A Structural Analysis of the Factors Affecting Productivity Performance: Based on SME of Manufacturing Certified the PMS
Chang Soo Seo, Oak Hyeon An · Journal of the Korean society for quality management · 2019
Purpose: This study aims to investigate the factors affecting productivity performance for Korean SMEs of manufacturing which had obtained the certification of Productivity Management System(PMS) that is a Korean assessment program for enhancing maturity of company’s management systems.Methods: The proposed model is based on the PMS model. The valid 759 data registered from 2010 to 2018 year was analyzed using SEM analysis for testing hypotheses.Results: The results are as follows. First, Leadership affects the five core sub-system processes positively, but doesn’t a significant Business Performance directly. Secondly, HRM, Customer & Market Analysis, and Process Management excluding Productivity Development and Measurement Analysis and Knowledge Management have a significant effect on Business Performance. Lastly, when examining the mediation effect, Process Development, Customer & Market Analysis, and HRM have indirectly effect between Leadership and Business Performance.Conclusion: This study results suggest not only the role of leadership to improve productivity performance of SME, but also which core processes are focused and differentiated.