An empirical investigation on the deployment of operational excellence in SMEs
Abstract
Purpose
This study investigates the quantitative aspect of the various strains of operational excellence (OE) and competitive-potential (CP) in the SME sector. It has five steps, i.e., identifying the key performance constructs of OE and their hypothesized relationship pattern from literature, validating these constructs through factor analysis, formalizing their empirical relationships by structural-equation-modeling (SEM), path analysis of performance constructs with the empirical results, and lastly proposing a framework for OE deployment in SMEs.
Design/methodology/approach
Data for the deployment scores of operational excellence procedures (OEPs) were collected through a structured questionnaire survey. Nine hundred participants from a stratified random sample were approached for the survey, and 473 responses were received. Sample stratification was based on Gender, Education, Experience, Position, Department and Industry. Respondents had 5–30 years of experience managing manufacturing operations, holding the manager position and above.
Findings
The path analysis of the structural model provides unique insights into OE's practical aspects in SMEs (small and medium enterprises). For example, Contractual-conformance and Process-efficiency play pivotal roles as both have a significant positive impact on CP. Supplier efficacy, Consistency and Product-excellence do not improve CP unless mediated by Contractual-conformance or Process-efficiency.
Research limitations/implications
The study provides important implications for academia, policymakers and managers. The study identifies and validates the operational excellence key performance practices and proposes a framework for manufacturing organizations. SME managers can follow the framework to develop effective operational excellence strategies to help them achieve their organizational goals. Additionally, the study emphasizes the need for continuous culture in SMEs, which will help to support operational excellence deployment. Overall, the implications presented in the study will help SMEs to enhance their competitiveness and operational performance.
Originality/value
The study explores the empirical investigation of the operational excellence deployment in SMEs. The study uses a mixed method approach for research design, including qualitative and quantitative approaches, and uses SEM to test the proposed framework. Validation of OE's six key performance constructs and establishing their empirical relation is an attempt to advance the Operations excellence theory. Unlike large enterprises, SMEs demonstrate an incohesive response to the practices pertaining to Supplier efficacy, Consistency and Product-excellence. This unique response pattern requires special treatment, which is incorporated into the proposed framework.
Keywords
Acknowledgements
This work was supported by the Birla Institute of Technology, Ranchi, India, through an institute seed money grant (Ref. No.: GO/Estb/SMS/7998). We would like to express our sincere gratitude to all individuals and institutions who contributed to the successful completion of this research. Their support, guidance, and assistance were invaluable throughout the course of this study. We are also indebted to the participants of this study, whose willingness to dedicate their time and share their insights made this research possible. Their contributions illuminated the nuances of the topic and enriched our findings. Our gratitude further extends to the staff and facilities at the Birla Institute of Technology, Ranchi, India, who provided the necessary support, resources, and assistance that significantly contributed to the quality of this study. Lastly, we would like to acknowledge the Editor and reviewers of Benchmarking: An International Journal for their valuable feedback and suggestions, which greatly improved the quality of our manuscript.
Citation
Mahato, S., Dixit, A.R., Agrawal, R., Antony, J., Garza-Reyes, J.A. and Jamwal, A. (2023), "An empirical investigation on the deployment of operational excellence in SMEs", Benchmarking: An International Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BIJ-05-2022-0297
Publisher
:Emerald Publishing Limited
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