Operational Performance Dimensions Research Articles

Blockchain adoption and operational performance: A secondary data analysis on effects and contingencies

PurposeThis study analyzes the performance implications of adopting blockchain to support supply chain business processes. The technology holds as many promises as implementation challenges, so interest in its impact on operational performance has grown steadily over the last few years.Design/methodology/approachDrawing on transaction cost economics and the contingency theory, we built a set of hypotheses. These were tested through a long-term event study and an ordinary least squares regression involving 130 adopters listed in North America.FindingsCompared with the control sample, adopters displayed significant abnormal performance in terms of labor productivity, operating cycle and profitability, whereas sales appeared unaffected. Firms in regulated settings and closer to the end customer showed more positive effects. Neither industry-level competition nor the early involvement of a project partner emerged as relevant contextual factors.Originality/valueThis research presents the first extensive analysis of operational performance based on objective measures. In contrast to previous studies and theoretical predictions, the results indicate that blockchain adoption is not associated with sales improvement. This can be explained considering that secure data storage and sharing do not guarantee the factual credibility of recorded data, which needs to be proved to customers in alternative ways. Conversely, improvements in other operational performance dimensions confirm that blockchain can support inter-organizational transactions more efficiently. The results are relevant in times when, following hype, there are signs of disengagement with the technology.

Investigating the impact of smart manufacturing on firms' operational and financial performance

PurposeSmart manufacturing (SM) lies at the core of Industry 4.0. Uniform adoption of SM across business partners is crucial to exploit its value creation potential. However, firms' willingness to invest in SM is limited by insufficient or inconclusive evidence on its performance-related benefits. To close this gap, this paper develops and tests a model linking SM adoption to firms' financial performance. Improvements along the four dimensions of operational performance (i.e. cost quality, delivery and flexibility) mediate this relation.Design/methodology/approachThis study follows an empirical research approach. In particular, survey data from 234 automotive component suppliers are analyzed via covariance-based structural equation modeling to explore the link between SM adoption and operational performance. Survey data are then matched with secondary data from balance sheets of 81 firms to investigate the impact of SM on financial performance via partial least square structural equation modeling.FindingsFindings highlight that adoption of SM results in improvements in cost, quality, delivery performance, thus suggesting that SM is a mean to overcome performance trade-offs. Improvements in operational performance enabled by SM do not give rise to superior financial performance, thus implying that SM might support firms in maintaining the competitive position in the market, but could be insufficient to generate higher margin.Originality/valueResults have implications for SM research and for manufacturing executives engaged in the adoption of SM, as they provide a detailed analysis of the impact of SM on operational performance and clarify the effect that SM adoption has on financial performance.

The effect of high-involvement human resource management practices on supply chain resilience and operational performance

Supply chain (SC) resilience is an increasingly important topic for practitioners and academics because it is a competitive weapon for firms to cope with SC disruptive risks. This study examines the impact of high-involvement human resource management practices on SC resilience from the ability-motivation-opportunity perspective. It also examines the relationship between the dimensions of SC resilience and operational performance. Based on data collected from 206 Chinese manufacturers, the proposed hypotheses were tested using structural equation modeling. The results indicated that employee participation played the most powerful role in improving supplier, customer, and internal resilience. Moreover, employee skills only facilitate internal and customer resilience but have no significant impact on supplier resilience. By contrast, employee incentives do not influence the dimension of SC resilience. It was also found that both internal and customer resilience have positive effects on operational performance, while supplier resilience has no significant effect. The findings contribute to literature and practice.

The effects of physicians on operational and financial performance in United States hospitals: staffing, human capital and knowledge spillovers

PurposeThe authors examine how physician staffing, human capital and knowledge spillovers are related to multiple dimensions of hospital operational and financial performance at the organizational level.Design/methodology/approachThe authors use a data set assembled from multiple sources for more than 1,300 US hospitals and employ hierarchical linear regression to test this study’s hypotheses. The authors use multiple quality, efficiency and financial measures of performance for these hospitals.FindingsThe authors find that higher levels of staffing, skills and knowledge spillovers associated with physicians were positively associated with multiple dimensions of hospital performance. The authors find linear and nonlinear relationships between experience and performance, with the relationships primarily negative, and nonlinear relationships between spillovers and quality performance.Practical implicationsHospital managers should consider increasing physician staffing levels if possible. In addition, the overall Final MIPS Score from the Centers for Medicare and Medicaid Services might be included as a factor in determining which physicians practice in a hospital. Finally, if possible, encouraging physicians to practice at multiple hospitals will likely be beneficial to hospital performance.Originality/valueThis study’s findings are original in that they explore how physician-specific staffing and human capital, which have received comparatively little attention in the literature, are related to several different dimensions of hospital-level operational and financial performance. To the best of the authors’ knowledge, this paper is also the first to examine the relationship between the construct of physician knowledge spillovers and hospital-level operational and financial performance.

Examining the relationship between dimensions of supply chain integration, operational performance and firm performance: evidence from Ghana

Purpose The study aims to examine the relationship between dimensions of supply chain integration (SCI), operational performance and firm performance of firms. The study proposes that internal integration serves as the basis for supplier integration and customer integration and all three dimensions directly enhance operational performance and firm performance. Additionally, operational performance is proposed to mediate the effect of dimensions of SCI on firm performance. Design/methodology/approach A research model grounded on the resource-based view and the extended resource-based view was developed to examine the proposed relationships between the dimensions of SCI, operational performance and firm performance. A survey of manufacturing and service firms in Ghana was conducted, with 120 usable responses received. The research model was analysed by using partial least squares structural equation modelling. Robustness tests were conducted by using logistic regression and the Kruskal Wallis test. Findings The findings showed that internal integration had positive and significant effects on customer integration and supplier integration. Internal integration had a positive and significant effect on firm performance whilst customer integration had positive and significant effects on operational performance and firm performance. Additionally, operational performance mediated the effect of customer integration on firm performance. Originality/value This is one of the few studies that examine the interrelationships between dimensions of SCI. Additionally, to the best of the researchers’ knowledge, this is the first study to empirically examine the mediating role of operational performance in the relationship between dimensions of SCI and firm performance.

The value of TPM for Portuguese companies

PurposeThe purpose of this paper is to assess the impact of a maintenance philosophy, Total Productive Maintenance (TPM), on the operational performance of the Portuguese industry, identifying how it enables the systematic reduction of waste in maintenance.Design/methodology/approachA structured questionnaire was constructed and sent to 472 Portuguese enterprises, having obtained a sample constituted of 84 valid answers. With a five-point Likert scale, it was possible to assess the impact of the TPM on five operational performance dimensions, being them: quality, flexibility, productivity, safety and costs.FindingsIt was found that the planned maintenance, together with education and training are the practices with the highest degree of implementation in the Portuguese industry, exceeding 70% for both. The productivity is the dimension with a higher degree of impact from the implementation of TPM and costs the dimension that suffered a lesser impact.Practical implicationsThis paper shows and analyses the current state of TPM implementation in the Portuguese industry and it will be useful for maintenance professionals, researchers and others concerned with maintenance, in order to understand the effects of TPM implementation on the operational performance of the Portuguese industries.Originality/valueThe findings from this paper will be valuable for professionals who desire and are looking forward to implement an effective maintenance approach in the maintenance management system, in order to achieve the excellence in maintenance.

The Impact Autonomous Maintenance on Operational Performance: An Analytical Study at the Baghdad Soft Drinks Company

This research aims to investigate the impact of autonomous maintenance on operational performance dimensions that focuses on cost, quality, delivery, and flexibility. The research sample has targeted the departments of production operations namely; production, maintenance, projects, and quality in the Baghdad Company for Soft Drinks. Data collected by using a survey questionnaire. In total (86) staff were invited to practice in this survey. There are (81) forms that were valid for statistical analysis. Quantitative statistical methods were used for the purpose of data analysis using the (SPSS V.24) program such as; Cronbach's alpha test, kurtosis and skewness, arithmetic mean, standard deviation, coefficient of variation, Spearman's correlation coefficient, coefficient of determination and impact factor. conclusions, The most important conclusions reached by this research are that autonomous maintenance has a strong statistically significant effect on the dimensions of operational performance, especially cost, quality, delivery, and flexibility.

Entrepreneurial versus cooperative social capital: The impact on operational performance

AbstractResearch has extensively focused on how firms can become more competitive, by discovering new knowledge domains while exploiting current ones. Prior research has shown the positive impact of social capital on performance; however, there have been no empirical studies that distinguished between the architectures of social capital and how they impact the operational performance dimensions. Building upon the knowledge‐based theory, we propose a model to examine the effects of the two architectures of social capital (entrepreneurial and cooperative) on individual dimensions of operational performance (quality, delivery, flexibility and cost). The hypotheses are tested using structural equation modelling and data collected from 182 companies in Ireland. The results show that the cooperative social capital archetype supports the operational performance dimensions, while the entrepreneurial social capital archetype only impacts the cost dimension. The findings extend the current understanding about the complex relationships among the architectures of social capital and provide guidance for managers on how to leverage their investments in social capital to enhance specific operational performance dimensions.

Direct and indirect impact of quality management on the integrated performance of medium-scale manufacturers

PurposeMost studies on small and medium scale enterprises lump both small-scale and medium-scale businesses together as entirely similar phenomenon, thus creating an oversight of the degree of performance recorded by medium-scale businesses. In line with investigating medium-scale firms' performance, this study examines the role of quality management in the performance of medium-scale firms to evolve research-based recommendation for better performance.Design/methodology/approachCross-sectional survey design and random sampling were employed. Analysis was based on 915 responses obtained via questionnaire copy distribution from employees within the supply chain, production, operations, and marketing/sales department of selected firms. Hypotheses testing was done using the structural equation model.FindingsA positive significant relationship between quality management and operational performance, employee performance, and quality performance dimensions was identified. An insignificant relationship between quality management and financial and innovation performance dimensions was discovered. However, when mediated by employee focus and process management, significant relationships were observed among all performance dimensions.Research limitations/implicationsThe study reveals that employee focus and process management have the greatest mediating impact on the relationship between quality management and the organisational performance of medium-scale manufacturing firms. This study charts the course for other studies to investigate the mediating role of quality management practices on the relationship between quality management and the organisational performance of medium-scale firms in other developing nations. The manufacturing sector has thirteen industries, but only six were captured in this study. This poses a limitation to the generalisation of the findings of this study. Further studies could strive for a representation of every manufacturing industry to aid generalisation purposes.Practical implicationsManagers of medium-scale manufacturing firms must understand that it might be impossible to get a one size fits all approach to improving performance dimensions. Managers are advised to choose one or two performance dimensions as the goal, then focus on achieving them. This will help clarify which path is best to get the desired results and maximise their quality management system.Originality/valueThis study examines the impact of quality management practices on an integrated performance model of medium-scale firms. The study also uniquely examines the mediating impact of exclusive quality management practices on the relationship between quality management and an integrated performance model.

Innovation Capabilities and Small and Medium Enterprises’ Performance: An Exploratory Study

Research underlined that Small and Medium Enterprises' performance is enhanced by different types of innovation capabilities. This research tends to present a comprehensive model to explain the relationship between innovation capabilities and SMEs' financial and operational performance. Specifically, this study tends to achieve three objectives: explores the set of product, process, organizational and marketing innovation capabilities possessed by owners/managers of SMEs and their impact on Chinese manufacturing SMEs' operational and financial performance dimensions, identify the determinants of innovation capabilities, and determine the contextual factors that moderate innovation capabilities and SMEs' performance. This research employed a qualitative research method using in-depth interviews with eight owners/managers of Chinese manufacturing SMEs. Research findings revealed that product and marketing innovation capabilities have a significant impact on SMEs' financial performance while process and organizational innovation capabilities positively influence SMEs' operational performance. The major determinants of innovation capabilities involved availability of sufficient organizational resources, entrepreneurial orientation, knowledge development and external networks. The contextual moderating factors on the relationship between innovation capabilities and SMEs' performance involved internal factors which are: SME size, SMEs' owner/manager work experience, entrepreneurial mindset; and external factors: market dynamism and cooperation strategies. This paper ends by drawing some concluding remarks and proposing future research avenues.

Performance outcomes of supply chain practices for sustainable development: A meta‐analysis of moderators

AbstractSustainable supply chain management (SSCM) practices have received growing attention but their consequences on firm performance yielded mixed outcomes. This study aims to synthesize quantitative research and to analyze potential moderators on the link between SSCM practices and firm performance. This study draws upon resource‐based view of the firm with the extensions of natural resource‐based view and relational view to underpin study hypotheses. The analysis is based on data collected from 145 independent samples composed of 33,886 firms. The research hypotheses are tested using meta‐analytical procedures. The results show that SSCM practices are significantly and positively correlated with firm's social, operational, economic, and environmental performance dimensions. Additional findings from moderator analysis provide nuanced views of SSCM practices‐performance link. This paper contributes to the literature by underlining the relevance of SSCM, identifying and classifying SSCM practices into a coherent framework. The research findings help policy makers, practitioners and other stakeholders to better understand benefits from the adoption of SSCM practices. Additionally, to the best of authors' knowledge, this is the first study that meta‐analytically combined existing empirical evidence of the social supply practices on various types of firm's sustainability performance.

The contingency effects of supply chain integration on management control system design and operational performance of hospitals in Ghana

PurposeThis paper extends prior contingency-based management accounting research by building and empirically testing a theoretical model of contingency effects of supply chain integration (SCI) on the dimensions of management control system (MCS) and supply chain operational performance (SCOP) of hospitals in Ghana.Design/methodology/approachThe paper uses factorial and structural path analysis of survey responses collected from 237 hospital accountants to model these relationships.FindingsThe results show that under strong SCI, the association between the MCS dimensions and hospital operational performance namely, cost effectiveness, flexibility and quality will be strengthened. In other words, the installation of MCS is more likely to provide a broad range of performance benefits for hospitals that align the four dimensions of the MCS with the dimensions of SCI (internal and external).Research limitations/implicationsA limitation of this study would be its limited scope, as it focused only on hospitals in one developing country. Therefore, the results as indicated here may have limited generalizability to other industries and countries.Practical implicationsWe theorize that using optimal amounts of the MCS, a high level of SCI is likely to reduce supply chain (SC) cost, improve speed, flexibility and quality of the SC among healthcare institutions in Ghana. Also, based on the direct impact on performance exhibited by the MCS dimensions, effective implementation of SCI decisions requires the use of optimal amounts of MCS for high performance.Originality/valueThe paper contributes to contingency-based management accounting research and provides theory-driven and empirically proven explanations for hospital managers in recognizing the importance of aligning the dimensions of SCI and MCS.

Investigating the impact of hard total quality management practices on operational performance in manufacturing organizations

PurposeThe purpose of this paper is to investigate the impact of hard total quality management (TQM) practices on operational performance dimensions in manufacturing organizations.Design/methodology/approachThe study was designed in the Jordanian manufacturing sector. Organizations that are familiar with hard TQM practices specifically that had already implemented ISO 9001 certificate were randomly surveyed through structured questionnaire, yielded a sample of 40 responding organizations. Principal component factor analysis was used to analyze hard TQM practices implementation and organizations operational performance dimensions. As a result, specific hard TQM practices and operational performance dimensions were extracted. The hard TQM practices that significantly influence operational performance dimensions were tested using simple and multiple linear regression analysis.FindingsThe research findings showed that hard TQM practices in manufacturing sector include; continuous improvement, statistical process control (SPC), process management and quality tools and techniques. Meanwhile, operational performance dimensions include; quality and inventory management performance. Also, the findings showed that continuous improvement and SPC practices play a major role in obtaining the desired results of operational performance.Research limitations/implicationsThree limitations can be identified in this research, using subjective measures of TQM practices and operational performance, low response rate and using a sample of organizations from various industries. This paper can help Jordanian manufacturing organizations to foster proper practices and make the right decisions related to operational performance.Originality/valueThis study describes a reliable hard TQM model that can be used by manufacturing organizations to improve their operational performance. Also, the results of this study contribute to prior literature and recommend some best practices for manufacturing organizations.

Evaluating the impact of modular product design on flexibility performance and cost performance with delivery performance as a moderator

PurposeThe purpose of this paper is to examine whether modular product design is an appropriate practice to improve manufacturers’ flexibility performance and cost performance as well as to evaluate whether combined effects of modular product design and delivery performance on flexibility performance and cost performance exist.Design/methodology/approachStructural equation modeling with moderating effects is used. Moderating effects allow an evaluation whether combined effects of modular product design and delivery performance exist. For the analysis, data from the international high-performance manufacturing survey are used.FindingsAnalysis results show a positive relationship between modular product design and cost performance, but do not show a significant moderating effect. Thus, no combined effect of modular product design and delivery performance exists in the data at hand.Research limitations/implicationsA potential limitation of this study is the cross-sectional nature of the analysis. In order to test for causal relationships or chronological sequences, longitudinal data are deemed more suitable.Practical implicationsThe findings make improvement processes more predictable and help managers to overcome traditional trade-off situations, especially in terms of flexibility performance and cost performance. Manufacturers are still neglecting the implementation of complementary methods for achieving an increase in flexibility while maintaining efficiency.Originality/valueThis paper complements prior research on the effect of improvement practices on operational performance dimensions. It also takes an alternative approach to examine whether a beneficial implementation sequence of improvement practices can be assumed.

Agile manufacturing and business performance

PurposeThe purpose of this paper is to examine the effect of agile manufacturing (AM) on business performance and operational performance (OP) dimensions in manufacturing companies in Jordan. It also explores the indirect effect of AM on business performance through OP dimensions of cost, quality, delivery and flexibility.Design/methodology/approachThe study analyzes survey data collected from 282 manufacturing companies from different industries in Jordan. Validity and reliability analyses were performed using SPSS and Amos, and the research hypotheses were tested using structural equation modeling.FindingsThe results demonstrated that AM positively and directly affected business performance. It also positively affected OP dimensions of quality, delivery and flexibility. However, cost performance was not significantly affected by AM. In addition, quality performance and flexibility performance fully mediated the relationship between AM and business performance, whereas cost performance and delivery performance did not show mediating effects.Originality/valueTo the best of the knowledge, this is the first study that investigates the mediating effects of OP dimensions on the relationship between AM and business performance. In addition, a limited number of previous studies investigated the performance outcomes of AM. Furthermore, this area is under-investigated in the Middle East in general and in Jordan in particular.

Operational Performance and Lean Healthcare in the Healthcare Sector: Review on the Dimensions and Relationships

Numbers of evidence have shown operational level in the healthcare sector is predicted to make some changes in operational performance that help to improve cost, quality, flexibility, efficiency, effectiveness and other measures of the organization. Further, the implementation of lean healthcare seen as one of the best practices to accelerate productivity growth and facilitated the organizations to eliminate waste. Moreover, it helps to have a better health outcomes, to reach efficiency and optimize resources by improving work processes in the organization. Therefore, the purpose of this study is to discuss the dimensions of operational performance and lean healthcare and hence, to review numerous article on the relationship between lean healthcare and operational performance in the healthcare sector.

The dark side of global sourcing: a systematic literature review and research agenda

PurposeThe purpose of this paper is to present a systematic review of the literature concerning the negative aspects of global sourcing (GS). It complements prior research on the positive aspects of GS, advances theoretical understanding of the phenomenon, and suggests an agenda for future research.Design/methodology/approachThe sourcing, international business and supply chain management literature is systematically reviewed and findings from 83 previous studies are investigated.FindingsResearch on the downsides of GS has intensified over the last decade, but the related knowledge has been very fragmented and oftentimes latent. This literature review extracts knowledge around 28 antecedents to GS downsides from the literature and illustrates their potential harmful effects along operational and financial performance dimensions. Findings suggest that future research should focus more on the effects of decision-making biases and the effects of firm-internal barriers. The dynamic and hidden costs of GS should also be scrutinized in more depth.Originality/valueThis study is the first systematic literature review of the downsides of GS. It facilitates a more balanced and nuanced picture of GS to help managers make better-informed GS decisions. The review also offers a holistic research framework that opens up avenues for much-needed research into the “dark side” of GS.

Design-manufacturing integration and manufacturing complexity

Purpose The purpose of this paper is to propose that the effectiveness of organizational design-manufacturing integration (ODMI) practices is contingent upon the degree of complexity of the manufacturing environment. The paper submits that the level of use of ODMI ought to match the level of complexity of the manufacturing environment. The paper puts forward the hypothesis that when a misfit occurs between ODMI and complexity (high use of ODMI practices in low complexity environments or low use of ODMI practices in high complexity environments) manufacturing operational performance declines. Design/methodology/approach The paper tests the hypothesis based on a survey database of 725 manufacturers from 21 countries. The measurement model was assessed with confirmatory factor analysis and the hypothesis was tested with linear regression. Findings A misfit between the level of ODMI use (job rotation and co-location) and manufacturing complexity (product and process complexity) has a negative effect on manufacturing operational performance dimensions of quality, delivery and flexibility. Post hoc analyses also suggest that firms that operate in different environments in what concerns the rate of change in process technologies suffer differentiated negative impacts of ODMI-complexity misfit. Research limitations/implications Future studies could extend this research to other dimensions of design-manufacturing integration, such as technological practices. Practical implications Manufacturers with high levels of complexity should invest strongly in ODMI practices. However, manufacturers with low levels of complexity should invest in these practices with caution since the expected payoffs may not outweigh the effort. Originality/value The study assesses fit as a simultaneous set of contingency factors, applying profile-deviation analysis to ODMI and operational performance relationships. By focusing on plant-level manufacturing complexity, this study complements existing studies of product development complexity which tend to focus on project-level complexity.

Average surgeon-level volume and hospital performance

This study evaluates the relationships among the average number of procedures per surgeon, calculated across the entire hospital, and multiple dimensions of overall hospital operational performance. Hospital administrative data from 154 public and private hospitals in the state of New York were augmented by data from the Centers for Medicare and Medicaid Services. The data included administrative surgical records across all clinical areas for the year 2009. The study used maximum likelihood estimation path analysis to simultaneously test the relationships among average surgical volume and risk-adjusted length of stay, cost, and mortality, across all surgical procedures and clinical areas. The results showed that higher average volume per surgeon, computed across all surgical procedures in a hospital, was directly related to lower risk-adjusted length of stay, and indirectly related to lower risk-adjusted cost and mortality. A higher average number of procedures per surgeon may provide greater hospital-specific experience, including interactions among surgical teams and with other areas of the hospital, leading to better overall outcomes. This study advances the literature in health care operations management by examining the relationships among surgical volume, across all clinical areas and all types of surgeries, and three different dimensions of hospital performance.

Is lean service promising? A socio-technical perspective

Purpose– The purpose of this paper is to contribute to the ongoing debate about the effectiveness of lean practices in the service sector.Design/methodology/approach– This paper examines the impact of lean service on firm operational and financial performance. Exploratory factor analysis is used to reduce the data and identify the underlying dimensions of lean service, and partial least squares structural equation modelling is used to test the developed model.Findings– The results indicate that the social bundles of lean service had an independent positive impact on firm operational and financial performance. Furthermore, while the technical bundles had an independent positive effect on only the operational performance, they interacted with the social bundles to improve both the operational and financial performance. The findings suggest that service managers must follow a systematic approach when implementing lean service practices without focusing on one side of the system at the expense of the other.Practical implications– The paper highlights the importance of implementing lean service as a socio-technical system (STS) if service firms are to achieve the best possible benefits from their implementation. The motivation factor (social side) and the customer value factor (technical side) are capable of improving all operational performance dimensions and profit margin even if implemented alone. Therefore, service managers with limited resources are encouraged to start lean service implementation with practices within these factors. However, they can also expect improved operational and financial performance from implementing other factors as they positively interact to further improve performance.Originality/value– Viewing lean service as a STS, this paper incorporates a larger set of lean practices than previous studies and demonstrates empirically their capability of improving service firms’ operational and financial performance. It contributes significantly to the emerging literature on lean service by empirically testing the mechanism through which lean service affects firm performance.