Articles

Found 27 Documents
Search

Hierarchical level oF managers’ abilities: A Moderator between Quality Management Practices and Company Financial Performance Ciptono, Wakhid Slamet
Gadjah Mada International Journal of Business Vol 9, No 3 (2007): September - December
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (430.012 KB)

Abstract

This study investigates the moderating impacts of hierarchical level of managers’ abilities on the form and strength of all structural relationships between quality management practices and company financial performance. This study describes the structural relationships among the research constructs —six critical factors of quality management practices (quality improvement program, supervisory leadership, supplier involvement, management commitment, training to improve products/services, cross-functional relationships); the contextual factors of oil and gas companies—world-class performance in operations (world-class company practices, operational excellence practices, company non-financial performance); and company financial performance. It uses a sample of 1,332 managers in 140 strategic business units (SBUs) within 49 oil and gas companies operating in Indonesia. The empirical results indicate that the goodness-of-fit of the unconstrained model is much better than that of the constrained model, and this is an indicator that hierarchical level of managers’ abilities moderates all structural relationships among the research constructs. Hence, the hierarchical level of managers’ abilities acts as a moderating variable of the whole model (i.e., among critical factors of quality management practices, world-class company practices, operational excellence practices, company non-financial performance, and company financial performance). It means that the major contribution of the hierarchical level of managers’ abilities is how to make changes in the organizational system. Top level managers’ abilities are deemed the most capable of making significant changes because of their broad sources of power and influence. Conversely, lower level managers’ abilities find it more difficult making significant changes in the system because of bureaucratic control processes that limit their actions —powerlessness or a chronic lack of autonomy. Compared to the hierarchical level of managers’ abilities, the degree of autonomy may be a more comprehensive contribution in reference to managers’ abilities to influence an organizational system. Autonomy may not only act as a person enhancer to increase internal work motivation, but it may also serve to moderate the extent to which individuals are able to significantly influence a system. In addition, involvement and empowerment of all organizational members (including managers) in cooperative and collaborative (interactive) efforts to achieve quality improvements appear to be a key element to TQM. Results further reveal that world-class performance in operations (world-class company practices, operational excellence practices, and company non-financial performance) positively mediates the impact of critical factors of quality management practices on company financial performance. Results also point out that three out of six critical factors of quality management practices are positively associated with world-class company practices and operational excellence practices under the moderating of hierarchical level of managers’ abilities. World-class company practices and operational excellence practices have direct and significant effects on company non-financial performance. Furthermore, empirical results suggest that there is a positive and significant relationship between company non-financial performance and company financial performance.
Sustainability of TQM Implementation Model In The Indonesia’s Oil and Gas Industry: An Assessment of Structural Relations Model Fit Ciptono, Wakhid Slamet; Ibrahim, Abdul Razak; Sulaiman, Ainin; Syed A. Kadir, Sharifah Latifah
Gadjah Mada International Journal of Business Vol 13, No 1 (2011): January-April
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (238.818 KB)

Abstract

This study purposively is to conduct an empirical analysis of the structural relations among  critical factors of quality management practices (QMPs), world-class company practice (WCC), operational excellence practice (OE), and company performance (company non-financial performance or CNFP and company financial performance or CFP) in the oil and gas companies operating in Indonesia. The current study additionally examines the relationships between QMPs and CFP through WCC, OE, and CNFP (as partial mediators) simultaneously. The study uses data from a survey of 140 strategic business units (SBUs) within 49 oil and gas contractor companies in Indonesia.  The findings suggest that all six QMPs have positive and significant indirect relationships on CFP through WCC and CNFP. Only four of six QMPs have positive and significant indirect relationships on CFP through OE and CNFP. Hence, WCC, OE, and CNFP play as partial mediators between  QMPs and CFP. CNFP has a significant influence on CFP. A major implication of this study is that oil and gas managers need to recognize the structural relations model fit by developing all of the research constructs simultaneously associated with a comprehensive TQM practice. Furthermore, the findings will assist oil and gas companies by improving CNFP, which is very critical to TQM, thereby contributing to a better achievement of CFP. The current study uses the Deming’s principles, Hayes and Wheelwright dimensions of world-class company practice, Chevron Texaco’s operational excellence practice, and the dimensions of company financial and non-financial performances.  The paper also provides an insight into the sustainability of TQM implementation model and their effect on company financial performance in oil and gas companies in Indonesia.       
An Alternative to Optimize the Indonesian’s Airport Network Design: An Application of Minimum Spanning Tree (MST) Technique Lusiantoro, Luluk; Ciptono, Wakhid Slamet
Gadjah Mada International Journal of Business Vol 14, No 3 (2012): September-December
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (382.808 KB)

Abstract

Using minimum spanning tree technique (MST), this exploratory research was done to optimize the interrelation and hierarchical network design of Indonesian’s airports. This research also identifies the position of the Indonesian’s airports regionally based on the ASEAN Open Sky Policy 2015. The secondary data containing distance between airports (both in Indonesia and in ASEAN), flight frequency, and correlation of Gross Domestic Regional Product (GDRP) for each region in Indonesia are used as inputs to form MST networks. The result analysis is done by comparing the MST networks with the existing network in Indonesia. This research found that the existing airport network in Indonesia does not depict the optimal network connecting all airports with the shortest distance and maximizing the correlation of regional economic potential in the country. This research then suggests the optimal networks and identifies the airports and regions as hubs and spokes formed by the networks. Lastly, this research indicates that the Indonesian airports have no strategic position in the ASEAN Open Sky network, but they have an opportunity to get strategic positions if 33 airports in 33 regions in Indonesia are included in the network.     
A SEQUENTIAL MODEL OF INNOVATION STRATEGY—COMPANY NON-FINANCIAL PERFORMANCE LINKS Ciptono, Wakhid Slamet
Gadjah Mada International Journal of Business Vol 8, No 2 (2006): May - August
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (411.801 KB)

Abstract

This study extends the prior research (Zahra and Das 1993) by examining the association between a company’s innovation strategy and its non-financial performance in the upstream and downstream strategic business units (SBUs) of oil and gas companies. The sequential model suggests a causal sequence among six dimensions of innovation strategy (leadership orientation, process innovation, product/service innovation, external innovation source, internal innovation source, and investment) that may lead to higher company non-financial performance (productivity and operational reliability). The study distributed a questionnaire (by mail, e-mailed web system, and focus group discussion) to three levels of managers (top, middle, and first-line) of 49 oil and gas companies with 140 SBUs in Indonesia. These qualified samples fell into 47 upstream (supply-chain) companies with 132 SBUs, and 2 downstream (demand-chain) companies with 8 SBUs. A total of 1,332 individual usable questionnaires were returned thus qualified for analysis, representing an effective response rate of 50.19 percent. The researcher conducts structural equation modeling (SEM) and hierarchical multiple regression analysis to assess the goodness-of-fit between the research models and the sample data and to test whether innovation strategy mediates the impact of leadership orientation on company non-financial performance. SEM reveals that the models have met goodness-of-fit criteria, thus the interpretation of the sequential models fits with the data. The results of SEM and hierarchical multiple regression: (1) support the importance of innovation strategy as a determinant of company non-financial performance, (2) suggest that the sequential model is appropriate for examining the relationships between six dimensions of innovation strategy and company non-financial performance, and (3) show that the sequential model provides additional insights into the indirect contribution of the individual dimensions of innovation strategy (partially mediators) to company non-financial performance —productivity or operational reliability. The findings provide empirical evidence extending the previous model of Zahra and Das. These findings also provide a basis for useful recommendations to upstream and downstream SBU managers attempting to implement a sequential model of innovation strategy —company non-financial performance links. This study shows that upstream SBUs rely on external innovation sources. They will acquire innovation policies through business partnership development (such as Joint Operation Body for Enhanced Oil Recovery or JOB-EOR, Joint Operation Body for Production Sharing Contract or JOB-PSC); licensing agreements (Technical Assistance Contract or TAC, Consortium Cooperation System); or acquisition with other firms (Joint Operating Contract or JOC). In contrast, downstream SBUs emphasize on generating internal innovation sources to develop their own in-house R&D efforts. The downstream SBUs should make extensive policies of internal innovation sources in their attempts to control the distribution of oil-based fuel and transmission of natural gas for domestic and international markets effectively. Both policies would enhance understanding and ultimately contribute to the improvement of company financial performance —sales, net profit margin, return on assets.
Exploring the Linkages Between Deming’s Principle, World-Class Company, Operational Excellence, and Company Performance in an Oil and Gas Industry Setting Ciptono, Wakhid Slamet
Gadjah Mada International Journal of Business Vol 7, No 2 (2005): May-August
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (1680.011 KB)

Abstract

This study explores the linkages between Deming’s Principle, World-Class Company, Operational Excellence, and Company Performance in the Indonesia’s oil and gas industry. The aim of this study is to examine the causal relationships model between the Deming’s Principle (DP), World-Class Company (WCC), Operational Excellence (OE), and Company Performance (Monetary Gain Performance or MGP and Value Gain Performance or VGP). The author used 140 strategic business units (SBUs) in 49 oil and gas companies in Indonesia. The survey was administered to every level of management at each SBU (Top, Middle, and Low Level Management). A multiple informant sampling unit is used to ensure a balanced view of the relationships between the research constructs, and to collect data from the most informed respondents on different levels of management. A total of 1,332 individual usable questionnaires were returned thus qualified for analysis, representing an effective response rate of 50.19 percent. Path analysis and structural equation modeling (SEM) are used to analyze the effect of Deming’s principle on company performance and to investigate the interrelationships between Deming’s principle, world-class company, operational excellence, and company performance. The results show that Deming’s Principle has significant positive and indirect effect on company performance (monetary gain performance and value gain performance). Although the Deming’s Principle has no significant direct effects on company performance, the Deming’s Principle has significant positive effects on the intervening variables (world-class company and operational excellence). The result also shows that a complete model fit and the acceptable parameter level that indicate the overall parameter are good fit between the hypothesized model and the observed data. By concentrating on a single industry (oil and gas), SEM specification of the causal relationship model between five constructs can be more complete and specific because unique characteristics of the oil and gas industry can be included (upstream and downstream chain activities). Finally, the particular design of the research and the findings suggest that the structural model of the study has a great potential for replication to manufacturing as well as service operations.
A Causal Relationship between Quality Management Practices, Supply-Chain Practices, Demand-Chain Practices, and Company Performance: Evidence from the Indonesia’s Oil and Gas Industry Ciptono, Wakhid Slamet
Journal of Indonesian Economy and Business Vol 21, No 1 (2006): January
Publisher : Journal of Indonesian Economy and Business

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

Studi ini mengembangkan suatu hubungan kausal antara lima konstruk penelitian QualityManagement Practices (QMP), Supply-Chain Practices (SCP), Demand-Chain Practices (DCP), CompanyPerformance (Value-Gain Performance atau VGP dan Monetary-Gain Performance atau MGP) denganmenggunakan Structural Equation Modeling (SEM)—studi kasus pada industri migas di Indonesia. Modelkonseptual penelitian ini merupakan kolaborasi dari berbagai penelitian sebelumnya yang terkait denganenam dimensi praktik manajemen kualitas berbasis Deming’s 14 points sebagai variabel independen,manajemen rantai pasokan yang terintegrasi (sektor hulu dan sektor hilir migas) sebagai variabel mediator,dan kinerja perusahaan (non keuangan dan keuangan) sebagai variabel dependen.Berdasarkan model struktural akhir menunjukkan paraktik manajemen kualitas (QMP) memilikipengaruh positif lebih besar ke praktik rantai pasokan (SCP) daripada ke praktik rantai permintaan (DCP).QMP berpengaruh langsung ke kinerja non keuangan perusahaan (VGP) dan tidak berpengaruh langsungke kinerja keuangan perusahaan (MGP). QMP juga berpengaruh tidak langsung ke MGP melalui SCP,DCP, dan VGP. DCP berpengaruh langsung lebih besar ke VGP daripada ke MGP, sedangkan SCP hanyaberpengaruh langsung ke VGP. Hasil hubungan kausal antar lima konstruk penelitian memberikangambaran bahwa perusahaan migas di Indonesia perlu mempertimbangkan kinerja non keuangan (VGP)untuk meningkatkan kinerja keuangan perusahaan (MGP). Sebagai contoh kaitannya dengan ketepatanwaktu pasokan dan dsitribusi merupakan faktor kunci untuk perbaikan secara sistemik.Hasil model struktural akhir didukung oleh nilai X2/df, GFI, AGFI, CFI, RMR, RMSEA, P, ECVIyang secara simultan menunjukkan the best fit to the data. Hasil ini memberikan kontribusi bahwa modelpenelitian ini sangat berpotensi untuk dilakukan studi replikasi baik untuk industri manufaktur maupunjasa. Penelitian berikutnya perlu membuktikan persamaan dan perbedaan antara industri manufaktur danjasa melalui model struktual dari industri migas di Indonesia. Bagi pihak manajemen perusahaan migas diIndonesia, hasil penelitian ini bisa digunakan untuk membuat skala prioritas perbaikan terpadu. Sebagaicontoh dengan penerapan UU Migas yang baru UU (Nomor 22/2001), bagaimana suatu perusahaan migasmampu mengoptimalkan perannya (sektor hulu atau sektor hilir atau kombinasi keduanya) denganmenyeimbangkan orientasi kebijakan peningkatan kinerja berbasis non keuangan (VGP) dan keuangan(MGP) secara simultan.Keywords: Quality Management Practices, Supply-Chain Practices, Demand-Chain Practices, Value Gain Performance, and Monetary Gain Performance
APPLICATION OF DELPHI METHOD IN PRIORITIZATION OF CRITICAL SUCCESS FACTORS OF TQM FOR THE INDONESIA’S OIL AND GAS INDUSTRY Ciptono, Wakhid Slamet
Journal of Indonesian Economy and Business Vol 20, No 3 (2005): July
Publisher : Journal of Indonesian Economy and Business

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

The study describes the use of the policy Delphi method in building consensus for theprioritization of critical success factors of TQM (CSFs of TQM). The use of multi attributedecision analysis for supporting the qualitative data analysis (multifactor evaluationprocess, analytic hierarchy process, and NVivo) has been considered the foremosttechnique for examining the manages needs and the weightings of preferences from thepanel of managers for each CSFs of TQM in the most objective way available. Two roundof Delphi surveys were conducted. A significant consensus on the weighted evaluation ofthe six CSFs of TQM and the consistency ratio were obtained from twenty managers. Theresults vividly reveal that the Delphi method is a powerful and appropriate technique forderiving objective opinions in a rather subjective area such as the multi-attribute model for the prioritization of the CSFs of TQM.The results of qualitative data analysis (using MFEP) indicate that training to improveproducts/services provides the first priority (the weighted evaluation 0.184; 0.224; and0.169 for top level managers, middle kevel managers, and low level managers); followed by Quality Improvement, Top Management Commitment, Supplier Involvement, Cross-Functional Relationships among SBUs, and Supervisory Leadership.In addition, the qualitative data analysis (using AHP) also provides a set of sufficientlyconsistent CSFs of TQM was obtain after the second round of Delphi questionnaire. Theresult of consistency ratio (CR) shows that the managers had highly satisfactory inassessing the prioritization of CSFs of TQM (CR = 0.0456). Therefore, these CSFs of TQMwere supported the results from the quantitative data analysis.Oil and gas managers in Indonesia can use these qualitative data results in concertwith other critical quality management practices to help them in there word-class company initiatives. The researcher recommended the use of Delphi method as an objective and rigorous determining consensus. Researchers can also use this method to combine qualitative and quantitative research approaches into mixed methodology or triangulation.Keywords: Delphi Method, Qualitative Data Analysis, Critical Success Factors of TQM,Multifactor Evaluation Process, Analytic Hierarchy Process, and NVivo.
Quality Factors and Customer Satisfaction For Sustainable Community Development Ciptono, Wakhid Slamet
Business and Entrepreneurial Review (BER) Vol 6, No 1 (2006): Volume 6, No. 1 October 2006
Publisher : Graduate Program Trisakti University

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

The purpose of this investigation is to explore a research on the relationships between quality factors and customer satisfaction for sustainable community development. The unique contributionUnits (SBU) managers from the Indonesias oil and gas industry and the use of Importance-performance Ratings and Factor Analysis to determine the link between quality factors (external quality and internal quality and customer satisfaction for sustainable community development. The empirical analysis found that the link between Quality factors and customer satisfaction is linear in the keep-Up Good Work Quadrant. The survey indicates that is much room for improvement in the quality factors and customer satisfaction for the sustainable community development as shown in the difference between importance and performance scores. These scores indicate mismatched importance and performance of quality factors. Conversely, low difference values indicate that managers set appropriate quality factors with respect to customer satisfaction and deploys sustainable community development accordingly. Ideally, the difference measure should equal zero.
Operational Excellence and Good Manufacturing Practices in Hospital Pharmacy Ciptono, Wakhid Slamet; Im, Mulia Apriani
Business and Entrepreneurial Review (BER) Vol 6, No 2 (2007): Volume 6, No. 2 April 2007
Publisher : Graduate Program Trisakti University

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

This study focuses on building Operational Excellence OE) and current Good Manufacturing Practices (CGMP) for pharmaceuticals through 19 hospital pharmacy installations of Jogjakarta-and Central Java Provinces in lndonesia. Operational Excellence (OE) has an obsessive focus on efficiency and consistency in order to offer the better value of services. Current Good Manufacturing Practices (CCMP) is the regulations to assure that such drug meets the requirements of the act as to safety and has the identity and strength; and meets the quality and purity characteristics which it purports or is represented to possess. The study makes an attempt to provide and overview of the general status of the pharmacy installation provided by hospitals in the provinces of Jogjakarta and Centra Java in terms of their technical efficiency. The technical efficiency (TE) is analyzed using Data Envelopment Analisis (DEA). The motivation behind addressing the efficiency issue is to provide empirical analysis of continuos improvement and innovation policies which in turn provide hospital pharmacy services in both provinces.
Exploring the Linkages Between Deming’s Principle, World-Class Company, Operational Excellence, and Company Performance in an Oil and Gas Industry Setting Ciptono, Wakhid Slamet
Gadjah Mada International Journal of Business Vol 7, No 2 (2005): May-August
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (1680.011 KB) | DOI: 10.22146/gamaijb.5577

Abstract

This study explores the linkages between Deming’s Principle, World-Class Company, Operational Excellence, and Company Performance in the Indonesia’s oil and gas industry. The aim of this study is to examine the causal relationships model between the Deming’s Principle (DP), World-Class Company (WCC), Operational Excellence (OE), and Company Performance (Monetary Gain Performance or MGP and Value Gain Performance or VGP). The author used 140 strategic business units (SBUs) in 49 oil and gas companies in Indonesia. The survey was administered to every level of management at each SBU (Top, Middle, and Low Level Management). A multiple informant sampling unit is used to ensure a balanced view of the relationships between the research constructs, and to collect data from the most informed respondents on different levels of management. A total of 1,332 individual usable questionnaires were returned thus qualified for analysis, representing an effective response rate of 50.19 percent. Path analysis and structural equation modeling (SEM) are used to analyze the effect of Deming’s principle on company performance and to investigate the interrelationships between Deming’s principle, world-class company, operational excellence, and company performance. The results show that Deming’s Principle has significant positive and indirect effect on company performance (monetary gain performance and value gain performance). Although the Deming’s Principle has no significant direct effects on company performance, the Deming’s Principle has significant positive effects on the intervening variables (world-class company and operational excellence). The result also shows that a complete model fit and the acceptable parameter level that indicate the overall parameter are good fit between the hypothesized model and the observed data. By concentrating on a single industry (oil and gas), SEM specification of the causal relationship model between five constructs can be more complete and specific because unique characteristics of the oil and gas industry can be included (upstream and downstream chain activities). Finally, the particular design of the research and the findings suggest that the structural model of the study has a great potential for replication to manufacturing as well as service operations.