The impact of organization ownership structure on JIT implementation and production operations performance

Firm Characteristics, Business Environment, Strategic Orientation, and Performance

The purpose of this study is to empirically examine the influence of firm characteristics (size, age, industry type, and ownership) on a firm’s strategic orientation. The business environment, namely market uncertainty and competition intensity, is also analysed in association with the firm’s strategic orientation. Furthermore, the implication of strategic orientation for performance is tested. The study used 1024 data sets of 128 manufacturing firms listed on the Indonesia stock exchange from 2014 to 2021. Data panel regression and independent t-tests were employed for statistical analysis. Adopting Miles and Snow’s strategy typology framework, the findings indicated that the firm size, industry type, and competition intensity significantly influence the firm’s strategic orientation. Small firms preferred to adopt a proactive strategic orientation (prospector and analyser). Firms in the fast-moving consumer goods (FMCG) industry tended to adopt a proactive strategic orientation (prospector and analyser). Strategic orientation was found to positively and significantly influence firm performance. Firms that adopt a proactive strategic orientation (analyser and prospector) showed better performance than defensive ones (reactor and defender).

Collaboration as a structural aspect of proactive social sustainability: the differential moderating role of distributive and procedural justice

Purpose

This paper aims to adopt the strategy-structure-performance (SSP) framework to explore how proactive social strategy could motivate firms to collaborate with suppliers on social sustainability initiatives, and how such collaborative efforts could unlock a win-win opportunity for both noneconomic (social performance) and economic (operational performance) performance. Additionally, drawing on the tenets of the social exchange theory, the different moderating effects of distributive justice and procedural justice on the social collaboration-performance relationship are also examined.

Design/methodology/approach

This study uses survey data collected from 215 manufacturing companies in China. The proposed hypotheses are tested using multiple linear regression models as well as the PROCESS macro within SPSS.

Findings

The results suggest that (1) a proactive social strategy could motivate firms to collaborate with suppliers on joint social activities and (2) social collaboration with suppliers can have a significant positive effect on both social and operational performance. The moderation results suggest that distributive justice has a differential effect on the collaboration-performance link. Particularly, distributive justice strengthens the relationship between social collaboration and operational performance, while it weakens the relationship between social collaboration and social performance. Surprisingly, procedural justice did not have a significant moderating effect on the social collaboration-performance link.

Originality/value

This paper extends the SSP framework to the social sustainability context by not only stressing the importance of proactivity in managing sustainability, but also revealing collaboration as a structural aspect that could achieve superior performance benefits. This study also contributes to sustainable supply chain literature by exploring the moderating roles of justice elements.

An empirical investigation of performance assessment of Indian healthcare industry

Purpose

The purpose of the study is to measure the performance of Indian hospitals, both operationally and financially, by using hospital KPI's. The assessment is predominantly done by linking it to the existing Lean practices in Indian hospitals.

Design/methodology/approach

An empirical study based on cross-sectional survey of hospital managers and specialists in various private healthcare facilities across India was conducted to validate the proposed Lean framework. From an extensive literature survey, the authors identified quality, delivery, efficiency, accessibility and patient centeredness to be the main operational performance (OP) indicators for hospitals. Business or financial performance was measured based on parameters which are average revenue per occupied bed (ARPOB), earnings before interest, tax, depreciation and amortization (EBITDA) and operating revenue. Confirmatory Factor Analysis (CFA) was carried out using a specialized technique, called Structural Equation Modelling(SEM) and an explicit factor structure was hypothesized.

Findings

Management commitment towards Lean in hospitals is statistically proven to have impacted operational and financial performance. However, leanness in technology and business processes showed no statistical significance on either operational or financial performance parameters. Hospital stakeholders showed statistical significance on though it had no impact on the financial performance. Results obtained from the statistical analysis indicate a positive impact of hospital Lean practices on timely delivery of services and improved service quality. Efficiency, accessibility of services and patient centered behavior in hospital operations could not be statistically proven to have impacted the financial performance.

Social implications

Effectiveness of Lean management (LM) principles in improving hospital operations is largely dependent on patient centered behavior. Empowered employees who are trained to add value from a customer view point, make hospital operations safe and improved. Properly trained and communicated employees who are committed to quality improvements can make a positive impact on patients' quality of life and thus positively impact the society. The study lists ways to attain the required outcomes.

Originality/value

This paper is among the very few that has attempted to suggest ways to link implementation of Lean practices more effectively in Indian hospitals to improve hospital performance at operational and financial levels.

Systematic review of manufacturing strategy studies focusing on congruence aspect

Purpose

This study provides a systematic review of the literature within the manufacturing strategy (MS) domain focusing on the congruence aspect of different strategic functions to determine the state-of-the-art research progression and the trend of publications.

Design/methodology/approach

We have adopted a five-stage review methodology consisting - 1) Article Identification; 2) Inclusion/Exclusion; 3) Review of the Articles; 4) Literature Analysis; 5) Future research directions. 121 articles focusing on congruence aspects and specific to the MS domain are identified and reviewed. Bibliometric analysis comprising keyword co-occurrence using a VOSviewer© software, and citation analysis is performed. Further, content analysis is carried out to categorize articles based on the type of research methodology, type of tool/method used, and aspects considered for congruence study.

Findings

Based on the research gaps identified in the existing literature on the congruence aspect within the MS domain, this study offers future research directions. Majorly, the work found is an empirical survey. Literature scants to develop a framework that helps to quantify the congruence between two strategic functions.

Research limitations/implications

This study facilitates researchers and practitioners to understand the congruence between different strategic aspects studied in the literature and the level of fit between them. Further, the identified research directions can encourage researchers and practitioners to conceive novel approaches to conduct future works on congruence theme.

Originality/value

The unicity of the current review lies in its theme, i.e. congruence aspect within MS. To the best of author's knowledge, no comparable study is observed to review the congruence aspect in any other domain.

Definition of input and output variables to assess operations strategy efficiency frontier

Purpose

To investigate the relationship between performance frontier and operations strategy. A two-level conceptual framework is proposed based on performance elements that act as output/input variables and delimit the scope of the frontier analysis.

Design/methodology/approach

The framework proposition is based on the fourth round of high-performance manufacturing survey data. A representative set of variables for assessing performance based on operations strategy constructs is defined through multivariate data analysis techniques. The main method used is the principal component analysis.

Findings

The proposed first-level conceptual framework formalizes the relationships between performance frontier analysis techniques and operations strategy, delimiting the scope and the structural definitions. The second-level conceptual framework defines the constructs of the input and output dimensions for frontier analysis studies.

Originality/value

The paper contribution is developed in the gap of market-led orientation to study operations strategy performance frontier since most related literature focuses on capabilities development with a main focus on the resource-based view (RBV) approach. A conceptual framework based on the competitive priorities is therefore proposed to represent the operations strategy in the view of the frontier techniques. The value lies in defining performance measures which are not a straightforward task as the growth of organization competitiveness and complexity require multiple performance measures. A deeper understanding of frontier estimation on the operations strategy context is also provided, contributing to positively influence firms to succeed in the current dynamic competitive environments.

The relationship between investments in lean practices and operational performance

Purpose

Prior research has shown that operational intellectual capital (OIC) and investments in lean practices (ILP) lead to better operational performance. However, there have been no empirical studies on the synergetic effects between OIC components and ILP. More specifically, the question – can the efficacy of ILP be increased through OIC? – has not been studied. Accordingly, the purpose of this paper is to report the empirical results of potential synergetic effects between OIC, as a knowledge-based resource, and ILP.

Design/methodology/approach

The empirical data used for this study were drawn from the fifth round of the Global Manufacturing Research Group survey project (with data collected from 528 manufacturing plants). The hypotheses are empirically tested using three ordinary least square (OLS) models.

Findings

The authors’ findings highlight the importance of leveraging a system of complementary knowledge-based resources (OIC dimensions) and addresses the need for the reformulation of lean theory in terms of the emergent knowledge-based view of the firm. The results facilitate greater understanding of the complex relationship between ILP and operational performance. Building on the contribution of Menoret al.(2007), the authors argue that OIC represents a strategic knowledge-based resource that is valuable, hard to imitate or substitute and, when leveraged effectively, generates superior operational and competitive advantage.

Practical implications

From a managerial standpoint, this study provides guidelines for managers on how to leverage OIC to enhance the efficacy of ILP. The authors argue that firms consider investing in OIC to increase the return from ILP, which, in turn, will enhance their operational performance and provide competitive advantage. The authors findings provide strong evidence of the importance of human, social and structural capital to enhance the efficacy of ILP.

Originality/value

This is the first research paper that extends the application of the intellectual capital theory in lean literature, and argues that the OIC contributes to the efficacy of ILP. The analysis facilitates greater understanding of the complex relationship between OIC dimensions, ILP and operational performance.

Developing and validating lean manufacturing constructs: an SEM approach

Purpose

The purpose of this paper is to provide valid and reliable constructs for lean manufacturing (LM) for assessing its implementation level in order to target areas of improvement.

Design/methodology/approach

Based on an extensive review on LM literature and content validity assessment from practitioners and academicians, nine LM constructs were identified. Measurement items for each construct were developed to become a complete questionnaire. The questionnaire booklets were distributed to large and discrete manufacturing companies in Indonesia. Out of 1,000 survey questionnaires sent, 236 usable responses were returned giving response rate of 23.60 percent. Subsequently, an empirical assessment on the constructs was done by using structural equation modeling approach.

Findings

The study identified the valid and reliable LM constructs, consisting of nine LM constructs and 64 measurement items. The study found that all the constructs are complementary and mutually supportive with each other. Indeed, it suggests the holistic implementation of all the LM practices.

Research limitations/implications

Owing the time and resource constraint, this study only involved large and discrete process manufacturing industries in Indonesia. Hence, the generalization of the result is slightly limited. More studies in several different contexts are required.

Practical implications

This study provided a valuable tool for researchers for gaining deeper understanding regarding the LM and its implementation. For practitioners, it is useful to evaluate the degree of LM employment in their companies, to target area of improvement, as well as to take possible actions in attempting to enhance the organizational performance. More importantly, practitioners should adopt all the LM practices in a holistic manner.

Originality/value

This study is the first attempt to develop LM constructs for evaluating the LM implementation in Indonesia.

A revisit of lean production on performance based on heterogeneity

Purpose

The purpose of this paper is to revisit causal effects and investigate hysteresis effects of lean production on performance. With a focus on firm heterogeneity, this paper explores the role of organization ownership structure in shaping the relationship between lean production and performance.

Design/methodology/approach

The propensity score matching (PSM) model combined with difference-in-difference (DID) estimation is applied to minimize selection bias caused by firm heterogeneity and endogeneity problems derived from unobserved fixed variables that could potentially affect the desired causal relationship.

Findings

Results show that lean production has no significant effect on business performance; however, the relationship between lean production and operations performance is positive and significant, especially for non-state-owned firms. Furthermore, the non-significant effect of lean production on performance of state-owned firms is largely due to the failure of lean production implementation. Meanwhile, lean production can only improve operations performance of non-state-owned firms in the short term due to their inability to continuously implement lean production.

Research limitations/implications

This paper only covers manufacturing listed firms in China. Further studies are needed to test the wide implications of this paper in other countries.

Practical implications

This paper may help managers to identify problems in the implementation of lean production for different organization ownership structure firms, thus providing new insight into the implementation of lean production.

Originality/value

This paper appears to be the first one to examine causal effects of lean production on performance in China by applying the PSM model combined with DID estimation.

5S – a quality improvement tool for sustainable performance: literature review and directions

Purpose

The purpose of this paper is to present the comprehensive literature review on 5S and suggest possible gaps from the point of view of researchers and practitioners. The manuscript presents the overview of 5S implementation and highlights the achievements realized from deployment of 5S initiatives for sustainable performance of organizations.

Design/methodology/approach

The paper critically examines the literature on 5S, analyzes and reviews it systematically. The study highlights the critical barriers and success factors for sustainable 5S implementation in the organizations in the competitive world.

Findings

5S is an outstanding Japanese philosophy for the development of any type organization all over the world. This study bring out the concept of 5S, requirements for its holistic implementation, relationship with other lean tools, benefits, success factors and obstacles in 5S implementation. The significant contributions through 5S initiatives in the organization like production, quality, safety and effective utilization of workspace for the sustained organizational improvement have also been highlighted in the study.

Practical implications

The literature on assortment of 5S technique has been so far very limited. The present paper reviews large number of research publications related to 5S to highlight the significance of 5S philosophy in the sustainable organizational improvement across the world. It foregrounds the approach advised by the various researchers, practitioners and appraises censoriously the reason behind the demand of 5S program in the organization. The needful steps and obstacles are also foreground for the effective implementation of 5S in the organization.

Originality/value

The paper presents a comprehensive review of literature publications in the area of 5S and their assortment to develop an understanding of the significance and implementation of 5S in the organizations. The paper will be helpful or useful to researchers, safety executives, development professionals and managers in the organizations.

Theory development in China-based supply chain management research

Purpose

Although well established in North America and Europe, the study of supply chain management (SCM) is still at a relatively early stage in its development in China. The transformation and rapid growth of the Chinese economy has, nevertheless, created major supply chain challenges for the country making SCM a very fertile area of business research. In Western countries, research on SCM is now mature and underpinned by a solid body of theory. The purpose of this paper is to examine the extent to which research on SCM in China has also developed a theoretical basis.

Design/methodology/approach

The research involved a systematic review of 150 papers published in 18 journals in the fields of SCM, logistics, operations management and marketing during the period 2004-2014. A three-step process was adopted to select appropriate journals, identify relevant articles and classify them in terms of their theoretical content.

Findings

The study has confirmed that, because of its unique economic, political and cultural setting, supply chain development in China has presented new research challenges. Many examples were found of researchers conducting quasi-experiments to test the applicability of established theories to Chinese supply chains while others have tried to develop new ones that are more closely aligned with the Chinese economy and management practices. Researchers have exhibited a heavy reliance on existing theories, with relatively few attempting to customise them to the Chinese context or to construct new ones.

Research limitations/implications

Given the broad scope of SCM, it is possible that the journal and paper selection processes have accidentally screened out relevant papers. The total sample of papers is, nevertheless, large for an explorative study of this type and should, therefore, give an overall impression of the level of theory development in Chinese SCM research.

Practical implications

This study provides a general framework within which to assess the application and development of theories in the Chinese SCM context. It is principally concerned with three components: the SCM phenomena studied, the Chinese business environment and the theoretical contribution of the research. The paper is targeted more at an academic audience than practitioners, though provides an overview of the research so far undertaken on SCM in China that should be of wider interest.

Originality/value

This study is the first of its kind to review China-based SCM research systematically from the perspective of theory development. It should support the evolution of SCM theory not only in China but also more generally.