Lean management implementation in Malaysian public sectors: critical success factors and performance implications

• Autorzy: Zulkeflee Zarifa , Nawanir Gusman , AbdulGhani Airin

Identyfikatory

DOI

10.2478/mspe-2023-0021

• Języki publikacji: EN

Abstrakty

EN

This study aims to investigate the effects of lean management implementation on public sector performance along with the critical success factors of its implementation. The cross-sectional quantitative survey collected 131 responses from public organisations in Malaysia selected through a stratified random sampling procedure. Data were analysed using the structural equation modelling (SEM) approach with SmartPLS 4 professional. Lean resources, lean culture, and lean knowledge management are critical success factors for implementing lean management in the Malaysian public sector. Subsequently, the holistic implementation of lean management will enhance their performance. This study provides a practical viewpoint for practitioners to understand and validate the potential benefits lean management can sustain if implemented with the critical success factors. As a result, practitioners and policymakers could use the insight from this study to tailor strategies for leveraging public sectors' performance in Malaysia.

Słowa kluczowe

EN

critical success factors; lean management; Malaysia; performance; public sectors

• Wydawca: STE GROUP
• Czasopismo: Management Systems in Production Engineering
• Rocznik: 2023
• Tom: nr 2 (31)
• Strony: 197--107
• Opis fizyczny: Bibliogr. 84 poz., rys., tab.

Twórcy

autor

Zulkeflee Zarifa

• Faculty of Industrial Management Universiti Malaysia Pahang, Malaysia

• https://orcid.org/0000-0001-7490-940X

autor

Nawanir Gusman

• Faculty of Industrial Management Universiti Malaysia Pahang, Malaysia

• https://orcid.org/0000-0001-9649-759X

autor

AbdulGhani Airin

• Faculty of Industrial Management Universiti Malaysia Pahang. Lebuh Persiaran Tun Khalil Yaakob 26300 Gambang, Kuantan, Pahang, Malaysia

• https://orcid.org/0000-0001-9955-2478

Bibliografia

• [1] D. Fernandez, Z. Zainol, and H. Ahmad, “The impacts of ERP systems on public sector organizations,” Procedia Comput. Sci., vol. 111, pp. 31-36, 2017, Accessed: Dec. 23, 2021. [Online]. Available: https://www.sciencedirect.com/science/article/pii/S1877 050917311791.
• [2] G. Andersson, M.P.J. Lynch, F.R. Johansen, M.J. Fineide, and D. Martin, “Exploring perceptions of Lean in the public sector,” Public Money Manag., pp. 1-9, 2020, doi: 10.1080/09540962.2020.1847454.
• [3] J. Johari, F. Mohd Shamsudin, T. Fee Yean, K.K. Yahya, and Z. Adnan, “Job characteristics, employee well-being, and job performance of public sector employees in Malaysia,” Int. J. Public Sect. Manag., 2019, doi: 10.1108/IJPSM-09- 2017-0257.
• [4] A. Ismail and Y. Zainuddin, “An Empirical Study on Lean Management and HRM Practices in Relation towards Operational Performance,” Turkish Online J. Des. ART Commun., pp. 1167–1175, 2018, doi: 10.7456/1080sse/158.
• [5] N. Bateman, Z. Radnor, and R. Glennon, “Editorial: The landscape of Lean across public services,” Public Money Manag., vol. 38, no. 1, pp. 1-4, 2018, doi: 10.1080/09540962.2018.1389482.
• [6] N. Aslinda et al., “The Relationship between Lean Management Practices and Operational Performance in Service Sector,” Int. J. Solid State Technol., vol. 63, no. 3, pp. 38-111, 2020, Accessed: Sep. 18, 2021. [Online]. Available: https://www.researchgate.net/publication/345992715.
• [7] N.R.W. Abdullah, “Lean government ensures better service,” New Straits Times, 2017.
• [8] N.A.A. Bakar, T. Zainun, F.M. Fahmi, and S.T. Urus, “Lean management practices and its effect on Malaysian local government performance,” Asia-Pacific Manag. Account. J., vol. 12, no. 2, pp. 79-104, 2017.
• [9] R. Kearney, Public sector performance: management, motivation, and measurement. Routledge, 2018.
• [10] M. Majid, S. Samad, D. Afiq, K. Tazilah, and J.R. Hanaysha, “Human Capital and Organizational Performance of Malaysian Government Agencies: A Conceptual Paper.,” Int. J. Business, Econ. Law, vol. 13, no. 2, pp. 73-82, 2017.
• [11] E. Cinar, P. Trott, and C. Simms, “A systematic review of barriers to public sector innovation process,” Public Manag. Rev., vol. 21, no. 2, pp. 264-290, Feb. 2019, doi: 10.1080/14719037.2018.1473477.
• [12] F. Damrath, “Increasing competitiveness of service companies: developing conceptual models for implementing Lean Management in service companies,” 2012.
• [13] M.L. George, Lean Six Sigma for Service: How to Use Lean Speed and Six Sigma Quality to Improve Services and Transactions. McGraw Hill Education, 2003.
• [14] M.R. Razalli, R. Iteng, M.A. Ahmad, C.A. Taib, and F. Chuah, “Synergizing lean and green management for sustainable performance of higher education institutions in Malaysia,” Int. J. Supply Chain Manag., vol. 9, no. 4, pp. 615-622, 2020.
• [15] M. Shahbaz, M. Mubarik, M. Mubarak, and M. Irshad, “The Impact of Lean Practices on Educational Performance: An Empirical Investigation for Public Sector Universities of Malaysia,” J. Indep. Stud. Res. Manag. Soc. Sci. Econ., vol. 17, no. 2, pp. 85-96, 2019, doi: 10.31384/jisrmsse/2019.17.2.7.
• [16] E. Hassan, Z.M. Yusof, and K. Ahmad, “Factors Affecting Information Quality in the Malaysian Public Sector,” Int. J. Adv. Sci. Eng. Inf. Technol., vol. 9, no. 1, pp. 32-38, 2019, doi: 10.14419/ijet.v7i3.14.16895.
• [17] J. Barney, “Firm Resources and Sustained Competitive Advantage,” J. Manage., vol. 17, no. 1, pp. 99-120, 1991, doi: 10.1177/014920639101700108.
• [18] R. Amit and P.J.H. Schoemaker, “Strategic assets and organizational rent,” Strateg. Manag. J., vol. 14, no. 1, pp. 33-46, 1993, doi: 10.1002/smj.4250140105.
• [19] R. Makadok, “Toward a synthesis of the resource-based and dynamic-capability views of rent creation,” Strateg. Manag. J., vol. 22, no. 5, pp. 387-401, May 2001, doi: 10.1002/smj.158.
• [20] F. Edgeworth, Mathematical psychics: An essay on the application of mathematics to the moral sciences. CK Paul, 1881.
• [21] B. Choi, S.K. Poon, and J.G. Davis, “Effects of knowledge management strategy on organizational performance: A complementarity theory-based approach,” Omega, vol. 36, pp. 235-251, 2008, doi: 10.1016/j.omega.2006.06.007.
• [22] K.E. McKone, K.O. Cua, and R.G. Schroeder, “Relationships between implementation of TQM, JIT, and TPM and manufacturing performance,” J. Oper. Manag., vol. 9, pp. 675-694, 2001, doi: 10.1016/S0272-6963(01)00066-3.
• [23] A.-I. Coste and A.T. Tudor, “Service Performance – Between Measurement and Information in the Public Sector,” Soc. Behav. Sci., vol. 92, pp. 215-219, 2013.
• [24] A. Parasuraman, V.A. Zeithaml, and L.L. Berry, “A Conceptual Model of Service Quality and Its Implications for Future Research,” J. Mark., vol. 49, no. 4, pp. 41-50, Sep. 1985, doi: 10.1177/002224298504900403.
• [25] S. Ahmed, N.H. Abd Manaf, and R. Islam, “Effect of Lean Six Sigma on quality performance in Malaysian hospitals,” Int. J. Health Care Qual. Assur., 2018, doi: 10.1108/IJHCQA-07-2017-0138.
• [26] R. Kant and D. Jaiswal, “The impact of perceived service quality dimensions on customer satisfaction. An empirical study on public sector banks in India,” Int. J. Bank Mark., vol. 35, no. 3, pp. 411-430, 2017, doi: 10.1108/IJBM-04- 2016-0051.
• [27] W. Fei, M. Selvanathan, M. Supramaniam, S. Suppramaniam, and Y. Xu, “Quality Service Delivery Systems among Government Agencies in Malaysia,” Int. J. Innov. Creat. Chang., vol. 5, no. 2, pp. 995-1020, 2019, Accessed: Dec. 23, 2021. [Online]. Available: www.ijicc.net.
• [28] M.H. Selamat, H.M.A. Halim, and F. Kok Soon, “Developing Civil Servants’ Commitment to Share Knowledge and Implement Cost Reduction Policy: The Perspective of Malaysian Public Sector,” J. Public Adm. Gov., 2017, doi: 10.5296/jpag.v7i2.10992.
• [29] M.H. Selamat and F.K. Soon, “The Influence of Civil Servants’ Attitude on Engagement and Participation in Cost Reduction Policy: A Case of Malaysia,” J. Public Adm. Gov., vol. 10, no. 2, 2020, doi: 10.5296/jpag.v10i2.16969.
• [30] R. Hirschmann, “Government operating expenditure in Malaysia 2012-2019,” Statista, 2021. https://www.statista.com/statistics/795955/government -operating-expenditure-malaysia/ (accessed Aug. 11, 2021).
• [31] V.M. Pandiyan, “A cost too high,” The Star, Apr. 29, 2020. https://www.thestar.com.my/opinion/columnists/along-the-watchtower/2020/04/29/a-cost-too-high (accessed May 22, 2021).
• [32] T. Hickmann, H. Fuhr, C. Höhne, M. Lederer, and F. Stehle, “Carbon Governance Arrangements and the Nation-State: The Reconfiguration of Public Authority in Developing Countries,” Public Adm. Dev., vol. 37, no. 5, pp. 331-343, Dec. 2017, doi: 10.1002/PAD.1814.
• [33] C.V Bullen and J.F. Rockart, “A Primer on Critical Success Factors,” 1981.
• [34] Z. Radnor and S.P. Osborne, “Lean: A failed theory for public services?,” Public Manag. Rev., vol. 15, no. 2, pp. 265-287, 2013, doi: 10.1080/14719037.2012.748820.
• [35] B. Rodgers, J. Antony, R. Edgeman, and E.A. Cudney, “Lean Six Sigma in the public sector: yesterday, today and tomorrow,” Total Qual. Manag. Bus. Excell., vol. 32, no. 5- 6, pp. 528-540, 2021, doi: 10.1080/14783363.2019.1599714.
• [36] J. Waterman and C. McCue, “Lean thinking within public sector purchasing department: The case of the U.K public service,” J. Public Procure., vol. 12, no. 4, pp. 505-527, 2012.
• [37] R.L. Daft, Organization theory & design. Cengage learning, 2015.
• [38] A. Seidel, G.A. Marodin, G.L. Tortorella, and T.A. Saurin, “How can general leadership theories help to expand the knowledge of lean leadership?,” Prod. Plan. Control, 2019, doi: 10.1080/09537287.2019.1612112.
• [39] K.H. Aij, M. Visse, and G.A.M. Widdershoven, “Lean leadership: An ethnographic study,” Leadersh. Heal. Serv., vol. 28, no. 2, pp. 119-134, May 2015, doi: 10.1108/LHS-03-2014-0015.
• [40] M.F. Van Assen, “Exploring the impact of higher management’s leadership styles on Lean management,” Total Qual. Manag. Bus. Excell., vol. 29, no. 11, pp. 1312- 1341, 2018, doi: 10.1080/14783363.2016.1254543.
• [41] A. Osman and N. Nordin, “Measuring Lean Culture: Designing a Research Instrument,” J. Mod. Manuf. Syst. Technol., vol. 5, pp. 7-17, 2020, doi: 10.15282/jmmst.v5i1.5821.
• [42] N. Sarhan, A. Harb, F. Shrafat, and M. Alhusban, “The effect of organizational culture on the organizational commitment: Evidence from hotel in-dustry,” Manag. Sci. Lett., vol. 10, pp. 183-196, 2020, doi: 10.5267/j.msl.2019.8.004.
• [43] H.L. Tay and S.W.K. Low, “Digitalization of learning resources in a HEI – a lean management perspective,” Int. J. Product. Perform. Manag., vol. 66, no. 5, pp. 680-694, 2017, doi: 10.1108/IJPPM-09-2016-0193.
• [44] K.M. Wiig, “Knowledge management in public administration,” J. Knowl. Manag., vol. 6, no. 3, pp. 224- 239, 2002, doi: 10.1108/13673270210434331.
• [45] I.M. Adeinat and F.H. Abdulfatah, “Organizational culture and knowledge management processes: case study in a public university,” ournal Inf. Knowl. Manag. Syst., vol. 49, no. 1, pp. 35-53, 2019, doi: 10.1108/VJIKMS-05-2018- 0041.
• [46] B. Zhang, Z. Niu, and C. Liu, “Lean Tools, Knowledge Management, and Lean Sustainability: The Moderating Effects of Study Conventions,” Sustainability, vol. 12, no. 3, pp. 956-976, Jan. 2020, doi: 10.3390/su12030956.
• [47] P.M. Lota, M.H. Almeida, and A. Grilo, “How do Knowledge Management Practices Influence the Deployment of Lean Management: a Case Study,” in Proceedings of the International Conference on Industrial Engineering and Operations Management Pilsen, Czech Republic, July 23- 26, 2019, 2019, pp. 2100-2111.
• [48] W. Urban, “The Lean Management Maturity Self Assessment Tool Based on Organizational Culture Diagnosis,” Procedia-Social Behav. Sci., vol. 213, pp. 728- 733, 2015, doi: 10.1016/j.sbspro.2015.11.527.
• [49] G. Nawanir, M. Binalialhajj, K.T. Lim, and M.H. Ahmad, “Becoming Lean: The Way towards Sustainability of Higher Educations Institutions,” in FGIC 2nd Conference on Governance and Integrity 2019, 2019, pp. 603-626, doi: 10.18502/kss.v3i22.5078.
• [50] W. Hadid, S.A. Mansouri, and D. Gallear, “Is lean service promising? A socio-technical perspective,” Int. J. Oper. Prod. Manag., vol. 36, no. 6, pp. 618-642, 2016, doi: 10.1108/IJOPM-01-2015-0008.
• [51] E. Trist, The evolution of socio-technical systems, vol. 2. Toronto: Ontario Quality of Working Life Centre., 1981.
• [52] R. Shah and P.T. Ward, “Lean manufacturing: Context, practice bundles, and performance,” J. Oper. Manag., vol. 21, pp. 129-149, 2003, doi: 10.1016/S0272- 6963(02)00108-0.
• [53] M. A. Lewis, “Lean production and sustainable competitive advantage,” Int. J. Oper. Prod. Manag., vol. 20, no. 8, pp. 959-978, 2000, doi: 10.1108/01443570010332971.
• [54] J. Singh, H. Singh, and V. Sharma, “Success of TPM concept in a manufacturing unit – a case study,” Int. J. Product. Perform. Manag., vol. 67, no. 3, pp. 536-549, 2018, doi: 10.1108/IJPPM-01-2017-0003.
• [55] N. Bouranta, E. Psomas, M.F. Suárez-Barraza, and C. Jaca, “The key factors of total quality management in the service sector: a cross-cultural study,” Benchmarking An Int. Journal., vol. 26, no. 3, pp. 893-921, Apr. 2019, doi: 10.1108/BIJ-09-2017-0240.
• [56] E. Psomas, F. Vouzas, N. Bouranta, and M. Tasiou, “Effects of total quality management in local authorities,” Int. J. Qual. Serv. Sci., vol. 9, no. 1, pp. 41-66, 2017, doi: 10.1108/IJQSS-04-2016-0035.
• [57] F. Talib, Z. Rahman, and M.N. Qureshi, “Total quality management in service sector: A literature review,” Int. J. Bus. Innov. Res., vol. 6, no. 3, pp. 259-301, 2012, doi: 10.1504/IJBIR.2012.046628.
• [58] M. Shafiq, F. Lasrado, and K. Hafeez, “The effect of TQM on organisational performance: empirical evidence from the textile sector of a developing country using SEM,” Total Qual. Manag. Bus. Excell., vol. 30, no. 1-2, pp. 31-52, Jan. 2019, doi: 10.1080/14783363.2017.1283211.
• [59] A.S. Aradhye and S.P. Kallurkar, “A case study of just-intime system in service industry,” in 12th Global Congress on Manufacturing and Management, GCMM 2014, 2014, vol. 97, pp. 2232-2237, doi: 10.1016/j.proeng.2014.12.467.
• [60] M.S. Kaswan, R. Rathi, and M. Singh, “Just in time elements extraction and prioritization for health care unit using decision making approach,” Int. J. Qual. Reliab. Manag., vol. 36, no. 7, pp. 1243-1263, Aug. 2019, doi: 10.1108/IJQRM-08-2018-0208/FULL/HTML.
• [61] S. Kucheryavenko, I. Chistnikova, B. Thorikov, and A. Nazarova, “Adaptation of lean production tools to educational activities of universities,” Prax. Educ., vol. 15, no. 36, pp. 687-705, 2019, doi: 10.22481/praxisedu.v15i36.5956.
• [62] M.M. Yasin, M.A. Wafa, and M.H. Small, “Just-in-time implementation in the public sector: An empirical examination,” Int. J. Oper. Prod. Manag., vol. 21, no. 9, pp. 1195-1204, 2001, doi: 10.1108/EUM0000000005925.
• [63] S. Nakajima, “Introduction to TPM: Total Productive Maintenance,” Product. Press. Inc., p. 129, 1988.
• [64] M. Alsmadi, A. Almani, and R. Jerisat, “A comparative analysis of Lean practices and performance in the UK manufacturing and service sector firms,” Total Qual. Manag. Bus. Excell., vol. 23, no. 3-4, pp. 381-396, 2012, doi: 10.1080/14783363.2012.669993.
• [65] S.A. Brah and W.K. Chong, “Relationship between total productive maintenance and performance,” Int. J. Prod. Res., vol. 42, no. 12, pp. 2383-2401, 2004, doi: 10.1080/00207540410001661418.
• [66] O. Orynycz and K. Tucki, “Total Productive Maintenance Approach to an Increase of the Energy Efficiency of a Hotel Facility and Mitigation of Water Consumption,” Energies, vol. 14, no. 6, p. 1706, 2021.
• [67] “Official Portal of Malaysian Administrative Modernisation and Management Planning Unit (MAMPU) ,” 2021. https://www.mampu.gov.my/en/ (accessed Aug. 28, 2022).
• [68] C.M. Ringle, S. Wende, and J.M. Becker, “SmartPLS 3,” Boenningstedt SmartPLS GmbH, vol. 584, 2015.
• [69] G. Hair, T. Hult, C.M. Ringle, and M. Sarstedt, A primer on partial least squares structural equation modeling (PLS-SEM), 2nd ed., vol. 38, no. 2. SAGE Publications, 2017.
• [70] R. B. Kline, Principles and practice of structural equation modeling, no. 4. Guilford publications, 2015.
• [71] A. Gold, A. Malhotra, and A. Segars, “Knowledge management: An organizational capabilities perspective,” J. Manag. Inf. Syst., vol. 18, no. 1, pp. 185-214, 2001, doi: 10.1080/07421222.2001.11045669.
• [72] J.F. Hair, W.C. Black, B.J. Babin, and R.E. Anderson, Multivariate Data Analysis. Cengage learning, 2018.
• [73] J.F. Hair, M. Sarstedt, C.M. Ringle, and S.P. Gudergan, Advanced issues in Partial Least Squares Structural Equation Modeling. SAGE Publications, 2018.
• [74] G. Shmueli, S. Ray, J.M. Velasquez Estrada, and S.B. Chatla, “The elephant in the room: Predictive performance of PLS models,” J. Bus. Res., vol. 69, no. 10, pp. 4552-4564, Oct. 2016, doi: 10.1016/J.JBUSRES.2016.03.049.
• [75] M. Hussein and T. Zayed, “Critical factors for successful implementation of just-in-time concept in modular integrated construction: A systematic review and meta-analysis,” J. Clean. Prod., vol. 284, p. 124716, 2021, doi: 10.1016/j.jclepro.2020.124716.
• [76] M. Almanei, K. Salonitis, and Y. Xu, “Lean Implementation Frameworks: The Challenges for SMEs,” in The 50th CIRP Conference on Manufacturing Systems Lean, 2017, vol. 63, pp. 750-755, doi: 10.1016/j.procir.2017.03.170.
• [77] S. Sorooshian and S.A. Mad Ali, “Lean practices pertaining hard and soft factors in service sectors,” Calitatea, vol. 18, no. 161, pp. 80-86, 2017.
• [78] D.M. da C. Nogueira, P.S.A. Sousa, and M.R.A. Moreira, “The relationship between leadership style and the success of Lean management implementation,” Leadersh. Organ. Dev. J., vol. 39, no. 6, pp. 807-824, Aug. 2018, doi: 10.1108/LODJ-05-2018-0192.
• [79] R. Asnan, N. Nordin, and S.N. Othman, “Success Factors of Lean Management Implementation in Public Service Organizations,” J. Technol. Oper. Manag., 2016.
• [80] M. Cano, R. Murray, and A. Kourouklis, “Can lean management change the managerial culture in higher education?,” Stud. High. Educ., vol. 0, no. 0, pp. 1-13, 2020, doi: 10.1080/03075079.2020.1817892.
• [81] Z.H.A. Azyan, V. Pulakanam, and D. Pons, “Success factors and barriers to implementing lean in the printing industry. A case study and theoretical framework,” J. Manuf. Technol. Manag., vol. 28, no. 4, pp. 458-484, 2017, doi: 10.1108/JMTM-05-2016-0067.
• [82] M.G. Lins, L. P. Zotes, and R. Caiado, “Critical factors for lean and innovation in services: from a systematic review to an empirical investigation,” Total Qual. Manag. Bus. Excell., vol. 32, no. 5-6, pp. 606-631, 2021, doi: 10.1080/14783363.2019.1624518.
• [83] M.H. Ali, S. Zailani, M. Iranmanesh, and B. Foroughi, “Impacts of environmental factors on waste, energy, and resource management and sustainable performance,” Sustain., vol. 11, no. 8, 2019, doi: 10.3390/su11082443.
• [84] M. Iranmanesh, S. Zailani, S. Hyun, M. Ali, and K. Kim, “Impact of lean manufacturing practices on firms’ sustainable performance: lean culture as a moderator,” Sustainability, vol. 11, no. 4, p. 1112, 2019, doi: 10.3390/su11041112.

Uwagi

Opracowanie rekordu ze środków MEiN, umowa nr SONP/SP/546092/2022 w ramach programu „Społeczna odpowiedzialność nauki” - moduł: Popularyzacja nauki i promocja sportu (2022-2023).