An Analysis of Physical Asset Management Core Practices and Their Influence on Operational Performance

Damjan Maletič, Matjaž Maletič, Basim Al-Najjar and Boštjan Gomišček
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Damjan Maletič: Faculty of Organizational Sciences, University of Maribor, Kidričeva 55a, 4000 Kranj, Slovenia
Matjaž Maletič: Faculty of Organizational Sciences, University of Maribor, Kidričeva 55a, 4000 Kranj, Slovenia
Basim Al-Najjar: Department of Mechanical Engineering, Faculty of Technology, Linnaeus University, Building M, 351-95 Växjö, Sweden
Boštjan Gomišček: Faculty of Business, University of Wollongong in Dubai, Knowledge Park, Block 15, P. O. Box 20183, Dubai, UAE

Sustainability, 2020, vol. 12, issue 21, 1-20

Abstract: The commitment of organisations to physical assets management (PAM) has recently received considerable attention in theory and practice. Indeed, PAM plays a key role in asset-intensive organizations and is also considered as a principal actor within Industry 4.0. Therefore, this paper aims to examine the PAM core practices and the performance implications of integrating these practices into business, in particular by assessing their impact on operational performance. Survey data were collected from managers in 138 international and local organisations. The data was analysed using Partial Least Squares Path Modeling (PLS-PM). The study validates the second-order construct consisting of PAM latent variables, namely Strategy and Planning, Risk management, Lifecycle Delivery, Asset Information, and Asset Review. The results have shown that PAM core practices directly influence operational performance. This paper is a response to recent calls for empirical studies on the organisational approaches that can increase the success of organisations.

Keywords: physical asset management; operational performance; ISO 55001; PLS-PM (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:21:p:9097-:d:438471

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