The Effect of Change Management on Operational Excellence in Electrical and Electronics Industry: Evidence from Malaysia

The objective of this study is to investigate the main hypothesis between change management and operational excellence. This empirical research utilizes causal studies as it attempt to ascertain the relationship between the soft systems in the change management and operational excellence.The study focuses on the soft systems (i.e. leadership, human resource, culture) in the change management. Based on the literature review, the authors develop a linkage that the change management factors are likely to contribute positively to the operational excellence of the organization. A survey of a sample of Malaysia’s manufacturing leading sector, Electrical and Electronics (E&E) industry was conducted between February 2013 and June 2013. More than 100 organizations responded to the questionnaire survey. Data was analyzed using multiple regressions. The theoretical framework guided by theoretical perspectives which is the resource-based view. There was a significant and positive relationship between transformational leadership style, human resource practices and involvement cultural trait on the achievement of operational excellence. Importantly, this research finding adds value to theory building in both change management and operational management domains. The contribution to a body of knowledge in terms of promoting better understanding of the operational excellence in Malaysian E&E industry. Practical adoption of change management may improve infrastructural decision areas of manufacturing strategy such as benchmarking, best practices, quality practices and human resource policies. Therefore, it has implication on activities concerning organization and managing change.