Linkage between TPM, people management and organizational performance

Purpose The purpose of this paper is to explore an empirical investigation of the linkage between total productive maintenance (TPM), people management (PEM) and organizational performance in the apparel industry of Bangladesh. This study also explores the direct and mediating effect of TPM on organizational performance. Design/methodology/approach Empirical data were collected using a close-ended structured questionnaire from 227 small, medium and large-scale garment manufacturing industries. The causal relationships between PEM, TPM and organizational performance were examined using structural equation modeling. Findings The findings of this study have provided significant evidence that the PEM has both direct and indirect impact (through TPM) on organizational performance. The results of the analysis also indicated that TPM has direct and mediating effects on operational performance. Research limitations/implications Data for measuring PEM practices and organizational performance were collected from the same source, assuming that PEM practices are uniform across the organization. Therefore, response bias is not unexpected. Originality/value This study explores the interdimensional linkage between PEM, TPM and organizational performance and argues based on the empirical data in the context of the apparel industry in Bangladesh. The apparel industry is a complex manufacturing system synchronizing man, machine and material. The findings provide empirical evidence that employee engagement and practice of TPM will enhance the operational performance of the apparel industries.