Investigating the role of strategic thinking in establishing organizational excellence model

Business Excellence Model for the Business Performance of Small and Medium Enterprises in Malaysia

Objective - Small and Medium Enterprises (S.M.E.s), including Malaysia, have been recognized as a critical economic development engine globally. S.M.E.s' economic contribution includes their share of total establishments, employment, Gross Domestic Product (G.D.P.), and total export. Methodology/Technique – S.M.E.s comprise 97.4 percent of business establishments, provide 59 percent of total employment, and are the major contributor to economic growth. Although S.M.E.s play a pivotal role in economic development due to their significant proportion, their business performance remains a topic of debate. The S.M.E.s' business performance has shown slow growth while recording low productivity compared to large firms. This paper aims to develop a comprehensive Business Excellent Model (B.E.M.) that is exclusively and mutually for the business performance of S.M.E.s by investigating each criterion of the Business Excellent Model. Finding – The B.E.M. was developed by reviewing the literature on the issue from local and global contexts. Previous studies have shown that S.M.E.s require a suitable B.E.M. to catalyze their business performance. The S.M.E.s need to have seven criteria which comprise (a) leadership, (b) strategy, (c) information, (d) customer, (e) workforce, (f) process, and (g) results that are exclusively and mutually for S.M.E.s' business performance. Novelty – Finally, the literature's conclusion helps evaluate the critical issues of slow-growing and unproductive S.M.E.s in Malaysia. Furthermore, understanding every criterion of the B.E.M. would also ascertain which measures should be included in the B.E.M. for S.M.E.s. Type of Paper: Review J.E.L. Classification: M10, M11. Keywords: Small and Medium Enterprises; Business Performance; Excellent Business Model; Resource-Based View Theory; Productivity Gap. Reference to this paper should be referred to as follows: Moin, S.B; Bakar, S.B.A; Samat, M.F.B. (2023). Business Excellence Model for the Business Performance of Small and Medium Enterprises in Malaysia, GATR-Global J. Bus. Soc. Sci. Review, 11(1), 18–25. https://doi.org/10.35609/gjbssr.2023.11.1(3)

Application of six sigma and the system thinking approach in COVID-19 operation management: a case study of the victorian aged care response centre (VACRC) in Australia

COVID-19 has posed many unique and critical challenges in various contexts and circumstances. This often led the stakeholders and decision-makers to depart from traditional thinking and the business-as-usual processes and to come up with innovative approaches to tackle various mission-critical situations within a short time frame. In this paper, a real-life case study of COVID-19 operation management following a multi-disciplinary, multi-stakeholder novel integrated approach in aged care facilities in Victoria, Australia, is presented which yielded significant and positive outcomes. The purpose of the intervention was to develop an integrated system performance approach through the application of various quality management tools and techniques to achieve organizational excellence at the aged care centers. The case involved the use of mathematical models along with statistical tools and techniques to address the specific problem scenario. A system-wide management plan was proposed, involving various agencies across several residential aged care facilities during the pandemic. A three-step methodological framework was developed, where Six Sigma, a system thinking approach, and a holistic metric were proposed to manage the value chain of the pandemic management system. The experimental result analyses showed significant improvement in the management process, suggesting the validity and potential of this holistic approach to stabilize the situation and subsequently set the conditions for operations excellence within the sectors. The model offers new insight into the existing body of knowledge and offers an efficient approach to achieving operational excellence in any organization or business regardless of its type, shape and complexity, which can help practitioners in managing complex, mission-critical situations like a pandemic.

Intellectual capital and performance of automotive manufacturers: the role of strategic thinking

Purpose

The purpose of this paper is to investigate the influence of intellectual capital (IC) on the performance of Malaysian automotive manufacturing firms. It also examines the role of strategic thinking (ST) as a moderating variable in the relationship between IC and performance in these firms.

Design/methodology/approach

This study used a quantitative approach, with an initial sample of 228 firms in Malaysia. Partial least squares structural equation modelling (PLS-SEM) was employed to test the study hypotheses.

Findings

The results of the PLS-SEM analysis are as follows: Human capital (HC) and relational capital (RC) have significant effect on performance, but not structural capital (SC). ST has no moderating effect on the relationship between RC or SC and performance although it does moderate the relationship between performance and HC.

Research limitations/implications

Together with the government, CEOs hold responsibility for ensuring that organizations practice effective ST and IC. With the assistance of government, CEOs should exert every effort to be leaders in this matter. In addition, CEOs of automotive manufacturing firm should reduce their emphasis on classical ways of managing organizations processes.

Practical implications

The findings offer guidance to automotive firms considering how to develop IC and ST to improve performance, especially in Malaysia and Southeast Asia.

Originality/value

This is the first study to examine the moderating effect of ST on the relationship between IC and performance worldwide.

Delving into the soft side of TQM: an analysis of the implications of employee involvement on management practices

Purpose

Soft total quality management (STQM) is a requisite for the successful implementation of hard total quality management interventions. However, there is limited empirical evidence on the implications of adopting soft total quality management practices. Inter alia, little is known about the consequences of employee involvement in addressing organizational and management challenges. To fill this gap, the article investigates the effects of employees' involvement on their commitment to organizational excellence.

Design/methodology/approach

Secondary data were collected from the European Company Survey (ECS). A large sample of 15,958 European companies was involved in the analysis. A parallel mediation model was devised to investigate the effects of employee involvement on commitment to organizational excellence. Training and motivation were contemplated as mediating variables to investigate the indirect implications of employee involvement on commitment to organizational excellence.

Findings

Employee involvement contributed marginally towards establishing an increased individual commitment to organizational excellence. Training and motivation played a relevant and statistically significant mediating role, boosting the implications of involvement on commitment to organizational excellence.

Practical implications

Employee involvement is critical for establishing an organizational climate conducive to organizational excellence. However, its implications should be contextualized in light of the mediating role of training and motivation. On the one hand, training is expected to increase employees' participation in the enhancement of organizational excellence. On the other hand, motivation fosters employee engagement in the improvement of organizational dynamics.

Originality/value

The article investigates the implications of employee involvement on commitment to organizational excellence in a large sample of European companies, emphasizing that soft TQM interventions should be implemented according to a systemic perspective in order to pave the way for a viable commitment to organizational excellence.

Investigating the role of social networking technology on the organizational agility: a structural equation modeling approach

Purpose

The current extensive business ecosystem, characterized by technological advances and development, impressive customers, and increasing social concerns, has exerted great pressure on business organizations. Among different business values for affording this pressure, organizational agility is a critical factor that should be carefully incorporated in business processes. The main purpose of the present study is to investigate the role of social networking technology, as a crucial collaborative tool, on organizational agility.

Design/methodology/approach

A model based on structural equations was designed in this regard. The constructs of this model are quality of service, varieties of services, costs and speed of service as independent variables and also agility management as a dependent variable. Based on the conceptual model, a questionnaire was prepared and distributed among the experts of social networking technology and agility management. Based on Cochran's formula the sample size was 384. The response rate was 100%. The main statistical measures such as Chi-square ratio to the degree of freedom, Non-soft Fitness Index (RMSEA), Goodness of Fit Index (GFI) and Modified fitness index (AGFI) were employed for analyzing the model.

Findings

Results of obtained data indicated that a variety of services as the main factor of social networking technology has the most impact on the agility of a company. Then, the speed of service, service quality and costs were ranked respectively in second to fourth. Providing information technology (IT) service perceptions, promoting the service climate and thorough identification of IT requirements are the main critical success factors for maintaining a robust impact of social networking technology on organizational agility. Moreover, a well-designed enterprise structure alongside employing newly developed IT infrastructures such as cloud computing certainly improves the capabilities of organizations to improve their agility.

Originality/value

Although the literature suggests a positive impact among IT or social networks on organizational agility, it is deficient in relation to considering the impact of social networking. Furthermore, a structural equation model (SEM) is used for assessing unobservable latent constructs and their related interrelationship.

What makes excellence models excellent: a comparison of the American, European and Japanese models

Purpose

This paper compares three business excellence models (BEMs): Baldrige criteria for performance excellence (BCPE), European Foundation for Quality Management (EFQM) model and Deming Prize (DP) model, representing American, European and Japanese excellence models, respectively. These models are compared in terms of contents, scope, orientation, emphasis and administration.

Design/methodology/approach

Using an inductive-deductive approach, the paper identifies and compares the contents, core values, unique features, points of emphasis and the overall approach of these models.

Findings

Significant differences exist in these models, and that none of these models is perfect. Overall, the BCPE is results-oriented, mainly economic-focused, explicit in presenting requirements and better structured. The EFQM model provides an augmented focus on sustainability, stakeholder engagement and inclusivity. The DP model is an internally oriented TQM model that focuses on processes improvement as a means to excellence.

Practical implications

The findings can guide managers regarding what they should expect from the application of excellence models and make better decisions regarding the choice of excellence models. Further, these findings can provide a foundation for updating the excellence models.

Originality/value

This paper stands alone as a qualitative comparison of BEMs in terms of contents, scope, administration and emphasis on excellence related matters.