The Effect of Internal Environmental Factors on Operational Excellence of Manufacturing Industry: A Pilot Study

Wahab, Mohd Hafeez Al-Amin Abdul; Ismail, Mahamod; Muhayiddin, Mohd Nazri

doi:10.6007/ijarbss/v9-i2/5666

Cited by 5 publications

(2 citation statements)

References 23 publications

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“…Based on the theoretical understanding of excellence models, the theoretical foundation of EFQM is also studied under the theoretical domain of resource-based theory (Ruiz-Carrillo and Fernández-Ortiz, 2005). Different empirical findings on OE were conducted in the theoretical context of the resource-based view (Fok-Yew and Ahmad, 2014; Mohd Ali Smadi Ziad, 2018; Wahab et al , 2019). The applicability of the resource base view was also studied in the implementation of operational excellence methodologies like TQM, lean management and six sigma (Kiatcharoenpol et al , 2011; Kumar and Rodrigues, 2020; Tena et al , 2001).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Development of a multi-item Operational Excellence scale: Exploratory and confirmatory factor analysis

Saeed

Tasmin

Ayyaz

et al. 2021

TQM

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PurposeConsidering the relevance of operational excellence as a business strategy, organizations are striving to improve themselves by adopting best practices and universally accepted principles through the process of continuous improvement, and these principles should be embedded in the culture of an organization. Organizations pursue to align themselves by continuously improving their processes by adopting scientifically proven techniques and cultural transformation throughout the organization. However, there is a lack of scientific instruments for the assessment of operational excellence. The objective of this study is to develop a scale for the assessment of practices of operational excellence principles in the organizations. Further reliability and validity of the developed scale are measured by testing the relationship between Human Resource Practices (HRP) and Operational Excellence (OE).Design/methodology/approachThis study comprises quantitative design through exploratory and confirmatory studies and also includes qualitative analysis to develop a scale for the assessment of Operational Excellence (OE). Interviews from industry experts have been conducted to identify the major components for which organizations are striving for OE. Previous literature and excellence models, especially principles of the Shingo Operational Excellence Model (SOEM), have been reviewed and considered to finalize the scale items. Data were collected in two stages from both Telecommunication subsectors (Cellular Mobile Operators and Fixed Local Loop Operators) of Pakistan through the cross-sectional survey. In the first stage, exploratory factor analysis (EFA) was performed on the sample of 611 respondents from both Cellular Mobile and Fixed Local Loop operators of Pakistan. In the second stage, confirmatory factor analysis (CFA) was performed on the sample of 423 respondents from the Fixed local loop operators. EFA was conducted by using SPSS version 23 to finalize the OE scale, and for confirmatory factor analysis, PLS-SEM using Smart PLS was used to confirm the reliability and validity of the OE Scale.FindingsThe results of EFA reveal that OE is a multidimensional construct with three dimensions and 23 items. The dimensions of the developed OE Scale explored in this study are cultural enablers (CE), continuous process improvement (CPI) and enterprise alignment (EA). The confirmatory factor analysis of OE confirmed the scale dimensionality, reliability and validity along with the hypothesis testing to measure the impact of antecedent variable HRP on OE.Research limitations/implicationsOrganizations pursue to improve and align their operational processes but usually unable to confirm the implementation of their desired objectives. Based on the developed OE scale, managers may assess the implementation of OE principles in their organizations. This research has been conducted in the telecommunication sector of Pakistan only, and the developed instrument needs to be further tested in other organizations.Practical implicationsThe instrument developed in this study will help both researchers and practitioners to assess the principles of operational excellence in their organizations and enable them to design the strategies for improving organizational performance.Social implicationsThe results of this study will create awareness about the principles of operational excellence. The developed OE instrument will assist in identifying the gaps in organizational norms and values from the perspective of paying respect to every individual inside and outside the organization. OE instrument will be further helpful in the identification and assurance of health, safety, protection of the environment and community issues.Originality/valueThis study provides a reliable and validated scale for the scientific area of operation management and helps managers with the assessment of operational excellence in their organizations. This newly developed scale is also valid to test and use in different studies and industries by researchers and practitioners.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Development of a multi-item Operational Excellence scale: Exploratory and confirmatory factor analysis

Saeed

Tasmin

Ayyaz

et al. 2021

TQM

View full text Add to dashboard Cite

show abstract

“…Authors in [15] developed an OpEx framework. Authors in [16] showed the factors influencing OpEx of SMEs in Malaysia. Authors in [17] discussed the factors that can affect OpEx in the service sector and proposed a theoretical framework for this need.…”

Section: Introduction and Literature Reviewmentioning

confidence: 99%

Assessing the Level of Maturity of Operational Excellence in Morocco: A Comparative Study between SMEs and LEs

Kourriche,

Aboutafail

2024

Eng. Technol. Appl. Sci. Res.

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Nowadays, excellence is the ultimate goal for every company wishing to improve and lead the market. The focus is on ensuring that any product or service meets certain criteria, leading to total perfection. This article aims to shed light on operational excellence in Morocco. A form was distributed to 40 firms operating in different sectors in Morocco, to assess the level of maturity of Operational Excellence (OpEx) dimensions. A comparative study was carried out between Small-Medium (SMEs) and Large (LEs) Enterprises. For each company size, a specific result can be distinguished. This assessment of OpEx maturity levels gives a general idea of the level of perfection of these firms operating in Morocco. The results differ according to size, and each dimension of OpEx was a subject of study.

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Exploring the effect of dynamic capabilities on operational excellence, moderated by environmental dynamism in the apparel industry

Kovilage,

Yapa,

Hewagamage

2024

IJPPM

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PurposeThe effect of dynamic capabilities on operational excellence and the moderating effect of environmental dynamism on the relationship between operational excellence and dynamic capabilities in the apparel industry in Sri Lanka were investigated while developing new psychometric scales to assess operational excellence and dynamic capacities constructs.Design/methodology/approachWe followed the exploratory sequential research design with a mixed-method research approach, aligning with the pragmatic research philosophy. Thus, both qualitative and quantitative research methods were followed.FindingsDynamic capabilities positively affect operational excellence, and environmental dynamism moderates the relationship between operational excellence and dynamic capabilities in the apparel industry in Sri Lanka such that when a higher environmental dynamism exists, a weaker positive relationship exists between dynamic capabilities and operational excellence. The two main dimensions of the operational excellence construct are continuous improvement of sustainable operational performance and sustainable competitive advantages. It empirically confirmed that sensing, seizing and reconfiguring capabilities are the three main dimensions of the dynamic capabilities construct.Research limitations/implicationsThis study was limited to the apparel industry in Sri Lanka. This research phenomenon should be explored in other industrial sectors worldwide to generalize the findings. The practitioners in the apparel sector may improve the organizational dynamic capabilities to achieve operational excellence and keep a strong positive relationship between dynamic capabilities and operational excellence in a highly dynamic environment if they address out-of-family situations with out-of-the-box thinking.Originality/valueWe generated two new empirical findings: (1) dynamic capabilities positively affect operational excellence, and (2) environmental dynamism moderates the relationship between dynamic capabilities and operational excellence. Also, we introduced validated new scales for assessing operational excellence and dynamic capabilities.

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The Effect of Internal Environmental Factors on Operational Excellence of Manufacturing Industry: A Pilot Study

Cited by 5 publications

References 23 publications

Development of a multi-item Operational Excellence scale: Exploratory and confirmatory factor analysis

Development of a multi-item Operational Excellence scale: Exploratory and confirmatory factor analysis

Assessing the Level of Maturity of Operational Excellence in Morocco: A Comparative Study between SMEs and LEs

Exploring the effect of dynamic capabilities on operational excellence, moderated by environmental dynamism in the apparel industry

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