The Impact of Integrated Management System on the Organizational Excellence and Organizational Innovation

Daharat, Anas Nasir Mahmoud; Sued, Mohammad Kamil; Gheisari, Asma

doi:https://doi.org/10.1155/2022/2284603

Education Research International

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Abstract Introduction Literature Review Discussion Conclusion Data Availability Conflicts of Interest References Copyright Related Articles

Research Article | Open Access

Volume 2022 | Article ID 2284603 | https://doi.org/10.1155/2022/2284603

The Impact of Integrated Management System on the Organizational Excellence and Organizational Innovation

Anas Nasir Mahmoud Daharat,¹Mohammad Kamil Sued,¹and Asma Gheisari²

Academic Editor: Mehdi Nasri

Received22 Mar 2022

Revised13 Apr 2022

Accepted18 Apr 2022

Published06 May 2022

Abstract

Innovation in organizations, particularly in the public sector, aims at reducing costs and increasing the quality of goods and services. Thereby, a key aspect of ensuring organizational excellence is adopting innovative practices that allow the development and incorporation of novel concepts appropriate for optimizing IMS. The study is aimed at investigating the relationship between IMS, organizational excellence, and innovation. The techniques used in this study are mostly quantitative and primarily based on qualitative strategies, including phenomenology, narrative studies, grounded principal studies, interviews, and case studies. The final results of the inspection show that integrated management tools have a great impact on organizational excellence and innovation. Each result (indirect/overall) is statistically huge. IMS provides a management philosophy for the team, allowing the correct management of the technology and achieving the desired results. Therefore, IMS may also benefit enterprises by cultivating an internal innovation system within the organization.

1. Introduction

In today’s competitive business environment, streamlining operations are critical for maintaining low overhead costs. Redundancy elimination and system integration are two critical components of good management. Numerous businesses have begun to implement IMS due to the numerous advantages it offers over running multiple management systems concurrently. IMS adoption has become critical to today’s institutions and organizations’ survival and competitive positioning and is motivated by more than just the desire to improve business processes [1]. Customer requirements are constantly changing, 2020 [2]. Organizations, particularly those in the public sector, seek to innovate in order to reduce costs and improve the quality of goods and services. As a result, a critical component of organizational excellence is the adoption of innovative practices that enable the development and incorporation of novel concepts for optimizing IMS [3, 4].

IMS is now used by institutions and corporations to ensure their survival and competitiveness. Organizational excellence has accelerated the growth of complex quality management challenges. It is also vital due to the intelligent alignment of the organization’s strategy and operations.

To achieve organizational excellence, organizations must implement critical quality management systems. These systems can identify critical areas for articulating and applying sound strategic and operational management systems [5, 6]. To ensure practical application, implementation, and monitoring of quality systems, organizational functions must be effectively integrated. While IMS unifies all business components into a coherent system, it is not sufficient to improve organizational excellence in the public sector. In other words, IMS may not achieve the desired results if innovation is not considered. As a result, this study will look at IMS implementation and its role in ensuring excellence in public sector organizations. In this sense, research shows that an IMS is not the only way to achieve organizational excellence. Also, organizations constantly adapt to changing economic conditions because those who adapt best have the best chance of surviving. Innovation is critical for long-term customer satisfaction, cost reduction, and increased competitiveness [7]. Customer needs change frequently. As a result, organizations must improve their processes and management to increase efficiency and productivity. That is, organizations must embrace innovation to excel at work. As a result, senior leaders must inspire others to contribute, grow, and innovate [8]. However, the ability to innovate sets apart competing and aspirational organizations seeking global leadership, success, and performance. Especially in the public sector, organizations seek to innovate to reduce costs and improve quality. Businesses must constantly innovate to survive, thrive, and excel [4, 9]. An innovative culture fosters new ideas, processes, and business models. Instead of maintaining the status quo, an innovative culture requires employees to form crossfunctional teams rather than silos. Thus, organizational innovation may play a role in the IMS-organizational excellence relationship [4, 10].

In addition to the IMS, lack of management commitment, lack of understanding of the IMS’s benefits to organizational excellence, and lack of an innovation-oriented culture may hinder implementation [11, 12]. Developing and incorporating novel concepts appropriate for optimizing IMS is critical to ensuring organizational excellence. Organizational innovation has been linked to new product, service, technology, process, and strategy development [13, 14].

1.1. The Purpose of Study

(1)To examine the impact of integrated management system on organization excellence(2)To examine the impact of integrated management system on organization innovation(3)To examine the impact of integrated management system on the organization excellence and organization innovation

2. Literature Review

2.1. Integrated Management System

IMS is typically critical in managing activities and processes that are critical in transforming resources into products and services that meet the organization’s objectives. Additionally, it ensures that stakeholder requirements are met fairly. IMS provides organizations with a management philosophy that enables them to manage processes effectively and achieve desired outcomes [15–17]. As a result, IMS may benefit organizations by fostering an internal innovation process. It is a more systematic management approach that places a premium on logic when making significant operational decisions. Integration of multiple management systems is frequently necessary to improve business performance, effectiveness, and efficiency of organizational operations [18–21]. Integration of multiple management systems provides an organization with a plethora of benefits, including increased organizational efficiency and, consequently, increased business performance [22]. The two types of IMS are those that focus on cost reduction and process enhancement, as well as those that focus on risk reduction. Both are critical components of optimizing audit process documentation and analysis, as well as interfunctional communication. IMSs must always include both common management system elements and externally supplied elements. They typically account for 80% of the workload for common elements is true for all other systems, not just IMS. This aspect serves as the foundation for a critical argument in favor of their integration [23–25].

As a result, the IMS concept entails the integration of various management systems used by organizations. As the number of management systems grows, it is critical to discuss how these disparate systems can be integrated to effectively accomplish the organization’s goals. As defined, IMS is a collection of critical quality standards that includes traditional quality management systems (ISO 9001), environmental management systems (ISO 14001), information security management systems, business continuity management systems (ISO 22301), and energy management systems (ISO 50001). These systems have been consolidated into a single certification body known as IMS certification over time.

2.2. The Context of IMS

The link between IMS and organizational excellence cannot be overstated. According to research, organizations must always have long-term strategies in place in order to achieve their long-term objectives of sustained excellence. Organizational excellence is frequently the result of IMS implementation [26–28]. The connection between integrating customer satisfaction with IMS and innovation is a common goal. As the world develops, new innovations to make our daily lives easier are constantly being developed to improve what we already have [29]. Because of this, the relationship between IMS and organizational innovation is focused on ensuring organizational excellence.

2.3. Organizational Culture

It is common to think of organizational culture as a set of values, beliefs, and coping mechanisms that have evolved over time. The companies have made this observation. The benefit of having implemented IMS is that management becomes much simpler both before and after it has been done. In addition, the streamlining of management has raised employee satisfaction even further. Thus, IMS contributes to a better workplace culture [30]. Working conditions are improved as a result of the integration of different cultures.

2.4. Organizational Innovation

Value creation and the maintenance of competitive advantages have become synonymous with the role of innovation in today’s world. As a result, integration has been hindered by a lack of resources, including a workforce with the necessary training and expertise. A lack of financial support from the company’s upper management as well as other difficulties includes a teetering management system [31]. Management systems can be standardized through the integration, ensuring effective management and innovation. A growing number of people are concerned about the integration of IMS and innovation. Integration characteristics have been shown to have a positive impact on innovation and customer satisfaction in the context of IMSs [32]. IMS play a critical role in helping companies manage their management systems and incorporate innovation into it, according to these studies. Studies that link IMS and innovation suggest that IMS can be broken down into three categories: incremental, organizational, and internal [33–35]. The performance of innovation management is determined by the integration, which mediates the relationship between market turbulence and innovation management. Better understanding is therefore required to ensure enhanced capabilities for process and product innovation improvement.

2.5. Organizational Excellence

Organization can be defined as the efforts made to create an internal framework of standards and a process for encouraging employees to work above and beyond. Consistently outperforming the competition is a sign of success. Personnel and management are in charge of ensuring quality; so, it is critical to check in periodically to see if the efforts are paying off. Organizational excellence is also a result of training and empowering employees. This source can be unique to humans, a unique technology, or a unique method of working that no one else can replicate. Investment in higher education is one of the most important new trends to achieve organizational excellence at the level of inputs, processes, and ensuring output in accordance with specified criteria on the basis of what has been said above [36, 37].

Heydari et al. [13] reported that pleasant had been emphasized across business features and sectors alike inside the present-day operating environment. As the researchers observe, this high-quality is unattainable without an included machine that lets in for the glide of expertise from one feature of the corporation to the opposite. This position finds assistance from concurrent proof of studies that highlight that the management of thoughts to enhance commercial enterprise performance and quality shipping is only feasible through the implementation of a system of management that integrates the expertise glide allowing employer access and studying [11, 38]. Santos and crew teach that, without proper integration of structures, it is impossible to satisfactorily control modern ideas. In this manner, an organization loses all available possibilities to come to be competitive. The researchers are in similar concurrence that in the modern-day business and operational surroundings in which the challenge of pleasant is recurrent, it is incumbent upon businesses to put into effect IMS that allows the agency to centrally reveal distinctive-related initiatives, haring information throughout the initiatives in pursuit of first-class and excellence [39, 40].

In today’s turbulent commercial enterprise ecosystem, companies are choosing incorporated structures more frequently, while IMS presents the established order of specific coverage for dealing with an agency more efficaciously. Corporations in latest years have opted for IMS, especially in high-quality, environmental, and occupational fitness and safety, which by way of layout are usually considered well suited or, instead, easier to integrate. IMS is meant to consolidate the assets of the corporation in terms of human beings, documentation, auditing, compliance, etc. As such, it reduces fees and brings awareness to the enterprise [41, 42]. In easy terms, an IMS is a management gadget that integrates all aspects of a commercial enterprise right into a single, coherent system to permit the business enterprise’s purpose and mission to be found out. In this regard, Kuruba et al. [43] reported that the impact and significance of the implementation of warehouse management system on business performance was emphasized. The data was taken from Delta Pharmaceuticals, in Botswana. For enhancing the management system, the survey was conducted through questionnaire to describe the impact of warehouse management system.

IMS is an unmarried shape that companies use to control processes or sports that transform assets right into products or services that meets the enterprise’s targets and equitably meets the stakeholders’ first-class, fitness, protection, environmental, security, ethical, or some other diagnosed requirement [28, 44, 45], and demands from fascinated events, together with clients, are forcing corporations to develop their challenge and vision, with a purpose to be integrated into precise guidelines geared in the direction of integration, with the results benefiting each the involved parties and the organization. Control device standards that are optional for groups are increasingly regarded as a strategic tool for companies searching for institutional achievement and adopting progressive approaches. Groups face demanding situations while setting up and handling these requirements independently for the equal employer. Presenting a holistic view of all requirements, that is to integrate them all, would be a greater rational answer. One-of-a-kind control gadget standards are concerned in included control systems because they can be formed in step with the desires of the business enterprise.

3. Methodology

The techniques to be used in this look are quantitative and primarily based on accrued facts through a survey method—qualitative strategies which include phenomenology, narrative studies, grounded theory studies, interviews, and case research. The layout of this examination is based on theoretical and empirical elements. The organization innovation confirmed that vast relationships among those variables exist, which require in addition validation and examination using the quantitative survey to acquire data from a sample of decided on public entities. Other than accumulating and tabulating the records, this type of research also consists of proper analyses, interpretation, evaluation, and identification for the developments and relationships.

The possibility sampling approach changed into used on this take a look at because it is far helpful for a small population. For small-scale research like this, chance sampling techniques are generally more appropriate for many reasons, including time-ingesting, now not luxurious evaluating, to nonpossibility sampling. The survey questionnaire sampling criteria involve collecting statistics approximately the employee’s perceptions of the IMS implementation practices inside the UAE public section institutions (UAEPSI) on account that they are immediately involved within the procedure and feature firsthand expertise of quality implementation practices of their establishments.

To determine the sample size of this study, the following formula is used:

4. Result and Findings

This paper presents the results and findings of quantitative analysis of empirical data collected from survey participants. The survey was conducted in three organizations, namely, Abu Dhabi Exhibition Corporation (ADNEC), Abu Dhabi Environment Agency, and Abu Dhabi National Defense Bureau. As mentioned in the previous paper, the respondents in the survey were employees of these three organizations. Among the 450 questionnaires distributed to the Abu Dhabi Exhibition Corporation (ADNEC), the Abu Dhabi Environment Agency, and the Abu Dhabi Civil Defense Agency, 384 valid questionnaires were considered for analysis. This means that the response rate is 85.33%, as shown in Table 1. The remaining number 14.60% represents a questionnaire with or .

Incomplete or blank questionnaires have been omitted from consideration in early evaluation. Table 2 below shows there are no missing data (0%) in the dataset used for the analysis in this paper.

Table 3 depicts the differences in IMS, organizational innovation, and organizational excellence between outliers and normal values. When the gaps in each graph are measured, there are a few nonextreme outliers marked with circles.

Based on Table 4, in terms of age, the results show that employees between the ages of 30 and 39 make up the bulk of the workforces in the examined companies, while those over 60 make up the smallest percentage. Employees with a master’s degree make up the largest group (46.90 percent), while individuals with only a Bachelor’s degree make up the lowest group in these firms.

Reading the data in Table 5 shows that the size of the IMS is , , and . This result shows that the respondents in the surveyed organization showed a moderate degree of agreement with the questions pointed out in the questionnaire. Regarding skewness, the results show that IMS data is negatively skewed (), while organizational innovation data is quite symmetrically skewed (), and organizational excellence data is also quite symmetrically skewed (skewness) (). The outcome of KMO and Bartlett’s test of each variable is indicated in Table 6.

Evaluating the output in Table 6 reveals that empirical data associated with each variable is fit for EFA () and significant (). It is supported by Hutcheson and Sofroniou [46] that if a value of KMO ranges from 0.7 to 0.9, it is considered as a good indicator for data fit in factor analysis.

Table 7 also shows the grouping of dimensions as well as the quantity of redundant indicators. This table shows that IMS has three dimensions (two of which are omitted indicators), organization innovation has four dimensions (three of which are omitted indications), and organizational excellence has three dimensions (three of which are omitted indicators) (2 omitted indicators). In all variables, there are a total of 7 omitted indicators. Those indicators with a crossfactor loading of more than one factor or a weak factor loading of less than 0.4.

From the output data in Table 8, it is concluded that the correlations should be less than (0.70) to obtain discriminant validity. Table 8 indicates that all correlations between dimensions constructing a single variable are less than (0.7). The discriminant validity is achieved in each construct, such as IMS, organization innovation, and organizational excellence, whereas all magnitudes of discriminant validities within the statistical standards [47, 48].

Reading the output data in Table 9 shows that the magnitude of CMN/DF ranges in between 1.382 and 1.800. To achieve a good fitness with the observed data, the normed ratio (CMIN/D) is ideal to be less than 3.00 (McDonald and Ho, 2002), [49, 50]. CFI magnitude ranges in between 0.974 and 0.992 (cut-off ≥0.90). TLI magnitude ranges in between 0.968 and 0.990 (), while PCLOSE is nonsignificant for all measures () and for all variables which indicates a good data fit with the measurement model [51]. In conclusion, all fit-indices are matching the cut-off points of SEM standards (level of acceptance) as shown in Tables 9 and 10.

The final measurement models of IMS, organization innovation, and organizational excellence reveals that all fit indices within the cut-off points of SEM standards, and all estimates of correlations are satisfactory (Table 11).

The hypothesis statements in Table 12 are evaluated according to the magnitude of critical ratio and significance level. Reading the output data shows that all direct relationships between the constructs are significant (). Hypothesis (1) states that “IMS has a significant effect on organizational excellence” (, ), whereas hypothesis (2) states that “IMS has a significant effect on organization innovation” (, ); finally, hypothesis (3) states that “Organization innovation has a significant effect on organizational excellence” (, ). Based on these results, it is concluded that hypothesis (1), hypothesis (2), and hypothesis (3) have been accepted and not rejected, while the opposites to these hypotheses are rejected (null-hypotheses).

5. Discussion

After accomplishing the CFA analysis in the earlier section, the last stage in SEM analysis is evaluating the structural model. In this section, the researcher examines how the constructs defined in this study are related to one another in one model (e.g., indirect and direct relationships). In other words, the exact nature of direct and indirect relationships is specified. Results showed the scale of relationships between IMS and organization innovation, IMS and organizational excellence, and finally between organizational excellence and organization innovation. Accordingly, the degree of associations between these three constructs is acceptable from the statistical perspective to consider these relationships valid and not based on probability.

Company (ADNEC), Abu Dhabi Environmental Agency, Abu Dhabi Civil Defense Authority is fairly high. Concerning work experience, the result indicates that the employees who have middle occupational experience (10-15 years) represent the highest percentage in the organization, whereas fresh employees (1-5 years) are the lowest percentage. Finally, the majority of organizations have ISO 10002, followed by those having ISO 31000. Evaluating the magnitudes of these fit indices and comparing them with each index’s cut-off points based on SEM standards indicates a sufficient degree of model fit in the conceptual framework with the empirical data. Any regression (estimate) greater than 0.30 is accepted to fit the empirical data with the theoretical model [32, 52]. The dataset associated with the variable is acceptable from a statistical perspective. Hence, these small differences in magnitude with the outliers are not an indicator of the weak quality of the dataset. In conclusion, the dataset of each variable is acceptable for further analysis.

For many organizations, long-term success and survival in the twenty-first century depend on the implementation of effective management systems and quality standards. There has been a lot of interest in figuring out what factors and motivations drive the implementation of IMS and the advantages that come from doing so. In order to improve an organization’s competitiveness and long-term viability, it was necessary to begin with IMS implementation.

However, many administrators are unaware of the extent to which they are duplicating procedures and burdening their employees with needless extra work in order to meet their objectives. Protection, environmental management, and quality control all work toward the same goal of making a company more efficient. It is important to keep in mind that ISO and other standards are there to help businesses run more efficiently. It is possible, however, that managers’ management systems do not provide the value they expect, resulting in unnecessary duplication of effort. The best solution is IMS, but how much does IMS contribute to the excellence of the organization? Empirical evidence is required to answer the question.

While IMS can be successfully implemented, there are numerous roadblocks, including the “ingredients” (what elements to integrate) and the “recipe” (how to integrate them).

6. Implication

It is a set of tactics and practices used to achieve optimum organizational performance rather than awards, prizes, or medals. Individuals achieve excellence through their efforts and activities, while organizations achieve excellence through the highest quality of work. Mohamed et al. [53] elaborates on the synergy that comes with teamwork when striving for organizational excellence. Most companies have adopted efficient, environmental, and health and safety policies. Management systems gain a competitive edge and promote growth. Businesses increasingly use IMS to overcome management system challenges. Improving quality is one of the benefits of implementing integrated management systems. IMS based on core activities ensures business excellence. It can be extended to TQM or any other business excellence model. “IMS is the first step towards business excellence.” So, IMS and organizational excellence go hand in hand. This link implies that IMS directly impacts organizational excellence.

Empirical evidence links character integration to customer satisfaction and innovation. The study also showed that organizations can effectively manage their management systems by incorporating innovation. The relationship between IMS and organizational innovation has been studied previously, and the results show a significant correlation. Thus, scholars have tried to provide empirical evidence linking IMS and organizational innovation [34]. Based on previous research findings, managers and owners can now choose from a variety of management tools to measure their organization’s innovation and success. Individual management systems and organizational innovation must now be integrated. As a result, organizations are increasingly adopting multiple management system standards. This is evident in the rise of widely accepted standards like quality and environmental management. Several IMS standards are linked to significant organization innovation.

Innovation is not just about turning an idea or invention into a product or service that generates revenue. It is a cost-effective idea that meets specific needs. An innovative organization continuously promotes new ideas, organizational structures, operational procedures, products, and services. These are important factors to consider when using transactional leadership to foster organizational creativity, teamwork, knowledge management, and human resource management. As a result, organizational innovation is critical to organizational success. It fuels innovation that seeks to increase an organization’s output and thus profits. Organizational innovation is strongly linked to positive outcomes. The downside of innovation is that it may bring about change that employees dislike, affecting an organization’s productivity and performance. Researchers have previously assessed the link between organizational innovation and excellence. According to the research, organizational innovation positively impacts organizational excellence. Small businesses can benefit from innovation to gain market share. At the same time, large and medium-sized businesses must work harder to reduce the time it takes to introduce a new product to the market. A study found that innovation is important in gaining a competitive advantage, which improves organizational excellence. Thus, organizations must develop innovation strategies to improve productivity and competitiveness.

7. Limitation

Information gathered in this study calculated and produce results which are theoretical and may not be possible practically. Most of the information have been researched in internet search engines ,and data collected used does not cover enough area to make conclusions about implementing IMS I an organization. Besides, IMS is complicated software system that requires knowledge in software and computer programming to understand better. Therefore, the study needed to be done in a simpler way for people to understand.

8. Recommendation

It is recommended that by integrating sustainability standards into traditional business maturity models, organizational excellence models have the potential to support corporate sustainability. The maturity model is a useful way to assess the maturity level of the process and general business. Among the common models, there is no lack of maturity models for specific fields in the management process of Lean Six Sigma, which should be considered in model development.

When integrating standards, it is important to think about the level of integration as well as the standards themselves. However, the integration of ISO 9001, 14001, and OHSAS 18001 is not limited to these standards. When deciding which management system standards to implement, organizations should look for commonalities between them, such as the Plan-Do-Check-Act Approach to management and process control.

Any action taken should be consistent with the system’s primary objective, i.e., does it help achieve the business plan and does it fit the organization’s size and complexity? Prior to putting in place extensive written procedures, it is important to ensure that they are in line with the culture and practices of the organization.

9. Conclusion

The end result of the take a look at showed that the integrated management gadget has a great effect on an organizational excellence and innovation. Each result (indirect/overall) is statistically huge. IMS deliver groups a management philosophy that permits techniques to be correctly managed and desired consequences to be completed. As a result, IMS may additionally have some blessings for corporations via fostering internal innovation system inside the agency. IMS is a logical and systematic management technique allowing most desirable strategic and operational choices that consider all crucial aspects that lead to the green functioning of an enterprise, each in phrases of exceptional as well as the environment or occupational health and safety or different management structures. The examiner additionally confirmed that corporation innovation has a great effect on organizational excellence. In different words, the organization innovation in this examination (agency innovation) has a vast partial mediation function on the connection between IMS and organizational excellence. Consequently, agency innovation mediates the relationship between IMS and organizational excellence.

Data Availability

The data that support the findings of this study are available from the corresponding author upon reasonable request.

Conflicts of Interest

The authors declare that they have no conflicts of interest.

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Copyright © 2022 Anas Nasir Mahmoud Daharat et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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