Article 3, Volume 1 Issue 2:

Advanced production practices and performance: empirical evidence from Spanish plants

Author

Darkys Luján-García – (Universidad de Sevilla)

Pedro Garrido-Vega – (Universidad de Sevilla)

Bernabé Escobar-Pérez – (Universidad de Sevilla)

Received August 29, 2014; accepted December 6, 2015.

Abstract

This paper presents an empirical study that analyses the effect of applying three Advanced Production Practices (APPs) (Total Quality Management-TQM, Just in Time-JIT, and Total Productive Maintenance-TPM) on business performance measured with financial and non-financial (or operational) indicators. The study was conducted on a sample of Spanish companies in the automotive components, electronics and machinery sectors that took part in the 3rd Round of the High Performance Manufacturing (HPM) Project. The results of an analysis using Partial Least Squares (PLS) show that only two of the nine implementation indicators for the APPs being analyzed (process emphasis in TQM, and JIT delivery by suppliers) are positively related with non-financial performance. No significant relationship was found with financial performance, or between operating and financial performance. However, it should be borne in mind that the small size of the sample used in this study only enables strong relationships to be detected; a larger sample would be required to detect moderate or weak relationships.

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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Citation

Luján-García, D., Garrido-Vega, P., & Escobar, B. (2014). Advanced production practices and performance: Empirical evidence from Spanish plants. European Accounting and Management Review1(2).

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