Title: Illuminating operational excellence in automotive manufacturing company (an empirical evidence from Indonesia)

Authors: Andrianto Iskandar; Ferdi Antonio

Addresses: Universitas Pelita Harapan, Jl. Garnisun Dalam No. 8, Kec. Setiabudi, Jakarta Selatan 12930, Indonesia ' Universitas Pelita Harapan, Jl. Garnisun Dalam No. 8, Kec. Setiabudi, Jakarta Selatan 12930, Indonesia

Abstract: This study examines the influence of organisational factors - employee compliance behaviour (ECB), positive attitude toward the job (PAT), empowerment leadership (ELD), teamwork self-efficacy (TSE), and performance-based evaluation (PBE) - on organisational commitment (OC) toward operational excellence (OX) in Indonesia's automotive manufacturing industry. OX was measured as a high order construct (HOC) comprising cultural enabler, continuous process improvement, and enterprise alignment. Using PLS-SEM with a disjoint two-stage approach, data from 517 respondents, selected via purposive sampling, revealed that four independent variables positively influence OC, with ECB showing the strongest effect (β = 0.333, p < 0.001). Notably, PBE negatively affects OC (β = -0.081, p = 0.024). OC positively impacts OX, with continuous process improvement being the most influenced dimension. These findings highlight the need for multidimensional measurement of OX to align efforts with operational targets, offering valuable insights for enhancing manufacturing performance.

Keywords: operational excellence; automotive manufacture; organisational commitment; employee compliance behaviour; teamwork self-efficacy; Indonesia.

DOI: 10.1504/IJEWE.2025.145487

International Journal of Environment, Workplace and Employment, 2025 Vol.9 No.1, pp.36 - 58

Received: 05 Oct 2024
Accepted: 09 Jan 2025
Published online: 01 Apr 2025 *

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