Exploring the Success Factors of Operational Excellence in SMEs Manufacturing Sectors

Abstract

Small and medium enterprises (SMEs) manufacturing sectors has been identified as a key engine to the economy. However, SMEs manufacturing sectors encounters challenges which are affected their business operations that add difficulty for SMEs to achieve their performance. The purpose of this study to examines the success factors of operational excellence in SMEs manufacturing sectors. This paper provides the conceptual understanding on the effect of the soft and hard factors on the operational excellence. The literatures have demonstrated that the linkages of the conceptual framework were developed which incorporate the soft factors, hard factors and operational excellence. Grounded by resource-based view theory perspectives, this study examines two main factors that is the soft factors and the hard factors. In addition, the literature also shows that there is a need for a study in the context of the SMEs in Malaysia. This paper contribute to a body of knowledge in terms of providing better understanding of the operational excellence in Malaysian SMEs manufacturing sectors. The practical adoption of managing the soft factors and hard factors among SMEs in Malaysia will contribute to the operational excellence in their business.