Blue ocean leadership activities improve firm performance

Kok Liang Loh · Sha’ri Mohd Yusof

14 citations0/0 files storedInternational Journal of Lean Six Sigma

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Quality and Supply Management Management and Optimization Techniques Management Systems and Quality Improvement

Abstract

Purpose The purpose of this paper is to investigate the mediation effect of Blue Ocean Leadership (BOL) activities between lean manufacturing (LM) practices and firm performance. Design/methodology/approach This study applied sequential mixed method with expert opinion in the first stage and cross-sectional survey from automotive vendor companies in the second stage. The samples were drawn using random sampling procedure from automotive vendor companies in Malaysia with the final number of respondents of 64. Four main hypotheses were developed and tested statistically by applying multivariate data analysis using SmartPLS3.0 SEM software. Findings The results provide evidence that LM practices have positive and significant impact on firm performance. Moreover, activities of Genba-Kaizen significantly improve the firm performance by an amazing 30 per cent. Research limitations/implications The data used in the survey represent self-reporting by mainly the top management in operations or production. It is recommended for future study to include middle and lower management level to understand the difference of their activities. Besides, it is proposed to extent the population beyond automotive industry. Practical implications This study contributes to the LM body of knowledge by identifying the relationships between the LM practices, firm performance and BOL activities. Understanding these will help lean practitioners especially the leaders in making better decision in both manufacturing and service organizations. Thus, increasing the staff motivation and engagement eventually contributes to the firm performance. Originality/value Although there are growing numbers of anecdotal and empirical evidences in favour of LM in manufacturing environment, there has been almost no theory-building and methodologically rigorous research examining the link between the leaders’ activities with LM practices and firm performance. This study is addressing such gaps.

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References

2014A new criterion for assessing discriminant validity in variance-based structural equation modeling 2014A primer on partial least squares structural equation modeling (PLS-SEM)2013Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance 2006Critical success factors for lean implementation within SMEs 2006Lean production, six sigma quality, TQM and company culture 2014Successful lean implementation: Organizational culture and soft lean practices 2002Critical success factors for the successful implementation of six sigma projects in organisations 2014Critical failure factors of Lean Six Sigma: a systematic literature review

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