International Journal of Academic Research in Business and Social Sciences

search-icon

Transformational Leadership and Operational Excellence in Small and Medium Enterprises (SMEs) Manufacturing Sectors

Open access

Mohd Hafeez Al-Amin Abdul Wahab, Abdul Aziz Yaacob, Norzawani Ibrahim, Muhammad Yushafiq Yusri

Pages 1770-1778 Received: 21 Sep, 2023 Revised: 18 Oct, 2023 Published Online: 15 Nov, 2023

http://dx.doi.org/10.46886/IJARBSS/v13-i11/7585
This study aims to examine the effect of transformational leadership on operational excellence among Malaysian Small and Medium Sized Enterprises (SMEs) manufacturing sectors. Specifically, the current study examines four dimensions of transformational leadership namely idealized influence, individual consideration, intellectual stimulation and inspirational motivation that can produce positive organizational change and create excellent performance. This study introduces a conceptual framework that encompasses four dimensions of transformational leadership impacting operational excellence. Moreover, this paper adds significant value to the current knowledge base by advancing the conceptual understanding of operational excellence in the context of Malaysian SMEs manufacturing sectors. The practical application of efficient management strategies encompassing transformational leadership among SMEs in Malaysia can substantially enhance the attainment of operational excellence and elevate their overall business performance.

Abdul Wahab, M. H. A.-A., Ibrahim, N., Yaacob, A. A., Che Cob, C. M. S. C., & Omar, S. N. Z. (2023). The Relationship Between Soft and Hard Factors on Operational Excellence in Small and Medium Enterprises (SMES). International Journal of Accounting, Finance and Business (IJAFB), 8(47), 21–29. https://doi.org/10.55573/IJAFB.084703
Abdullah, N. H., Shamsuddin, A., & Wahab, E. (2012). The influence of transformational leadership on product innovations among small business. Proceedings International Conference of Technology Management, Business and Entrepreneurship, 2012(1992), 486–494. Retrieved from http://eprints.uthm.edu.my/3503/
Ahmad, H., Alekam, J. M. I., Shaharruddin, S., Marchalina, L., & Fok-Yew, O. (2018). The relationship between the change management and the operational excellence in electrical and electronics manufacturing companies. International Journal of Supply Chain Management, 7(5), 511–519.
Ahmad, M. F., Zamri, S. F., Abdul Hamid, N., Ahmad, A. N. A., Abdul Rahman, N. A., & Mohd Nawi, M. N. (2019). Comparative Study of Business Excellence Enablers between Small and Medium Enterprises and Multinational companies?: A TQM Survey Result. International Journal of Supply Chain Management (IJSCM), 8(1), 58–63.
Alkhalidi, B., & Abdallah, A. (2018). Lean Bundles and Performance Outcomes in the Pharmaceutical Industry: Benchmarking a Jordanian Company and Operational Excellence International Project. Modern Applied Science ·, 12(8), 90–102. https://doi.org/10.5539/mas.v12n8p90
Antonakis, J., Avolio, B. J., & Sivasubramaniam, N. (2003). Context and leadership: an examination of the nine-factor full-range leadership theory using the Multifactor Leadership Questionnaire. In The Leadership Quarterly (Vol. 14). https://doi.org/10.1016/S1048-9843(03)00030-4
Araújo, M., & Sampaio, P. (2013). The path to excellence of the Portuguese organisations recognised by the EFQM model. Total Quality Management & Business Excellence, 25(5–6), 427–438. https://doi.org/10.1080/14783363.2013.850810
Bass, B. M. (1999). Two decades of research and development in transformational leadership. European Journal of Work and Organizational Psychology, 8(1), 9–32. https://doi.org/10.1080/135943299398410
Bass, B., & Riggio, R. E. (2006). Transformational Leadership , Mahwah, New Jersey: LEA. Mahwah, New Jersey: Lawrence Erlbaum Associates.
Bass, B M, Avolio, B. J., & Pointon, J. (1990). The implications of transactional and transformational leadership for individual, team, and organizational development. Research in Organizational Change and Development, 4(1), 231–272.
Bass, Bernard M, & Avolio, B. J. (1997). Full range leadership development: Manual for the Multifactor Leadership Questionnaire. Mind Garden.
Chakraborty, S., Sharma, A., & Vaidya, O. S. (2020). Achieving sustainable operational excellence through IT implementation in Indian logistics sector: An analysis of barriers. Resources, Conservation and Recycling, 152, 104506. https://doi.org/https://doi.org/10.1016/j.resconrec.2019.104506
Edgeman, R., & Eskildsen, J. (2014). Modeling and Assessing Sustainable Enterprise Excellence. Business Strategy and the Environment, 23(3), 173–187. https://doi.org/10.1002/bse.1779
EFQM. (1999). The EFQM excellence model. EFQM Brussels.
Ekmekci, O. (2012). Reconfigured to be the Best: Leading Organizations to Excellence Through Quality Improvement. S.A.M. Advanced Management Journal, 77(4), 4–12.
Elouarat, L., Saadi, J., & Kouiss, K. (2011). Teaching of operational excellence in Moroccan universities and high schools A major lever for a competitive Moroccan company. 1st World Engineering Education (WEE) Flash Week, September 27-30, 2011, Lisbon, Portugal.
Fok-yew, O. (2018). The Mediating Effect of Lean ’s Soft Factors on Lean ’s Hard Factors and Operational Excellence in Malaysia Manufacturing Companies. International Journal of Business Marketing and Management (IJBMM), 3(1), 26–35.
Friedli, T., Basu, P., Bellm, D., & Werani, J. (2013). Leading Pharmaceutical Operational Excellence Outstanding Practices and Cases. Springer Berlin Heidelberg.
Hines, P. A., & Yu, K. M. (2009). The changing reimbursement landscape: nurses’ role in quality and operational excellence. Nursing Economic, 27(1), 7–13. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/19331307
Ibrahim, N., Razak, R. C., Wahab, M. H. A. A., Osman, A. A., & Ab Rahman, S. M. (2021). Supply Chain Risks and Roles of the Strategy of Green Supply Chain Management Practices. Journal of Academic Research in Business and Social Sciences, 11(7), 752–771. https://doi.org/10.6007/IJARBSS/v11-i7/10322
Jaeger, A. (2017). Total Quality Management & Business Excellence Achieving business excellence through self- assessment for personal and professional excellence. 3363(February). https://doi.org/10.1080/14783363.2017.1288564
Metwally, A. H., El-Bishbishy, N., & Sabri Nawar, Y. (2014). The impact of transformational leadership style on employee satisfaction. The Business & Management Review International Trade & Academic Research Conference, 5(3), 3–4. https://doi.org/10.5829/idosi.wasj.2014.29.01.1521
Mitchell, J. S. (2015). Operational Excellence?: Journey to Creating Sustainable Value. Wiley.
Nair, S. S., & Thomas, K. A. (2020). Relationship between leadership support and operational excellence in health care sector: A study of Indian health care managers. Journal of Healthcare Quality Research, 35(2), 117–122. https://doi.org/https://doi.org/10.1016/j.jhqr.2020.02.002
Northouse, P. G. (2001). Leadership: Theory and practice. Sage publications.
Ojha, S. K. (2015). Operational Excellence for Sustainability of Nepalese Industries. Procedia - Social and Behavioral Sciences, 189, 458–464.
Rafferty, A. E., & Griffin, M. A. (2004). Dimensions of transformational leadership: Conceptual and empirical extensions. The Leadership Quarterly, 15(3), 329–354.
Ristow, A. M., Amos, T. L., & Staude, G. E. (1999). Transformational leadership and organisational effectiveness in the administration of cricket in South Africa. South African Journal of Business Management, 30(1), 1–5.
Rowold, J., & Heinitz, K. (2007). Transformational and charismatic leadership: Assessing the convergent, divergent and criterion validity of the MLQ and the CKS. The Leadership Quarterly, 18(2), 121–133. https://doi.org/10.1016/j.leaqua.2007.01.003
Saeed, B., Tasmin, R., Mehmood, A., & Hafeez, A. (2020). Exploring the impact of transformational leadership and human resource practices on operational excellence mediated by knowledge sharing: A conceptual framework. International Journal of Scientific and Technology Research, 9(2), 4458–4468.
Sartal, A., & Vázquez, X. H. (2017). Implementing Information Technologies and Operational Excellence: Planning, emergence and randomness in the survival of adaptive manufacturing systems. Journal of Manufacturing Systems, 45, 1–16. https://doi.org/https://doi.org/10.1016/j.jmsy.2017.07.007
Seidl, A. (2007). Morrison Healthcare Food Services Finds the Key Ingredients in Operational Excellence and Great Customer Service. Global Business and Organizational Excellence, 27(1), 28–39. https://doi.org/10.1002/joe.20182
Shehadeh, R. M., Zu’bi, M. F., Abdallah, A. B., & Maqableh, M. (2016). Investigating Critical Factors Affecting the Operational Excellence of Service Firms in Jordan. Journal of Management Research, 8(1), 157–190. https://doi.org/10.5296/jmr.v8i1.8680
Susanti, Y. S. N., Dachyar, M., & Yadrifi. (2015). Analysis of Factors that Support the Operational Excellence in Telecommunication-Supporting Companies. International Journal of Applied Engineering Research, 10(15), 35461–35465.
Treacy, M., & Wiersema, F. D. (1997). The discipline of market leaders: Choose your customers, narrow your focus, dominate your market. Basic Books.
Van Assen, M. F. (2011). Operational Excellence for Services. Center of Operational Excellence,"[Online].[Retrieved February 29, 2012]. Available at: http://www. vanassen. info/wpcontent/uploads/Position-paper-Operational-Excellence-for-Services. pdf.
Wahab, M. H. A. A., Ibrahim, N., Yaacob, A. A., Ismail, M., Muhayiddin, M. N., Ab Rahman, S. M., & Osman, A. A. (2022). Exploring the Success Factors of Operational Excellence in SMEs Manufacturing Sectors. International Journal of Academic Research in Business and Social Sciences, 12(5), 1504–1515. https://doi.org/10.6007/IJARBSS/v12-i5/13102
Waldman, D. A., Javidan, M., & Varella, P. (2004). Charismatic leadership at the strategic level: A new application of upper echelons theory. The Leadership Quarterly, 15, 355–380.
Walumbwa, F. O., & Lawler, J. J. (2003). Building effective organizations: Transformational leadership, collectivist orientation, work-related attitudes and withdrawal behaviours in three emerging economies. International Journal of Human Resource Management, 14(7), 1083–1101.
Yew, O. F., & Ahmad, H. (2014). The Effect of Change Management on Operational Excellence in Electrical and Electronics Industry?: Evidence from Malaysia. British Journal of Economics, Management & Trade, 4(8), 1285–1305.
Zairi, M. (1999). Managing excellence: leadership. The TQM Magazine, 11(4), 215–220. https://doi.org/10.1108/09544789910277288