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An Analysis of Physical Asset Management Core Practices and Their Influence on Operational Performance

Author

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  • Damjan Maletič

    (Faculty of Organizational Sciences, University of Maribor, Kidričeva 55a, 4000 Kranj, Slovenia)

  • Matjaž Maletič

    (Faculty of Organizational Sciences, University of Maribor, Kidričeva 55a, 4000 Kranj, Slovenia)

  • Basim Al-Najjar

    (Department of Mechanical Engineering, Faculty of Technology, Linnaeus University, Building M, 351-95 Växjö, Sweden)

  • Boštjan Gomišček

    (Faculty of Business, University of Wollongong in Dubai, Knowledge Park, Block 15, P. O. Box 20183, Dubai, UAE)

Abstract

The commitment of organisations to physical assets management (PAM) has recently received considerable attention in theory and practice. Indeed, PAM plays a key role in asset-intensive organizations and is also considered as a principal actor within Industry 4.0. Therefore, this paper aims to examine the PAM core practices and the performance implications of integrating these practices into business, in particular by assessing their impact on operational performance. Survey data were collected from managers in 138 international and local organisations. The data was analysed using Partial Least Squares Path Modeling (PLS-PM). The study validates the second-order construct consisting of PAM latent variables, namely Strategy and Planning, Risk management, Lifecycle Delivery, Asset Information, and Asset Review. The results have shown that PAM core practices directly influence operational performance. This paper is a response to recent calls for empirical studies on the organisational approaches that can increase the success of organisations.

Suggested Citation

  • Damjan Maletič & Matjaž Maletič & Basim Al-Najjar & Boštjan Gomišček, 2020. "An Analysis of Physical Asset Management Core Practices and Their Influence on Operational Performance," Sustainability, MDPI, vol. 12(21), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:9097-:d:438471
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    References listed on IDEAS

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