Continuous Improvement, Value Added, Organizational Culture, Competitiveness, and Manufacturing Firm Performance

Purpose: This study aims to analyze the effect of Continuous Improvement (CI) and Value Added (VA) on manufacturing company performance, with Competitiveness as an intervening variable in Indonesian manufacturing firms.

Methodology: A quantitative explanatory design was employed using survey data collected from 315 respondents consisting of managers, supervisors, and operational staff in manufacturing companies in West Java. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test direct and indirect relationships among variables.

Results: The findings show that both CI and VA significantly enhance Competitiveness. However, only VA has a significant direct effect on Performance, while CI does not significantly influence Performance either directly or through Competitiveness. Additionally, Competitiveness does not mediate the relationship between CI, VA, and Performance.

Conclusion: The study concludes that Value Added is a key determinant of both Competitiveness and Performance, while Continuous Improvement mainly contributes to Competitiveness but does not directly translate into performance outcomes. This indicates that operational efficiency alone is insufficient without effective value creation mechanisms.

Limitations: The study is limited to a single case with a small purposive sample, restricting generalizability.

Contribution: This research contributes to the literature by developing an integrated model of CI, VA, Competitiveness, and Performance, highlighting Value Added as the dominant driver of organizational performance in manufacturing contexts.