive impact on lean service, and therefore to indirectly on financial performance. Interestingly and in contrast to previous studies, both the differentiation and cost leadership strategies are directly and positively related to lean service. However, whilst ABC positively intervenes in the lean-differentiation relationship it suppresses the lean-cost leadership one resulting in a situation of inconsistent mediation.

The moderating effect of perceived environmental uncertainty and task uncertainty on the relationship between performance management system practices and organizational performance: evidence from Vietnam

“…The overall response rate of 29.12% is a relatively typical response rate for web-based surveys in the management field (see King, Clarkson, and Wallace 2010;Salimian, Rashidirad, and Soltani 2017;Hadid 2019). The sample distribution per industry of the 90 usable responses is 69 (76.6%) manufacturing companies and 21 (23.4%) non-manufacturing companies (Table 1).…”

“…Concerning the representativeness of the sample, a nonresponse bias test was conducted using the wave as in Hadid (2019). In this method, responses from early and late returns are compared as the latter are assumed to be similar to non-respondents (Armstrong and Overton 1977).…”

“…Demartini and Otley (2019) suggest that a PMS should be designed to meet both local and overall control needs. Since these needs are often in flux due to internal and external forces, systems should be developed in parallel and consistent with other organizational architectural components so they continue to reflect the business strategy (Zimmerman 2017;Hadid 2019).…”

“…Our analysis employs partial least squares structural equation modelling (PLS-SEM), using the analytical software tool Smart-PLS 3.2.8. PLS-SEM has gained popularity in the field of management research, as a multivariate analysis method to fit a composite model and maximize the explained variances (Henseler, Hubona, and Ray 2016;Hair et al 2017;Akter, Fosso Wamba, and Dewan 2017;Ahmed et al 2019;Hadid 2019). The main effects are evaluated via the PLS path model, followed by a subsequent moderator analysis (PEU and task uncertainty).…”

Business strategy: The influence of Strategic Competitiveness on competitive advantage

“…The influence of corporate culture is credited with empowerment. That is why, in the 1990s, many companies used empowerment as a contemporary aspect of corporate culture, encouraging employees to merge culture with their organizations and make acceptable choices in accordance with the company's values and requirements (Hadid, 2019). Organizations tended to use this strategy until leadership became an important part of the business community's internal change.…”