Showing papers in "International Journal of Business Excellence in 2012"

Crisis management for SMEs: insights from a multiple-case study

Abstract: Research in crisis management involves a variety of perspectives, including crisis impacts, strategic vision and leadership, contingency planning and technical capabilities. However, crisis management mechanisms of small and medium enterprise (SMEs) were rarely investigated for sound theory building and practical guidance for management. The aim of this paper is to explore mechanisms by which SMEs use to manage crisis. This paper presents a general crisis management model that represents crisis management processes in terms of detection, occurrence, recovery and resolution. To validate and refine this model, a multiple-case study is designed to investigate five SMEs’ actual crisis management practices. The case study results show that SMEs, in spite of their resources constraints and relatively weak market positions, display resilient market responsiveness. This paper further suggests that effective crisis management of SMEs involve proactive business mindsets for sustainable growth and continuous expansions.

An empirical-exploratory study of the status of lean manufacturing in India

Abstract: Lean manufacturing is considered, by many authors and practitioners, the most prominent paradigm in manufacturing. As a consequence, its application has expanded to other industries and different countries around the world. However, although the academic literature shows evidence of the application of lean manufacturing in many countries, the status of this methodology in India is unclear. This paper presents the results of an empirical-exploratory study that investigates the degree of adoption of lean manufacturing in India. The study replicates the methodological approach followed by Antony and Desai (2009) in a similar investigation. Therefore, the study is based on a survey questionnaire and its results were analysed using descriptive statistics. The results revealed that lean manufacturing is not the most ‘popular’ operational and/or quality performance improvement methodology adopted by Indian organisations. The results also provide evidence of the degree of awareness, implementation issues, results achieved and possible future, in India, of lean manufacturing.

Improving healthcare services: lean lessons from Aravind

Abstract: Better healthcare operations are required to deal with issues of ageing population, increased costs and unmet demand. This paper induces, from an in-depth analysis of the operations of Aravind, the operational principles of early triage and lean practices that can be used to this end. Aravind, an Indian non-for-profit organisation that treats two thirds of its patients without charge, is the largest eye care provider in the world, with over 2.5 million operations performed and 20 million patients treated in the last 30 years. The methodology used is grounded on in-site primary data collection and on extensive secondary data analysis. Based on process and value stream map analysis, we identify the key lean practices of Aravind, and propose a conceptual model for the improvement of healthcare operations. The contribution of the paper is a grounded analysis of the applicability of established manufacturing lean principles to healthcare service operations.

A simulation-based study for managing hospital emergency department’s capacity in extreme events

Abstract: Hospital emergency departments’ capacities to deal with a patient surge play an important role in preparedness for natural or man-made disasters. This paper examines how emergency departments in healthcare facilities could optimise the workflow during extreme events when there is a patient surge. This paper proposes a framework to reconfigure the workflow while maintaining treatment equality. Our results show that reorganising lower priority work processes and relocating the resources associated with those processes can shorten total waiting time in the emergency department, allowing better management of patient flows.

Hope for the East: entrepreneurial attitudes of MBA students in two transition economies relative to those in the USA

Abstract: This paper examines whether a proactive personality instrument, designed to assess whether an individual possesses personality traits often linked to entrepreneurship, is robust to international applications. We present the instrument to three cohorts of MBA students: a group in Michigan, another in Armenia, and a third in Poland. While internationally different, the student cohorts are similar otherwise. We find no meaningful differences on students’ overall average scores; all groups appear equally suited to entrepreneurship. Therefore we find the instrument to be internationally robust. We also examine whether the form of each group’s proactive personality varies internationally. We find evidence that cultural (whether social or economic) differences lead to different kinds of high scores – i.e., an international treatment effect. An important implication is that different kinds of ‘entrepreneurial’ students might want to consider working alongside others with proactive personalities, especially if a potential partner would bring a complementary set of attributes.

The role of workers’ trust and perceived benefits in lean implementation success

Abstract: Both the academic and practitioner literature agree upon the importance of employees’ perceived job security in order for lean implementation to succeed. However, anecdotal evidences seem to indicate that too many organisations embark on a lean journey with the implicit and/or explicit goal of reducing labour costs, laying off people when lean implementation success leads to enhanced productivity and efficiency. Such practices would only decrease the level of perceived job security of workers, leading to decreased level of employees’ trust in management and their perception on personal benefits of lean. This research investigates, through a survey of 180 production workers in the Midwest USA, the critical role of perceived job security, trust in management, and lean training in enhancing the perception of personal benefits of lean, which leads to lean implementation success. The results support the notion that lean implementation success depends upon conducive mindset for lean among production workers.

Private-public partnerships: corporate responsibility strategy in food retail

Abstract: Private public partnerships (PPP) have been pointed out as institutional conditions that may promote corporate responsibility (CR). Yet, like other relationships, PPP is assumed to rarely succeed by coincidence. A context bound comparative case analysis provides an illustration of how major food retail actors, ICA, KF-Coop and Axfood (accounting for 87% of the Swedish market) view the conditions for the development of a fruitful PPP as part of a CR strategy. Personal interviews with top management representatives based on thematic questions in retail corporations as well as NGOs serve as primary empirics. The logic behind partnerships is simple, but in reality, the cases show that conditions for PPP are associated with many challenges and strategic decisions. A conscientious selection of partners, shared objectives for the partnership and a perceived win-win situation are desired conditions. A wish for exclusivity from the corporate partners on the other hand proves counterproductive for the NGOs.

Product architecture and integrated manufacturing information system: a comparative study of Japanese and Korean firms

Abstract: Japanese firms are known for their superior technology and excellent quality performance. However, in spite of outstanding technological competency and quality performance, global competitiveness of Japanese electronic firms has been deteriorating in 2000s. In contrast, Korean counterparts have displayed significant global competitive gains. This article presents research model that defines interrelationships among product integrity, product architecture and IT strategy. This model is examined through case study of Japanese and Korean firms. The research results suggest that Japanese selected firms have solid base of monozukuri system from product concept planning to delivery to customers. However, different from Korean firms, these selected Japanese firms do not appear to utilise full IT potential for integrated manufacturing information system (IMIS). Differences between Japanese and Korean firms are discussed along with implications and lessons of this case study.

Properties of quality constructs in Canadian business relationships

Abstract: This paper investigates whether satisfaction, in B2B relationships, is a mediating construct between the antecedents, trust and commitment, and subsequent outcomes. Using data from a survey of Canadian managers and executives, the study tested a structural equation model, the trust, commitment, satisfaction (TCS) model, where the antecedent constructs, trust and commitment, are mediated by the satisfaction construct, which in turn influences coordination, cooperation and continuity or 'consequence' constructs. The tested model indicated an acceptable fit, validity and reliability. The analysis in the present study reinforces the argument that satisfaction plays a mediating role in creating enduring relationships in business contexts.

The role of mutual trust in supply chain management: deriving from attribution theory and transaction cost theory

Abstract: Information sharing practises among the supply chain partners enhance supply chain flexibility. The exchange of information sharing, however, may not ensure the expected quality outcomes of information. To test the mediating role of mutual trust between information sharing and information quality, this study uniquely examines four contexts of information sharing (receiving information from customers; receiving information from suppliers; providing information to customers; and providing information to suppliers). With two theoretical lenses, attribution theory and transaction cost theory, this study empirically investigates the interrelationships among information sharing, information quality, mutual trust, and supply chain flexibility with data from 74 Korean steel firms. The results suggest that: 1attribution error (i.e., self-service bias) is likely to happen when it comes to providing information context 2mutual trust plays a crucial role in transferring information sharing into information quality. I...

Corporate social responsibility: are firms in Nigeria actually giving back or giving away?

Abstract: Firms that are less rational in their socially responsible actions might just be giving away rather than actually given back because they are unable to prioritise their socially responsible efforts. The extent to which firms in Nigeria apply rational decision techniques for prioritising their socially responsible actions is unknown. Therefore, this study analysed three primary stakeholder groups to which firms concentrate their social responsibility efforts using analytic hierarchical process (AHP). Cross-sectional design, quota, simple random, and convenient sampling techniques were employed to obtain responses from 225 corporate affairs officers in various quoted companies. Responses were placed on a 3 × 3 matrix estimates of perception of primary stakeholder groups that received attention. Socio-cultural and economic stakeholders rated much lower than the priority accorded political constituency. Alternative priorities for the dimensions of stakeholder salience were also higher for legitimacy and power more than urgency. The implications of these findings were discussed.

A resource dependence, social network and contingency model of sustainability in supply chain alliances

Abstract: Despite an increased emphasis on strategic alliances in supply chain in the academic and practitioner literature, we have a limited understanding of the mechanisms that underlie the sustainability of partnership model in buyer-supplier relations. This paper examines the role of context and actors in the dynamics of strategic alliance development, and their effect on its subsequent sustainability. Reconciling resource dependence, social network and contingency theories this paper proposes a model that links alliance sustainability with various conditions of supply chain’s internal and external environments. The theoretical conceptualisations are substantiated by the case study that examines the evolution of Rolls-Royce and Airbus partnership in the aviation industry.

Developing a new chance-constrained data envelopment analysis in the presence of stochastic data

Abstract: Outsourcing in logistics is a very significant theme and third-party reverse logistics (3PL) provider evaluation and selection has to be realised in a careful manner in order to provide the expected benefits. Data envelopment analysis (DEA) has been successfully used to select the most efficient supplier(s) in a supply chain. In this study, a new Russell chance-constrained data envelopment analysis (RCCDEA) approach is proposed to assist the decision-makers to determine the most appropriate 3PL providers in the presence of multiple performance measures that are uncertain. Because of the complexity of the proposed model, a genetic algorithm is presented as a solution procedure to obtain near to optimum solutions. The usefulness of the proposed model and algorithm was validated by its application to an illustrative example.

Essentials of D-phase to secure the competitive advantage through Six Sigma

Abstract: Present work is a conceptual paper that takes an in-depth look at the origins, advantages and disadvantages of Six Sigma and describes how it relates to some of the other quality initiatives in industry. DMAIC strategy of Six Sigma is briefly explained and realised the significance of define (D)-phase, specifically. Various prospects have been formulated to understand the reason of failure of Six Sigma particularly in SMEs and found that ‘malfunctioning of define step’ is one of the major reason among them. It highlights the framework for define phase and suggested a more applicable form of bifurcation as far as define tools and techniques are concerned. A road map for short listing the relevant define tools have been carpeted especially for academicians, industrialists and professional statisticians. A case study in a medium scale non-ferrous foundry has been conducted which has witnessed the effectiveness of suggested concept. The whole manuscript revolves around the initial step of DMAIC methodology of...

The relationship between web quality and user satisfaction: the moderating effects of security and content

Abstract: The growing popularity of online shopping has drawn an increasing amount of attention from organisations to maintain quality of their websites and attract customers. The principal objective of this study was to test the conceptual model of various components of website quality and customer satisfaction. The study investigates the moderating effects of security and content of websites in relation to the effects of components of website quality on customer satisfaction. We collected data consisting of a total of 448 responses from individuals (255 from USA, and 193 from India) who are habituated to visit websites and engage in online shopping. We used structural equation modelling to test the measurement model and employed hierarchical moderated regression to analyse the collected data. Our findings demonstrated that 1 various components of website quality viz., ease of use, reliability, and interaction are important to enhance customer satisfaction 2 security and content have moderating effect on these direct relationships. On the basis of our results, the companies must stress the content and security features to enhance customer satisfaction. Implications for research and practice are discussed.

Core quality and associated supportive quality parameters: a conceptual quality frame work in healthcare establishment

Abstract: A method of quality applicable mainly to goods and services of non-healthcare sector cannot be applied without modification or adaptation to healthcare especially in healthcare establishments and hospitals which deal with living beings as patients who themselves are the most critical input influencing the outcome of healthcare services. Therefore, an attempt has been made in this article to identify and conceptualise quality parameters/dimensions in healthcare establishment (HCE) at professional technical level, i.e., core quality as well as at supportive managerial level, i.e., associated supportive quality parameters/dimensions to achieve synergy for maintaining patient care with optimum satisfaction. Thus, a list of parameters have been evolved for these quality dimensions which have been studied in a 440 bed multi-specialty government hospital of North India thereby validating the parameters with acceptance of these quality dimensions by the hospital staff appreciating its practical utility for patient care both from professional technical and management point of view. Finally, the recommendations, limitations, future applications, and prospects are presented in the end.

Business network excellence for competitive advantage: case of Korean firms

Abstract: Increasingly, Korean firms have received research attention for their competitive advantage in the global market. Some of them have demonstrated market leadership through business network excellence, i.e., outstanding performance outcomes in the extended value chain with OEM and its partners of SMEs in both supply and demand side in a global scale. The aim of this paper is to examine the emerging concept of business excellence from a value chain network perspective. This paper presents a business network excellence model that defines the nature of business excellence that promotes sustainable competitive advantage. This model presents critical dimensions of business network excellence in terms of 1 governance 2 network process details 3 supportive infrastructure 4 performance measures for sustainable competitive advantage. Illustrations of several Korean firms provide their noticeable business network excellence in the global market. Implications are discussed as well.

Determinants of banks’ total factor productivity: the post-Asian financial crisis experience of the Philippines

Abstract: The present paper employs the Malmquist Productivity Index (MPI) method to examine the sources of total factor productivity change of the Philippines banking sector during the period of 1998 to 2008. The empirical findings suggest that the Philippines banking sector has exhibited productivity regress due to technological regress. The results indicate that both the domestic and foreign banks have exhibited productivity regress due to technological regress rather than efficiency decline. We find that the more diversified Philippines banks tend to be less productive in their intermediation function. On the other hand, the relatively more productive Philippines banks are also the ones which are relatively more profitable. The results seem to suggest that the different structures of bank ownership have no significant impact on bank productivity.

Power distance: a deterrent or a facilitator for innovation

Abstract: The purpose of this research is to understand innovation and its relationship with its various correlates. Since it is difficult to measure innovation, hence, a measure of entrepreneurial strategy and organisational innovation devised by Miller and Friesen (1982) was used to do this work. In this work, I have tried to understand innovation by relating it to other variables like organisational structures, environmental uncertainty, etc. Though some work was done correlating innovation and entrepreneurial strategy, yet nothing much was done on the aspect of structural and cultural factors leading to innovation. In this work, some relationships from the literature have been analysed, keeping the aspect of power distance in mind. While examining innovation with regard to factors like organisational structures and environmental uncertainty, another variable known as innovation norm, was also taken into account. Implications can be discussed for the integration of this variables-innovation norms and power distance to extend theories of innovation and corporate entrepreneurship.

Propensity for participative decision making (PPDM) in Turkey and the USA

Abstract: Increased subordinate participation in management decisions has been a recognised trend in both private and public organisations in many western nations. Less is known about such practices in other parts of the world, however, especially in emerging countries. This study assesses similarities and differences between US and Turkish managers with regard to propensity for participative decision making (PPDM). The first hypothesis tests the validity of the PPDM scale among a sample of Turkish managers, and was supported. The second hypothesis examines whether US managers report higher levels of participation with respect to the four dimensions of organisational effectiveness, power, culture, and commitment. Surprisingly, the Turkish managers reported higher levels of participation in the first three dimensions, with no statistical difference with the US managers on commitment. Other findings are discussed and directions for future research are also presented.

A knowledge management metrics model for measuring strategy implementation success

Abstract: Many organisations fail to implement their strategies due to the inability of stakeholders in addressing the problems associated with strategy implementation. This paper aims to support their ability and involvement in solving these problems as well as measure the success of strategy implementation through the development of a knowledge management metrics model. This model comprised a set of 33 indicators, grouped into two metrics to measure the success of strategy implementation. The importance of the proposed indicators was theoretically discussed and justified through interview and survey conducted in the Malaysian higher education sector. In addition, a quantitative statistical analysis was performed to confirm this model. The overall results from the empirical evaluation were positive, thus indicating the appropriateness of this model. The crucial indicators were discussed so that managers can devote more attention to these elements. Furthermore, the key actors that influence the success of strategy implementation were also identified. For Malaysian Higher Education Institutions (HEIs), the model can aid them to measure their strategy implementation and increase their education quality. It can guide the top and middle managers in making decisions to support the achievement of strategy implementation success.

RELQUAL in Turkish business relationships – theory testing and measurement model

Abstract: This study examines a construct of relationship quality (RELQUAL) in Turkish business relationships, and appears to be the first of its kind in this region. The sample frame comprises the 500 largest companies in Turkey based upon revenue across multiple industries. The analysis yield support to the argument that continuity, trust, coordination, opportunism, commitment, formalisation, specific assets, dependence, satisfaction and cooperation are separate constructs that play an important role in creating relationship quality in Turkish business relationships. This study is of managerial and theoretical interest to executives and researchers since it provides a framework of constructs to be considered in corporate efforts in maintaining satisfactory levels of relationship quality, not only in Turkish business relationships, but it may also be applicable in other business relationships and countries.

Transparency in public procurement: a study of the European Union directive for public works, supply and services contracts

Abstract: Corruption in construction contracts is becoming widespread due to lack of transparency in procurement and project delivery process. The aim of this paper is to examine the level of transparency in the EU directives for public works contracts 2004/18/EC. The study is carried out through a literature review, a content analysis of the Directive 2004/18/EC and a few case laws from European Court of Justice (ECJ). The types of enforcements allowed for by the Directive and those used by the Office of Fair Trading (OFT) are also examined. The paper concludes that there are a number of articles that encourage transparency and those that impede transparency through legal restrictions/exclusions. The directive addressed the procurement procedure superficially which leads to a raft of problems in implementation stage. The research is limited to Directive 2004/18/EC. The paper will increase client’s awareness on transparency and some problems associated with implementation stage through case laws.

Effect of strategic purchasing, supplier evaluation system and uncertain business environment on supplier-buyer strategic relationship: a structural model

Abstract: In supply management, the supplier-buyer strategic relationship (SBSR) activities are critical elements to a firm’s competitive advantage. The purpose of this research is to introduce strategic purchasing (SP) and supplier evaluation system (SES), and uncertain business environmental factors (UBEF) as constructs that could have the potential to contribute to the success of supplier-buyer strategic relationship efforts (SBSR). Based on the relational view of the firm, the authors propose that SP is an antecedent of SES, and UBEF practices and can create value for the buying firm in terms of better purchasing performance. Hypotheses derived from the key features of SP, SES and UBEF practices are tested using structural equation modelling through field research on a sample of 270 senior purchasing executives of 54 manufacturing companies in India. Findings from this study indicate that there is significant evidence to support the hypothesised model in which SP exerts direct influences on SES practices and UBEF, as well as a direct impact on purchasing performance mediated through SES.

Financial controls and firms' performance in the manufacturing sector in Nigeria

Abstract: This study investigates the relationship between financial controls and firms’ performance in the manufacturing sector in Nigeria. Data were generated by means of questionnaires to 670 manufacturing firms on financial controls and performance variables. Responses from the survey were statistically analysed using descriptive statistics, product moment correlation, regression analysis and Z-test (approximated with the independent samples t-test). The results of the study indicate a statistically significant relationship between financial controls and firms’ performance as well as reveal a significant difference between the performance of firms whose financial controls are deep and the performance of firms whose financial controls are shallow. The implications of this study include the need for manufacturing firms to demonstrate high level of commitment to financial controls for increased performance.

Organic growth – a taxonomic perspective

Abstract: As the opportunities for mergers and acquisitions are finite, the principal way that a firm can expand is through organic growth. This paper has a comprehensive discussion on the subject of organic growth by taking a taxonomic approach. It first classifies the different routes to growth, followed by a categorisation of the various factors that could inhibit it. The paper concludes with a brief discussion of the importance of the interaction of historical antecedents and the ability to exploit existing opportunities.

The harmonisation of the suggestion scheme in an international industrial enterprise

Abstract: The objective of this study was to create a harmonised operating model for the suggestion scheme of an international industrial enterprise. A constructive research approach was used in this research. The cornerstones of a successful suggestion scheme are the swift and equal evaluation of the suggestions, encouraging rewards, recognition, and feedback. A supportive organisational culture will make it easier for the suggestion scheme to succeed. The support of the management is crucial for the activities. The management must allocate resources to such activities as, for example, the training of personnel, the maintenance and promotion of the suggestion scheme’s transparency, and the implementation of suggestions. It is even imperative that the management require results from the suggestion scheme, so that the activities can be continuously improved upon.

Assessing global supply chains: perspectives on performance measures across leading countries

Abstract: Contingency theory suggests that each performance measure carries different emphases and is subject to contextual factors. Although useful, comparative measures of firm performance are fraught with difficulties in comparison mainly for two reasons: different measures carry dissimilar emphasis, and disparate national financial and business practices can exert innate bearings in the measures. Finding a context-invariant performance measure serves as a platform to conduct global supply chain performance comparison studies. Basing on longitudinal 2,400 international observations, this study explores if there exists significant difference among commonly employed performance measures across major countries and proposes context-invariant measures. While the results confirm the previous studies that accounting- and market-based performance indicators show different emphases among countries and country groups, this study finds sustained growth rate, growth rate in sales, and composite performance scores invariant of locus.

A study on association between personality constructs and entrepreneurial attitudes

Abstract: Thompson (2004) suggests that entrepreneurship is often a blend of temperament, talent, and technique. Prior research has examined numerous personality constructs in the field of entrepreneurship, but this study focuses on elements of entrepreneurial temperament by examining the relationship between the personality constructs and entrepreneurial attitudes. The primary goal of the current study is to expand upon our understanding of the relationship between personality and entrepreneurial attitudes among college students. The goal is to determine not only if these personality traits are correlated with entrepreneurial attitudes, but also if any gender differences exist. Participants were 456 final year BTech students enrolled at leading technological university at Tiruchirappalli, India. All four of the personality constructs were not found to be significantly correlated with all four of the entrepreneurial attitudes of interest. Strong judgement appears to be the personality construct with the greatest relationship to the entrepreneurial attitudes, as it was related to all four. Our findings insist that differences related to gender alone are not conclusive and that a better understanding of entrepreneurial success requires consideration of the combination of personality traits, attitudes, and outside factors such as economic necessity.

Planning flexibility and corporate entrepreneurship in the manufacturing sector in Nigeria

Abstract: This study investigates the relationship between planning flexibility and corporate entrepreneurship in the manufacturing sector in Nigeria. A survey research method was used to generate data from a sample of manufacturing firms in Nigeria on planning flexibility and corporate entrepreneurship variables. Responses from the survey were statistically analysed using descriptive statistics, product moment correlation, regression analysis and Z-test (approximated with the independent sample t-test). The results of the study indicate a statistical significant relationship between planning flexibility and corporate entrepreneurship as well as reveal a significant difference between the entrepreneurship of firms whose planning flexibility are low and those whose planning flexibility are high. The research findings provide insights regarding how the interaction between planning flexibility and corporate entrepreneurship would assist the growth and development of manufacturing sector in Nigeria.