Structural Equation Modelling for Manufacturing Competency and Strategic Success Factors

Abstract:

As global business competition shifts from efficiency to innovation and from enlargement of scale to creation of value, management needs to be oriented towards the strategic use of human resources. Core and managerial competencies are not specific to any occupation. One could demonstrate the competency of “teamwork” or “client orientation”, for example, in performing any job. Specific technical competencies are not included in the model of United Nations competencies for the future. To complement the core competencies, individual departments may choose to define functional competencies related to their respective areas of work. This research involves development of model for Manufacturing Competency and Strategic Success for automobile manufacturing unit. The model has been developed by using SEM based on AMOS 21.0

• Periodical: International Journal of Engineering Research in Africa (Volume 19)
• Pages: 138-155
• DOI: https://doi.org/10.4028/www.scientific.net/JERA.19.138
• Online since: October 2015
• Authors: Chandan Deep Singh*, Jaimal Singh Khamba
• Keywords: Manufacturing Competency, Model Development, SEM, Strategic Success

References

[1] Ahmad, Sohel & Schroeder, Roger G. (2011), Knowledge management through technology strategy: implications for competitiveness, Journal of Manufacturing Technology Management, Vol. 22 No. 1, pp.6-24.

DOI: 10.1108/17410381111099789

[2] Akhter, Syed H.; Fernando, Paulo; Barcellos, Pinto; (2013) Competitive threats, strategic responses and performance of Brazilian B2B firms, Management Decision, Vol. 51 Iss: 8, p.1628 – 1642.

DOI: 10.1108/md-03-2012-0180

[3] Alsudiri, Turki; Al-Karaghouli, Wafi & Eldabi, Tillal (2013), Alignment of large project management process to business strategy A review and conceptual framework, Journal of Enterprise Information Management, Vol. 26 No. 5, pp.596-615.

DOI: 10.1108/jeim-07-2013-0050

[4] Armstrong, Craig E. (2013), Competence or flexibility? Survival and growth implications of competitive strategy preferences among small US businesses, Journal of Strategy and Management, Vol. 6 No. 4, pp.377-398.

DOI: 10.1108/jsma-06-2012-0034

[5] Anders Drejer (2001) how can we define and understand competencies and their development? The journal Technovation. Vol 21, pp.135-146.

DOI: 10.1016/s0166-4972(00)00031-6

[6] Banjour and Micaelli (2010): Design modularity: identification of benefits and difficulties through a bibliographical analysis in the perspective of automotive assemblers and suppliers.

DOI: 10.4322/pmd.2013.010

[7] Bhamra et al., (2010): Competence understanding and use in SMEs: a UK manufacturing perspective.

[8] Brian Leavy (2013), Masterclass Updating a classic formula for strategic success: focus, alignment, repeatability and leadership, Strategy & Leadership, Vol. 41 No. 1, pp.18-28.

DOI: 10.1108/10878571311290043

[9] Bulak, Muhammet Enis; Turkyilmaz, Ali; (2014) Performance assessment of manufacturing SMEs: a frontier approach, Industrial Management & Data Systems, Vol. 114 Iss: 5, p.797 – 816.

DOI: 10.1108/imds-11-2013-0475

[10] Byrne, B. M. (1989), A primer of LISREL: Basic applications and programming for confirmatory factor analytic models, New York: Springer-Verlag.

[11] Celik et al., (2012): The relationship between automobile loans and automobile production amount as a key factor for production strategy.

DOI: 10.1016/j.sbspro.2012.09.1134

[12] Chaiprasit, Sasiprapa & Swierczek, Fredric William (2011), Competitiveness, Globalization and technology development in Thai firms, Competitiveness Review: An International Business Journal, Vol. 21 No. 2, p.18.

DOI: 10.1108/10595421111117461

[13] Chen, Chung-Jen; Hsiao, Yung-Chang; Chu, Mo-An; (2014), Transfer mechanisms and knowledge transfer: The cooperative competency perspective, Journal of Business Research.

DOI: 10.1016/j.jbusres.2014.03.011

[14] Clark, K.B. and Fujimoto, T. (1991) Product Development Performance: Strategy, Organization and Management in the World Auto Industry. Harvard Business School Press, Boston, MA.

DOI: 10.1016/0737-6782(92)90078-q

[15] Coyne (1986): An Examination of the Sustainable Competitive Advantage, Concept: Past, Present, and Future.

[16] Crema, Maria; Verbano, Chiara; Venturini, Karen; (2014) Linking strategy with open innovation and performance in SMEs, Measuring Business Excellence, Vol. 18 Iss: 2, pp.

DOI: 10.1108/mbe-07-2013-0042

[17] Cua, K.O., McKone, K.E. and Schroeder, R.G. (2001), 'Relationships between implementation of TQM, JIT, and TPM and manufacturing performance', Journal of Operations Management, Vol. 19 No. 6, pp.675-94.

DOI: 10.1016/s0272-6963(01)00066-3

[18] Currie, D. J., A. P. Francis, and J. T. Kerr. (1999), Some general propositions about the study of spatial patterns of species richness, Ecoscience, Vol. 6, p.392–399.

DOI: 10.1080/11956860.1999.11682541

[19] Demirtas, Ozgur; (2013), Evaluating the Core Capabilities for Strategic Outsourcing Decisions at Aviation Maintenance Industry, Vol. 99, pp: 1134-1143.

DOI: 10.1016/j.sbspro.2013.10.587

[20] Drauz, Ralf; (2014), Re-insourcing as a manufacturing-strategic option during a crisis-cases from the automobile industry, Jornal of Business Research, Vol. 67, Issue 3, pp: 346-353.

DOI: 10.1016/j.jbusres.2013.01.004

[21] Eric Bonjour, Jean-Pierre Micaelli . (2010) Design Core Competence Diagnosis: A Case From the Automotive Industry, IEEE Transactions on Engineering Management, Vol 57, pp.323-337.

DOI: 10.1109/tem.2009.2036838

[22] Ferna´ndez-Mesa, Anabel; Alegre-Vidal, Joaquı´n; Chiva-Go´mez, Ricardo & Gutie´rrez-Gracia, Antonio (2013), Design management capability and product innovation in SMEs, Management Decision, Vol. 51 No. 3, pp.547-565.

DOI: 10.1108/00251741311309652

[23] Fernández-Mesa, Anabel; Ferreras-Méndez, José Luis; Alegre, Joaquin; Chiva, Ricardo; (2014) IT competency and the commercial success of innovation, Industrial Management & Data Systems, Vol. 114 Iss: 4, pp.550-567.

DOI: 10.1108/imds-09-2013-0389

[24] Ferna´ndez-Pe´rez, Virginia; Garcı´a-Morales, Victor Jesu´s; Fernando, O´scar & Sa´nchez, Bustinza (2012).

[25] G.S. Dangayach, S.C. Pathak, A.D. Sharma. (2006) Advanced Manufacturing Technology: A Way of Improving Technological Competitiveness,. International Journal of Global Business and Competitiveness, Vol. 2, No 1, pp.1-8.

[26] G.S. Dangayach , S.G. Deshmukh, (2000) Manufacturing Strategy: Experiences from Select Indian Organizations. Journal of manufacturing system vol 19 pp.134-147.

DOI: 10.1016/s0278-6125(00)80006-0

[27] Gernald A Sraka (2004) Measurement and evolution of the competence, Foundation and evolution of the impact research, third repost on the vocational training. Vol. 92.

[28] Haartman (2012): Manufacturing capabilities: Mere drivers of operational performance or critical for customer-driven innovation.

[29] Hall, R. (1993) A framework linking intangible resources and capabilities to sustainable competitive advantage. Strategic Management Journal Vol. 18 Issue No. 8, p.607–618.

DOI: 10.1002/smj.4250140804

[30] Hansen, G., & Wernerfelt, B. (1989). Determinants of firm performance: The relative importance of economic and organizational factors. Strategic Management Journal, Vol. 10, p.399−411.

DOI: 10.1002/smj.4250100502

[31] Hanzaee, Kambiz Heidarzadeh; Sadeghian, Mona; (2014).

[32] Hoskisson, R., Hitt, M., Wan, W., & Yiu, D. (1999). Theory and research in strategic management: Swings of a pendulum. Journal of Management, Vol. 25, p.417−456.

DOI: 10.1177/014920639902500307

[33] Hu, Q., Yu, D., & Xie, Z. (2008). Neighborhood classifiers. Expert Systems with Applications, Vol. 34 Issue No. 2, p.866–876.

DOI: 10.1016/j.eswa.2006.10.043

[34] Jensen et al., (2010): Manufacturing 2025 Five future scenarios for Danish manufacturing companies.

[35] John P. Millikin, Peter W. Hom, Charles C. Manz . (2010) Self-management competencies in self-managing teams: Their impact on multi-team system productivity,. Elsevier Publisher, vol 21, pp.687-702.

DOI: 10.1016/j.leaqua.2010.07.001

[36] K. Pavitt (1990) What We Know About the Strategic Management of Technology, California Management Review Reprint Series 32 17-26.

DOI: 10.2307/41166614

[40] R.D. Pearce, The Internationalization.

[37] Kassahun, Asmare Emerie; Molla, Alemayehu; (2013) BPR complementary competence: definition, model and measurement, Business Process Management Journal, Vol. 19 Iss: 3, p.575 – 596.

DOI: 10.1108/14637151311319950

[38] Khamba, JS; Singh, CD and Singh H (2013), Exploring Manufacturing Competencies of Car Manufacturing Unit, International Conference on Advancements and Futuristic Trends in Mechanical and Materials Engineering, (October 3-6, 2013), pp: 88-97.

[39] Khanna Vinod Kumar, Gupta Ruby, (2014) Comparative study of the impact of competency-based training on 5 "S" and TQM: a case study, International Journal of Quality & Reliability Management, Vol. 31 Iss: 3, p.238 – 260.

DOI: 10.1108/ijqrm-12-2012-0163

[40] Kristianto, Yohanes; Ajmal, Mian; Tenkorang, Richard Addo & Hussain, Matloub (2012), A study of technology adoption in manufacturing firms, Journal of Manufacturing Technology Management, Vol. 23 No. 2, pp.198-211.

DOI: 10.1108/17410381211202197

[41] Kwasi Amoako-Gyampah, Moses Acquaah (2008) Manufacturing strategy, competitive strategy and firm performance: An empirical study in a developing economy environment. Vol. 64, pp.575-592.

DOI: 10.1016/j.ijpe.2007.02.030

[42] Leo Sleuwaegen (2013), Scanning for profitable (international) growth, Journal of Strategy and Management, Vol. 6 No. 1, pp.96-110.

[43] Linton, Jonathan; Walsh, Steven; (2013).

[44] Ljungquist, Urban (2013), Adding dynamics to core competence concept applications, European Business Review, Vol. 25 No. 5, pp.453-465.

DOI: 10.1108/ebr-09-2012-0052

[45] Ljungquist, Urban (2007), Core Competency beyond identification: presentation of a model, Management Decision, Vol. 45, No. 3, pp.393-408.

DOI: 10.1108/00251740710745034

[46] Mark R. Gallon, Harold M. Stillman, David Coates. (1999) Putting Core Competency thinking into practice, . RTM Journal, pp.1-12.

[47] Masoud (2013): The Impact of Functional Competencies on Firm Performance of Pharmaceutical Industry in Jordan.

[48] Meybodi, Mohammad Z. ; (2013) The links between lean manufacturing practices and concurrent engineering method of new product development: An empirical study, Benchmarking: An International Journal, Vol. 20 Iss: 3, p.362 – 376.

DOI: 10.1108/14635771311318135

[49] Millikin et al., (2010): Self-management competencies in self-managing teams: Their impact on multi-team system productivity.

DOI: 10.1016/j.leaqua.2010.07.001

[50] Mishra, Ruchi; Pundir, Ashok K.; Ganapathy, L. (2014) Assessment of Manufacturing Flexibility: A Review of Research and Conceptual Framework, Management Research Review, Vol. 37 Iss: 8.

DOI: 10.1108/mrr-03-2013-0055

[51] Mitchelmore, Siwan & Rowley, Jennifer (2010), Entrepreneurial competencies: a literature review and development agenda, International Journal of Entrepreneurial Behaviour & Research, Vol. 16 No. 2, pp.92-111.

DOI: 10.1108/13552551011026995

[52] Monideepa Tarafdar . Steven R. Gordon (2009): Understanding the influence of information systems competencies on process innovation. Vol. 46, Issue No. 6 pp.357-363.

[53] Moom, Byeong-Joon; (2013), Antecedants and outcomes of strategic thinking, Journal of Business Research, Vol. 66, Issue 10, pp: 1698-1708.

[54] Moore (2011): Identity, knowledge and strategy in the UK subsidiary of an Anglo-German automobile manufacturer.

[55] Narelle Kennedy (2011). Manufacturing Futures A paper by the Australian Business Foundation for the NSW Business Chamber.

[56] Nunnaly, J. (1978). Psychometric theory. New York: McGraw-Hill.

[57] Nuntamanop, Polboon; Kauranen, Ilkka & Igel, Barbara (2013), A new model of strategic thinking competency, Journal of Strategy and Management, Vol. 6 No. 3, pp.242-264.

DOI: 10.1108/jsma-10-2012-0052

[58] Park, Taekyung & Rhee, Jaehoon (2012), Antecedents of knowledge competency and performance in born globals The moderating effects of absorptive capacity, Management Decision, Vol. 50 No. 8, pp.1361-1381.

DOI: 10.1108/00251741211261971

[59] Paul Oluikpe (2012), Developing a corporate knowledge management strategy, Journal of Knowledge Management, Vol. 16 No. 6, pp.862-878.

DOI: 10.1108/13673271211276164

[60] P. Pari and K. Pavitt, (1990) Large Firms in the Production of the World's Technology: An Important Case of Non-Globalization, Journal of International Business Studies. Vol. 10, pp.449-474.

[61] Pham, Duc T. & Thomas, Andrew J. (2012), Fit manufacturing: a framework for sustainability, Journal of Manufacturing Technology Management, Vol. 23 No. 1, pp.103-123.

[62] Reijnders et al., (2012): The effect of corporate social responsibility on consumer satisfaction and perceived value: the case of the automobile industry sector in Portugal.

DOI: 10.1016/j.jclepro.2012.07.003

[63] Ring, P.M. (2000) The three T's of alliance creation: task, team and time. European Management Journal Vol. 18. Issue No. 2, p.152–163.

DOI: 10.1016/s0263-2373(99)00087-0

[64] Ryan, Geoff; Spencer, Lyle M. & Bernhard, Urs (2012).

[65] Sahoo , Tapan; Banwet , D. K. & Momaya, K. (2011), Strategic technology management in the auto component industry in India A case study of select organizations, Journal of Advances in Management Research, Vol. 8 No. 1, pp.9-29.

DOI: 10.1108/09727981111129282

[66] Shah, R., & Goldstein, S. (2006), Use of structural equation modeling in operations Management: Looking back and Forward, Journal of Operations Management, Vol. 24 No. 2, pp.148-169.

DOI: 10.1016/j.jom.2005.05.001

[67] Shavarini, Sohrab Khalili; Salimian, Hossain; Nazemi, Jamshid & Alborzi, Mahmood (2013).

[68] Shinnaranantana, Nadhakan; Dimmitt, Nicholas J.; Siengthai, Sununta; (2013) CSR manager competencies: a case study from Thailand, Social Responsibility Journal, Vol. 9 Iss: 3, p.395 – 411.

DOI: 10.1108/srj-07-2011-0053

[69] Singh, CD; and Khamba, JS (2014), Analysis of Manufacturing Competency for an Automobile Manufacturing Unit, International Journal of Engineering, Business and Enterprise Applications, Vol. 9, Issue 1, June-August 2014, pp: 44-51.

[70] Singh, CD; and Khamba, JS (2014), Analysis of Strategic Success for an Automobile Manufacturing Unit, International Journal of Engineering, Business and Enterprise Applications, Vol. 9, Issue 2, June-August 2014, pp: 104-111.

[71] Singh, CD; and Khamba, JS (2014).

[72] Singh, CD; and Khamba, JS (2014), Evaluation of Strategic Success factors on performance of an Automobile Manufacturing Unit, International Journal of Engineering Research& Management Technology, Volume-1, Issue-4, July-2014, pp: 144-157.

[73] Singh, CD; Khamba, JS; Singh S, and Singh N (2014), Exploring Manufacturing Competencies of a Tractor Manufacturing Unit, International Journal of Applied Studies, Volume: 1, Issue: 1, Jan 2014, pp: 53-62.

DOI: 10.1088/1757-899x/65/1/012025

[74] Singh, CD; Singh, P; and Khamba, JS (2014).

[75] Singh, CD; Singh, P; and Khamba, JS (2014).

[76] Singh, CD; and Khamba, JS (2015), Competency Strategy Model Analysis using SEM, International Journal for Multi Disciplinary Engineering and Business Management, Volume-3, Issue-3, July-2015, pp: 37-41.

[77] Singh, CD; and Khamba, JS (2015), AHP Analysis of Manufacturing Competency and Strategic Success Factors, International Journal in Applied Studies and Production Management, Volume-1, Issue-2, May-August 2015, pp: 357-373.

[78] Singh, CD; Khamba, JS and Kaur H (2015), Exploring Manufacturing Competency and Strategic Success: A Review, 2nd International Conference on Production & Industrial Engineering 2015 proceedings, 13 (3) (2015), pp: 1655-1658.

[79] Singh, CD; Khamba, JS; Singh, R and Singh, N (2014).

[80] Soderquist, Klas Eric; Papalexandris, Alexandros; Ioannou, George & Prastacos, Gregory (2010), From task-based to competency-based A typology and process supporting a critical HRM transition, Personnel Review, Vol. 39 No. 3, pp.325-346.

DOI: 10.1108/00483481011030520

[81] Steptoe-Warren, Gail; Howat, Douglas & Hume, Ian (2011), Strategic thinking and decision making: literature review, Journal of Strategy and Management, Vol. 4 No. 3, pp.238-250.

DOI: 10.1108/17554251111152261

[82] Stokes, Peter & Oiry, Ewan (), An evaluation of the use of competencies in human resource development – a historical and contemporary recontextualisation, EuroMed Journal of Business, Vol. 7 No. 1, pp.4-23.

DOI: 10.1108/14502191211225356

[83] Su, C. T., & Hsu, J. H. (2006). Precision parameter in the variable precision rough sets model: An application. Omega: International Journal of Management Science. Vol. 34, pp.150-160.

DOI: 10.1016/j.omega.2004.08.005

[84] Sutton, Anna & Watson, Sara (2013), Can competencies at selection predict performance and development needs?, Journal of Management Development, Vol. 32 No. 9, pp.1023-1035.

DOI: 10.1108/jmd-02-2012-0032

[85] Taisch (2013): Serious Gaming Supporting Competence Development in Sustainable Manufacturing.

[86] Thomas, Andrew J. Byard, Paul & Evans, Roger (2012), Identifying the UK's manufacturing challenges as a benchmark for future growth, Journal of Manufacturing Technology Management, Vol. 23 No. 2, pp.142-156.

DOI: 10.1108/17410381211202160

[87] Verle, Karmen; Markic, Mirko; Kodric, Borut; Zoran, Annmarie Gorenc (2014) Managerial competencies and organizational structures, Industrial Management & Data Systems, Vol. 114 Iss: 6.

DOI: 10.1108/imds-01-2014-0019

[88] Waal, André de; Kourtit, Karima; (2013) Performance measurement and management in practice: Advantages, disadvantages and reasons for use, International Journal of Productivity and Performance Management, Vol. 62 Iss: 5, pp.446-473.

DOI: 10.1108/ijppm-10-2012-0118

[89] Wang, Kung-Jeng; Lestari, Yuliani Dwi (2013), Firm competencies on market entry success: Evidencefrom a high-tech industry in an emerging market, Journal of Business Research, Vol. 66, Issue 12, pp.2444-2450.

DOI: 10.1016/j.jbusres.2013.05.033

[90] Wee et al., (2012): Technological diversity of emerging eco-innovations: a case study of the automobile industry.

[91] Williams (2006): Product service systems in the automobile industry: contribution to system innovation.