The Causal Factors of Strategic Management and Operational Performance: An Empirical Study on the Industrial Machinery and Equipment Sales and Rental Business

Abstract

The objective of this research is to investigate the causal factors of strategic management and operational performance development that impact the Industrial Machinery and Equipment Sales and Rental Business. The study focuses on analyzing the role of human resources, internal quality systems, and logistics management and their linkage to creating a competitive advantage and enhancing the organizational capability of firms. This research utilizes Systems Theory and Strategic Management as its analytical framework. Data was collected from entrepreneurs and employees in the industrial machinery sales and rental business through both a quantitative questionnaire survey and qualitative in-depth interviews. The research findings indicate that effective human resource management, a standardized internal quality system, and appropriate logistics management have a positive influence on the organization's operational performance and strategic management, ultimately leading to an elevated competitive potential in the heavy industry to evolve the strategic plan by integrating the management of human resources, internal systems, and machinery/equipment for the purpose of building sustainable growth and long-term competitive advantage.