106 SUTHIPARITHAT Vol.31 No.99 July - September 2017 ความสัมพันธ์ระหว่างภาวะผู ้น�า ผลการปฎิบัติด้านการผลิต แบบลีน การด�าเนินงาน การเงิน และสภาพแวดล้อมที่ยั่งยืน THE RELATIONSHIPS AMONG LEADERSHIPSTYLE, LEAN MANUFACTURING PRACTICE, OPERATIONAL PERFORMANCE, FINANCIAL PERFORMANCE, AND SUSTAINABLE ENVIRONMENT ปิยฉัตร บูระวัฒน์* Piyachat Burawat* * อาจารย์ประจ�า คณะบริหารธุรกิจ มหาวิทยาลัยเทคโนโลยีราชมงคลธัญบุรี * Lecturer, Faculty of Business Administration, Rajamangala University of Technology Thanyaburi * Email: [email protected]
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106 SUTHIPARITHAT Vol.31 No.99 July - September 2017
THE RELATIONSHIPS AMONG LEADERSHIPSTYLE, LEAN MANUFACTURING PRACTICE, OPERATIONAL PERFORMANCE, FINANCIAL PERFORMANCE, AND SUSTAINABLE ENVIRONMENT
ปิยฉัตร บูระวัฒน์*Piyachat Burawat*
*อาจารย์ประจ�าคณะบริหารธุรกิจมหาวิทยาลัยเทคโนโลยีราชมงคลธัญบุรี* Lecturer, Faculty of Business Administration, Rajamangala University of Technology Thanyaburi* Email: [email protected]
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Introduction Currently, globalization makes communication free without borders. In addition, asaconsequenceofanestablishmentofASEANEconomicCommunity(AEC)in2015,therehasbeenafiercecompetitioninbothdomesticandinternationalmarkets.Therefore,manufacturingfirmsneedtoexplorestrategiesthatcanincreaselevelofproductivityandqualitywhiledecreasingcostsanddeliveryleadtimetoconsumers,allofwhichrequirethecooperationofallpartiesfromsuppliers,subcontractors,employees,andmanagementteams.Themajorityofproductionmakershavechosencontinuousimprovementprogramsastheirprincipalstrategicinitiativestoincreaselevelofcustomerservice,quality,andoveralltotalvaluethatdelivertotheirconsumers.Presently,strategiesofcontinuousimprovementhaveinitiallyevolvedfromtheToyotaproductionsystem(TPS),whichisthecombinationofthequalitytheoriesofUnitedStatesoriginsbyJuran,Deming,andothers(Womack&Jones,1996;Lathin&Mitchell,2001;Marynell,2013).ThesuccessofTPSisbasedontheefficientmanagementofrelationships,bothtop-downandbottom-up,resultinginorganizationalchanges.TPSiscomposedofvariousprogramssuchasTotalQualityManagement(TQM),six-sigma,leanmanufacturing,justintime,andothertheoryoflimitations(Marynell,2013). Manufacturers are climbing on the lean bandwagon in droves. The IndustryWeek/MPICensusshowsthatnearly70%ofallplantsarecurrentlyemployingleanmanufacturingasanimprovementmethodology;however,only2%ofestablishmentsansweringthesurveyhavecompletelyaccomplished theirgoalsand24%presentedaccomplishingsignificant results.Theremains,74%,acceptedthattheyarenotdoingwellwithlean.Morerecently,theresultsshowedthatmanycompaniesthatwontheexcellentleanmanufacturingawardsprovidedbytheShingoPrizecommittee,afterwinningtheaward,hadnotmaintainedtheirsuccess(Pay,2006). Considering the accomplished lean executions research, the important attributes forachievementdependonthetopmanagement’scommitment,theempoweringofworkers,evaluatingsuccessfulactivities,havinganobviouslyplanforimprovementprocess,establishingexplicitdirection,focus,andtargets(Forrester,1995;Leitner,2005;Spector&West,2006).Theseachievementattributesarerelatedtoresponsibilitiesandrolesofleadersfororganizationalchange,whicharerespectedasimportantbasicpillarsofleanmanufacturing.Theaccomplishmentofleaninitiativesanddevelopmentofacontinuousimprovementculturedependsupontheleadershipdeportationsandexecuteswithintheorganization(Found&Harvey,2007;Heymans,2002). Theexistingresearchesplaceanemphasisontherelationofleadershipbehaviorsandpracticesthatleadstosuccessfulleanexecutions.Theresearchpublicationsfailstoconsiderthatoneleadershipmodelmightnotbesuitableforachievementwithinleanpractices.ConsistentwithHerkness(2005), itrevealsthattransformational leadershipenlargestransactional leadershipbydevelopingontheinterchangesandreciprocationsbetweenmanagersandemployees.Insummary,thefindingsofthestudyaddtotheexistingempiricaldata,suggestingthatthetransformationalleadershipmodelisusefulwhentryingtoleadchange.Althoughseveralstudiesfocusontheeffectofleadershiponleanpractice,theypayattentiontoonlyoneindustry;thesimultaneousstudyonoverallindustryisstilllacking.Therefore,thisstudyintendstostudytheinfluenceoftransformational,transactional,andpassiveavoidantleadershiponleanmanufacturingpractices.
Thenewcategoryofleadershipparadigmcouldbeentitledsustainableleadershipfeaturedbythreeessentialprocesses,i.e.learningthroughdoingandhavinganobviousawarenessofindividualgoal,sensingofindividualmotivationsandexpectations,andsuccessfulinstressmanagementandadequateself-care(Casserley&Crichley,2010).Sincesustainableleadershipisinsufficientinacademicfield,thetheoreticalpremisehasnotbeencompletelydeveloped.Therefore,thisstudyintendstoexaminetheinfluenceofsustainableleadershiponleanmanufacturingexecutions,whicharetheincrementalcontributionstoacademicresearch. Laborproductivityiscriticaltothecompetition.Inaddition,itcanalsoincreasesustainablerevenue.Companywithhighercostswillresult inlowercompetitiveness,leadingtolossandwithdrawalfromthebusiness.Thailandlaborproductivity increasesby2%peryear,whichisverylowcomparedtoothercountries,suchasVietnamandChina,withtheincreaseby4%and10%,respectively(Tansakul&Sutthiwatanaruputh,2014).TheunitlaborcostsofThailandhaveincreasedby3%whileIndonesiafellby12%(Tansakul&Sutthiwatanaruputh,2014).Accordingtobothlowlevelofproductivityandhighlevelofunitlaborcosts,thecompetitivenessofThailandisreduced. Meanwhile,inventoryisoneofthemostexpensiveassetsofmanyfirms,presentingasmuchas50%oftotalinvestedcapital.Employershavelongacknowledgedthatwellmanagementininventoryisimportant.Inaddition,acompanycandeductcostsbydecreasinginventory.Ontheotherhand,productionmaystopandcustomersbecomedissatisfiedwhenanitemisoutofstock(Heizer&Render,2011). Accordingtolowlevelofproductivity,higherlaborcost,highlevelofinventoryaswellasadvancesintechnologyandscience,businessleadersandmanagersneedtofindstrategiesthatcanaddvaluetotheirproductsandreducelossesasmuchaspossible(Barney&Hesterly,2010).SinceToyotaappliedleanmanufacturingsuccessfully,withintwodecadesithasgainedmuchattention.Overall,thereviewofrelatedresearchespresentsthatexecutionofleanmanufacturingisusually related to increases inoperationalperformancemeasures.Themost regularlycitedadvantagesassociatedwithleanimplementationsareincreasinginemployeeproductivityandqualityofproduct,decreasing in leadtimedeliver tocustomer,cycletime,andmanufacturingcosts(Marynell,2013;Sakakibara,Flynn,Schroeder,&Morris,1997).However,somestudiesfoundthatsomedimensionsofleanmanufacturingarerelatedtofirmperformance.Inaddition,somestudiesfoundthatthereisnorelationshipbetweenleanmanufacturingandperformance(Hibadullah,Fuzi,ChiekDesa,&Zamri,2013;Kaplan&Norton,1992)Meanwhile,FullertonandWempe(2009)reportedthatthereisrelationshipbetweenleanmanufacturingandfinancialperformancethroughoperationalperformance. Regardingtheaboveconcepts,therelationshipsamongleadershipstyle,leanmanufacturing,andperformanceareambiguous.Thus,thisstudyproposestoexaminethesimultaneousrelationshipsamongtransformationalleadership,transactionalleadership,passiveavoidantleadership,sustainableleadership,leanmanufacturingpractices,returnonequity,overallefficiency,profit,andsustainabilityperformance(operational,financial,andenvironmentalandsocialperformance)inThaimanufacturingindustry.Theresultsofthisstudyprovideenlightenmentinformationinanefficientformforafirm’soperationalsystem,whichleadstosustainableimprovementintheglobalcompetitiveness.
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Literature Review Presently,organizationsattemptveryhardtogainvictoryintheaggressiverivalry,whichisdifficulttoachievebyonlyonealternative,e.g.growingorderstogetprofit.Therefore,tobemorecompetitiveortosurviveinsuchfiercecompetition,theorganizationshavetoresorttotheothercrucialways,suchasreducingthecosts.Accordingly,lessthan24%ofcompanieswithleanprogramsaresuccessful(Pay,2006).Consideringresearchonsuccessfulleanimplementations,theseaccomplishmentattributesarerelatedtoleadership’sroleandresponsibilitiesfororganizationalchange,whichareviewedimportantwithinthebasicpremisesofleanpractices.
Leadership style Overthepast50yearsvariousleadershipstyleshavebeencreated,studied,paralleled,andcriticizedwiththeendeavortodescribetheleadershipconceptualmodels(Northouse,2004).Theexistingresearchescanbeclassifiedintothefollowingfourmanners,i.e.traittheory,behavioraltheory,contingencytheory,andtransformationalleadership(Herkness,2005). Theearly20thcenturystudyinleadershipareasemphasizedontheindividualleadercharacteristics in order to clarify their success (Mann, Gibbard, & Hartman, 1967; Stogdill,1974).Afterthat,theoristscomprehendedtherequirementforawiderperspectivetoleadershipsuccessfulness and started learning behaviors of leaders. Themodel of behavioral leadershipattemptstocomprehendtheinteractionbetweenleaderandlabor.Otheracademiciansstruggledtoelaboratefurtherleadershiptheoryinordertoclarifytheresponsibilitythatdiversifiedcontextson the leadership situation which is known as contingency leadership theory. More recentresearcheshaveemphasizedon the successof leaderswhoperform in an inspirational andvisionaryabilitywhichisregardedastransformationalleadership(Bass,1988;Burns,1978).Modernstudypresentsthattransformationalleaderscanenhancetheoverallorganizationalsuccessandinnovation;therefore,theyareperfectlyappropriatedtoconductchangingincompany(Northouse,2004).Thenewcategoryofleadershipparadigmcouldbeentitledsustainableleadershipwhichisreliedontheconceptofethicalleadership(Brown&Trevino,2005),butenlargesitsapplicationareabyassertingthatitisethicalthatwetakeintoconsiderationtherequirementsofabroaderstakeholder’sscopealongwithnextgenerationsandthenaturalenvironment.Comparingtoothertheoriesofleadership,sustainableleadershipisdifferentiatedbyseekingthesustainabilityvalueatlevelsofpersonal,organizational,socialandecologicalforbothexistingandnextgenerations(Olivier,2012).
Lean Manufacturing Practice Lean manufacturing or production is an operation improvement strategy used toimprovethemanufactureanddeliveryofaproduct(toacustomer’sexpectation)bymeansofapurpose-designedfacilityandprocess,utilizinganinterconnectedarrayofsupplychains.Itisaprogramthatcanbeadoptedbybothmatureandnewmanufacturingentities(Womack&Jones,1996).Maturemanufacturingentitiesrepresentfacilitiesproducingaparticularproduct,whichhavealowrateofproductandprocessinnovation.Tostaycompetitive,maturemanufacturershavetofocusoncostreduction,improvedproductivitythroughbettercapacityutilization,incrementalimprovementand theadoptionofmoreefficient technologies. Incontrast,newmanufacturing
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regularschedulesforequipmentmaintenance,(9)statisticalprocesscontrol,ormostprocesses/toolsontheproductionlinearecontrolledbystatisticalprocess,and(10)employeeinvolvement,referringtooperatingworkerswhoareessentialintheteamstosuggestandsolveproductionproblem. Study has been proceeded to discover the crucial accomplishment factors of leanproductionsoastofulfillthespacebetweensuccessfulandunsuccessfulleanimplementation.Within the research studiesdiscovering the important accomplishment factors related to leanprogram,oneregularfactorwhichcontinuestobethemostimportantisthetopmanagementcommitmentandleadership(Soriano-Meier&Forrester,2002;Spector&West,2006).Therecentresearchliteraturesabouttherelationshipbetweenleadershipandleanpracticesareratherscarce.Besides,thesaidresearchesmostlyfocusononlyonetypeofleadershipcontributingtothesuccessfulapplicationofleanpractice.ConsistentwithHerkness(2005),theresearchrevealedthattransformationalleadershipaddstransactionalleadershipbycreatingtheexchangesbetweenleadersandfollowersanditfurthersuggestedthatthetransformationalleadershipmodelisusefulwhentryingtoleadchange.Therefore,thisstudyisintendedtostudytheinfluenceofleadershiponleanmanufacturing.
Sustainable Performance Accordingtotheincreasingattentionofallkindsofstakeholdersincompanyactivitiesinrecentrivalrysituation,therehavebeencrowdedresearchesinfieldofcorporatesustainabilityperformanceevaluationfrombothpractitionersandacademicians.Firmsarestrugglingtoaccomplishlong-termbenefitsbyapplyingsustainabilityactivitiesasprincipalorganizationalstrategy(Chabowski,Mena,&Gonzalez-Padron,2011;Cruz,Pedrozo,&Estivalete,2006). Duringpositiveenlargementofcorporatesustainabilityperformance,organizationalperformancefollowsthesamepath,orviceversa,requiringagoodquantityofstudy.TakalaandPallab(2000)proposedthatcorporatesustainabilityperformancegenerallyemphasizesontheenvironmental,social,andeconomicperformanceofsustainabledevelopment.Meanwhile,sustainabilityperformanceisdefinedbySchalteggerandWagner(2006)astheperformanceofafirminallaspectsandforalldriverofcorporatesustainability.Fiksel,Mcdaniel,&Mendenhall, (1999)mentioned that itextendsbeyondthesingleorganizationboundariesandtypicallyaddressestheperformanceofbothupstreamsuppliersanddownstreamconsumersinthevaluechain. Wheresustainabilityperformanceassessesareinformedbyprivatesectorcompanies,thereisatendencytoalignthesewiththeGlobalReportingInitiative(GRI)index(Adams,Muir,&Hoque,2014)withacombinationofstand-alonesustainabilityreportsandmixedannual/financialreportswithsustainabilityreporting.ThestudyofKPMG(2007)reportedthat83percentoftop500Australianfirmsin2006presentedstandalonesustainabilityreports;however,morepresently,anincreasingquantityoforganizationsarepresentingtheirsustainabilityperformancewiththemeasurementofsustainabilityperformancefinancialtodemonstrate,oratleasttoprovidetheimpression,thatsustainabilityisintegratedindecision-making,anotionbecomingknownasintegratedreporting(EconomistIntelligenceUnit,2010).Theorganizations,whoseaimisoutstandinglyseen(atleastbythemselves)asbeingoneofeconomicreturn,mightbegreaterreadilyexcusedforseparatelyreportingvoluntarysustainabilityassesses.
Inconclusion,sustainabilityperformanceembracesperformanceinrelatedwith:levelofemissionandnaturalresourcesaving;otherenvironmentalactivitiesandinitiatives;employmentfeatures;occupationalhealthandsafety;relationshipswithsocietyandcommunity;involvementofstakeholder;andeconomic impactsof theorganizationother than thosefinancialassessesappliedinthefinancialaccounts.Thepreviousstudydemonstratesthescarcityofaccountabilityforenvironmentalandsocialperformance.Althoughtherehasbeenagushofstudiesinthefieldofcorporatesustainabilityperformanceevaluationfrombothpractitionersandacademicians,thereisstillnoconcurreduniversalguidelineorstandard.Generally,therearesomemeasuresusuallymentionedorusedbyorganizationsinchoosingsustainabilityperformanceevaluates.
Research MethodologySamples and Procedures ThepopulationforthestudyenclosedmiddlemanagementandtopmanagementexecutivesofcompaniesrunninginThaimanufacturingindustry.BentlerandChou(1987)mentionedthat,underthetheoryofnormaldistribution,theproportionofsamplesizetoamountoffreeparametersshouldbeatleast5:1inordertoobtaintrustworthyparameterforecasts.Theamountoffreeparametersis43;therefore,thelowestsamplesizeequals215.Atotalof293samples(165respondentsfromsmallandmediumcompanies,128respondentsfromlargecompanies)were
9 least by themselves) as being one of economic return, might be greater readily excused for separately reporting voluntary sustainability assesses.
In conclusion, sustainability performance embraces performance in related with: level of emission and natural resource saving; other environmental activities and initiatives; employment features; occupational health and safety; relationships with society and community; involvement of stakeholder; and economic impacts of the organization other than those financial assesses applied in the financial accounts. The previous study demonstrates the scarcity of accountability for environmental and social performance. Although there has been a gush of studies in the field of corporate sustainability performance evaluation from both practitioners and academicians, there is still no concurred universal guideline or standard. Generally, there are some measures usually mentioned or used by organizations in choosing sustainability performance evaluates. Theoretical Framework
The proposed framework is to investigate the simultaneous relationships among leadership style, lean manufacturing practice, operational performance, financial performance, and sustainable performance.
Figure 1 The theoretical framework Research Methodology Samples and Procedures
The population for the study enclosed middle management and top management executives of companies running in Thai manufacturing industry. Bentler and Chou (1987) mentioned that, under the theory of normal distribution, the proportion of sample size to amount of free parameters should be at least 5:1 in order to obtain trustworthy parameter forecasts. The amount of free parameters is 43; therefore, the lowest sample size equals 215. A total of 293 samples (165 respondents from small and medium companies, 128 respondents from
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gatheredin2016betweenAprilandNovemberbymeansofsimplerandomsamplingtogetherwithsnowballsampling.Thesimplerandomsamplingwasperformedbythreetechniques.First,thelettersauthorizedbytheuniversitytoaskpermissionstosendthepaperoronlinesurveytogetherwithpaperoronlinesurveyweresenttocompanieslistedintheFederationofThaiIndustry.Second,theoperatorswhomanagetheseminartopicconcerningmanufacturingindustrywerecommunicatedaccompaniedwith the lettersauthorizedby theuniversity toexplain theobjective,thesignificance,andtheadvantagesofthestudy.Authorizationstodistributethepaperquestionnairetotheirparticipantsinthisseminarwhoworkedformanagerpositionandabovewerecertainlyasked.Finally,thedeanofbusinessadministrationandengineeringfacultyofbothgovernmentandprivateuniversitywerecommunicatedaccompaniedwiththelettersauthorizedbytheuniversitytoexplaintheobjective,thesignificance,andtheadvantagesofthestudy.Authorizationstodistributethepaperquestionnairetotheirgraduatedstudentstudyinginmanufacturingandrelatedmajorwhileworkingformanagerpositionandabovewerecertainlyasked.Consideringsnowballsamplingmethod,therespondentswereinterviewedandaskedbyhighlyexperiencedinterviewers.Afterobservingtheinitialrespondent,theresearcheraskedforassistancefromtheinitialrespondentstohelpidentifypeoplewithanidenticalattributeofattentiveness.Inqualitativemethod,in-depthinterviewwasconductedfrom20participantsofsmallandmediumcompaniesand20participantsfromlargecompanieswhoworkedformiddleandtopmanagementposition.
Structure Equation Model (SEM) Wright(1921)describedthatSEMisastatisticaltechniqueforexaminingandforecastingcausalrelations,applyingacombinationofstatisticaldataandqualitativecausalassumptions.Thisstudyisextensivewithtwelvehypothesespresentedinfigure1.Sevenindicatorswereusedtodeterminethesuitabletheoreticalframeworkpresentedintable1.Theassociationsamongfactorsweremeasuredbyt-testrelatedtocriticalratios(C.R.)andp-value.
ResultsQuantitative Results Theentire293of900questionnaires(responserate32.56%)wereappliedtodoanalysis.Themajorityoftherespondentsweremale,accountingfor55.6%,withageabove40yearsoldaccountingfor32.1%.Theworkingpositionthereofwasgeneral/factory/productionmanager,whichaccountedfor38.23%.MostofthemhadBachelor’sdegree,whichaccountedfor74.1%.Mostly,theageofcompanywasabove15years,accountingfor50.2%,smallandmediumsize,accountingfor56.3%,operatinginnon-automotive/partindustry,accountingfor78.8%,withoutunionoflabor,accountingfor76.1%,andlengthofleanapplicationlessthan3years,accountingfor70.6%. Theskewnessandkurtosisvalueswhichdeterminethenormaldistributionshouldvaryfrom-3to+3(Decarlo,1997;Stuart&Ord,1994).Thefindingsreportedthattheskewnessvaluesvaryfrom-1.234to1.894,andthekurtosisvaluesvaryfrom-1.905to2.720.Meanwhile,thePearson’sbivariatecorrelationsofall relationshipsweresignificant.Therefore, itcouldbesummarizedthattheprincipleofnormaldistributionandlinearitywasaccepted. Consideringanoverview,respondentsevaluatedallfactors,i.e.transformationalleadership,transactionalleadership,sustainableleadership,leanmanufacturing,operationalperformance,andenvironmental and social performance, at extensive extent. Meanwhile, the passive avoidantleadershipwasevaluatedatlittleextent.Inaddition,financialperformancewasevaluatedatsomeextentwith1-10%increaseinfinancialnumber.
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Model Fit and Hypothesis Testing The Chi-square is important statistics; however, a test of statistical significance isresponsivetosizeofsample,whichindicatesthatwhenthehugesamplesareemployed,theChi-squarestatisticnearlyalwaysdeniestheframework(Bentler&Bonnet,1980;Jöreskog&Sörbom,1996).Thus,manyresearcherssuggestedthataframeworkcouldalsobesatisfiedifthemostoffitindicesreportgoodadoptionassessesandonlyasmallnumbersofindicesarelowerthantheminimumcriterion(Bagozzi&Yi,1988;Fornell&Larcker,1981).EventhoughtheresultofChi-squarestatisticsoftherevisedproposedtheoreticalmodelreportedasignificantata0.05level,theleftoverfindingsweregreaterthanthelowestthresholdpresentedintable2.Therefore,itcouldbesummarizedthatthestructureofleadershipstyle,leanmanufacturingpractice,operationalperformance,financialperformance,andenvironmentalandsocialperformanceweresuitabletoexplaintheinterrelationshipsamongitemsandlatentvariables.
Moderate Effect Testing Regarding the moderate effect of automotive/part and non-automotive/part (H11),theChi-squareoftheunconstrainedis430.475anddegreeoffreedomis220,whereastheChi-squareofthefullyconstrainedis441.569anddegreeoffreedomis236.ThedifferenceoftheChi-squareis11.094anddegreeoffreedomis16.Thep-valueis0.804,whichcanbesummarizedthatthemodelisnotdifferentacrosstypesofindustry.Meanwhile,regardingthemoderateeffectofsizesofcompany(H12),theChi-squareoftheunconstrainedis442.140anddegreeoffreedomis220,whereastheChi-squareofthefullyconstrainedis429.088anddegreeoffreedomis236.ThedifferenceoftheChi-squareis6.948anddegreeoffreedomis16.Thep-valueis0.974,whichcanbesummarizedthatthemodelisnotdifferentacrosssizesofcompany.Thus,itcanbeconcludedthatbothH11andH12arerejected.
Qualitative Results Consideringquality,thein-depthinterviewwasconductedwithmiddleandtopmanagersworkingin20smallandmediummanufacturingcompaniesand20largemanufacturingcompanies.Accordingtotheresults,itwasfoundthattheorganizationalcomplexitylevelwasmoderate,whichdidnotneedtobechanged.Thus,managerswereinterestedinexchangingwithemployeesthaninspiringthemtobechanged.Moreover,thelargecompaniesfocusedmoreonleanmanufacturingpractice rather than smaller companies operating in fierce competitionwith small number ofemployees,whichdidnothaveenoughresourcestosetandcontrolleanmanufacturingsystem.Inaddition,managersproposedthattheyknewandappliedsomedimensionsofleanmanufacturingastheythoughtleanmanufacturingwassuitableforonlyautomotive/partindustry.
Discussions and ConclusionsHypothesis 1 Thefindingrevealedthatthere isnorelationshipbetweentransformational leadershipandleanmanufacturingpractice,opposedtoCheerawit,Napompech,andPanjakhajornsak(2014).However,itconfirmstheresultsofMarynell(2013)andLanglois(2015).Thisisbecausemostcompanieshaveoperatedlongerthan15years,andtheoperatingsystem,situationandcompetition
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arequitestable,requiringlowerchange.Transformationalleadershipwillbeusefulwhenacompanyistryingtoleadchange.Hypothesis 2 Thefindingrevealedthatthereisapositiverelationshipbetweentransactionalleadershipandleanmanufacturingpractice,whichassertstheprecedingresearches,suchasthatofMarynell(2013).Thekeycharacteristicsforsuccessof leanmanufacturingpracticedependonthetopmanagementcommitment, theempoweringofworkers, top-downandbottom-uprelationships,assessingsuccessfulactivities,havinganobviousdefinitionofprocessimprovementplan,generatingexplicitconcentration,direction,andobjectives(Brown,Lamming,Bessant,&Jones,2006;Forrester,1995;Leitner,2005;Liker&Meier,2006;Longenecker,Moore,Petty,Palich,&McKinney,2006;Smalley,2005;Spector&West,2006),whichrequiresthecharacteristicsoftransactionalleadershiptobesucceeded.Hypothesis 3 The finding reported that there is a positive relationship between passive avoidantleadershipandleanmanufacturingpractice.Accordingtotheauthor’sknowledge,itisthefirsttimethattherelationshipbetweenpassiveavoidantleadershipandleanmanufacturingpracticehasbeenexplained,whichistheincrementalcontributiontoacademicresearch.Employeeshaveexperiencedontheirjobmorethanothers;thusmanagersshouldgivechancestothemtocreateandsharetheirsuggestionsaswellasfeedback,whichwillenhance leanmanufacturingandorganizationalsuccess.Hypothesis 4 Thefindingshowedthatthereisapositiverelationshipbetweensustainableleadershipandleanmanufacturingpractice.Accordingtotheauthor’sknowledge,itisthefirsttimethattherelationshipbetweensustainableleadershipandleanmanufacturingpracticehasbeenexplained,which is the incrementalcontributiontoacademicresearch.Leanmanufacturing involveswithbothinsidersandoutsiders,includingallemployees,suppliers,andcustomers.Leanmanufacturingrequiresmanagerswhopossessthesustainableleadership.Thiskindofleaderisabletocreatesuchefficientstrategiesthattheycandevelopanorganizationandbringaboutbetterandfasterlearning,makingtheorganizationmoreflexibleandadaptablethanitsrivals.Hypothesis 5 Thefindingpresentedthatthereisnorelationshipbetweenleanmanufacturingpracticeand overall efficiency, which is not corresponding to the preceding publications, such asthoseofRahman,Laosirihongthong,&Sohal (2010)andKiatcharoenpol,Laosirihongthong,andChaiyawong(2015).This isbecauseoverallefficiencywasmeasuredbyusingtheirownerormanager’sexperiences,whichmaynotreflecttheactualnumbers.Hypothesis 6 Thefindingshowed that there isapositive relationshipbetween leanmanufacturingpracticeandprofit,whichisopposedtothestudyofMoori,Pescarmona,andKimura(2013).However,itconfirmsthestudiesofFullertonandWempe(2009),Hibadullahetal.,(2013),andJayaram,Vickery,andDroge(2008).Thisisduetothemediateeffectormoderateeffectofotherfactorsbetweenthisrelationshipsuchasoperationalperformance(Fullerton&Wempe2009)andlengthofleanmanufacturingadoption.
Hypothesis 7 Thefindingshowedthatthereisapositiverelationshipbetweenleanmanufacturingpracticeandreturnonequity,whichassertstheprecedingpublications,suchasthatofOslen(2004).Organizationsimplementingleanmanufacturingwillreducecostandincreasesupplierrelationship,customersatisfaction,andhighlevelofnetprofit,whichresultsinhighlevelofreturnonequity.Hypothesis 8 Thefindingshowed that there isapositive relationshipbetween leanmanufacturingpracticeandoperationalperformance,whichassertstheprecedingpublications,suchasthoseofHallgrenandOlhanger(2009),Alsmadi,Almani,andJerisat(2012),andArawatiandMohd(2012).Companieswithhighlevelofleanmanufacturingwillgethigheroperationalperformancethancompetitorsinfasterdelivery,quickerandmoreaccurateresponse,lowersetuptimeandoperationalcost,higheroperationalperformance,customersatisfaction,operationalprofit,andimprovementofproductquality.Hypothesis 9 Thefindingshowed that there isapositive relationshipbetween leanmanufacturingpracticeandfinancialperformance,whichisnotanncompliancewiththestudyofMoorietal.(2013).However,itconfirmsthestudiesofFullertonandWempe(2009),Hibadullahetal.,(2013),andJayarametal.(2008).Thisisduetothemediateeffectormoderateeffectofotherfactorsbetweenthisrelationshipsuchasoperationalperformance(Fullerton&Wempe,2009)andlengthofleanmanufacturingadoption.Hypothesis 10 Theresultreportedthatthereisapositiverelationshipbetweenleanmanufacturingpracticeandenvironmentalandsocialperformance.Basedontheauthor’sknowledge,itisthefirsttimethattherelationshipbetweenleanmanufacturingandenvironmentalandsocialperformancehasbeenexplained,which isthe incrementalcontributiontoacademicresearch.Notonly is leanmanufacturingpracticeassociatedwithinsiders,butitisalsorelatedtooutsiderssuchasdiversityofemployees,occupationalhealthandsafety,stakeholderinvolvementincommunity,socialandenvironmentalissues,communityrelations,naturalresourceconservation,andemissionlevels.Hypothesis 11 The result reported that the model is not different across automotive/part andnon-automotive/partwhichassertstheprecedingpublicationssuchasthatofWomacketal.(1990)suggestedthattheexplorationoftheenterprisemodel,theinfrastructureandpracticesthatsupportleanproduction,promotedexplicitlyathesisoftransferenceandtheabilityofnon-automotiveandnon-Japaneseemulationbaseduponthepremisethatmanufacturingproblemsandtechnologieswereuniversalproblemsfacingmanagement.Applicationofleanisnotlimitedtotheautomotivesectoronly,butithasalsofoundacceptanceinawiderangeofmanufacturingindustriesoperatingunderaunionizedoranon-unionizedenvironmentintheUS(Shah&Ward,2003)orelsewhere(Anand&Kodali,2008),andisbeingappliedinbigaswellassmallorganizations(Whiteetal.,1999).
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RecommendationsImplications for Practice Theresultsoffersomeimplicationsforthepractitionersandentrepreneurs.Thedetailsareasfollows: 1)Theresultspresentedthattransactional,passiveavoidant,andsustainableleadershipcanincreaseextentofleanmanufacturingpractice. 2)Theresultsrevealedthatleanmanufacturingleadstohighlevelofreturnonequity,operational,financial,andenvironmentalandsocialperformance.Thus,managersshouldcreategoodandtwo-wayrelationship,sharing,caring,bottomupcommunication,free-reinculturewiththeiremployees.Implications for Future Research Theresultsofferseveralimplicationsforacademicians.Thedetailsareasfollows: 1)Thefuturestudywouldbetoexamineotherpotentialindependentanddependentfactorsofleanmanufacturingpractice. 2)Accordingtothefact,therelationshipbetweenavarietyofindependentfactorsandleanmanufacturingpracticeinclinetobemorerobustforstyleoffollowership,lengthofleanimplementation,organizationalculture,andrateofcompetitive.Asaresult,thefuturestudywouldbetotestthemoderateand/ormediateinfluencesofthesefactorsontherelationshipbetweenindependentfactorsandleanmanufacturingpractice. 3)Thefuturestudymightexaminethemagnitudetowhichinterventionscouldcreatealeanmanufacturingpracticeforleadinghigherorganizationalperformance.
Limitations of the Study Therearesomeexpectedpotentiallimitationsinthisstudy.Firstly,theeffectofexternalfactorswhichmayinvolveleadershipstyle,leanmanufacturingpractice,operationalperformance,financialperformance,andsustainableperformancesuchasmacroeconomicsandeconomiccrisis.Secondly,duetothestudyapplyingself-reportandcross-sectionaldata,thesummarizationscouldnotonlymakecausalextrapolationsbutalsoincreasesomeconcernsaboutcommonbias.Thus,astudyinlongtermisrequiredtooffergreaterdefinitivesummarization.Lastly,theresultsdescribesituationsandactivitiesoffirmsoperateinThailand,whichmaynotbecompatiblewithoverseascompanies.
Summary Althoughleanmanufacturingpracticeisoneofthemostnoticeablestrategiesinbusinesscompanies and operators, only 2%of organizations that responded to the survey have fullyaccomplishedtheirgoalsand24%ofthesaidfirmspresentedthattheyhadaccomplishedsignificantresults(Pay,2006).Referringtothescarcityofaccomplishmentthereofatrecenttime,itispossibletobeachallengeforthefuturestudytodiscoverbothantecedentandconsequencefactors,whichwillleadtosuperiorcomprehendingofthenotionsandutilizations.Inaddition,thefuturestudycanfurtherdiscovertherealisticfactorsandputthemintotheframework,whichcouldbemediatorsand/ormoderators,resultinginmorecomprehensionaboutthesophisticatedorganizationalphenomenaassociatedwithissuesandsituationsofleadershipstyle,leanmanufacturingpractice,operationalperformance,financialperformance,andsustainableperformance.Lastly,theresearchandtheotheraugmentativefuturestudiesmaycontinuetoseekhowtocreatefollowershipstylethatenhancesleanmanufacturing,resultinginorganizationaladvantagecompetitiveness.
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