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The effect of 5S implementation for manufacturing sustainability


performance in Indonesian small and medium enterprises: socio-technical
perspective

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September 1-2, 2023, Hiyoshi Campus, Keio University, Japan & Online
International Conference on Design and Concurrent Engineering 2023
& Manufacturing Systems Conference 2023
Regular Paper: No. 36

The effect of 5S implementation for manufacturing


sustainability performance in Indonesian small and medium
enterprises: socio-technical perspective
Nashrullah SETIAWAN*, Mohd Rizal SALLEH**, Hambali A ARIFF**, and Faizuddin Firdaus ZAINI**
*Department of Industrial Engineering, Faculty of Industrial Technology, Universitas Islam Indonesia
Jl. Kaliurang Km 14.5 Yogyakarta, Indonesia
** Faculty of Manufacturing Engineering, Universiti Teknikal Malaysia Melaka
Hang Tuah Jaya, 76100, Durian Tunggal, Melaka, Malaysia
E-mail: rizal@utem.edu.my

Abstract
Technically, the 5S principle is a systematic method for improving productivity, quality, and workplace safety.
However, the sustainability of 5S practices in small and medium-sized manufacturing enterprises (SMEs),
especially in Indonesia, often faces challenges such as synchronization with other management systems (quality
management system, safety and health standardization, environmental standardization, and others). Similarly,
there are constraints in building commitment, communication, and stakeholder involvement to ensure the success
of 5S practices. As a result, this will impact the sustainability performance of manufacturing SMEs. Therefore,
this research aims to develop a conceptual model through a socio-technical perspective approach to enhance the
sustainability performance of manufacturing SMEs in Indonesia. The model also involves relational coordination
as a mediating variable that bridges the relationship between 5S practices and sustainability performance. The
methodology of this study is conducted through survey research and data processing using the SEM AMOS
statistical analysis tool. The study's results prove, through hypotheses, that 5S practices with socio-technical
dimensions influence sustainability performance through the mediating variable of relational coordination among
leaders, employees, customers, and suppliers simultaneously. However, the direct influence of the social and
technical dimensions on 5S practices partially does not significantly affect sustainability performance. Therefore,
it can be concluded that the conceptual model is a cohesive unity between the social and technical dimensions of
5S practices, relational coordination, and sustainability performance. Nevertheless, to strengthen the robustness
of the conceptual model, further validation is needed through future studies based on other sectors, such as the
service sector or different geographic locations.

Keywords: 5S practices, Sustainability performance, Relational coordination, Socio-technical system

1. Introduction

Over the past few decades, small and medium enterprises in Indonesian manufacturing sectors have been motivated
by globalization, changing environmental and economic forces to implement approaches that decrease operational
expenses and enhance value chains, productivity, and quality (Dzikriansyah, et al., 2023; Ssenyonga, 2021). These efforts
aim to establish sustainable performance in business practices (Antonio and Kusumastuti, 2019). Furthermore, with the
implementation of free trade agreement within the Association of Southeast Asian Nations (ASEAN), there is a pressing
need to improve competitiveness among Indonesian manufacturing SMEs (Asian Development Bank, 2021). Given this
circumstance, the engagement of manufacturing SMEs in global supply chains presents an opportunity for business
improvement, transferring technology, quality process standardization, and the overall enhancement of sustainability
performance (Arsawan, et al., 2023; Dzikriansyah, et al., 2023; Hartini, et al., 2020; Hosono, et al., 2020). Nevertheless,
managing these opportunities in manufacturing SMEs poses challenges that are frequently encountered due to constraints
such as limited financial resources, inadequate technology, insufficient dedicated human resources (including a mindset
open to change, discipline in work, and learning capabilities), and the difficulty of developing efficient work systems
International Conference on Design and Concurrent Engineering 2023
& Manufacturing Systems Conference 2023
September 1-2, 2023, Hiyoshi Campus, Keio University, Japan & Online

(Hartini, et al., 2020; OECD/ERIA, 2018; Ssenyonga, 2021).


Refer to prior studies, the challenging need to overcome by the adopting of 5S practices as the basic improvement
process (Hartini, et al., 2020). The 5S method is recognized as a systematic approach originating from Japan, aimed at
eliminating non-value-added processes in workplace organization. It encompasses five technical steps known by their
Japanese-English names: seiri (sorting), seiton (setting in order), seiso (shining), seiketsu (standardizing), and shitsuke
(sustaining) (Randhawa and Ahuja, 2016). The 5S concept offers several practical benefits due to its systematic approach,
simple principle, easy for implementing, and adaptable with other management system (Maryani, et al., 2020). Moreover,
it is widely recognized as a versatile tool that serves multiple purposes, including technical lean practices (Daniel, 2023;
Mrugalska, et al., 2020), quality improvement (Sunny and Anu, 2020), occupational safety and health (Mutaza, et al.,
2020), and productivity improvement (Hosono, et al., 2020). Nonetheless, there are challenges that arise in the
implementation of the 5S deployment process in various countries around the world in the form of social barriers
including lack of dedication from top management, limited employee engagement, inadequate resource capacity,
insufficient training, undisciplined behavior, decreased morale and motivation, and difficulty in achieving cultural
transformation (Attri, et al., 2020; Tripathi and Dave, 2020).
These obstacles motivate this study to propose a conceptual framework of the 5S practices through a socio-technical
approach to enhance sustainable performance in manufacturing small and medium-sized enterprises (SMEs) in Indonesia.
Additionally, to achieve joint optimization between the social and technical dimensions, the framework considers the
concept of relational coordination (RC) among stakeholders as a social mechanism approach (McMackin and Flood,
2019). This approach is strategic because adopting the 5S practices in Indonesia is typically done through knowledge
transfer from local supplier networks or the private sector via supply chain networks, management training, and quality
management standard certification. Relational coordination is a concept that depicts the intensity of communication and
the quality of relationships among the stakeholder (leaders, employees, customers, and suppliers) to enhance
sustainability performance (Hernaus, et al., 2021; McMackin and Flood, 2019). Therefore, this research aims to examine
the extent to which the socio-technical dimensions of the 5S practice influence sustainability performance, mediated by
relational coordination simultaneously. Methodologically, the study model is developed using SEM analysis, comprising
measurement and structural models.

2. Literature review
2.1 Socio-technical dimensions of 5S practices

In broad terms, the concept of socio-technical system (STS) has been extensively utilized as a foundation for various
approaches in the field of industrial management and the implementation of technology and technical systems to enhance
efficiency levels (Sinha and Matharu, 2019; Soliman and Saurin, 2022). Over the past decade, the STS theory has played
a significant role as a framework, particularly in the development of lean management practices, which include concepts
like 5S methodologies aimed at waste reduction and the enhancement of manufacturing process quality (Arumugam, et
al., 2020; Minshull, et al., 2022). Historically, STS theory was introduced by Eric Trist and his colleagues, in the early
1950’s, through the action research and pioneering work in the British coal mining industry at Tavistock Institute in
London (Trist and Bamforth, 1951). The theory of socio-technical systems (STS) represents an all-encompassing
theoretical and practical framework for incorporating employee participation and designing work processes. The STS
theory argues that when both the technical and social aspects of an organization are optimized together, it leads to
enhanced performance (Sahoo, 2019). Drawing upon the foundational principles of the STS theory, it becomes crucial to
establish manufacturing competitiveness by integrating and coordinating the strategy, structure, culture, and human
resource subsystems within the complex and ever-changing business environment.
In the current research, based on STS theory, the concept of 5S practices is viewed as social dimensions (5Ssoc) and
technical dimension (5Stech). In the social dimension, it represents as the subsystem that comprises the social interaction,
employees empowerment, and employees participation in 5S practices (Dalpiaz, et al., 2013). While the technical
dimension is represented as the subsystem that including of the human interaction with 5S technical steps (sort, set in
order, shine, standardize, and sustain), integrated management system, and guidline or manuals. It focuses on the effective
use of 5S method to support the transforming process from input into output in manufacturing SMEs.
The primary difficulty in implementing 5S practices lies in the imbalance between the social and technical
dimensions (Minshull, et al., 2022). This imbalance leads to varying perspectives, communication barriers, insufficient
International Conference on Design and Concurrent Engineering 2023
& Manufacturing Systems Conference 2023
September 1-2, 2023, Hiyoshi Campus, Keio University, Japan & Online

capabilities, and limited resources, all of which can negatively affect the sustainability of 5S practices (Afy-Shararah and
Salonitis, 2022). Consequently, the effectiveness of 5S practices in improving work efficiency and productivity relies
heavily on strong social support. However, an excessive focus on the social aspects can lead to suboptimal levels of
technical implementation (Afy-Shararah and Salonitis, 2022). Thus, achieving an integration between the social and
technical aspects becomes crucial both in the conceptualization and practical application of 5S practices.

2.2 Sustainability performance

The concept of sustainability performance (SP) is commonly recognized as an outcome that is evaluated by
considering the integration of economic, environmental, and social aspects. This integration is often referred to as the
"Triple Bottom Line" (TBL) approach (Carter and Rogers, 2008). The concept was formulated by Elkington to address
the preservation of resource sustainability in order to sustain profit generation. Hence, economic activities must align
with the principle of ensuring the presence of sustainable environmental resources and empowering the social community,
which plays a vital role in fostering a more favorable transformation process. Many literatures highlight the significant
role of 5S practices for enhancing the operational performance of small and medium-sized manufacturing enterprises
(Sharma, et al., 2019; Maryani, et al., 2020; Roy, et al., 2021; Manzanares-Cañizares, et al., 2022).
In the last decades, particularly amidst the Covid-19 pandemic, the challenges posed by environmental and social
issues have shifted the focus of 5S practices towards achieving sustainability performance (Hassan and Pasha, 2022; Lim,
et al., 2021; Martins, et al., 2022; Sajan and Shalij, 2021). However, based on an investigation of some of the literature
above, no model framework has been found that explicitly focuses on the development of a 5S conceptual model. This
provides an opportunity to develop a model to study the relationship between 5S practices and sustainability performance
improvement. Therefore, the current study aims to build a conceptual model of 5S practices oriented towards improving
sustainability performance. In addition, to strengthen the influence of the socio-technical dimension of 5S practices on
improving sustainability performance, this study also considers the role of the mediating variable relational coordination
(Bolton, et al., 2021; McMackin and Flood, 2019). This mediator variable represents the effort to strengthen the work
coordination relationship of stakeholders in the success of 5S practices that will ultimately improve sustainability
performance.

2.3 Relational coordination

The RC construct is theoretically defined as a process of communication and mutually supportive relationships aimed
at integrating tasks (Gittell, 2002). In the workplace, the increasing complexity of tasks, functional specialization, and
interdependence necessitate coordination across roles, disciplines, organizations, and sectors to achieve desired outcomes
(Bolton, et al., 2021). This highlights the importance of bridging the gap between the technical complexity of work and
the quality of connections among stakeholders within an organizational system (Bolton, et al., 2021). These challenges
are not only encountered by large-scale organizations but also by micro-scale industries undergoing process
transformations on a small and medium scale. Workers in SME manufacturing industries need to enhance their abilities
in coordinating internal employees and developing relationships with work partners such as customers and suppliers
(Gittell, 2000).
In previous studies, the development of the 5S practices model has been widely carried out in the conceptual
framework (including the integration of eliminating waste and plan-do-check-action (PDCA) (Abebe, 2021), total quality
management (TQM) and total productive maintenance (TPM) (Naik, et al., 2015), and green practices (Thekkoote,
2022)). Furthermore, the developing 5S concept is also conducted in the implementation framework by adding the safety
step (6S) (Alzahrani, 2021) and the spirit and safety aspect (7S) (Mahlaha, et al., 2020). Generally, integrating 5S
practices with these platforms aims to improve performance. However, adding an improvement agenda in 5S practices
for SMEs has challenges in implementing it in an integrated manner. Lack of resources focused on process improvement,
barriers to communication, and adoption strategy are often a source of obstacles to implementing 5S practices sustainably
(Tripathi and Dave, 2020).
McMackin and Flood (2019) introduced relational coordination (RC) as a potential mediating variable in the social
lean conceptual model. This proposition aimed to enhance the lean approach, which typically focuses on technical
aspects. Therefore, to bridge the gap of previous studies, the current study proposes the concept of relational coordination
International Conference on Design and Concurrent Engineering 2023
& Manufacturing Systems Conference 2023
September 1-2, 2023, Hiyoshi Campus, Keio University, Japan & Online

(RC) as a mediating variable in the conceptual model of 5S practices that try to overcome social barriers and the
adaptation process. In addition, McMackin and Flood's (2019) model primarily emphasizes the general concept of lean
and does not specifically address the practices of 5S. Hence, this current study proposes the inclusion of RC as a mediator
based on the improvement on intentional communication (IC) and foster quality relationships (QI) among various
stakeholders, including leaders, employees, consumers, and suppliers. The objective is to address social barriers that
hinder effective implementation of 5S practices (Lee and Kim, 2020; McMackin and Flood, 2019).

2.4 Hypothesis

Theoretically, the contribution of 5S practices to sustainability performance can be seen through several indicators
such as operational efficiency, quality improvement, safety and health, and sustainable work culture (Randhawa and
Ahuja, 2018). Operational efficiency can be achieved through 5S practices by optimizing resource use, reducing waste,
and eliminating non-value-added activities. This can reduce the use of energy, raw materials, and water, and reduce
production waste, thereby contributing to resource efficiency and reduced environmental impact (Mahlaha, et al., 2020).
As for the impact of 5S practices on quality improvement, it can be obtained by eliminating irregularities, improving
accuracy, maintaining consistency, and reliability of production processes. This can reduce product defects and returns,
increase customer satisfaction, and reduce environmental impacts caused by products that do not meet quality standards
(Manzanares-Cañizares, et al., 2022). Similarly, 5S practices can have an effect on safety and health levels through
maintaining cleanliness, order, and security in the workplace. This can reduce the risk of occupational accidents, injuries,
or work-related illnesses. By creating a safe and healthy work environment, companies can increase employee
productivity and reduce costs associated with accidents and absenteeism. From a work culture perspective, building
employee awareness and participation in 5S practices can develop attitudes and behaviors that focus on efficiency,
savings, and reducing negative impacts on the environment (Shahriar, et al., 2022). A sustainable work culture can also
encourage innovation and creative thinking in finding more environmentally friendly and sustainable solutions (Valentine
and Gupta, 2019).
Furthermore, the current research also need to consider RC as a mediator for joint optimizing the socio-technical
dimensions of 5S practices to enhance sustainability performance simultaneously. In relation to the benefits,
implementing 5S practices results in an organized and clean workplace that is easily accessible to all employees. It also
fosters comfort and establishes standardized procedures that are mutually understood and contributing to a disciplined
work culture. Consequently, this environment facilitates effective coordination and enhances the quality of relationships
between individuals and work groups within the organization and its surrounding environment. So that RC will also have
a positive impact on improving the sustainability performance of manufacturing SMEs in Indonesia. As a result, relational
coordination (RC) will also play a beneficial role in enhancing the sustainability performance of manufacturing small
and medium-sized enterprises (SMEs) in Indonesia. (McMackin and Flood, 2019; Bolton, et al., 2021). Based on the
explanation above, some hypothesis can be formulated as follow:
1. Hypothesis 1 (H1): Social dimensions in 5S practices has a direct effect on SP.
2. Hypothesis 2 (H2): Social dimensions in 5S practices has a direct effect on RC.
3. Hypothesis 3 (H3): Technical dimensions in 5S practices has a direct effect on SP.
4. Hypothesis 4 (H4): Technical dimensions in 5S practices has a direct effect on RC.
5. Hypothesis 5 (H5): RC has a direct effect on SP.
6. Hypothesis 6 (H6): Social dimensions in 5S practices has an effect on SP mediated by RC.
7. Hypothesis 7 (H7): Technical dimensions in 5S practices has an effect on SP mediated by RC.

3. Methodology

This study adopts a deductive and quantitative approach to examine the impact of the technical aspects of 5S
implementation on sustainability performance (SP) in Indonesian manufacturing SMEs. Thus, the constructed conceptual
model includes two variables that operate independently (5Ssoc and 5Stech), a mediating variable (RC), and a dependent
variable (SP).The chosen research methodology aligns with positivist paradigms and utilizes the survey questionnaire
method (Saunders, et al., 2019). Methodologically, the research process consists of several stages, including setting
research problems and objectives, conducting a literature review, designing a conceptual model, creating the
International Conference on Design and Concurrent Engineering 2023
& Manufacturing Systems Conference 2023
September 1-2, 2023, Hiyoshi Campus, Keio University, Japan & Online

questionnaire, implementing a pilot study, collecting data, analyzing the data, and validating the model.
The current research employs a survey methodology using a purposive sampling technique with questionnaire
distribution. The study focuses on manufacturing SMEs that receive government assistance, particularly in the Java
region of Indonesia. The survey was participated by 130 manufacturing SMEs. The questionnaire design was adapted
from previous literature studies, as indicated in Table 3.1. The questionnaire utilized a seven-point Likert scale, which
allowed for measurement ranging from very low to high levels. To ensure content validity, the questionnaire underwent
review and validation by both academics and practitioners. A pilot study involving 80 respondents was conducted to test
the draft instrument, and the statistical analysis was performed using IBM SPSS software. The item validity and reliability
of the instrument, assessed through Cronbach's Alpha and SEM method (see Table 4.1). Thus, by considering the validity
and reliability of the initial test conducted with 80 respondents, it becomes possible to gather the final data from 130
respondents.

Table 3.1 Indicators of the survey instruments.


Variables and indicators Definition of variables References
Technical dimension of 5S practices: Technical dimension on 5S practices are (Abebe, 2021; Attri, Khan, et al., 2020).
Sorting (T1); Set in order (T2); Shine (T3); Standardized the systematic activities of 5S that
(T4); Sustain (T5); 5S technical guidance (T6); Integrated support by technical guidance and the
management system (T7). integrated management system.
Social dimesnsion of 5S practices: Social dimension on 5S practices is the (Attri, Ashishpal, et al., 2020; Baraldi
Leadership commitment (S1); Employee involvement (S2); critical of social factors that consider for and Corsi, 2019; Lagrosen and
Working culture (S3); Attitude (S4); Training (S5); successful on 5S practices. Lagrosen, 2019; Nastitisari et al., 2021;
Stakeholder involvement (S6); Policy (S7); Organizational Owusu and Adjei, 2020; Verma and Jha,
structure (S8). 2019; Xing and Tekin, 2021)
Relational coordination: Relational Coordination is the (Bolton et al., 2021; McMackin and
IC of leaders (RC1); IC of employees (RC3); IC coordination among the stakeholder in Flood, 2019).
customers (RC5); IC suppliers and company (RC7); QR 5S practices that measure by intentional
leader (RC2); QR employees (RC4) QR customers (RC6); communication and quality relationship.
QR suppliers (RC8).
Sustainability performance: The objective performance of (Lizarelli et al., 2022; Malesios et al.,
Production cost (SP1); Production time (SP2); Maintenance sustainability consists of economic, 2021; Thekkoote, 2022)
efficiency (SP3); Quality of process (SP4); Quality of environmental, and social aspects.
product (SP5); Efficiency energy (SP6); Production
materials (SP7); Work area (SP8); Waste management
(SP9); Waste recycling (SP10); Morale (SP11); Work
discipline (SP12); Employee productivity (SP13); Safety
and health (SP14); Stakeholder support (SP15).

4. Results and discussion

This section consists of survey result and discussed the findings. From the result, it provides the characteristic
respondent and hypothesis analysis. While in discussion, it explains about critical findings of significancy and validation
of the proposed model. The development of this research model was based on a theoretical analysis, which involved
comparing the conceptual model of 5S practices with socio-technical system theory through an extensive review of
existing literature. Utilizing the Structural Equation Modeling (SEM) method, a comprehensive conceptual model was
derived, comprising both measurement and structural models. This model elucidates the connections between observable
indicators and underlying latent variables, while simultaneously examining the interrelationships among the latent
variables, all of which were rigorously tested using various statistical parameters.

4.1 Results

Based on the screening process, there were 123 manufacturing SMEs as a set of valid data that can be analyzed
further. Refer to the proposed design of the measurement model (see Figure 4.1 (a)), this section will involve conducting
Confirmatory Factor Analysis (CFA) to examine the relationship between the measured items and indicators, as well as
the underlying latent constructs (5Ssoc, 5Stech, RC, and SP). This step aims to assess the validity and reliability of the
latent constructs before proceeding to further analysis using Structural Equation Modeling (SEM). As the
recommendations of Hair Jr. et al. (2014), any item that exhibits poor factor loading should be excluded from the
measurement model. The CFA calculations can be performed either separately or using a pooled approach. However,
employing the pooled CFA for the measurement model is highly recommended for efficient processing (Alsheikh, et al.,
International Conference on Design and Concurrent Engineering 2023
& Manufacturing Systems Conference 2023
September 1-2, 2023, Hiyoshi Campus, Keio University, Japan & Online

2021). CFA allows to measurement the reliability and validity of the latent constructs that consist of 5Ssoc, 5Stech, RC,
and SP (Hair Jr., et al., 2014). The valid estimated value should be achieved for standardized loading factor (SLF), and
composite reliability (CR). SLF has measured the instrument validity based on the correlation between each item and the
measurement construct. Table 4.1 indicates the valid items because SLF values were higher than 0,50 (Chin, et al., 1998)
or 0.70 (Hair Jr., et al., 2014). CR measures the internal consistency in scale items, comparable to Cronbach's alpha
(Netemeyer, et al., 2003).

Table 4.1 Validity and reliability instruments


Latent Indicators SLF Validity Cronbach Latent Indicators SLF Validity Cronbach CR
CR
Variables Items Alpha (α) Variables Items Alpha (α)
5S-1 0.745 0.801** RC5 0.873 0.858**
5S-2 0.830 0.833** RC6 0.867 0.785**
RC 0.939 0.959
5S-3 0.867 0.808** RC7 0.855 0.792**
5Stech 5S-4 0.879 0.837** 0.913 0.945 RC8 0.833 0.857**
5S-5 0.833 0.755** SP1 0.621 0.594**
5S-6 0.900 0.869** SP2 0.739 0.808**
5S-7 0.843 0.771** SP3 0.794 0.849**
5S-S1 0.817 0.848** SP4 0.799 0.867**
5S-S2 0.839 0.850** SP5 0.858 0.745**
5S-S3 0.863 0.884** SP6 0.860 0.821**
5S-S4 0.880 0.885** SP7 0.856 0.864**
5Ssoc 0.958 0.957
5S-S5 0.870 0.889** SP SP8 0.844 0.863** 0.965 0.967
5S-S6 0.798 0.836** SP9 0.868 0.854**
5S-S7 0.899 0.915** SP10 0.773 0.835**
5S-S8 0.891 0.907** SP11 0.827 0.890**
RC1 0.869 0.871** SP12 0.869 0.895**
RC2 0.830 0.847** SP13 0.907 0.855**
RC 0.939 0.959
RC3 0.868 0.874** SP14 0.752 0.788**
RC4 0.911 0.827** SP15 0.821 0.874**

The structural model aims to test the hypotheses between the constructed latent variables (see Figure 4.1 (b)).
Applying the SEM AMOS software, the GoF of the final structural model was achieved after passed several iterations
with modification indices (MI) (see Figure 4.1 (b) and Table 4.2). Since the structural model meets the GoF criteria in
Table 4.2, the significance estimation of the hypothesis can be decided in Table 4.3. As a result, the hypotheses of H1 and
H3 show an insignificant direct effect (p-value more than 0.05). However, H2, H4, and H5 have shown significantly
direct effect (p-value less than 0.05). While refer to Table 4.4, the current study also assessed the mediating role of RC
on the relationship between 5Ssoc to SP (H6) and 5Stech to SP (H7).

(a) Measurement model (MM) (b) Structural model (SM)


Fig. 4.1 SEM model
International Conference on Design and Concurrent Engineering 2023
& Manufacturing Systems Conference 2023
September 1-2, 2023, Hiyoshi Campus, Keio University, Japan & Online

Table 4.2 Goodness of fit for measurement and structural model


Type of Goodness of fit
Absolut MM SM Incremental MM SM Parsimony MM SM
Goodness of fit CMIN/DF ⩽ 2 1.524 1.096 CFI ⩾ 0.90 0.941 0.994 PNFI (0 -1) 0.752 0.757
criteria P-value Chi Square ⩾ 0,05 0.000 0.196 TLI ⩾ 0.90 0.933 0.992 PCFI (0-1) 0.835 0.805
RMSEA ⩽ 0.08 0.066 0.028 IFI ⩾ 0.90 0.941 0.994

Table 4.3 The estimation of structural model


Hypothesis and path analysis Estimates (β) S.E. C.R. P Decision
H1: 5Ssoc ➔ SP 0.205 0.135 1,518 ,204 Insignificant
H2: 5Ssoc ➔ RC 0.599 0.134 4,465 *** Significant
H3: 5Stech ➔ SP 0.182 0.101 1,806 ,087 Insignificant
H4: 5Stech ➔ RC 0.265 0.117 2.259 ,025 Significant
H5: RC ➔ SP 0.396 0.127 3,115 *** Significant

Table 4.4 Mediation analysis


Indirect Confidence interval
Relationship Direct effect P-value Conclusion
effect Lower bound Upper bound
H6: 5Ssoc ➔ RC ➔ SP 0.177 (p = 0.204) 0.233 0.046 0.576 0.006 Full mediation
H7: 5Stech ➔ RC ➔ SP 0.185 (p = 0.087) 0.121 0.003 0.374 0.043 Full mediation

Based on bootstrap estimates, the H6 revealed a significant indirect effect at (b = 0.233, p = 0.006). Furthermore, it
also was a significant result on H7 (b = 0.121, p = 0.043). Hence, it could be stated that RC fully mediation since because
there are insignificant on direct effect between 5Ssoc to SP and 5Stech to SP. The significance of the indirect effect can
be determined by examining the confidence interval values of H6, which range from lower bound is 0.046 to upper bound
is 0.576, with no cross zero. This indicates that the indirect effect on H6 is deemed significant. Similarly, the confidence
interval values of H7, ranging from lower bound is 0.003 to upper bound is 0.374, do not cross zero, indicating a
significant indirect effect on H7 (Kirkwood and Sterne, 2003).

4.2 Discussion

In general, this study is a development of a conceptual model of 5S practices in relation to performance improvement
based on previous research. However, this study focuses more on integrating the social and technical dimensions rather
than integrating programs that tend to be technical management in achieving sustainability performance. In addition, this
is also done in order to understand the behavioral barriers that occur between individuals and their work, between
individuals or between work groups in 5S practices. Hypothetically, 5S practices need to be adapted through the process
of communication and good working relationships in order to achieve optimal sustainability performance improvement.
Similarly, 5S practices in the socio-technical dimension also facilitate better work coordination patterns. This study
found that 5S practices in the socio-technical perspective proved to significantly influence the achievement of
sustainability performance through the mediating variable of relational coordination simultaneously. However, on the
other hand, the socio-technical dimension of 5S practices does not directly affect sustainability performance. This
indicates the important role of relational coordination in increasing the contribution of 5S practices to performance
improvement. In addition, the current study provides evidence that the proposed SM model satisfies the model fit test, as
per the indicators designed in the MM model.

5. Conclusion and recommendation

This study found a significant contribution of 5S practices to SP in Indonesian manufacturing SMEs. The result of
the study has found a significant indirect effect of socio-technical on 5S practices to sustainability performance through
the mediating relational coordination. However, the direct effect of socio-technical to sustainability performance were
not significant. It means that the relational coordination as a full mediation for indirect effect between socio-technical
dimension of 5S practices to sustainability performance. However, in further research is needed to robust the mediator
International Conference on Design and Concurrent Engineering 2023
& Manufacturing Systems Conference 2023
September 1-2, 2023, Hiyoshi Campus, Keio University, Japan & Online

concept of relational coordination for enhancing the contribution of 5S practices towards SP.

Acknowledgement

The authors of this paper would like to express their heartfelt gratitude to the Faculty of Manufacturing Engineering
at Universiti Teknikal Malaysia Melaka, as well as the Indonesian manufacturing SMEs, and Indonesian Government
that provided support for this research. We would also like to extend our appreciation to the Industrial Engineering
Department, Faculty of Industrial Technology, at Universitas Islam Indonesia for the valuable support of this study.

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