A structural equation model for continuous improvement: a test for capabilities, tools and performance

Continuous improvement has been analysed in the literature from two different perspectives: as a set of practices and processes and as a set of competitive abilities. What is however still lacking is an overall perspective that integrates both practices and abilities and at the same time enables assessing their mutual relations as well as their impact on performance. Based on a comprehensive literature review, this study proposes such an integrated model, whose hypotheses are then tested via structural equation modelling on an international dataset from 452 manufacturing firms. The results of the structural model test support the proposed hypotheses. The implications of the findings for researchers and practitioners are discussed and indications for further research are provided.

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