Influencing Factors Affecting Performance in Sustainable Manufacturing among Malaysian Companies: A Conceptual Study
Abstrak
This research investigates the influence of sustainable manufacturing factors on the performance of manufacturing companies in Malaysia, with a specific focus on sustainable innovation, quality, cost efficiency, delivery, and operational flexibility. Grounded in the Dynamic Capabilities theory, it provides valuable insights that are pertinent to academia, policymakers, and the Malaysian manufacturing sector. The primary goal is to provide a conceptual framework for sustainable manufacturing that could improve organizational performance. Employing a qualitative approach, the study lays the foundation for a comprehensive understanding of these factors and their intricate relationships. It is important to emphasize that this research currently lacks empirical validation, necessitating further investigations to evaluate the applicability of Dynamic Capabilities, sustainable innovation, and flexibility in predicting organizational performance. Subsequent studies should consider incorporating quantitative methodologies and diverse, representative samples to bolster the generalizability of findings. This study underscores the critical significance of sustainable innovation and flexibility in molding organizational performance, highlighting the imperative need for their integration into sustainable manufacturing strategies. Furthermore, it equips manufacturing company stakeholders with valuable insights to refine their strategic communication pertaining to the advantages of sustainable manufacturing. The research not only offers substantial guidance to policymakers, industry practitioners, and the academic community but also underscores the urgency of further empirical research to confirm and expand upon these conceptual insights.
Referensi
Abdel-Maksoud, A. B. (2004). Manufacturing in the UK: contemporary characteristics and performance indicators. Journal of Manufacturing Technology Management, 15(2), 155-171.
Abdul-Rashid, S. H., Sakundarini, N., Ghazilla, R. A. R., & Thurasamy, R. (2017). The impact of sustainable manufacturing practices on sustainability performance: Empirical evidence from Malaysia. International Journal of Operations & Production Management, 37(2), 182-204.
Adams, R., Jeanrenaud, S., Bessant, J., Denyer, D., & Overy, P. (2016). Sustainability-oriented innovation: A systematic review. International Journal of Management Reviews, 18(2), 180-205.
Agus, A., & Hajinoor, S. M. (2012). Lean production supply chain management as driver towards enhancing product quality and business performance: Case study of manufacturing companies in Malaysia. International Journal of Quality & Reliability Management, 29(1), 92-121.
Ahuja, I. P. S., & Khamba, J. S. (2008). An evaluation of TPM initiatives in Indian industry for enhanced manufacturing performance. International Journal of Quality & Reliability Management, 25(2), 147-172.
Ameer, R., & Othman, R. (2012). Sustainability practices and corporate financial performance: A study based on the top global corporations. Journal of Business Ethics, 108, 61-79.
Amrina, E., Ramadhani, C., & Vilsi, A. L. (2016). A Fuzzy Multi Criteria Approach for Sustainable Manufacturing Evaluation in Cement Industry. Procedia CIRP, 40, 619-624.
Amrina, E., & Vilsi, A. L. (2015). Key performance indicators for sustainable manufacturing evaluation in cement industry. Procedia CIRP 26, 19-23.
Amrina, E., & Yusof, S. M. (2011). Key performance indicators for sustainable manufacturing evaluation in automotive companies. Proceedings of the 2011 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM), 1093-1097.
Anuar, H. M. (2015). Environmental rights in Malaysia: Public participation under EIA (Doctoral dissertation). Retrieved from Newcastle University eTheses. (Accession No. 104433057)
Anuar, A. R., Mansor, W. N. J. W., Din, B. H., Mansor, M. N., Ibrahim, A. Z., Bakar, A. S. A., & Khan, S. J. M. (2016). Addressing Skills Gap in Small-sized Enterprises: Malaysian Case Study. The European Proceedings of Social & Behaivoural Sciences: International Soft Science Conference.
Bank Negara Malaysia (2023). Monetary and Financial Developments in November 2023. Retrieved from https://www.bnm.gov.my/-/monetary-and-financial-developments-in-november-2023
Beamon, B. M. (1999). Measuring supply chain performance. International Journal of Operations and Production Management, 19(3), 275-292.
Bernardes, E. S., & Hanna, M. D. (2009). A theoretical review of flexibility, agility and responsiveness in the operations management literature: Toward a conceptual definition of customer responsiveness. International Journal of Operations & Production Management, 29(1), 30-53.
Boron, S., Murray, K. R., & Thomson, G. B. (2017). Sustainability Education: Towards Total Sustainability Management Teaching. In Handbook of Theory and Practice of Sustainable Development in Higher Education (pp. 37-51). Springer International Publishing.
Bowersox, D. J., Stank, T. P., & Daugherty, P. J. (1999). Lean launch: managing product introduction risk through response‐based logistics. Journal of Product Innovation Management: An International Publication of The Product Development & Management Association, 16(6), 557-568.
Boyer, K. K., & Lewis, M. W. (2002). Competitive priorities: investigating the need for trade‐offs in operations strategy. Production and Operations Management, 11(1), 9-20.
Braunscheidel, M. J., & Suresh, N. C. (2018). Cultivating Supply Chain Agility: Managerial Actions Derived from Established Antecedents. In Supply Chain Risk Management (pp. 289-309). Springer, Singapore.
Brundage, M. P., Chang, Q., Li, Y., Arinez, J., & Xiao, G. (2016). Sustainable manufacturing performance indicators for a serial production line. IEEE Transactions on Automation Science and Engineering, 13(2), 676-687.
Cabral, J. E. O. (2010). Inventions and sustainable innovations: The moderator effects of dynamic capabilities, technology characteristics and demand conditions. In XVI International Conference on Industrial Engineering and Operations Management, São Carlos, SP, Brazil, 12 to 15 October 2010.
Cai, S., & Yang, Z. (2014). On the relationship between business environment and competitive priorities: The role of performance frontiers. International Journal of Production Economics, 151, 131-145.
Calik, E., & Bardudeen, F. (2016). A measurement scale to evaluate sustainable innovation performance in manufacturing organizations. Procedia CIRP, 40, 449-454.
Chan, A. T., Ngai, E. W., & Moon, K. K. (2017). The effects of strategic and manufacturing flexibilities and supply chain agility on firm performance in the fashion industry. European Journal of Operational Research, 259(2), 486-499.
Chan, F. T. S. (2003). Performance Measurement in a Supply Chain. International Journal of Advanced Manufacturing Technology, 21(7), 534-548.
Chan, F. T., & Qi, H. J. (2003). An innovative performance measurement method for supply chain management. Supply chain management: An international Journal, 8(3), 209-223.
Chi, T., Kilduff, P. P., & Gargeya, V. B. (2009). Alignment between business environment characteristics, competitive priorities, supply chain structures, and firm business performance. International Journal of Productivity and Performance Management, 58(7), 645-669.
Christiansen, T., Berry, W. L., Bruun, P., & Ward, P. (2003). A mapping of competitive priorities, manufacturing practices, and operational performance in groups of Danish manufacturing companies. International Journal of Operations & Production Management, 23(10), 1163-1183.
Christmann, P. (2000). Effects of “best practices” of environmental management on cost advantage: The role of complementary assets. Academy of Management journal, 43(4), 663-680.
Damanpour, F., & Evan, W. M. (1984). Organizational innovation and performance: The problem of “organizational lag”. Administrative Science Quarterly, 29(3), 392-409.
Dangelico, R. M., Pujari, D., & Pontrandolfo, P. (2017). Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective. Business Strategy and the Environment, 26(4), 490-506.
Ebrahimi, P., Moosavi, S. M., & Chirani, E. (2016). Relationship between Leadership Styles and Organizational Performance by Considering Innovation in Manufacturing Companies of Guilan Province. Procedia-Social and Behavioral Sciences, 230, 351-358.
Economic Planning Unit, Prime Minister’s Department. (2022). The Malaysian Economy in Figures. Retrieved from https://www.ekonomi.gov.my/sites/default/files/2022-08/MEIF2022.pdf
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they?. Strategic Management Journal, 21(10‐11), 1105-1121.
Epstein, M. J., & Roy, M. J. (2001). Sustainability in action: Identifying and measuring the key performance drivers. Long Range Planning (LRP), 34, 585-604.
Fang, E. E., & Zou, S. (2009). Antecedents and consequences of marketing dynamic capabilities in international joint ventures. Journal of International Business Studies, 40(5), 742-761.
Ferdows, K., Vereecke, A., & De Meyer, A. (2016). Delayering the global production network into congruent subnetworks. Journal of Operations Management, 41, 63-74.
Garetti, M., & Taisch, M. (2012). Sustainable manufacturing: trends and research challenges. Production Planning & Control, 23(2-3), 83-104.
Garg, D., Narahari, Y., & Viswanadham, N. (2004). Design of six sigma supply chains. IEEE Transactions on Automation Science and Engineering, 1(1), 38-57.
Golec, A., & Taskın, H. (2007). Novel methodologies and a comparative study for manufacturing systems performance evaluations. Information Sciences, 177(23), 5253-5274.
González, M., Guzmán, A., Pombo, C., & Trujillo, M. A. (2012). Family firms and financial performance: The cost of growing. Emerging Markets Review, 13(4), 626-649.
Hall, C. M. (2000). Tourism planning: policies, processes and relationships. Pearson Education.
Hassan, G. H., Nordin, N., & Ashari, H. (2015). Sustainable manufacturing practices implementation in Malaysia industries. Jurnal Teknologi, 77(4), 49-56.
Henri, J. F., & Journeault, M. (2008). Environmental performance indicators: An empirical study of Canadian manufacturing firms. Journal of Environmental Management, 86, 165-176.
Hřebíček, J., Faldík, O., Kasem, E., & Trenz, O. (2015). Determinants of sustainability reporting in food and agriculture sectors. Acta universitatis agriculturae et silviculturae Mendelianae Brunensis, 63(2), 539-552
Hung, S. C., Hung, S. W., & Lin, M. J. J. (2015). Are alliances a panacea for SMEs? The achievement of competitive priorities and firm performance. Total Quality Management & Business Excellence, 26(1-2), 190-202.
Hussin, R., & Kunjuraman, V. (2015). Exploring strategies for sustainable ‘ecocampus’: The experience of Universiti Malaysia Sabah. Geografia: Malaysian Journal of Society and Space, 11(3), 84-96.
Inkinen, H. (2015). Review of empirical research on intellectual capital and firm performance. Journal of Intellectual Capital, 16(3), 518-565.
Islam, M. Z., Jasimuddin, S. M., & Hasan, I. (2017). The role of technology and socialization in linking organizational context and knowledge conversion: The case of Malaysian Service Organizations. International Journal of Information Management, 37(5), 497-503.
Ittner, C. D., & Larcker, D. F. (2003). Coming up short on nonfinancial performance measurement. Harvard Business Review, 81(11), 88-95.
Jain, S. K., & Ahuja, S. I. (2012). An evaluation of ISO 9000 initiatives in Indian industry for enhanced manufacturing performance. International Journal of Productivity and Performance Management, 61(7), 778-804.
Jayal, A. D., Badurdeen, F., Dillon Jr, O. W., & Jawahir, I. S. (2010). Sustainable manufacturing: Modeling and optimization challenges at the product, process and system levels. CIRP Journal of Manufacturing Science and Technology, 2(3), 144-152.
Jorna, R. J. (2017). Knowledge as a basis for innovation: Management and creation. In Sustainable Innovation (pp. 86-108). Routledge.
Kasbun, N. F., Teh, B. H., & Ong, T. S. (2016). Sustainability Reporting and Financial Performance of Malaysian Public Listed Companies. Institutions and Economies, 8(4), 78-93.
Katayama, H., & Bennett, D. (1999). Agility, adaptability and leanness: A comparison of concepts and a study of practice. International Journal of Production Economics, 60, 43-51.
Khosravi, A., & Ahmad, M., N. (2014). Examining antecedents of knowledge-sharing factors on research supervision: An empirical study. Education and Information Technologies, 1-31.
Lin, H. F., Su, J. Q., & Higgins, A. (2016). How dynamic capabilities affect adoption of management innovations. Journal of Business Research, 69(2), 862-876.
Lin, Y., & Wu, L. Y. (2014). Exploring the role of dynamic capabilities in firm performance under the resource-based view framework. Journal of Business Research, 67(3), 407-413.
Liu, J., Zhang, S., & Hu, J. (2005). A case study of an inter-enterprise workflow-supported supply chain management system. Information & Management, 42(3), 441-454.
Makadok, R. (2001). Toward a synthesis of the resource-based and dynamic capability views of rent creation. Strategic Management Journal, 22(5), 387-401.
Mani, M., Lyons, K., & Sriram, R. (2010). Developing a sustainability manufacturing maturity model. Proceedings from IMS Summer School on Sustainable Manufacturing, 311-321.
| Page
Marin, M. L., & Ruiz-Olalla, M. C. (2011). ISO 9000: 2000 certification and business results. International Journal of Quality & Reliability Management, 28(6), 649-661.
Marr, B., Schiuma, G., & Neely, A. (2004). Intellectual capital–defining key performance indicators for organizational knowledge assets. Business Process Management Journal, 10(5), 551-569.
Mason, S. J., Ribera, P. M., Farris, J. A., & Kirk, R. G. (2003). Integrating the warehousing and transportation functions of the supply chain. Transportation Research Part E: Logistics and Transportation Review, 39(2), 141-159.
Michael, K., & McCathie, L. (2005, July). The pros and cons of RFID in supply chain management. In Mobile Business, 2005. ICMB 2005. International Conference on (pp. 623-629). IEEE.
Millar, H. H., & Russell, S. N. (2011). The adoption of sustainable manufacturing practices in the Caribbean. Business Strategy and the Environment, 20(8), 512-526.
Ministry of Economy. (2023). Twelfth Malaysia Plan 2021-2025: A Prosperous, Inclusive, Sustainable Malaysia. Retrieved from https://rmke12.ekonomi.gov.my/en
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.
Montabon, F., Sroufe, R., & Narasimhan, R. (2007). An examination of corporate reporting, environmental management practices and firm performance. Journal of Operations Management, 25(5), 998-1014.
Morgan, C., & Dewhurst, A. (2008). Multiple retailer supplier performance: An exploratory investigation into using SPC techniques. International Journal of Production Economics, 111(1), 13-26.
Neches, R., Fikes, R. E., Finin, T., Gruber, T., Patil, R., Senator, T., & Swartout, W. R. (1991). Enabling technology for knowledge sharing. AI magazine, 12(3), 36.
Nordin, N., & Adebambo, H. O. (2016). Descriptive analysis of sustainable manufacturing indicators in Malaysian manufacturing firms. Journal of Mechanical Engineering and Sciences, 10(2), 2126-2133.
North, K., & Kumta, G. (2018). Knowledge management: Value creation through organizational learning. Springer.
Paprocka, I., Kempa, W., Kalinowski, K., & Grabowik, C. (2015). Estimation of overall equipment effectiveness using simulation programme. In IOP Conference Series: Materials Science and Engineering (Vol. 95, No. 1, p. 012155). IOP Publishing.
Peet, M., Lonn, S., Gurin, P., Boyer, K. P., Matney, M., Marra, Taylor, S. H., & Daley, A. (2011). Fostering Integrative Knowledge through ePortfolios. International Journal of ePortfolio, 1(1), 11-31.
Pintelon, L., Pinjala, S. K., & Vereecke, A. (2006). Evaluating the effectiveness of maintenance strategies. Journal of Quality in Maintenance Engineering, 12(1), 7-20.
Ramanathan, R., He, Q., Black, A., Ghobadian, A., & Gallear, D. (2017). Environmental regulations, innovation and firm performance: A revisit of the Porter hypothesis. Journal of Cleaner Production, 155, 79-92.
Reeves, C. A., & Bednar, D. A. (1994). Defining quality: alternatives and implications. Academy of management Review, 19(3), 419-445.
Rosen, M. A., & Kishawy, H. A. (2012). Sustainable manufacturing and design: Concepts, practices and needs. Sustainability, 4, 154-174.
Rupp, T. M., & Ristic, M. (2004). Determination and exchange of supply information for cooperation in complex production networks. Robotics and Autonomous Systems, 49, 181 – 191.
Shagluf, A., Longstaff, A. P., & Fletcher, S. (2014). Maintenance strategies to reduce downtime due to machine positional errors. In Proceedings of Maintenance Performance Measurement and Management (MPMM) Conference 2014. Imprensa da Universidade de Coimbra.
Shakir, A. A., & Mohammed, A. A. (2013). Manufacturing of Bricks in the Past, in the Present and in the Future: A state of the Art Review. International Journal of Advances in Applied Sciences, 2(3), 145-156.
Sharkie, R. (2003). Knowledge creation and its place in the development of sustainable competitive advantage. Journal of Knowledge Management, 7(1), 20-31.
Sillanpaa, I., & Kess, P. (2011). Supply chain performance measurement framework for manufacturing industries–a theoretical approach. In MIC 2011: Managing Sustainability? Proceedings of the 12th International Conference, Portorož, 23–26 November 2011 [Selected Papers] (pp. 801-823). University of Primorska, Faculty of Management Koper.
Tannock, J., Cao, B., Farr, R., & Byrne, M. (2007). Data-driven simulation of the supply-chain—Insights from the aerospace sector. International Journal of Production Economics, 110(1-2), 70-84.
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic management journal, 28(13), 1319-1350.
Theeranuphattana, A., & Tang, J. C. S. (2008). A conceptual model of performance measurement for supply chains: Alternate considerations. Journal of Manufacturing Technology Management, 19(1), 125-148.
Tocan, M. C. (2012). Knowledge based economy assessment. Journal of Knowledge Management, Economics and Information Technology, 2(5).
Tomaskovic-Devey, D., & Lin, K. H. (2011). Income dynamics, economic rents, and the financialization of the US economy. American Sociological Review, 76(4), 538-559.
Toni, A., & Tonchia, S. (2001). Performance measurement systems: Models, characteristics and measures. International Journal of Operations & Production Management, 21(1/2), 46-70.
Tseng, M. L. (2013). Modeling sustainable production indicators with linguistic preferences. Journal of Cleaner Production, 40, 46-56.
van Weenen, H. (2000). Towards a vision of a sustainable university. International Journal of Sustainability in Higher Education, 1(1), 20-34.
Varsei, M., Soosay, C., Fahimnia, B., & Sarkis, J. (2014). Framing sustainability performance of supply chains with multidimensional indicators. Supply Chain Management: An International Journal, 19(3), 242-257.
Vinodh, S., & Joy, D. (2012). Structural equation modelling of sustainable manufacturing practices. Clean Technologies Environmental Policy, 14(1), 79-84.
Walker, R. M. (2004). Innovation and organizational performance: Evidence and a research agenda. Advanced Institute of Management Research Working Paper, WP No.: 002-June.
Whang, S. (2001). E-business and supply chain integration. Stanford Global Supply Chain Management Forum.
Winroth, M., Almström, P., & Andersson, C. (2016). Sustainable production indicators at factory level. Journal of Manufacturing Technology Management, 27(6), 842-873.
Wong, K. Y. (2005). Critical success factors for implementing knowledge management in small and medium enterprises. Industrial Management and Data Systems, 105(3), 261-279.
Wu, Q., He, Q., Duan, Y., & O'Regan, N. (2012). Implementing dynamic capabilities for corporate strategic change toward sustainability. Strategic Change, 21(5-6), 231-247.
Yang, C., Chuang, S., & Huang, R. (2009). Manufacturing evaluation system based on AHP/ANP approach for wafer fabricating industry. Expert Systems with Applications, 36(8), 11369–11377.
Yahya, S., Goh, W. K. (2002). Managing human resources towards achieving knowledge management. Journal of Knowledge Management, 6(5), 457-468.
Yurdakul, M. (2002). Measuring a manufacturing system’s performance using Saaty’s system with feedback approach. Integrated Manufacturing Systems, 13(1), 25-34.
