ADMASS UNIVERSITY

SCHOOL OF GRADUATE STUDIES

MBA
OPERATIONS MANAGEMENT

ARTICLE
REVIEW ON

Title - An Analysis of the Effect of Operations Management Practices on

Performance

Authors: Elisa Battistoni1, Andrea Bonacelli, Andrea Fronzetti colladon1

and Massimiliano m. Schiraldi

BY: HIWOT HIRPHASA………….PGMMKB/7438/21

SUBMITTED TO: D R . GEMECHU NEMERA

DECEMBER, 2022

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 ADDIS ABABA

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1. Abstract
The authors try to describe the objective of the study which is investigating the possible
relationships among some optimization techniques used in Operations Management and the
performance of SMEs that operate in the manufacturing sector. In addition they also try to show
the research methodology, case studies, and analyzing tool.

Abstracts are expected to give the main objectives, result of the review article, and general
picture of the methodological approach and major points of conclusion about the reviewed
articles. However, the authors ignore to describe about some of the major findings, conclusions
and they give us just a little about the methodological approaches which force the readers to go
to other sections of the article to get information about this elements.

2. Introduction
The introduction part of the paper raised points like the nature of SMEs, the level of competition
in the business environment pushes SMEs towards new learning models, the primarily concerns
of SMEs, the introduction of new and more careful managerial culture and the like to describe
the general topic, issue, or area of concerns and problem

The methodological approaches are mentioned i.e., the population of 3,500 small and medium-
sized Italian enterprises, uses survey research method which is quantitative technique, detail
analysis using a model based on the Structural Equation Modeling (SEM) approach. The
rationale behind using SEM approach has been mentioned which is good.

However Motivation or the authors’ reason for reviewing the literature as well as the problem
elements didn’t get adequate emphasis. It was better to describe these elements to give
clear picture on the purpose of this literature review.

3. METHODOLOGY
The methodology part of this paper try to discuss and elaborate only the research tool used in this
paper, to what extent survey research has been used in the previous times.
The study make use of a explorative survey research method which is quantitative technique that
aims to explain the possible relationships among some optimization techniques used in
Operations Management and the performance of SMEs that operate in the manufacturing sectors
using instrument (Structural Equation Modeling (SEM)) approach that measure and test three

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 hypothesis developed to measure the relationship of optimization techniques with performance.
The hypothesis are:

1. The firms’ size impacts both OM Production and OM Supply chain,

2. There will be a causal link from OM Supply chain to OM Production and vice versa
3. There will be a positive relationship between OM SC and OM Production with Performance.

Nevertheless, defining and elaborating too much about the use of survey research is not the aim
of this paper so that it would be better if the researcher let alone the reader to know about the
research tool. However important elements of the methodology section like research participants,
sampling, data collection and analysis techniques are not mentioned.

4. LITERATURE REVIEW
The researcher tried to make use of around 35 books. In this part the paper explained the
effectiveness of OM practices, Commonly used OM practices meant to enhance a firm’s
performance like “World Class Manufacturing” (WCM) approach, “Total Quality Management”
(TQM) approach, Total Productive Maintenance” (TPM) approach, Just-in-Time” (JIT) approach
and other more specific methodologies. Also discuss previous studies to explain the possible
relationship between these OM practices with performance.

By discussing the effectiveness of commonly used OM practices on performance and by

comparing different research findings, the authors try to link previous study findings to the
research question.

Even if an exhaustive and specific literature review about the effects of different OM practice on
performance, the flow of the literature were not attractive plus the main heading (Literature
Review) were just pend along with sub heading. The sources are cited with non-integral
references (indirect) citation. Even if it was good to use direct citation to highly emphasize the
contribution of a specific author, indirect citation is good to make the review more concise and
attractive. Sources that are quoted from the web site were footed under the page since they are too long
inside the paragraphs.

The scientific research recommend the research writers to paraphrase paragraphs above four
lines using tally but in most parts of this paper paragraphs above 9 lines referred to as it is.

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5. Findings
This part described the use of maximum likelihood method to carry out the analysis which
allows to the calculation of coefficients for causal link. The paper began to make the study with
3,500 population size, but actually the sample were dropped to only 100 SMEs. The reason behind the
small size has been mentioned which is due to the challenge to get complete data for the indicators
needed to include in this study.

The effort of the authors to make the study with a good representative dataset is highly appreciated.
However, such small sample size doesn’t represent the status of the country (Italy) as a whole to make a
general statement regarding the study objective. Major findings are mentioned below:-

• There is no significant relationship between OM practices and the companies’ size

• The relationship between OM SC and Performance is not significant
• The positive relationship between OM Production and Performance is significant.
• The relationship between OM SC and Performance is not significant
The paper shows the reason for insignificant relationship between OM SC and Performance
shown from the finding were because of the specific indicators used to measure performance
which are perhaps more appropriate for analyzing performance elements directly connected to
production and sales. However it shows the weakness of the study using the same indicators for
different variables.

Generally, the data were presented with 6 figures based on 2 measurement models and only with 2 tables.
With this presentation the paper try to measure the relationship between OM practices (OM Production
and OM Supply chain) by representing factors with proxy indicators. However, the paper didn't show
other important OM practices with has direct impact on the performance of manufacturing firms.
6. Discussion and Conclusion
In this part the paper try to answer the research question set in the study with a generally
conclusion that indicates OM practices are relevant indicators of performance for Italian SMEs
operating in the manufacturing sector.

The authors interpret the result which shows the absence of a significant relationship between
OM practices and the companies’ size is useful in showing the importance accorded to these
practices regardless of the companies’ dimension.

Furthermore the finding regarding the relationship between OM SC and performance, which is
not significant has been identified as unresolved questions by this paper. And suggest further
research with different proxy indicators more specific to important OM practices.

However the authors ignore to interpret other major findings like the insignificant relationship
between OM SC and Performance,
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7. Recommendations
There is no recommendations from the authors except just suggesting for further research to
further investigate the relationship between OM SC and performance, which is not significant in
this case study due to because of inappropriate proxy indicators used to express performance.

8. Strong and weak points of the article

Most of the strong and weak part of the study were mentioned in each respective part of the
article. To summarize, here are some of lists of strong and weak points.

 Strength:
• Make use of more than 34 books
• The effort of authors to make the sample size representative
• The way the paper identifies the key OM production proxy indicators
• Good citation of references in the literature part
• Use of figures to present models and results
• The way authors interpret the finding regarding the variable which is the size of firms
 Weak points:
• Abstract part didn’t show the findings of the study
• Using reference books that were published 41 years back
 [57]Goldberger A. (1972) Structural equation methods in the social sciences.
Econometrical. : n.40, 979-1001.
• The organization of the article is not eye caching
• Use of very small sample size which is inadequate to represent the total population
• Use of only few hypothesis
• Use of insufficient independent variables
• Use of inappropriate proxy indicators
• The limitations of the study were not mentioned precisely.
• Lack of recommendation

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