MISSION AND VISION: THE POWER DUO TRANSFORMING MANUFACTURING PERFORMANCE – A COMPREHENSIVE SEM ANALYSIS

Mallieswari R; Dhananjaya V; Yashaswini Murthy; Padmaja V

Authors

Mallieswari R M S Ramaiah Institute of Management, Bangalore, India. Author
Dhananjaya V M S Ramaiah Institute of Management, Bangalore, India. Author
Yashaswini Murthy M S Ramaiah Institute of Management, Bangalore, India. Author
Padmaja V M S Ramaiah Institute of Management, Bangalore, India. Author

Keywords:

Mission, Vision, Policy And Regulation, Pandemic, Structural Equation Modelling, Organizational Performance

Abstract

Organizations' vision and mission normally enhance the job's essence and significance while empowering, driving action, and uniting an enabling ecosystem to achieve their goals. For inclusive decision-making, organizations should evaluate both statements. In the initial pandemic wave, mobility restrictions made it hard for people to work and disrupted supply systems. Pandemic halted all manufacturing. This research estimates how mission and vision statements affect manufacturing organizations' performance, especially after the COVID-19 pandemic, which changed business operations. Organizations were not planning for a pandemic scenario while competing to achieve their growth goals. We study how mission, vision, and organizational performance are linked using cross-sectional research and structural equation modeling. A major finding was that vision, mission, and policies affect manufacturing performance. Mission and vision statements help shape employee attitudes in every organization.

References

Allison, J. (2019), “Mission statements and vision statements: examining the relationship toward performance outcomes”, Global Journal of Management and Marketing, Vol. 3 No. 1, pp. 1-21.

Bart Baetz, C. K. M. C. (1998). The relationship between mission statements and firm performance: An exploratory study. Journal of management studies, 35(6), 823-853.

Bart, C. (2007), “Comparative Analysis of Mission Statement Content in Secular and Faith-Based Hospitals”, Journal of Intellectual Capital, 2007, Vol. 8 No. 4, pp. 682–694.

Bart, C. K., & Hupfer, M. (2004). Mission statements in Canadian hospitals. Journal of Health Organization and Management, 18(2), 92-110.

Bart, C. K., Baetz, M. C. (1998), “The relationship between mission statements and firm performance: An exploratory study”, Journal of Management Studies, Vol. 35 No. 6, pp. 823-853.

Bartkus, B., & Glassman, M. (2008). Do firms practice what they preach? The relationship between mission statements and stakeholder management. Journal of Business Ethics, 83(2), 207-216.

Bartkus, B., Glassman, M., & McAfee, B. (2006). Mission statement quality and financial performance. European Management Journal, 24(1), 86-94.

Bentler, P. M., & Bonett, D. G. (1980). Significance tests and goodness of fit in the analysis of

covariance structures. Psychological bulletin, 88(3), 588.

Bowen, S. A. (2018). Mission and vision. The international encyclopedia of strategic communication, 1-9.

Bowey, P., DeYong, K., McNulty, E., & Roeber, K. (2023). Mission & Vision. PLANT SCIENCE, 25(1).

Buble, M. (2000), Management, Ekonomski fakultet Split, Split.

Campbell, A., & Yeung, S. (1991). Brief case: Mission, vision and strategic intent. Long range planning, 24(4), 145-147.

Collins, J. C., & Porras, J. I. (2008). CMR classics: organizational vision and visionary organizations. California management review, 50(2), 117-137.

Dash, G., & Paul, J. (2021). CB-SEM vs PLS-SEM methods for research in social sciences and technology forecasting. Technological Forecasting and Social Change, 173, 121092.

David, F. R. (1989). How companies define their mission. Long range planning, 22(1), 90-97.

Davis, J. H., Ruhe, J. A., Lee, M., & Rajadhyaksha, U. (2007). Mission possible: Do school mission statements work?. Journal of business ethics, 70, 99-110.

Desmidt, S., Prinzie, A., & Decramer, A. (2011). Looking for the value of mission statements: a meta-analysis of 20 years of research. Management Decision, 49(3), 468-483.

DeVellis, R. (1991). Scale development: Theory and applications. Newbury, CA: sage.

Dhawan, R., & Sengupta, S. (2020). A new growth formula for manufacturing in India. McKinsey & Company, Boston (USA).

Dobrinić, D., & Fabac, R. (2021). Familiarity with mission and vision: impact on organizational commitment and job satisfaction. Business Systems Research: International journal of the Society for Advancing Innovation and Research in Economy, 12(1), 124-143.

Dohale, V., Verma, P., Gunasekaran, A., & Akarte, M. (2023). Manufacturing strategy 4.0: a framework to usher towards industry 4.0 implementation for digital transformation. Industrial Management & Data Systems, 123(1), 10-40.

Elliott, J. H., Synnot, A., Turner, T., Simmonds, M., Akl, E. A., McDonald, S., ... & Pearson, L. (2017). Living systematic review: 1. Introduction—the why, what, when, and how. Journal of clinical epidemiology, 91, 23-30.

Erol, Y., Kanbur, E. (2014), “Entrepreneurial characteristics of Turkey’s top 100 industrial enterprises according to their mission and vision statements”, Business and Economics Research Journal, Vol. 5 No. 3, pp. 149-165.

Goulet, L. R., Frank M. L. (2002), “Organizational commitment across three sectors: public, non-profit, and for-profit”, Public Personnel Management, Vol. 31 No. 2, pp. 201-210.

Haski-Leventhal, D. (2020). On purpose, impact, vision and mission. In The Purpose-Driven University (pp. 7-22). Emerald Publishing Limited.

Hirota, S., Kubo, K., Miyajima, H., Hong, P., & Park, Y. W. (2010). Corporate mission, corporate policies and business outcomes: evidence from Japan. Management Decision, 48(7), 1134-1153.

Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal, 20(2), 195-204.

Jarvis, C. B., Mackenzie, S. B., & Podsakoff, P. M. (2003). A critical review of construct indicators and

measurement model misspecification in marketing and consumer research. Journal of Consumer Research, 30(September), 199-218.

Kaplan, R. S., & Norton, D. P. (1996). Strategic learning & the balanced scorecard. Strategy & Leadership, 24(5), 18-24.

Katzenbach, J., Thomas, J., & Anderson, G. (2019). The Critical Few: Energize Your Company’s Culture by Choosing What Really Matters. Berrett-Koehler Publishers.

Kline, R. B. (1998). Structural equation modeling. New York: Guilford.

Kolyasnikov M.S., Kelchevskaya N.R.(2020). Knowledge management strategies in companies: Trends and the impact of Industry 4.0. Upravlenets – The Manager, vol. 11, no. 4, pp. 82–96. DOI: 10.29141/2218-5003-2020-11-4-7.

Larwood, L., Kriger, M. P., & Falbe, C. M. (1993). Organizational vision: An investigation of the vision construct-in-use of AACSB business school deans. Group & Organization Management, 18(2), 214-236.

Lucas, J. R. (1998). Anatomy of a vision statement. Management Review, 87(2), 22.

MacCallum, R. C., Browne, M. W., & Sugawara, H. M. (1996). Power analysis and determination of sample size for covariance structure modeling. Psychological methods, 1(2), 130.

Macedo, I. M., Pinho, J. C., & Silva, A. M. (2016). Revisiting the link between mission statements and organizational performance in the non-profit sector: The mediating effect of organizational commitment. European Management Journal, 34(1), 36-46.

Macedo, I. M., Pinho, J. C., Silva, A. M. (2016), “Revisiting the link between mission statements and organizational performance in the non-profit sector: The mediating effect of organizational commitment”, European Management Journal, Vol. 34 No. 1, pp. 36–46.

Mackey, J., & Sisodia, R. (2014). Conscious capitalism, with a new preface by the authors: Liberating the heroic spirit of business. Harvard Business Review Press.

Management Decision, 40(5), 448 - 455.

Markovits, Y., Davis, A. J., Fay, D., van Dick, R. (2010), “The Link Between Job Satisfaction and Organizational Commitment: Differences Between Public and Private Sector Employees”, International Public Management Journal, Vol. 13 No. 2, pp.177-196.

McDonald, R. E. (2007). An investigation of innovation in nonprofit organizations: the role of organizational mission. Nonprofit and Voluntary Sector Quarterly, 36(2), 256 - 281.

Mullane, J. V. (2002). The mission statement is a strategic tool: when used properly.

Palmer, T. B., & Short, J. C. (2008). Mission statements in U.S. colleges of business: an empirical examination of their content with linkages to configurations and performance. Academy of Management Learning & Education, 7(4), 454.

Pearce, J., & David, F. (1987). Corporate mission statements: the bottom line. Academy of Management Executive, 1(2), 109-115.

Pedhazur, E. J. (1982). Multiple regression in behavioral research. New York: Holt, Rinehart and Winston.

Petter, S., Starub, D., & Rai, A. (2007). Specifying formative constructs in information systems research. MIS Quarterly, 31, 623e656.

Rainey, H., Steinbauer, P. (1999), “Galloping Elephants: Developing Elements of a Theory of Effective Government Organizations”, Journal of Public Administration Research and Theory, Vol. 9 No.1, pp. 1-32.

Rajput S., Singh S.P. (2019). Industry 4.0 − challenges to implement circular economy. Benchmarking: An International Journal, vol. 1, no. 1, pp. 1–23. DOI: 10.1108/BIJ-12-2018-0430.

Raudeliūnienė J., Davidavičienė V., Jakubavičius A. (2018). Knowledge management process model. Entrepreneurship and Sustainability Issues, vol. 5, no. 3, pp. 542–554. DOI: 10.9770/jesi.2018.5.3(10).

Roberts, N., & Tatcher, J. (2009). Conceptualizing and testing formative constructs: tutorial and annoted example. The Data Base for Advances in Information Systems, 40, 9-13.

Roldan, J. L., & Sanchez-Franco, M. J. (2012). Variance-based structural equation modelling: guidelines for using partial least squares in information systems research. In M. Mora (Ed.), Research methodologies, innovations and philosophies in software systems engineering and information systems (pp. 193-221). Hershey, PA: IGI Global.

Sankhe, S. (2020). India's Turning Point: An Economic Agenda to Spur Growth and Jobs. McKinsey & Company, Boston (USA).

Siciliano, J. I. (2008). A comparison of CEO and director perceptions of board involvement in strategy. Nonprofit and Voluntary Sector Quarterly, 27, 152-162

Unerman, J., & O'Dwyer, B. (2010). Ngo accountability and sustainability issues in the changing global environment. Public Management Review, 12(4), 475-486.

Weerawardena, J., Mcdonald, R. E., & Sullivan-Mort, G. (2010). Sustainability of nonprofit organizations: an empirical investigation. Journal of World Business, 45, 346 - 356.

West, S. G., Taylor, A. B., & Wu, W. (2012). Model fit and model selection in structural equation modeling. Handbook of structural equation modeling, 1, 209-231.

Williams, R. I., Morrell, D. L., & Mullane, J. V. (2014). Reinvigorating the mission statement through top management commitment. Management Decision, 52(3), 446-459.

Wright, B. E., Moynihan, D. P., & Pandey, S. K. (2012). Pulling the levers: Transformational leadership, public service motivation, and mission valence. Public administration review, 72(2), 206-215.

Confederation of Indian Industry 2021, India < https://www.cii.in/>

https://www2.deloitte.com/us/en/pages/energy-and-resources/articles/manufacturing-industry-outlook.html

https://www.statista.com/outlook/io/manufacturing/worldwide

https://www.mckinsey.com/industries/industrials-and-electronics/our-insights/a-new-growth-formula-for-manufacturing-in-india