Manufacturing Company Performance Strategies and Influencing Factors with Competitiveness as Intervening Variable
DOI:
https://doi.org/10.52909/jemeb.v5i1.230Keywords:
Continuous Improvement, Value-Added, Competitiveness, Company Performance, Manufacturing Industry.Abstract
This study aimed to develop and empirically test a strategic model integrating Continuous Improvement (CI), Value Added (VA), and Organizational Culture, and their effects on Profitability, Competitiveness, and Performance in manufacturing firms. Utilizing a quantitative research design with survey data from manufacturing executives, the model was tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that both CI (β = 0.148, p < 0.05) and VA (β = 0.179, p < 0.05) significantly enhance Competitiveness, while only VA (β = 0.142, p < 0.05) directly and significantly improves Performance. CI’s influence on performance—both directly and via competitiveness—was not statistically significant, and no mediation effect of competitiveness was observed. This indicates that although CI supports competitive positioning, its translation into performance may rely on additional factors such as effective implementation, cultural alignment, or contextual conditions. The study contributes by pinpointing VA as a key driver of both competitive advantage and performance, and by revealing the limitations of CI’s direct impact in the absence of executional rigor. Its originality lies in the development of a novel integrative model that simultaneously examines CI, VA, and culture within a manufacturing setting, filling a gap in current empirical literature.
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