Does Business Excellence Impact Business Performance? Business Excellence Model Validation using PLS-SEM
AUTHORS
Oon Fok-Yew,Universiti Tun Hussein Onn Malaysia, Faculty of Technology Management and Business, 86400 Malaysia
Nor Aziati Abdul Hamid,Universiti Tun Hussein Onn Malaysia, Faculty of Technology Management and Business, 86400 Malaysia
ABSTRACT
An extensive review of the literature revealed that there has been little discussion and investigation of leadership and BE in the Malaysian context. Moreover, the importance of the E&E industry to Malaysia's economy but the expected low contribution in the national award is necessary to be addressed promptly. The purpose of the study is to examine the 2019-2020 Baldrige Excellence framework criteria that affect the performance of Malaysia’s Electrical and Electronics (E&E) companies. The seven criteria in the Baldrige Excellence framework comprised of leadership, strategy, customers, measurement, analysis, knowledge management (MAKM), workforce, operations, and results. A cross-sectional survey was conducted in this study and the respondents are from managerial levels identified as responsible for running production operations. The response rate obtained was 32% with 156 usable returned survey questionnaires. A Partial Least Squares Structural Equation Modeling (PLS-SEM) approach was used for data analysis. Moreover, an embedded two-stage approach was applied to evaluate the high-order construct which included all seven constructs. The results revealed that strategy and operations criteria have a significant influence on performance. The study outcomes also found that leadership influences strategy, MAKM, and workforce. The significance of the sought results is beneficial to policymakers of Malaysia in framing a new BE framework and encouraging more E&E organizations to fully adopt the Malaysia Business Excellence Framework (MBEF) that moving forwards to participate in national excellence awards. The findings of this study may assist a new theory building, particularly in the field of BE domain. The composite performance index of the economic and non-economic metrics was validated. This instrument can be reused in the context of other manufacturing sector studies.
KEYWORDS
Leadership, Electrical and electronics, Business excellence models, Business excellence
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