Analysis of the relationships among TOC use, TOC outcomes, and organizational performance
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 20 March 2009
Abstract
Purpose
The purpose of this paper is to examine empirically the relationships among the three elements of the theory of constraints (TOC), a number of observable outcomes expected to be associated with the application of TOC, and organizational performance.
Design/methodology/approach
A model, which incorporates TOC elements as antecedent to TOC outcomes and TOC outcomes as antecedent to organizational performance, is proposed. Data were collected from 110 organizations identified as TOC adopters, and the model was assessed using a structural equation modeling methodology.
Findings
Results indicate that the proposed model fits the data well. Adoption of TOC yields observable TOC outcomes, which lead to improved business unit performance. Analysis suggests that the use of TOC is effective in improving organizational performance.
Research limitations/implications
Scales are developed for use in future TOC research.
Practical implications
TOC is found to be effective in improving organizational performance.
Originality/value
While this work was begun much earlier than the work of Boyd and Gupta, this work revises their model and main hypothesis. TOC scales are developed and validated for use by future TOC researchers.
Keywords
Citation
Inman, R.A., Lair Sale, M. and Green, K.W. (2009), "Analysis of the relationships among TOC use, TOC outcomes, and organizational performance", International Journal of Operations & Production Management, Vol. 29 No. 4, pp. 341-356. https://doi.org/10.1108/01443570910945819
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited