Modelling the impact of performance management practices on firm performance: interaction with human resource management practices

The paper draws on resource orchestration theory to investigate whether and how performance management (PM) practices interact with human resource management (HRM) practices in organisations as well as how this interaction affects firm performance. The proposed theoretical model was tested through a survey of 192 UK firms using Partial Least Squares approach for structural equations modelling. The findings show that the effect of PM practices on firm performance is better explained when the interaction between these practices and other organisational practices is considered. In particular, we examine the extent to which the interaction between PM practices and commitment-based HRM practices affects performance. We find that when HRM practices and PM practices are misaligned, their effect on performance can be negative. This is the first paper in the PM literature that establishes the relationship between PM and HRM practices in organisations and demonstrates the effect of this relationship on firm performance.     

TQM implementation: organisation practices and information infrastructures

This paper provides deeper exploration of the attitudes and perceptions of senior executives reported in an earlier paper. In particular, it investigates two issues; (a) differences in TQM implementation practices due to organisation size and (b) inconsistencies between the senior executives' attitudes and perceptions and their organisations' practices. The method used is to compare the attitudes and perceptions from earlier work with actions, practices and behaviours, including the propensity for measurement and information management. The results underline the central role of data and information, and hence measurement, in successful TQM implementations. Further questions arise which suggest the need for still deeper investigation via in-company case research. The data did not support the interim prediction that TQM implementation is poorer in small firms. Moreover, the more optimistic perceptions of TQM reported in medium and large firms were not sustainable when compared with their actual practices. The paper also provides a foundation for the next phase of this longitudinal research programme, which will track this cohort of firms (n=113) beyond the so-called “two year barrier” to see how many are still practising TQM thereafter. Finally the data shows TQM for this regional sample to be predominantly internally focused on cost reduction at operational levels.     

Statistical Process Control and Condition‐Based Maintenance: A Meaningful Relationship through Data Sharing

This paper focuses on the close relationship between statistical process control and preventive maintenance (PM) of manufacturing equipment. The context is very general: a production process that is characterized by multiple distinct operational states and a failure state. The operational states differ in terms of operational/quality costs and/or the proneness to complete failure. The times of shift from the normal operational state to an inferior one and the times to failure are random variables, not necessarily exponentially distributed. The process is monitored with a control chart with the purpose of quickly detecting shifts to an inferior operational state due to the occurrence of some unobservable assignable cause. At the same time, the information collected from the process may be used to re‐schedule the planned PM, if there is evidence that a failure is imminent. The two mechanisms are obviously related, especially if they are based on measurements of the same critical process characteristic. Yet, they are typically treated independently. We develop a fairly general mathematical model for the joint optimization of the control chart parameters and the maintenance times. Numerical investigation using this model shows that ignoring the close relationship between process control and maintenance results in inefficiencies that may be substantial. It also provides practical insights about the effects of some key problem characteristics on the optimal joint design of process control and maintenance.     

Green logistics management and performance: Some empirical evidence from Chinese manufacturing exporters

The value chain of many business enterprises is increasingly required to demonstrate the profitability of their primary activities, starting from inbound logistics to operations, outbound logistics, marketing sales, and finally to services. The adoption of green logistics management (GLM) presents an opportunity for Chinese manufacturing exporters to competently respond to the escalating expectation of the international community for resources conservation and to achieve environmental performance profitably. This study makes several important contributions to the literature on managing logistics with environmental considerations. First, the authors identify the components of GLM: (i) procedure-based practices, (ii) evaluation-based practices, (iii) partner-based practices, and (iv) general environmental management practices. Second, they relate GLM to environmental and operational performance in a developing country context. Third, they identify the institutional and operational antecedents that prompt the adoption of GLM by export-oriented manufacturing enterprises in China. Fourth, they examine the moderating effect of environmental regulatory pressure on the GLM-performance linkage. The results are based on a survey of manufacturing exporters in China. The commonly held view that economic motivation is related to the adoption of GLM is not supported. However, GLM positively affects both environmental and operational performance, and regulatory pressure enhances the GLM-performance relationship.     

The effects of human resource systems on operational performance in mass customisation manufacturing environments

This study empirically examines the impact of two human resource management (HRM) systems on operational performance in two distinct mass customisation manufacturing (MCM) environments. Using the survey data collected electronically from 148 mass customisation manufacturers in the USA, moderated hierarchical multiple regression was employed to test the research hypotheses. Results suggest that operational performance significantly increases when a bundle of complementary basic HRM practices are integrated in MCM contexts that emphasise module and process standardisation. This finding indicates that these types of mass customisation manufacturers are capitalising on the opportunity to improve operational performance by strategically combining several different, but supportive, traditional HRM practices with a finite MCM system.     

Integrating sustainable supply chain practices with operational performance: an exploratory study of Chinese SMEs

Abstract

With growing regulatory and market pressure to implement green practices, SMEs are facing enormous challenges to simultaneously improve operational and green performances of their supply chains. The paper aims to understand the green practices adopted by Chinese SMEs in the packaging sector in order to assess the impact of these practices in improving the operational performance. Case study-based research methodology is adopted and semi-structured interviews are conducted to collect data from seven SMEs in this study. Both in-case and cross-case analyses are performed to understand the green practices being adopted with the focus on improving the operational performance. The findings of this study indicate that although most SMEs understand the importance of green practices, they have limited knowledge to integrate these practices to improve operational performance. Integration and alignment of green activities with the operational improvement measures are identified as critical factors to develop an efficient green supply chain.     

A Resource‐Process Framework of New Service Development

Motivated by the increasing attention given to the operational importance of developing new services, this paper offers a theoretical framework that integrates both process‐ and resource‐oriented perspectives of new service development (NSD) by defining and organizing 45 practice constructs for NSD‐related practices and activities that occur in contemporary service firms. We employ a rigorous procedure whereby both quantitative and qualitative data were gathered through multiple rounds of interviews and card‐sorting exercises with senior service managers. This iterative refinement process helps ensure that the construct domains and definitions are consistent and that they are applicable across multiple service sectors. A primary contribution of this research is to provide precise operational definitions of theoretically important NSD practice constructs. Importantly, this study expands on the NSD literature by including both resource‐ and process‐centric perspectives within a single framework. A second contribution is to illustrate a general methodology for developing clear, concise, and consistent construct definitions that may be generally useful for production and operations management scholars interested in new construct development for emerging areas. Empirical results suggest that the resource‐process framework can help guide and organize future research on, and provide insight into, a more comprehensive view of new service development.     

Quality management as a tool for job satisfaction improvement in low-level technology organizations: the case of Ethiopia

Human resources are an important determinant of operational performances as it is crucial for quality improvement. Research suggests that issues related to quality of work life of employees are often overlooked in low technology level organizations in the developing countries. This article aims to investigate the relationship between quality management (QM) practices and job satisfaction (JS) in relation with the Ethiopian manufacturing organizations. Data were collected using a structured survey questionnaire and face-to-face interviews of shop-floor workers. Exploratory and confirmatory factor analysis was used to validate the survey instrument and structural equation modelling was used for the analysis. The findings provide evidence that top management commitment, participation of employees and continuous improvement are significantly and positively associated with JS. However, customer focus has insignificant relationship and surprisingly, teamwork showed unexpected negative relationship with JS. The study provides important insights into the true worth of QM implementation in which it enforces the belief that its practices are the decisive factor in enhancing workplace satisfaction of employees.     

Designing the venue logistics management operations for a World Exposition

World Expositions, due to their size and peculiar features, pose a number of logistics challenges. This paper aims at developing a design framework for the venue logistics management (VLM) operations to replenish food products to the event site, through a combination of qualitative and quantitative research approaches. First, an in-depth interview methodology, combined with the outcomes of a literature review, is adopted for defining the key variables for the tactical and operational set-up of the VLM system. Second, a quantitative approach is developed to define the necessary logistics resources. The framework is then applied to the case of Milan 2015 World Exposition. It is the first time that such a design framework for a World Exposition is presented: the originality of this research lies in the proposal of a systematic approach that adds to the experiential practices constituting the current body of knowledge on event logistics.     

Flow management and its impacts on operational performance

Based on the organisational capability perspective and the concept of flow management, this study examines the inter-relationships between the management of five flows (human, information, decision, logistics and production flows) and their effects on operational performance. The research model was empirically tested using data from 321 Australian companies. The results show that human flow management (HFM) has a positive effect on the management of the other four flows. Further, information flow management (IFM) is positively associated with logistics flow management (LFM), whereas decision flow management (DFM) is positively associated with both production flow management (PFM) and LFM. The results also show that HFM, PFM and LFM can improve operational performance directly, whereas IFM and DFM only enhance operational performance indirectly. Our findings contribute to flow management theories and practices.     

Firm-level correlates of emergent green supply chain management practices in the Chinese context

Greening the supply chain is increasingly a concern for many business enterprises and a challenge for logistics management in the 21st century. Of particular concern is how to arouse organizational environmental awareness and put environmental activities into practice in the logistics activities of their supply chains. This paper investigates the correlation of two major factors, organizational learning and management support, with the extent of adoption of green supply chain management (GSCM) practices in Chinese manufacturing firms, where their inbound and outbound logistics activities are potential polluters to the environment. Organizational and operational learning was derived from the firm's experience with programs such as total quality management and environmental management systems. Management support included support for GSCM ideas and practices from top and middle-level management and cooperation across organizational functions. We find significant positive relationships between organizational learning mechanisms, organizational support and the adoption of GSCM practices, after controlling for a number of other influences including regulations, marketing, supplier, cost pressures, industry levels of the relevant practice and organizational size. Implications of our findings on logistics management are discussed.     

Lean practices and their effect on performance: a literature review

This paper introduces a literature review of 83 studies dealing with the degree of adoption of lean manufacturing practices around the world, and the links between those practices and organisation performance. The results of this study revealed that lean practices application still occurs in a fragmented way, disregarding the systemic linkage that is essential to lean manufacturing. Forty-one articles have suggested a positive effect of lean practices in at least one operational, financial and/or environmental performance metric. Nevertheless, five studies indicated that some lean practices had a negative effect on operational or financial performance. High demand variability, a perceived result of long-term lean manufacturing implementation, a country/company’s organisational culture and the difficulty of traditional costing production systems to measure and compare investments and economic gains from adopting lean manufacturing over time are some of the reasons to explain that negative effect of lean practice on performance.     

Introduction to Special Issue on POM Research on Emerging Markets

This special issue presents production and operations management research papers from emerging markets worldwide, focusing on their unique contexts, institutions and markets. Collectively, they offer insights into the unique operations management strategies and practices that firms face in emerging markets. The magnitude and pace of change is staggering. As a result, execution and managing growth in these emerging markets represents both huge operational and supply chain risks, and simultaneously vast opportunities. We are confident that these papers stimulate new operations management research while highlighting the effective use of different research methodologies. We welcome you to enjoy this special issue of POMS. We express our deep gratitude to editorial team for their support. We especially wish to thank the authors for their contributions to this special issue.     

Fostering operational management “Best Practices” in subsidiary plants in the Western Balkans: The role of MNC home-country environment and resource allocation

We investigate the adoption of operational management “best practices” in multinational corporation (MNC) subsidiary plants in the Western Balkans. Building on the Practice-Based View (PBV), we suggest that subsidiary plants are more likely to operate according to widely recognized best practices, if these practices are already common in the MNC home country. We also examine the degree to which the MNC can facilitate best practices in their plants by allocating organizational and human resources. We test our hypotheses using survey data from subsidiary managers and secondary company data (n = 129), supplemented with manager interviews (n = 14), collected from European, U.S., and Asian MNCs with subsidiary plants in Bosnia and Herzegovina, Croatia, Serbia, and North Macedonia. Results indicate that the subsidiary plants adopt practices that are common in the MNC home country. They do so to a greater extent when the MNC commits organizational resources to the plants, such as codified written procedures and trainings. Contrary to our expectations, there is no benefit to allocating human resources, such as expatriates and business travelers. We provide insights into the transfer and implementation of best practices in the Western Balkan context, enhance our understanding of the PBV by presenting a specific application of this theoretical perspective, and provide practically relevant results for managers and policymakers.     

On the adoption of lean manufacturing principles in process industries

Traditionally, the lean paradigm has been applied to discrete manufacturing of items that can be easily put together and taken apart. The process industry, on the other hand, transforms raw materials into cohesive units that are basically blended into a final product with parts that cannot be disassembled and then reassembled. The current lean literature provides numerous commendable examples of theory and practices of lean principles in discrete manufacturing. However, its application in process industry is limited. Furthermore, there is no systematic accounting of the lean literature in this sector, which may have contributed to lesser awareness in the industry. This paper provides a state-of-the-art review of lean manufacturing literature with respect to its applications in process industry. It contributes to the classification of literature in a manner which helps to identify strategies suitable for the adoption of lean concepts in process industry. The paper seeks to synthesise the literature with an emphasis on identifying the scope for lean in process industry and associated benefits. The review also presents an analysis of the lean tools and techniques that have been applied or have potential application in the process industry and the challenges to implement lean. We believe that such a comprehensive review will not only facilitate the adoption of lean in process industry but will also provide agenda for further research by exposing voids in the knowledge base.     

Managing Differentiation‐Integration Duality in Supply Chain Integration*

Existing research focuses on the positive returns to operational performance of firms’ supply chain integration (SCI) with suppliers, buyers, and customers. We draw on differentiation‐integration duality and contingency theory to suggest that manufacturing firms should seek to achieve both integration through supply chain coordination activities and differentiation through modularity‐based manufacturing practices (MBMP). Using a sample of 261 manufacturing firms, we identify an inverse U‐shaped relationship between SCI and operational performance. Furthermore, we find support for the importance of differentiation‐integration duality as a fit between high levels of SCI and high levels of MBMP results in enhanced operational performance. We find support for a contingency perspective as fit is especially critical at higher levels of environmental uncertainty. Implications for theory, practice, and further research are suggested.     

Combining Workstation Design and Performance Management to Increase Ergonomically Correct Computer Typing Postures

The effects of workstation changes and a performance management (PM) package on seven typing postures were examined for seven office workers. Workstation adjustments were implemented first. Two participants increased five safe postures by 50% or more. The effects of a PM package on postures that did not improve by 50% were then examined using a multiple baseline design across participants. The PM package included information, feedback, and praise. Composite percent safe scores for postures targeted in the PM package increased for all seven participants, with increases ranging from 54% to 80%. Results suggest that it is beneficial to combine ergonomic design and performance management in office ergonomic programs.     

Flexibility configurations: Empirical analysis of volume and product mix flexibility

In this paper we address flexibility and investigate the relationship between volume and product mix flexibility. One view of flexibility is that of being a capability in itself; another view is that of flexibility as an enabler, providing the manufacturing system with properties on which other competitive capabilities are built. In this research, the latter view of flexibility is used, where flexibility acts as a second order competitive criterion. The aim is to differentiate between two dimensions of flexibility important to the manufacturing value chain, i.e., volume and product mix flexibility, and to investigate how different flexibility configurations are related to various manufacturing practices. A clustering research approach is used to identify groups of companies based on flexibility configurations. The groups are then analyzed with respect to characteristics and impact on operational performance. For the empirical investigation, we use empirical data from the high performance manufacturing (HPM) study, including three industries and seven countries—a total of 211 plants. We find that flexibility configurations based on high or low levels of volume and mix flexibility combinations show significant differences both in terms of operational performance, and in terms of emphasis put into different flexibility source factors.     

Resource Allocation in Integrated Preoperational and Operational Management of Natural Hazards

The management of natural hazards occurring over a territory entails two main phases: a preoperational —or pre-event—phase, whose objective is to relocate resources closer to sites characterized by the highest hazard, and an operational —during the event—phase, whose objective is to manage in real time the available resources by allocating them to sites where their intervention is needed. Obviously, the two phases are closely related, and demand a unified and integrated treatment. This work presents a unifying framework that integrates various decisional problems arising in the management of different kinds of natural hazards. The proposed approach, which is based on a mathematical programming formulation, can support the decisionmakers in the optimal resource allocation before (preoperational phase) and during (operational phase) an emergency due to natural hazard events. Different alternatives of modeling the resources and the territory are proposed and discussed according to their appropriateness in the preoperational and operational phases. The proposed approach can be applied to the management of any natural hazard and, from an integration perspective, may be particularly useful for risk management in civil protection operations. An application related to the management of wildfire hazard is presented.     

An empirical study of quality management practices in the petroleum industry

The purpose of this paper is to empirically study quality management practices in the petroleum industry in Iran. A reliable and valid survey instrument has been used for data gathering from managers in the petroleum industry in Iran. The instrument has been developed based on the criteria of the Malcolm Baldrige National Quality Award (MBNQA), which consists of 13 dimensions of quality management. Correlation analysis has been used to test for a relationship between the quality management constructs and quality results (internal quality results and/or external quality results). Most of the linkages within the Baldrige criteria were supported, which indicates the universal applicability of the Baldrige Award criteria. The result of the correlation analysis indicates that top management support is the major driver for quality management implementation which is significantly correlated with most of the quality management constructs. Furthermore, the results indicated that employee training and employee involvement are significantly correlated with internal (operational) quality results. Customer orientation and supplier quality are not significantly correlated with external quality results (business performance).