Assessing relationship between quality management systems and business performance and its mediators

Transforming product development and production to be lean for improving business performance

Purpose

In this study, the authors assess the current state of lean product development and the lean production shop floor, along with the impact of the former on process quality and the latter on product quality and customer complaint reduction. The interplay between process and product quality and customer complaint reduction is assessed, along with their impacts on business performance.

Design/methodology/approach

Data were collected from 377 managers working at auto-component manufacturing firms in India. Confirmatory factor analysis was used for scale validation, and structural equation modelling was employed to test the research hypotheses.

Findings

The results of the statistical analyses reveal the positive influence of a lean production shop floor on process quality and lean product development on product quality and customer complaint reduction, and thereby on business performance.

Practical implications

The findings of this research provide insights into the interplay between lean and quality factors and their influence on customer complaint reduction and business performance. Practitioners can use the proposed model to strategically design unique products and improve the efficiency and effectiveness of the production shop floor, which can help enhance the product and process quality. This can reduce customer dissatisfaction and improve the business performance.

Originality/value

Few studies have simultaneously investigated the influence of lean product development and lean production shop floors in the Indian manufacturing context. To the best of our knowledge, this study is one of the first attempts to include customer complaint reduction as a construct in a lean model. It helps identify and prioritise the enablers of business performance and provides valuable insights for practitioners to strengthen lean implementation to attain a competitive edge.

A comparative analysis of maintenance strategies and data application in asset performance management for both developed and developing countries

Purpose

The present study empirically compares maintenance practices under asset performance management (APM), employed by firms in developed and developing countries (Belgium and Kenya, respectively).

Design/methodology/approach

Empirical observations and theoretical interpretations on maintenance practices under APM are delineated. A comparative cross-sectional survey study is conducted through an online questionnaire with 151 respondents (101 Kenya, 50 Belgium). Descriptive statistics and inferential statistics like independent t-test and phi coefficient were used for analyzing the data.

Findings

In both countries, reduction of maintenance and operational budget, return on assets, asset ageing and compliance aspects were established as critical factors influencing the implementation of asset maintenance and performance management (AMPM). A significant difference in staff competence in managing vibration, ultrasound and others like predictive algorithms was found to exist between the firms of the two countries. The majority of firms across the divide utilize manual and computer-based tools to integrate and analyse various maintenance data sets, while standardization and maintenance knowledge loss were found to adversely affect maintenance data management.

Research limitations/implications

The study findings are based on the limited number of returned responses of the survey questionnaire and focused on only two countries representing developed and developing economies. This study not only provides practitioners with the practical guidelines for benchmarking, but also induces the need to improve the asset maintenance strategies and data application practices for asset performance management.

Practical implications

The paper provides insights to researchers and practitioners in the articulation of imperative effective maintenance strategies, benchmarking and challenges in their implementation, considering the different operational context.

Originality/value

The paper contributes to theory and practice within the field of AMPM where no empirical research comparing developed and developing countries exist.

Effects of Dubai quality award on organisational performance in the United Arab Emirates

Purpose

Dubai Quality Award (DQA) is one of the quality awards that has been implemented in the United Arab Emirates (UAE) for the purpose of improving organisational performance. The objective of this study is to determine whether receiving the DQA has positive impacts on Human Resource Development Practices (HRDP) and organisational performance (OP) of the award-winning companies.

Design/methodology/approach

Secondary data relating to DQA scores were collected from the Department of Economic Development archive of UAE and primary data relating to HRDP and OP were collected from the individual DQA recipients. Data elicited were subjected to statistical analyses by using the structural equation modelling (SEM) approach. This was to identify the nature of relationships existing between DQA criteria and organisational performance outcomes through the mediating effect of HRDP.

Findings

The results indicated that winning of DQA significantly enhances organisational performance and that HRDP is a statistically significant mediator between DQA and OP. Based on the findings of this study, a model has been developed by linking the DQA criteria, HRDP and organisational performance.

Originality/value

Despite few of its limitations, this study is first of a kind in UAE that investigated the relationships among DQA criteria, HRDP and OP. The findings are expected to help the UAE companies to adjust their management policies and practices for enhancing their organisational performance. The findings can also be applicable to companies in other countries, especially Gulf countries that have similar awards such as DQA.

Influence of data-driven supply chain quality management on organizational performance: evidences from retail industry

Purpose

The objective of the study is to test a conceptual model based on the interrelation between data-driven supply chain quality management practices (DDSCQMP) and the performance of organized retailing firms in India.

Design/methodology/approach

Based on a comprehensive review of literature, the dimensions of DDSCQMP concerning the Indian organized retail sector have been extracted. Considering the research objectives, the research data has been collected using a structured questionnaire from Indian retailers. Overall 133 questionnaires were responded successfully from retailers. The model was tested using structured equation modeling (SEM) through PLS 3.0.

Findings

The research findings confirm hypotheses and reveal the statistically significant relationship between DDSCQMP and retailers' performance at an aggregate level. However, the results of the individual-level analysis of DDSCQMP appear to vary from practice to practice. Among various DDSCQMP, “customer focus” with the highest beta (ß) value was found to have the greatest impact on performance followed by “employee relations”.

Originality/value

The study provides empirical justification for a structural model that identifies a positive and significant relationship between DDSCQMP and organizational performance within the context of organized retail sector of India.

Effect of entrepreneurial orientation, market orientation and total quality management on performance

Purpose

This study aims to examine the joint effect of entrepreneurial orientation (EO), market orientation (MO), total quality management (TQM) and organisational performance in the Kingdom of Saudi Arabia’s (KSA's) small and medium enterprise (SME) sector.

Design/methodology/approach

This paper used a quantitative research design. A total of 393 questionnaires were distributed to and collected from owners/managers of SMEs in KSA to acquire requisite data for examining the hypothesised model of the study. Partial least squares structural equation modelling was used to analyse the research data.

Findings

The results indicate that EO, MO and TQM are positively and significantly related to the organisational performance of SMEs. In addition, the findings reveal that TQM has contributed the most to the enhancement of organisational development, which is followed by EO and finally, MO.

Practical implications

Developing economies consider SMEs as an approach to generate new jobs and enhance economic growth. The results provide owners/managers, practitioners and academicians with an enhanced understanding of the relationship and effects of EO, MO and TQM on organisational performance, particularly in the SME sector. Thus, owners/managers are guided to develop improved and further effective decisions for the implementation of TQM practices with strong EO and MO. Consequently, firms realise superior performance and continuously compete within their market.

Originality/value

From the perspective of developing countries, this study contributes to the existing literature by providing empirical evidence regarding the effects of EO, MO, TQM and SMEs' performance. This study is the first to empirically examine the SME sector within the KSA's economy regarding the new orientation among decision makers in terms of increasing the significance of non-oil activities. This study also confirms the usability of resource-based view theory and strategic orientations variables in the KSA SMEs.

A framework for Crosby’s quality principles using ISM and MICMAC approaches

Purpose

The purpose of this paper is to examine Philip B. Crosby’s 14 quality principles and analyze the interaction between them. Hitherto no research has been published on the implementation of total quality management (TQM) using Crosby’s 14 principles. To fill this gap, interpretive structural modeling (ISM) and Matrix Impact Cross-Reference Multiplication Applied to a Classification (MICMAC) analysis have been designed to prioritize, sequence and categorize variables to find both the dependence and driving power of these variables.

Design/methodology/approach

At the initial stage experts from industry as well as from academia were contacted to provide an input for ISM methodology and examine interactions between identified variables. In this approach, interpretations of the interrelationships among variables have been discussed, whereas MICMAC analysis is used to discover dependence and driving power.

Findings

The results of the investigation revealed that “Management Commitment,” “Quality Improvement Team,” “Quality Awareness,” “Supervisor Training,” “Goal Setting” and “Cost of Quality Evaluation” are strategic requirements; “Corrective Action,” “Zero Defects Day” and “Error Cause Removal” are tactical requirements. “Recognition,” “Quality Measurement,” “Quality Councils” and “Do It Over Again” are operational requirements for TQM applications.

Originality/value

ISM is used as a part of this research to provide valuable insights into interrelationships among Crosby’s quality principles through a systematic framework. The research opens up a new focus area on the implementation of TQM for services as well as for the manufacturing industry.

An evaluation of alternative business excellence models using AHP

Purpose

The purpose of this paper is to compare some major National Quality Award/Business Excellence Models (NQA/BEM) in terms of the criteria employed and their relative weights. It shows that these models vary both in terms of criteria and their weights. Whereas some of them are changing weights frequently, others are almost static. It employs the analytic hierarchy process (AHP) to allocate scores to 12 criteria identified in the model by Agrawal et al. (1998) to propose a modified quality award model similar to that. The six quality award models used in the USA, Canada, Europe, Australia, Japan and India are compared with the proposed model using AHP and their relative rankings are obtained.

Design/methodology/approach

First, a literature review is done to identify various quality award models globally, with their features being compared. Furthermore, paired comparison technique is used to rationalize the relative weights of proposed 12 criteria, and then AHP is again used to rank this proposed model with six major award models.

Findings

This paper shows that the six NQA models vary substantially on parameter weights. They do not include some relevant criteria to evaluate the organizational performance holistically. It also reveals how some models have been revising criteria weights very frequently, whereas others are static. In some models, the results get much higher weightage than enablers, and hence the performance may not be sustainable. The modified Agrawal et al. (1998) model is taken as a base model, with weights rationalized in it using the AHP. The rankings obtained using AHP reveal that proposed model scores over the other six prominent quality award models. The result also reveals that for organizational excellence, the quality of people plays a major role in the successful implementation of quality processes. Hence, it is very important to focus on improving the quality of people before expecting improvement in the quality of products and services.

Research limitations/implications

The paired comparison results are based on the researchers’ own perception and do not consider interdependence among the criteria, which is a limitation of AHP. Analytic network process can be further explored to overcome the limitation. The proposed model has not been tested in a variety of real-world situations, which can constitute a scope for further work in the direction.

Practical implications

The proposed model framework and weightages evolved using AHP can provide a universally acceptable quality award model framework. The companies can adopt it with or without modifications to address their contextual adaptation. It can possibly become a standard model framework globally. This model does not capture the measurement of the softer aspects that impact the people quality. As people play an important role in the success of the implementation of any practice, hence measurement of people quality is another important aspect that can be further studied and researched.

Originality/value

This comparative study & analysis of National Quality Award/Business Excellence Models using AHP is presented for the first time. The authors have not come across any such studies in their literature review. This paper is an original conceptualization of the application of the AHP on the various Quality Award model parameters, and it has been submitted exclusively to JAMR for publishing.

Environmental management accounting practices, management system, and performance

Purpose

The purpose of this paper is to examine the relationship between environmental management accounting practices (EMAP), environmental management system (EMS) and organizational performance (OPM) for Malaysian manufacturing industry by using structural equation modeling (SEM) approach.

Design/methodology/approach

The population of the Malaysian manufacturing industry comprised 2,600 manufacturing companies. The unit of analysis is the organization that participated in the survey comprised of automotive/machinery, plastics/rubber/metal, food/tobacco, electrical/electronics and chemical/woods. Out of the 2,600 questionnaires sent to the respondents, 395 were received from manufacturing companies. The collected data are analyzed with the IBM SPSS Statistics and SEM technique.

Findings

Findings found that EMS implementation as a partial mediator to improve EMAP and OPM for Malaysian manufacturing industry. Further, the implementation of EMS was found to mediate the relationship between EMAP and OPM.

Research limitations/implications

The understanding of the importance of studying the relationship between EMAP, EMS and OPM has been emphasized in the present study. In fact, the findings of this study along with its limitations have paved the way for future research in EMAP, EMS and OPM areas.

Practical implications

This research provides important guidelines for manufacturers and related companies to implement EMAP and EMS in order to improve OPM. Hence, the Malaysian manufacturing industry may need to consider the measurement of EMAP, EMS and OPM as beneficial to their manufacturing companies.

Originality/value

The research contributes to the environmental management accounting by empirically linking the relationship between EMAP, EMS and OPM for Malaysian manufacturing industry.