Roles of information technology and lean management in firm performance: study in HCM city

search issues Research to limit the concept of business performance is the manager's perception and judgment about the enterprise's business performance. The lean management concept is limited to the application of lean methods to enterprise management. Research is limited to assessing the concept of enterprise IT is the general level of IT application in the enterprise and does not aim to evaluate the level of application or deployment of a specific IT system. From the perspective of IT and lean management, as mentioned above, are new technology systems applied to businesses, the factors that impact IT, and lean management is limited to theory's independent factors—acceptance and Use of Technology (UTAUT). 4 1.5 Research Methodology The suitable method selected and used in this study is the mixed method. Combining qualitative and quantitative in the research process will promote strengths, and at the same time, limit the shortcomings of each method in the research process. 1.6 Contribution of research 1.6.1 The theoretical contribution of the study New approach to the concept of lean management With a lean production approach, lean management focuses on cost reduction and waste reduction (Womack et al., 1990; Martı´nez-Jurado and Moyano- Fuentes, 2014). The service approach to this concept again focuses on improving service quality at a constant cost (Shah and Ward, 2003; Shah and Ward, 2007). The thesis introduces a new concept of lean management, combining both complementary approaches to this theoretical limitation. New approach to the concept of information technology While most research on IT usually does a case study for an application of an information system or a specific information system, research focuses on IT research in the enterprise in terms of the level of general IT application level. Determine favorable conditions for IT application in enterprises To identify two new components of the factor favorable conditions. The study also adds two corresponding components to this factor scale. Specifically, add the question "Employees are willing to use IT applications for work" and "Senior management is committed to the organization's computerization," this is an important addition and contribution to the thesis in terms of theory. 5 Applying technology adoption and adoption theory (UTAUT) to identify factors affecting lean management. Through the assertion of the thesis's point of view on the concept of technology and the lean management presented, the research simultaneously affirms seeing lean management as a technology used for management purposes. This approach creates a premise for the thesis to apply the theory of technology acceptance and use (UTAUT), which is used to determine the factors affecting information technology to determine the prefix of lean management. Simultaneously evaluate the role of information technology and lean management for performance. Considering simultaneously two factors of information technology and lean management in a whole affecting business performance of enterprises has not yet been implemented. The thesis identifies the role as well as the mechanism of influence of two factors on the enterprise's results, achieving an important contribution of the thesis to science. 1.6.2 Practical contribution of research Considering two factors of information technology and lean management affecting enterprises' business performance has not yet been implemented. The thesis identifies the role and mechanism of influence of two factors on the enterprise's results, achieving an essential contribution of the thesis to science. 1.7 The structure of the thesis The main content of the thesis is arranged into five separate chapters. Chapter 1: Overview of research issues Chapter 2: Theoretical basis and research model Chapter 3: Research Methodology Chapter 4: Research results and discussion Chapter 5: Conclusion and governance implications 6 CHAPTER 2: THEORETICAL BASIS AND RESEARCH MODEL 2.1 Overview of previous studies 2.1.1 Summary of studies on lean management In general, the studies on lean management that the author conducted the study focus on the polarity relationship of lean management to enterprises' business performance in many different aspects. In many different studies, lean management is mentioned as a method, strategy to improve an enterprise's business performance. Studies evaluate the degree of lean management implementation at different levels based on viewpoints and approach points. However, there is little research to explore factors that influence to support lean management. 2.1.2 Summary of research on information technology The role of IT applications in enterprises' management and business performance has been confirmed in each research context. For each context, IT is represented by a different system/technology. On the other hand, business management applications based on the IT platform are diverse across all management areas. The fragmentation and lack of focus in this approach do not create a universal theoretical system about IT's role and impact on the business; this is a research gap that needs to be filled. 2.1.3 Synthesize limitations and further research directions on the impacting factors of information technology and lean management Overview of previous studies on prefixes determined by the theory of technology adoption and use, the factors identified in the relevant model and influence on technology adoption and use New users are mainly focused on IT systems. In other words, the UTAUT theory is used a lot in the context of research related to IT, so other technology systems have not been tested with this model, in this sense, making the concept of technology attached and default to IT. The expansion of other types of technologies in this model 7 research is necessary to broaden the model application's scope and explain and clarify the role of factors that have been much confirmed in theory for other technology types. In the research context, lean management is also considered a type of management technology, which serves to hypothesize the relationship between the UTAUT model's factors for this type of management. 2.2 Research gaps and research directions In studying IT's role in lean management, IT systems are seen as a component of the lean scale in many cases. On the contrary, there is a proposition that considers IT-based applications as a new lean method. From an overview perspective, the lean methods in the current period are gradually shifting from simple philosophies such as continuous improvement, cell production, 6 Sigma to the application of information systems. In contrast, building complex information systems derives from process optimization, data storage, and the elimination of redundant steps in the operational process, which are part of the philosophy. Learn logic. The role and the nature of the two management methods seen in this respect are similar. The mix between these two concepts raises questions about the role of lean management and whether the relationship between lean management and other factors is similar to the role and relationships of IT. Information technology prefixes should also be considered about lean management when considering this management approach as a new type of technology applied in businesses. On the other hand, IT is often studied in the general IT application; this technology segment's complex components have not been interested in exploiting. Other components such as applications, solutions, systems, data science are not interested. Besides, empirical studies focus on solving IT's role in the business performance of enterprises, while the nature of technology is to support management activities to create impetus. The pressure on the results, 8 efficiency, and performance of the business is the indirect relationship of technology to business performance. In particular, business management in general and lean management, which has not been concerned by many studies, should be tested by future studies. 2.3 Research concepts related to the thesis 2.3.1 Concept of business performance In this thesis, the definition of business results used is Zin and Manaf (2019) opinion and Ahmad and Seet (2009) due to its relevance to the research context. Accordingly, business performance is understood as a set of assessment criteria and procedures as a basis for managers to pursue the organization's goals. Business performance is measured through subjective perception/evaluation and based on two financial and non-financial criteria. 2.3.2 Lean management The thesis gives a view on lean management that the best management principles and methods are used to implement the lean philosophy and create consensus in an organization towards this philosophy. from there, the lean management assessment will be based on criteria related to the level of lean as well as the lean orientation that the organization is pursuing. 2.3.3 Information Technology Workforce (1998) thinks IT is the research, design, development, deployment, support, or management of computer-based information systems, especially computer hardware and software applications. In the research context, the IT concept is used to evaluate the enterprise's IT applications. Melián-Alzola (2020) also has the same point of view with this approach. Accordingly, IT in the enterprise consists of IT capacity and the use of IT applications used. 9 2.3.4 Facilitating Conditions Facilitating Conditions is an essential factor in predicting actual human behavior using technology (Isaac et al., 2019). 2.3.5 Performance Expectancy Performance Expectancy is the extent to which an individual believes using the system will help them achieve work results (Venkatesh et al., 2003). 2.3.6 Effort Expectancy Effort Expectancy is the user-assessed ease of use for a technology system (Venkatesh et al., 2003). 2.3.7 Social Influence Social Influence is defined as the degree to which individuals perceive other important people to believe that they should use the new system (Venkatesh et al., 2003). 2.4 Research Model Figure 21: Proposed research model (Source: Proposed author) 10 2.5 Research hypothesis Table 1: Summary of research hypotheses STT Hypothetical content Expectation H1 The level of application of information technology in enterprises increases or decreases; it will increase or decrease enterprises' business performance. (+) H2 The level of application of lean management methods in enterprises increases or decreases; it will increase or decrease the business's business performance. (+) H3 The increase or decrease in the application of information technology in enterprises will increase or decrease the application of lean management methods in the enterprise. (+) H4 The favorable conditions that increase or decrease will increase or decrease the application level of information technology in enterprises. (+) H5 Expectations for results to increase or decrease will increase or decrease the enterprise's adoption of lean management methods. (+) H6 The expectation of efforts to increase or decrease will increase or decrease the level of lean management methods in enterprises. (+) H7 Increasing or decreasing social influence will increase or decrease the level of lean management methods in enterprises. (+) (Source: Proposed author) 11 CHAPTER 3: RESEARCH METHODS 3.1 Select research methods The suitable method selected and used in this study is the mixed method. The mixed-method is a method that combines both qualitative and quantitative. However, this combination is the alternation between two methods to solve each specific problem and goal that the study design has set out. In other words, these two methods will not be used simultaneously but must be used in turn at specific stages in the research process. Combining two specific qualitative and quantitative methods in the study is further presented through a specific research process. 3.2 Research process To meet the research objectives, the author performed in turn according to the figure, including 16 detailed steps as follows: Step 1 - Identify the research problem Step 2 - Define the research objective Step 3 - Literature review Step 4 - Hypothesis and expected research model Step 5 - Proposing scale Step 6 - Interview the expert Step 7 - Group discussion Step 8 - Test scale Step 9 - Survey of small sample size Step 10 - Refine the scale Step 11 - Official scale Step 12 - Official investigation Step 13 - Explore factor analysis Step 14 - Analysis of the SEM measurement model Step 15 - Modeling the linear structure of SEM Step 16 - Conclusion and governance implications 12 3.3 The official scale of the factors Table 3.1: Scale of performance factors Encode The Scale KQHD1 I have noticed an increase in sales of the business recently. KQHD2 I have noticed an increase in corporate profits recently. KQHD3 I have noticed that the market Joy stock company of the business has increased recently. KQHD4 I realize that businesses have more social responsibility in recent times. KQHD5 I have noticed that the number of satisfied customers with business has increased recently. Please indicate the level of application of the business according to the following criteria: QLTG1 1. Standardization QLTG2 2. Specialization QLTG3 3. Continuous workflows have no downtime QLTG4 4. Reduce inventory QLTG5 5. Continuous improvement CNTT1 The critical functions of the IT application are tailored to my work needs. CNTT2 The intuitive interface of IT applications is suitable for users. CNTT3 IT applications support information sharing at work. CNTT4 IT applications support teamwork. CNTT5 Trusted IT application. DKTL1 The enterprise has organized training courses on IT application in work. 13 Encode The Scale DKTL2 Enterprises have the necessary resources to use IT applications. DKTL3 Enterprises have the infrastructure to support the IT application. DKTL4 Employees are willing to use IT work applications. DKTL5 Senior management is committed to achieving organizational computerization goals. KVKQ1 I think lean management is useful for the company. KVKQ2 Applying lean management helps me work faster. KVKQ3 Applying lean management helps me work more efficiently. KVKQ4 Applying lean management makes work more convenient. KVKQ5 Applying lean management makes it easier for me to work. AHXH1 I apply lean management because the company is applying this policy. AHXH2 The managers are applying lean management at work. AHXH3 Experts recommend me to apply lean management. AHXH4 The media is encouraging me to adopt lean management. AHXH5 My colleagues advised me to apply lean management. KVNL1 Applying lean management to work does not stress me. KVNL2 We are applying lean management to work that does not require a lot of technical expertise. KVNL3 Apply lean management to your work in no time. KVNL4 Applying lean management to work does not take much effort. KVNL5 Applying lean management does not make me difficult in my work. 14 3.4 Sample used in research Due to the time and cost constraints, the study could not carry out a comprehensive investigation; the study's sampling method was convenient. A study performed with an official sample size of 556 observations is appropriate because the larger the sample size, the more suitable it is for SEM analysis. 15 CHAPTER 4: RESULTS AND DISCUSSION 4.1 The statistical results describe the survey sample Table 4.1: Sample characteristics STT Business characteristics Amount Percent Type of business Private 287 51.6 Government 16 2.9 Limited liability company 209 37.6 Joy stock company 44 7.9 Business size <10 Employee 213 38.3 10 -49 Employee 147 26.4 50 – 99 Employee 77 13.8 >=100 Employee 119 21.4 Years of operation < 5 years 211 37.9 5 - 10 years 44 7.9 10 - 15 years 219 39.4 > 15 years 82 14.7 (Source: Results of processing data from the survey) In general, the sample structure is suitable for the study, ensuring the representativeness, accuracy, and universality of the research results. 4.2 Verify the reliability of official scales with Cronbach's Alpha With the sample size of 556 and the number of observed variables is 35, the scales in this study are tested using Cronbach's Alpha tool. All scales are tested before performing EFA. Detailed results show that the scales are required. 4.3 Findings factor analysis (EFA) results The results show that business performance includes five observed variables; the lean management factor includes five observed variables; IT includes five observed variables. The factors favorable conditions, effort expectation, results in expectation, and social influence all include five observed variables. The study has extracted seven interrelated factors. 16 4.4 Results of confirmation factor analysis (CFA) CFA analysis shows the results of evaluating the conformity indexes of the detailed model as follows: Table 4.2: Summary of CFA test results Index Standard Result Conclude Chi-square/df 1-3 1.743 Accept CFI > 0.9 0.966 Accept GFI > 0.9 0.960 Accept TLI > 0.9 0.962 Accept RMSEA < 0.05 0.037 Accept (Source: Results of processing data from the survey) 4.5 Analysis results of linear structural model (SEM) Results of evaluating the model's conformity indexes are shown in the following table: Figure 4.1: SEM analysis with standardized research model (Source: Results of processing data from the survey) 17 Table 4.3: Summary of model conformity test results Index Standard Result Conclude Chi-square/df 1-3 1.923 Accept CFI > 0.9 0.957 Accept GFI > 0.9 0.950 Accept TLI > 0.9 0.954 Accept RMSEA < 0.05 0.041 Accept (Source: Results of processing data from the survey) SEM analysis confirms that all the proposed hypotheses are accepted. At the same time, the analysis results also present standardized estimates, showing the impact level, the strength of the complex relationships in the following table: Table 4.4: Regression coefficients of normalized relationships STT Correlate Estimates 1 Information Technology  Business performance 0.170 2 Lean management  Business performance 0.484 3 Information Technology  Lean management 0.344 4 Facilitating Conditions  Information Technology 0.558 5 Facilitating Conditions  Lean management 0.247 6 Effort Expectancy  Lean management 0.327 7 Social Influence  Lean management 0.361 (Source: Results of processing data from the survey) 4.6 Test average difference of factors 4.6.1 Test the average difference by type of business With the survey data, including 556 collected observations, the type of state-owned enterprise only collected 16 observations, the study compared the differences between the three types of enterprises. The sample used for this analysis has a sample size of 540 observations. 18 Table 4.5: Summary of difference testing for type of enterprise Factor Sig. Homogeneity Sig. ANOVA Conclude Business performance results 0.170 0.000 Significant Lean management 0.986 0.000 Significant Information Technology 0.836 0.007 Significant Facilitating Conditions 0.374 0.806 Non-significant Performance Expectancy 0.028 0.000 Welch test Effort Expectancy 0.731 0.339 Non-significant Social Influence 0.495 0.001 Significant (Source: Results of processing data from the survey) 4.6.2 Test the average difference by the number of years of operation of the business Similarly, test the difference in the mean value of the factors between groups of enterprises with different years of operation. Table 4.6: Summary of difference testing for years of operation Factor Sig. Homogeneity Sig. ANOVA Conclude Business performance results 0.091 0.100 Non-significant Lean management 0.050 0.604 Non-significant Information Technology 0.099 0.104 Non-significant Facilitating Conditions 0.972 0.307 Non-significant Performance Expectancy 0.270 0.841 Non-significant Effort Expectancy 0.370 0.784 Non-significant Social Influence 0.815 0.724 Non-significant (Source: Results of processing data from the survey) 4.6.3 Verify the average firm size difference Similarly, test the difference in the mean value of the factors between different groups of enterprises. 19 Table 4.7: Summary of difference testing for firm size Factor Sig. Homogeneity Sig. ANOVA Conclude Business performance results 0.000 0.000 Welch test Lean management 0.110 0.000 Significant Information Technology 0.208 0.000 Significant Facilitating Conditions 0.331 0.283 Non-significant Performance Expectancy 0.163 0.034 Significant Effort Expectancy 0.026 0.978 Welch test Social Influence 0.419 0.675 Non-significant (Source: results of processing data from the survey) 4.7.Discuss the results Regardless of the lean philosophy approach, relevant studies worldwide support the view that lean management on corporate performance is a positive and improved impact. The criteria evaluated the results. The research results claim to be entirely plausible. The study's main difference compared to previous studies in the world is the approach and measurement of lean management. In contrast, most previous studies focused on lean management for each method, the specific implementation of lean corresponding to each industry context. This study focuses on evaluating the application of lean methods in operational management. Leanness scale is designed in general, eliminating technical terminology so that it can be used to assess the lean level of systems outside the manufacturing field. Previous studies have mostly affirmed IT's role in business performance through intermediaries related to operations by creating a good premise for integrating activities—business (Sanders, 2007). Throughout related previous studies, IT has always been identified as a premise, a capacity to improve 20 better, improve functions and operations to increase businesses' competitiveness, and improve results, business performance Research confirms the role of IT in the business performance of businesses. This result is consistent with the views from previous studies related to these two factors, and at the same time, fills the theoretical gap related to the relationship between two factors when considering the direct relationship instead of indirect influence. Research results show that the close positive linear relationship between these two factors is entirely reasonable in both the theoretical and practical context. 21 CHAPTER 5: CONCLUSION AND ADMINISTRATION MEETING 5.1 Concludtion Based on research results from the quantitative and qualitative phase, the study concludes the following issues:  The application of IT has a positive impact on the business's business (accept hypothesis H1). The higher increase in IT in the enterprise will improve the business performance of the business. The increase in the adoption of the management system's lean methods when applying the lean philosophy also improves business performance.  The impact factors of IT and lean management are also proven to affect these two factors positively.  The proliferation of related favorable conditions also has an impact on increasing IT in the enterprise. The application of lean management methods will also be increased as Performance Expectancys, effort expectations, and social influence increase. 5.2 Administrative implications 5.2.1 The implication of governance affects the business performance components As a result of the research, while businesses' primary goal is to increase profits through improved performance in all aspects, operating problems cause the costs of businesses to increase. Therefore, the moderate operational change ensures to maintain the increase in sales, market Joy stock company, social responsibility, and customer satisfaction while ensuring cost reduction and wastage of the business. Those are the calculated objectives of the application of lean management (Rafique et al., 2017; Ballard and Tommelein, 2012) and information technology in enterprises (O'brien and Marakas, 2011).