Development of a multi-item Operational Excellence scale: Exploratory and confirmatory factor analysis

Purpose Considering the relevance of operational excellence as a business strategy, organizations are striving to improve themselves by adopting best practices and universally accepted principles through the process of continuous improvement, and these principles should be embedded in the culture of an organization. Organizations pursue to align themselves by continuously improving their processes by adopting scientifically proven techniques and cultural transformation throughout the organization. However, there is a lack of scientific instruments for the assessment of operational excellence. The objective of this study is to develop a scale for the assessment of practices of operational excellence principles in the organizations. Further reliability and validity of the developed scale are measured by testing the relationship between Human Resource Practices (HRP) and Operational Excellence (OE). Design/methodology/approach This study comprises quantitative design through exploratory and confirmatory studies and also includes qualitative analysis to develop a scale for the assessment of Operational Excellence (OE). Interviews from industry experts have been conducted to identify the major components for which organizations are striving for OE. Previous literature and excellence models, especially principles of the Shingo Operational Excellence Model (SOEM), have been reviewed and considered to finalize the scale items. Data were collected in two stages from both Telecommunication subsectors (Cellular Mobile Operators and Fixed Local Loop Operators) of Pakistan through the cross-sectional survey. In the first stage, exploratory factor analysis (EFA) was performed on the sample of 611 respondents from both Cellular Mobile and Fixed Local Loop operators of Pakistan. In the second stage, confirmatory factor analysis (CFA) was performed on the sample of 423 respondents from the Fixed local loop operators. EFA was conducted by using SPSS version 23 to finalize the OE scale, and for confirmatory factor analysis, ...