A holistic model for measuring continuous innovation capability of manufacturing industry: a case study

Benny Lianto, Muhammad Dachyar and Tresna Priyana Soemardi

International Journal of Productivity and Performance Management, 2021, vol. 71, issue 6, 2061-2086

Abstract: Purpose - The purpose of this paper is to develop a comprehensive continuous innovation capability (CIC) measurement model in manufacturing sectors. Design/methodology/approach - The development of this CIC model was conducted through three stages of research, i.e. identification of manufacturing continuous innovation measures (MCIMs), development of measurement model, followed by model evaluation and validation. MCIMs were identified using systematic literature review and focus group discussion. Selection process for MCIMs employed the fuzzy Delphi method. To develop measurement model, contextual relationships between MCIMs were assessed using total interpretive structural modeling, followed by measurements of MCIMs weight with the analytical network process method. Then, assessment indicators for each MCIM and criteria were determined as well as mathematical model to measure CIC scores. Model evaluation and validation were performed in two case studies: in an automotive company and an electronics company. Findings - This research produced 50 criteria and 103 assessment indicators, as well as mathematical model to measure CIC scores. The validation process showed that currently developed model was deemed valid. Practical implications - The results of this research are expected to provide a practical input for manufacturing company managers in managing their innovation activities systematically and comprehensively. Originality/value - The CIC model is a new comprehensive measurement model; it integrates three fundamental elements of CI capability measurement, considering all important dimensions in a company and also able to explain contextual relationships between measured factors.

Keywords: Holistic model; Continuous innovation; Performance measurement; Manufacturing (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-02-2021-0062

DOI: 10.1108/IJPPM-02-2021-0062

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