The role of Kaizen in the effectiveness of Amhara metal industry and machine technology development enterprise in Ethiopia, as perceived by the employees

Abstract

This study investigated the role of Kaizen in the effectiveness of the Amhara Metal Industry and Machine Technology Development Enterprise in Ethiopia, as perceived by its employees. To this end, the study examined employees’ perceptions of the practice and utility of Kaizen, the relationship between Kaizen and organizational effectiveness, and the role of job performance and affective commitment in mediating the effect of Kaizen on the enterprise’s effectiveness. The study employed an embedded mixed methods design, with documentary data playing a supportive role alongside the survey data. It involved 247 participants, who were recruited using a systematic random sampling technique to complete a questionnaire. The data were analyzed using both descriptive statistics (mean and standard deviation) and inferential statistics (one-sample t-test, correlation coefficient, confirmatory factor analysis, and structural equation modeling). According to employees’ perceptions, although the practice of Kaizen within the enterprise was found to be poor, Kaizen showed a significant relationship with both employee affective commitment and job performance, as well as with the effectiveness of the enterprise. Moreover, Kaizen accounted for approximately 44% of the enterprise’s effectiveness, 37% of employee job performance, and 20% of employees’ affective commitment. Given that the poor implementation of Kaizen still explained such a significant proportion of the enterprise’s effectiveness, it is plausible to conclude that its proper application could make a substantial contribution to productivity and profitability.