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SUSTAINABLE SUPPLY CHAIN MANAGEMENT, KAIZEN BLITZ

AND ORGANIZATIONAL PERFORMANCE IN MALAYSIAN
HEALTHCARE INDUSTRY
1.0
BACKGROUND AND OBJECTIVE OF THE STUDY
Historically, healthcare in Malaysia has undergone radical transformations. Healthcare is one of the industries
with high potential to contribute further towards Malaysia economy. Therefore, it is important to look into the
determinants that will improve healthcare organizational performance. Of the various determinants, supply chain
management practices have been viewed as the vital determinant to improve healthcare organizational
performance. The supply chain management practices are viewed to be related to supply chain responsiveness
which will increase supply chain competitive advantage and then lead to organizational performance (Sukati,
Hamid, Baharun & Huam, 2011). The effective supply chain management practices will reduce costs, boost
revenues, increase customer satisfaction and also improve services delivery (Baltacioglu, Ada, Kaplan, Yurt &
Kaplan, 2007). Therefore, the healthcare industry in Malaysia has become a powerful engine of economic due to
demographic shifts as well a greater and changing lifestyles.
Supply Chain Management is a process of designing, planning, executing and monitoring all activities
along the chain with the objectives to create net value, construct a competitive infrastructure, leveraging and
worldwide logistics, synchronizing supply with demands as well as to measure performance globally (Dauglas et
al., 1998). Whereas, Sustainable Supply Chain Management (SSSM), i.e. it is based on the adoption and
extension of its concepts. Kaizen Blitz is a focused and structured improvement project, using a dedicated
Kaizen cross-functional team to improve a targeted work area, with specific goals, in an accelerated timeframe
(Farris et al., 2008, p.1).
Looking at the Malaysian healthcare industry sales today, it is increasing by year to year. To maintain this, a
strategy should be taken to ensure more competitive for all element. It must be able to remain competitive and
stay in business. To achieve this, organization need to parallel Kaizen Blitz (KB) with Sustainable Supply Chain
Management (SSCM) to ensure Organization Performance (OP) increase.
In the globalization of market, the organizational performance balance comes from tracking not only
financial performance measure such as operating income, sales growth and sales revenue, but non-financial ones
as well. This is because non-financial measures are likely to facilitate organizational decisions and actions that
support strategies based on the stakeholders need (Hoque and James, 2000). It has also been suggested (Kaplan
and Norton (1992; 1996a, 1996b) that non financial performance measure helps manager to assess changes in the
business environments, determines and evaluates progress towards the firm’s goal, and affirm achievement of
business performance.
To gain more competitive to others oil and gas company and also increase the OP, KB is one of the
medium to parallel with SSCM to increase OP. According to previous study (Elkins et al., 2004; Bradley and
Willett 2004; Melnyk et al., 1998; Sheridan, 1997; Vasilash, 1997), KB is a focused and structured continuous
improvement work which using a dedicated cross-functional team to addressed a targeted work area, to achieve
specific goals in an accelerated timeframe (usually one week or shorter). So, with the element of KB in the
healthcare industry, it would help firms to improve their performances especially OP.
2.0
LITERATURE REVIEW
This section is a review related research and current trend of SSCM implementation toward organizational
performance. To ensure the implementation of agile manufacturing system success, Kaizen Blitz must be

competency. to achieve process excellence. the important features for success in the contemporary business environment. KB and organizational performance measures. It is ideal for environmental today that highly emphasized on good productivity and there is innovation in each product of process. Swafford et al. suggested four key areas for measuring organizational performances. It is financial. (2008) investigated the performance measurement that gave effect on performance of Malaysian manufacturing firm. we believe that exploring the structural relationship SSCM. The terms “kaizen” is taken from the Japanese words “kai” meaning change and “zen” meaning good. They split agility capabilities into four stages. to improve organizational learning and to satisfy the customers. Furthermore. (2008) also agreed that agility is more on speed. customer. In addition.combined with it to continuous improvement. flexibility and speed. they used 29 performance measure item taken from Hoque et al. this three initiative relationship can be arranged in proposed model as in Figure 1. These four keys area are also consistent with the four perspective of Balanced Scorecard as documented by Kaplan and Norton (1996a). These comprehensive measures of performance are based on four perspectives. In organization category. [2] To develop research model of the sustainable supply chain management. Besides. After that. It is a responsiveness. business operation or process and learning growth or innovation. (2001) which was originally adopted from Kaplan and Norton (1992) and developed nine items which were self constructed from literature. 1998) and generally advised that team members be dedicated only to Kaizen Blitz. Kaizen event is another name for Kaizen Blitz. It is namely to maximize stakeholder value.g. Kaizen Blitz and organizational performance in Malaysian healthcare industry. Sharifi and Zhang (2001) stated that the organizations are always on and rise up in a difficult situation. They also argued that when firms applied financial performance measures alone it was not sufficient to measure organizational performance. Organizational Performances (OP) measurement is common any firm is it for measuring on financial aspect.. Jusoh et al. The finding result found that firm performance was positively affected from the overall performance measure usage. and organizational performance will benefit the Malaysian oil and gas supplier in order to success and sustain quality improvement and organizational performance. Kaizen Blitz and organizational performance measures for Malaysian healthcare industry. Kaplan and Norton (1992) proposed multiple performance measure in balanced scorecard approach. Melnyk et al.. These organizations have the capabilities to recognize and understand the changing environments and respond in a proper way to every unexpected change. The objectives of the research are: [1] To identify the sustainable supply chain management. Kaizen Blitz and organizational performance relationship for Malaysian healthcare industry. Kaizen Blitz is one of the best basis practices and developed for help in terms of production.. The Following Research questions are empirically investigated: [1] Does sustainable supply chain management contribute to quality performance in Malaysian healthcare industry? [2] Does Kaizen Blitz performance contribute to quality performance in Malaysian healthcare industry? .0 PURPOSE OF THE STUDY The aim of this study is to investigate the relationship between sustainable supply chain management.1. In this study. or both financial measurements. non-financial aspect.. 3. After reviewing SSCM. Kanji (2002). they also asked that to achieve agility. human resource support is a frequent recommendation (e. KB performance effort. are making opportunistic action to capture a new market and respond to a new customer requirement.

two statistical techniques were adopted. Structural Equation Modeling (SEM using AMOS 6. KZ=Kaizen Blitz. reliability. sampling method by using structured questionnaire.[3] Does sustainable supply chain management contribute to Kaizen Blitz performance in Malaysian healthcare industry? [4] Does Kaizen Blitz performance affect the relationship between sustainable supply chain management and organizational performance in Malaysian healthcare industry? 4. A survey is considered as the most economical among methods available for data collection due to its ability in performing efficient data collection (Moser and Kalton. Exploratory factor analysis. 1971). The process of developing the questionnaire included a pilot survey.1 shows a summary of the research sampling. Table 1. To analyze the data. until the final questionnaire was designed.1 Proposed Research Model *Note: SSCM=Sustainable Supply Chain Management. Questionnaires will distribute to respondents from the listing of healthcare industry. The statistical Package for the Social Sciences (SPSS) version 17 was used to analyze the preliminary data and provide descriptive analyses about thesis sample such as means. and frequencies. a survey typed questionnaire approach is relatively low cost of money. The population of this study comprised in Malaysian healthcare industry. A questionnaire with majority of the questions being of the close-ended type was developed to collect data for this research. Having analyzed the measurement model. and simple approach. it can clarify the question the survey respondents and recording their responses to be used as data for analysis (Chang. and measurements loading were performed.0 RESEARCH METHODOLOGY In this study. time saving. by using survey methods. reliability analysis and confirmatory factor analysis to test for construct validity. Structural equation modeling techniques was utilize to perform the require statistical analysis of the data from the survey. In general. 4. 2002).0) will use to test the measurement model. standard deviations. Therefore it had been used by the authors. Moreover. the structural model was then tested and confirmed. OP=Organizational Performance . which was used to modify and eliminate a number of variables.

Kaizen Blitz and Organizational Performance in Malaysia Healthcare Industry [B] Complete Chapter 1-3 [C] Question Development.0 EXPECTED FINDINGS This study is important implication for Sustainable Supply Chain Management. Edit or add for any Improvement [K] Submission 7. New Findings .5.0 RESEARCH HYPOTHESES H1: There is a positive and direct significant relationship between sustainable supply chain management and organizational performance in Malaysian healthcare Industry. H2: There is a positive and direct significant relationship between sustainable supply chain management and Kaizen Blitz performance efforts in Malaysian healthcare Industry.0 CHART OF RESEARCH ACTIVITIES GANTT CHART OF RESEARCH ACTIVITIES SUSTAINABLE SUPPLY CHAIN MANAGEMENT. it is expected to benefit researches and practitioners who are expected findings. Kaizen Blitz and Organizational Performance in Malaysian Healthcare Industry. 1. and H4: The impact of sustainable supply chain management on organizational performance increases with a mediating of Kaizen Blitz in Malaysian healthcare Industry. Therefore. construct and Pilot Study [D] Implement full survey [E] Data Screening [F] Data Analysis [G] Discussion and Implication [H] Recommendation and Conclusion [I] Final Report (Writing) [J] Checking. KAIZEN BLITZ AND ORGANIZATIONAL PERFORMANCE IN MALAYSIAN HEALTHCARE INDUSTRY Activities2013/2015910111212345678910111212A F G H I J B K C D E [A] Sustainable Supply Chain Management. 6. H3: There is a positive and direct significant relationship between Kaizen Blitz performance efforts and organizational performance in Malaysian healthcare.

J. Dauglas. Kaizen Blitz and Organizational Performance in Malaysian Healthcare Industry. 2. 33.0 CONTRIBUTION TO COUNTRY This research is hoped to contribute the strategic management and innovation performance in Malaysian Healthcare Industry.. Kaplan.C. & Kaplan. Interfaces. D. pp. J. M. . pp. J. M. Z. Z. REFERENCES Baltacioglu. Cleveland State University. and Parnell. The Service Industries Journal.20 No.71-79. (2001). “Learning from less successful Kaizen events:a case study”. Kaplan. D. and Janus. research hypothesis are being developed..P. G. Routledge. Production Economics. J. Implementation Issues and Research Opportunities.R. T. Cornell students participate in Lord Corporation’s kaizen projects. and Willett. 201-214 Farris..The findings of this study may indicate the level of Sustainable Supply Chain Management.. and Alam. 91. 1-17.A. C. (2002).M. Journal of Management Accounting Research. 451-459. Computer Aided Manufacturing and use of Multiple Performance Measures: An Empirical Study. (2000). London. M. Martha. 27(2). Van Aken.. 12. The Balanced Scorecard-Measure that Drive Performance. Yurt. Int. (2007). Mia. The next step of this study is to design a questionnaire.. (1998). 105-124. J. 3. and Norton. L.” The International Journal of Jusoh. Measuring business excellence. 5-31.3. As such. 8. O. “Supply Chain Management: Elkins. W. January-February. Six Sigma: A Framework for Small and Medium Sized Enterprises to Achieve Total Quality. and James. Management Decision. Bradley. 34(6). R. K. KB and OP in Malaysian healthcare industry. (2008).10-20. P. N. S. Hoque. Y. 23-45. pp. which will be used for pilot study data collection in healthcare industry in Malaysia. 9.... 2002.. Engineering Management Journal. Routledge Advances in Management and Business Studies. Market Competition. pp. PhD Dissertation. A.. Harvard Business Review. R. D. T. (2004). E. J. Kanji. Hoque. Ada. it is expected to benefit both research and practitioners. Linking the balanced scorecard measures to size and market factors: impact on organizational performance. (2008). 46(1). D. British Accounting Review. Numbers of Human Capital Produced Produce four of master students. T. Research Publication This study is expected produces for publication: 8 International Journal and 3 awards. Doolen. pp. E. Chang.. Based on proposed model and a previous study. This research also assumed that KB is important to improve OP in Malaysian healthcare industry.. J.L. Competitive Strategy and Performance Measurement in the Malaysia Context: An Exploratory Study. A new framework for service supply chains.0 CONCLUSION This study is expected to arrive at the following conclusion: This study has important implication for SSCM. L. Agile manufacturing systems in the automotive industry. pp. Vol. and Worley. (2004). and Alden.. Huang. (1992). C.

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