SUSTAINABLE SUPPLY CHAIN MANAGEMENT, KAIZEN BLITZ

AND ORGANIZATIONAL PERFORMANCE IN MALAYSIAN

HEALTHCARE INDUSTRY
1.0
BACKGROUND AND OBJECTIVE OF THE STUDY
Historically, healthcare in Malaysia has undergone radical transformations. Healthcare is one of the industries
with high potential to contribute further towards Malaysia economy. Therefore, it is important to look into the
determinants that will improve healthcare organizational performance. Of the various determinants, supply chain
management practices have been viewed as the vital determinant to improve healthcare organizational
performance. The supply chain management practices are viewed to be related to supply chain responsiveness
which will increase supply chain competitive advantage and then lead to organizational performance (Sukati,
Hamid, Baharun & Huam, 2011). The effective supply chain management practices will reduce costs, boost
revenues, increase customer satisfaction and also improve services delivery (Baltacioglu, Ada, Kaplan, Yurt &
Kaplan, 2007). Therefore, the healthcare industry in Malaysia has become a powerful engine of economic due to
demographic shifts as well a greater and changing lifestyles.
Supply Chain Management is a process of designing, planning, executing and monitoring all activities
along the chain with the objectives to create net value, construct a competitive infrastructure, leveraging and
worldwide logistics, synchronizing supply with demands as well as to measure performance globally (Dauglas et
al., 1998). Whereas, Sustainable Supply Chain Management (SSSM), i.e. it is based on the adoption and
extension of its concepts. Kaizen Blitz is a focused and structured improvement project, using a dedicated
Kaizen cross-functional team to improve a targeted work area, with specific goals, in an accelerated timeframe
(Farris et al., 2008, p.1).
Looking at the Malaysian healthcare industry sales today, it is increasing by year to year. To maintain this, a
strategy should be taken to ensure more competitive for all element. It must be able to remain competitive and
stay in business. To achieve this, organization need to parallel Kaizen Blitz (KB) with Sustainable Supply Chain
Management (SSCM) to ensure Organization Performance (OP) increase.
In the globalization of market, the organizational performance balance comes from tracking not only
financial performance measure such as operating income, sales growth and sales revenue, but non-financial ones
as well. This is because non-financial measures are likely to facilitate organizational decisions and actions that
support strategies based on the stakeholders need (Hoque and James, 2000). It has also been suggested (Kaplan
and Norton (1992; 1996a, 1996b) that non financial performance measure helps manager to assess changes in the
business environments, determines and evaluates progress towards the firms goal, and affirm achievement of
business performance.
To gain more competitive to others oil and gas company and also increase the OP, KB is one of the
medium to parallel with SSCM to increase OP. According to previous study (Elkins et al., 2004; Bradley and
Willett 2004; Melnyk et al., 1998; Sheridan, 1997; Vasilash, 1997), KB is a focused and structured continuous
improvement work which using a dedicated cross-functional team to addressed a targeted work area, to achieve
specific goals in an accelerated timeframe (usually one week or shorter). So, with the element of KB in the
healthcare industry, it would help firms to improve their performances especially OP.
2.0
LITERATURE REVIEW
This section is a review related research and current trend of SSCM implementation toward organizational
performance. To ensure the implementation of agile manufacturing system success, Kaizen Blitz must be

combined with it to continuous improvement. Kaizen event is another name for Kaizen Blitz. Kaizen Blitz is one
of the best basis practices and developed for help in terms of production. It is ideal for environmental today that
highly emphasized on good productivity and there is innovation in each product of process. The terms kaizen
is taken from the Japanese words kai meaning change and zen meaning good. In organization category,
human resource support is a frequent recommendation (e.g., Melnyk et al., 1998) and generally advised that
team members be dedicated only to Kaizen Blitz.
Besides, Sharifi and Zhang (2001) stated that the organizations are always on and rise up in a difficult
situation. These organizations have the capabilities to recognize and understand the changing environments and
respond in a proper way to every unexpected change. Furthermore, they also asked that to achieve agility, the
important features for success in the contemporary business environment, are making opportunistic action to
capture a new market and respond to a new customer requirement. They split agility capabilities into four stages.
It is a responsiveness, competency, flexibility and speed. Swafford et al. (2008) also agreed that agility is more
on speed.
Organizational Performances (OP) measurement is common any firm is it for measuring on financial
aspect, non-financial aspect, or both financial measurements. After that, Kaplan and Norton (1992) proposed
multiple performance measure in balanced scorecard approach. These comprehensive measures of performance
are based on four perspectives. It is financial, customer, business operation or process and learning growth or
innovation. Kanji (2002), suggested four key areas for measuring organizational performances. It is namely to
maximize stakeholder value, to achieve process excellence, to improve organizational learning and to satisfy the
customers. These four keys area are also consistent with the four perspective of Balanced Scorecard as
documented by Kaplan and Norton (1996a).
Jusoh et al., (2008) investigated the performance measurement that gave effect on performance of
Malaysian manufacturing firm. In this study, they used 29 performance measure item taken from Hoque et al.,
(2001) which was originally adopted from Kaplan and Norton (1992) and developed nine items which were self
constructed from literature. The finding result found that firm performance was positively affected from the
overall performance measure usage. They also argued that when firms applied financial performance measures
alone it was not sufficient to measure organizational performance.
After reviewing SSCM, KB and organizational performance measures, we believe that exploring the structural
relationship SSCM, KB performance effort, and organizational performance will benefit the Malaysian oil and
gas supplier in order to success and sustain quality improvement and organizational performance. In addition,
this three initiative relationship can be arranged in proposed model as in Figure 1.1.
3.0
PURPOSE OF THE STUDY
The aim of this study is to investigate the relationship between sustainable supply chain management, Kaizen
Blitz and organizational performance in Malaysian healthcare industry.
The objectives of the research are:
[1]
To identify the sustainable supply chain management, Kaizen Blitz and organizational performance
measures for Malaysian healthcare industry.
[2]
To develop research model of the sustainable supply chain management, Kaizen Blitz and organizational
performance relationship for Malaysian healthcare industry.
The Following Research questions are empirically investigated:
[1]
Does sustainable supply chain management contribute to quality performance in Malaysian healthcare
industry?
[2] Does Kaizen Blitz performance contribute to quality performance in Malaysian healthcare
industry?

[3] Does sustainable supply chain management contribute to Kaizen Blitz performance in Malaysian
healthcare industry?
[4] Does Kaizen Blitz performance affect the relationship between sustainable supply chain management
and organizational performance in Malaysian healthcare industry?
4.0
RESEARCH METHODOLOGY
In this study, sampling method by using structured questionnaire. A survey is considered as the most economical
among methods available for data collection due to its ability in performing efficient data collection (Moser and
Kalton, 1971). In general, a survey typed questionnaire approach is relatively low cost of money, time saving,
and simple approach. Moreover, by using survey methods, it can clarify the question the survey respondents and
recording their responses to be used as data for analysis (Chang, 2002). Therefore it had been used by the
authors.
The population of this study comprised in Malaysian healthcare industry. Questionnaires will distribute to
respondents from the listing of healthcare industry. To analyze the data, two statistical techniques were adopted.
A questionnaire with majority of the questions being of the close-ended type was developed to collect data for
this research. The process of developing the questionnaire included a pilot survey, which was used to modify and
eliminate a number of variables, until the final questionnaire was designed. Table 1.1 shows a summary of the
research sampling.
Structural equation modeling techniques was utilize to perform the require statistical analysis of the data from
the survey. Exploratory factor analysis, reliability analysis and confirmatory factor analysis to test for construct
validity, reliability, and measurements loading were performed. Having analyzed the measurement model, the
structural model was then tested and confirmed.
The statistical Package for the Social Sciences (SPSS) version 17 was used to analyze the preliminary data and
provide descriptive analyses about thesis sample such as means, standard deviations, and frequencies. Structural
Equation Modeling (SEM using AMOS 6.0) will use to test the measurement model.
4.1

Proposed Research Model

*Note: SSCM=Sustainable Supply Chain Management, KZ=Kaizen Blitz, OP=Organizational

Performance

5.0
RESEARCH HYPOTHESES
H1:
There is a positive and direct significant relationship between sustainable supply chain management and
organizational performance in Malaysian healthcare Industry;
H2:
There is a positive and direct significant relationship between sustainable supply chain management and
Kaizen Blitz performance efforts in Malaysian healthcare Industry;
H3:
There is a positive and direct significant relationship between Kaizen Blitz performance efforts and
organizational performance in Malaysian healthcare; and
H4:
The impact of sustainable supply chain management on organizational performance increases with a
mediating of Kaizen Blitz in Malaysian healthcare Industry.

6.0

CHART OF RESEARCH ACTIVITIES

GANTT CHART OF RESEARCH ACTIVITIES

SUSTAINABLE SUPPLY CHAIN MANAGEMENT, KAIZEN BLITZ AND ORGANIZATIONAL
PERFORMANCE IN MALAYSIAN HEALTHCARE INDUSTRY
Activities2013/2015910111212345678910111212A
F
G
H
I
J

B
K

[A] Sustainable Supply Chain Management, Kaizen Blitz and Organizational Performance
in Malaysia Healthcare Industry
[B] Complete Chapter 1-3
[C] Question Development; construct and Pilot Study
[D] Implement full survey
[E] Data Screening
[F] Data Analysis
[G] Discussion and Implication
[H] Recommendation and Conclusion
[I] Final Report (Writing)
[J] Checking, Edit or add for any Improvement
[K] Submission
7.0
EXPECTED FINDINGS
This study is important implication for Sustainable Supply Chain Management, Kaizen Blitz and Organizational
Performance in Malaysian Healthcare Industry. Therefore, it is expected to benefit researches and practitioners
who are expected findings.
1. New Findings

The findings of this study may indicate the level of Sustainable Supply Chain Management, Kaizen Blitz and
Organizational Performance in Malaysian Healthcare Industry.
2. Research Publication
This study is expected produces for publication: 8 International Journal and 3 awards.
3. Numbers of Human Capital Produced
Produce four of master students.
8.0
CONTRIBUTION TO COUNTRY
This research is hoped to contribute the strategic management and innovation performance in Malaysian
Healthcare Industry.
9.0
CONCLUSION
This study is expected to arrive at the following conclusion:
This study has important implication for SSCM, KB and OP in Malaysian healthcare industry. This research
also assumed that KB is important to improve OP in Malaysian healthcare industry. As such, it is expected to
benefit both research and practitioners. Based on proposed model and a previous study, research hypothesis are
being developed. The next step of this study is to design a questionnaire, which will be used for pilot study data
collection in healthcare industry in Malaysia.

REFERENCES
Baltacioglu, T., Ada, E., Kaplan, M. D., Yurt, O., & Kaplan, Y. C. (2007). A new framework for service supply
chains. The Service Industries Journal, 27(2), 105-124.
Bradley, J.R. and Willett, J. (2004). Cornell students participate in Lord Corporations kaizen projects. Interfaces,
34(6), pp. 451-459.
Chang, T. L. 2002. Six Sigma: A Framework for Small and Medium Sized Enterprises to Achieve Total Quality.
PhD Dissertation, Cleveland State University.
Dauglas, M.L., Martha, C.C., and Janus, D.P. (1998), Supply Chain Management:
Elkins, D.A., Huang, N., and Alden, J.M. (2004). Agile manufacturing systems in the automotive
industry. Int. J. Production Economics, 91, pp. 201-214
Farris, J., Van Aken, E., Doolen, T. and Worley, J. (2008), Learning from less successful
Kaizen events:a
case study, Engineering Management Journal, Vol.20 No.3, pp.10-20.
Hoque, Z, and James, W. (2000). Linking the balanced scorecard measures to size and market factors: impact on
organizational performance. Journal of Management Accounting Research, 12, 1-17.
Hoque, Z., Mia, L., and Alam, M. (2001). Market Competition, Computer Aided Manufacturing and use of
Multiple Performance Measures: An Empirical Study. British Accounting Review, 33, pp. 23-45.
Implementation Issues and Research Opportunities, The International Journal of
Jusoh, R., and Parnell, J. A. (2008). Competitive Strategy and Performance Measurement in the Malaysia
Context: An Exploratory Study. Management Decision, 46(1), pp. 5-31.
Kanji, G. K. (2002). Measuring business excellence. Routledge Advances in Management and Business Studies.
London, Routledge.
Kaplan, R. S., and Norton, D. P. (1992). The Balanced Scorecard-Measure that Drive Performance. Harvard
Business Review, January-February, pp.71-79.

Kaplan, R. S., and Norton, D. P., (1996a). The balanced scorecard-translating strategy into action, Boston:
Harvard Business Scholl Press.
Kaplan, R. S., and Norton, D. P. (1996b). Using the balanced scorecard as a strategic management system.
Harvard Business Review, January-February, 71(1), 75-85.
Melnyk, S.A., Calantone, R.J., Montabon, F.L., & Smith, R.T. (1998). Short-term action in pursuit of long-term
improvements: introducing kaizen events. Production & Inventory Management Journal, 39(4), pp. 69-76
Moser, C. A. and Kalton, G. (1971). Survey Methods in Social Investigation. 2nd Edition, Heinemann
Educational: Landon.
Sharifi, H. and Zhang, Z. (2001). Agile manufacturing in practice: Application of a methodology. International
Journal of Operations & Production Management, 21 (5/6), pp. 772-794
Sheridan, J.H. (1997). Kaizen blitz. Industry Week/IW, 246(16), pp. 772-794
Sukati, I., Hamid, A. B. A., Baharun, R., & Huam, H. T. (2011). A study of supply chain management practices:
an empirical investigation on consumer goods industry in Malaysia. International Journal of Business and Social
Science, 2(17), 166-176.
Swafford, P.M, Ghosh, S., & Murthy, N. (2008). Achieving Supply Chain Agility Through IT Integration and
Flexibility. International Journal Production Economics, 116, pp. 288-297
Vasilash, G.S. (1997).Getting better-fast. Automotive Manufacturing & Production, 109(8), 66-68.