The Influence of Lean Practices and Leadership on Business Excellence: Malaysian E&E Manufacturing Companies

Abstract

The objectives of this study are to adopt the well-known business excellence model (BEM), Baldrige excellence framework 2019-2020 criteria and examine in Malaysian Electrical and Electronics (E&E) manufacturing companies. We have identified those elements in BEM like leadership, customers, measurement, analysis, knowledge management (MAKM), strategy, and operations that influence on business results. This study also aims to assess the Lean practices influence on the operations and results of business excellence (BE). The theoretical framework is guided by BEM and Leadership theory. A stratified random sampling was employed to choose the sample from the four sub-sectors of E&E industry. A total of 500 questionnaires was circulated in Peninsular Malaysia with return usable 156 questionnaire utilized for data analysis. The outcome from the structural analysis suggested that positive relationships between strategy, operations, and Lean practices on achievement of BE. The limitations from present study suggest a future research may focus on other industries, Industry 4.0 companies and also ascertain what are the leadership behaviours more favourable to achieve BE. The conclusions of this study extend the knowledge by assisting theory building efforts especially in the operations management domain and BE management. The practical implication is adoption of Baldrige excellence framework and Lean practices will enhance infrastructural decision in fields of business strategy such as human resource policies, best practices, benchmarking and quality management. This study contributes to the methodology perspective by covering both economic and non-economic performance measure metrics.