Understanding the Relationship between Mechanical Innovation, Mechanical Efficiency, Customer Value Creation, and Business Performance: A Qualitative Inquiry
DOI:
https://doi.org/10.5281/zenodo.22075321Keywords:
Business Performance, Mechanical Innovation, Mechanical Efficiency, Customer Value Creation, InnovationAbstract
Purpose: Examining organizational performance is important for gaining long-term market success and developing competitive advantage. Therefore, the purpose of this study was to explore the role of mechanical innovation, mechanical efficiency, and customer value creation in creating business performance. Design/ method/ approach: This research adopted an interpretive research paradigm through a grounded theory qualitative research design. Data were gathered from 40 professionals using convenience sampling. The collected data were analyzed through comparative analysis, supported by documentary triangulation. Findings: The results of the study revealed that mechanical innovation does not directly influence business performance. Rather, mechanical innovation develops a sequential process in which innovation enhances mechanical efficiency, creates customer value, and ultimately drives business performance. Originality: The study contributes to the literature by offering a process-based explanation whereby mechanical innovation improves business performance through mechanical efficiency and customer value creation.
References
Aboramadan, M., Albashiti, B., Alharazin, H., & Zaidoune, S. (2020). Organizational culture, innovation and performance: a study from a non-western context. Journal of Management Development, 39(4), 437-451. https://doi.org/10.1108/JMD-06-2019-0253
Ahmed, M., & Siddiquee, M. A. (2022). Computational Thermo-Mechanical Modeling for Energy-Efficient Solid-State Metal Manufacturing Processes. American Journal of Interdisciplinary Studies, 3(04), 579-618. https://doi.org/10.63125/ddg6mg97
Akpa, V. O., Asikhia, O. U., & Nneji, N. E. (2021). Organizational culture and organizational performance: A review of literature. International journal of advances in engineering and management, 3(1), 361-372. https://doi.org/10.35629/5252-0301361372
Al Najjar, A. S., & Qandeel, M. S. (2025). Operational strategy, capabilities, and successfully accomplishing business strategy. Journal of Applied Research in Technology & Engineering, 6(1), 1-11. https://doi.org/10.4995/jarte.2025.20708
Arteta Vivenzi, A. M., & ORDOÑEZ BELLIDO, L. (2023). Industry 5.0 and Customer Engagement: A Human-Centric Approach in the Product Life Cycle. https://hdl.handle.net/10589/227309
Artha, B., & Satriadhi, B. (2023). Performance of business: a review of the literature. Jurnal Ekonomi LLDIKTI Wilayah, 1(3), 2. https://doi.org/10.54076/juket.v3i2.398
Ayalew, Y. G., & Belay, M. E. (2024). Enhancing total productive maintenance strategy for improved productivity and performance. Systems Engineering: Design, Analysis, Programming, and Maintenance of Complex Systems, 45. https://doi.org/10.5772/intechopen.114377
Bag, S., Telukdarie, A., Pretorius, J. C., & Gupta, S. (2021). Industry 4.0 and supply chain sustainability: framework and future research directions. Benchmarking: An International Journal, 28(5), 1410-1450. https://doi.org/10.1108/BIJ-03-2018-0056
Bhatti, M. A., & Alqasa, K. M. A. (2025). Enhancing Business Performance through Operational Planning, Exploratory Innovation and Manufacturing Strategy. Decision Making: Applications in Management and Engineering, 8(1), 458-477. https://doi.org/10.31181/dmame8120251384
Blut, M., Chaney, D., Lunardo, R., Mencarelli, R., & Grewal, D. (2024). Customer perceived value: A comprehensive meta-analysis. Journal of Service Research, 27(4), 501-524. https://doi.org/10.1177/10946705231222295
Bongomin, O., Mwape, M. C., Mpofu, N. S., Bahunde, B. K., Kidega, R., Mpungu, I. L., Tumusiime, G., Owino, C. A., Goussongtogue, Y. M., & Yemane, A. (2025). Digital twin technology advancing industry 4.0 and industry 5.0 across sectors. Results in Engineering, 26, 105583. https://doi.org/10.1016/j.rineng.2025.105583
Chychun, V., Grechanyk, O., Khliebnikova, T., Temchenko, O., & Kravchenko, Н. (2023). Change management models and methods: implementing innovations, ensuring sustainability and engaging staff. Economic Affairs, 68(4), 2249-2261. https://doi.org/10.46852/0424-2513.4.2023.33
Ciano, M. P., Dallasega, P., Orzes, G., & Rossi, T. (2021). One-to-one relationships between Industry 4.0 technologies and Lean Production techniques: a multiple case study. International Journal of Production Research, 59(5), 1386-1410. https://doi.org/10.1080/00207543.2020.1821119
D’Oria, L., Crook, T. R., Ketchen Jr, D. J., Sirmon, D. G., & Wright, M. (2021). The evolution of resource-based inquiry: A review and meta-analytic integration of the strategic resources–actions–performance pathway. Journal of Management, 47(6), 1383-1429. https://doi.org/10.1177/0149206321994182
Delloul, S. (2024). The impact of the transition from mechanical to organic structure on administrative effectiveness in the organization. Recherchers economiques manageriales, 18(2), 380-403. https://asjp.cerist.dz/en/article/261457
Fang, Q., Despeisse, M., & Johansson, B. (2025). Review of resource efficiency assessments in manufacturing: An integration model for production information systems. Cleaner Environmental Systems, 100318. https://doi.org/10.1016/j.cesys.2025.100318
Frank, A. G., Dalenogare, L. S., & Ayala, N. F. (2019). Industry 4.0 technologies: Implementation patterns in manufacturing companies. International journal of production economics, 210, 15-26. https://doi.org/10.1016/j.ijpe.2019.01.004
Gunawan, R. R., Siagian, H., Tarigan, Z. J. H., & Jie, F. (2024). The role of supplier-buyer relationship in enhancing business performance through supply chain management practice, total quality management implementation and product innovation. https://doi.org/10.5267/j.uscm.2024.5.022
Handoyo, S., Suharman, H., Ghani, E. K., & Soedarsono, S. (2023). A business strategy, operational efficiency, ownership structure, and manufacturing performance: The moderating role of market uncertainty and competition intensity and its implication on open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 9(2), 100039. https://doi.org/10.1016/j.joitmc.2023.100039
Hoang, P.-D., & Nguyen, T.-L. (2026). Toward sustainable development in mechanical engineering: an MCDM framework for technology management in Vietnam. Cogent Business & Management, 13(1), 2632750. https://doi.org/10.1080/23311975.2026.2632750
Huynh, C. M., & Vo, L. K. (2023). The Effects of Dynamic Capabilities on Operational Performance: An Empirical Study from Manufacturing Enterprises in Vietnam. https://ideas.repec.org/p/pra/mprapa/119170.html
Indriyani, E. P., Suhariadi, F., Lestari, Y. D., Aldhi, I. F., Rahmawati, E., Hardaningtyas, D., & Abbas, A. (2025). Sustaining infrastructure firm performance through strategic orientation: Competitive advantage in dynamic environments. Sustainability, 17(3), 1194. https://doi.org/10.3390/su17031194
Kafetzopoulos, P., & Kafetzopoulos, D. (2026). The influence of Industry 4.0 capabilities on organizational exploration and exploitation. International Journal of Industrial Engineering and Operations Management, 1-18. https://doi.org/10.1108/IJIEOM-10-2025-0263
Kaneku-Orbegozo, J., Martinez-Palomino, J., Sotelo-Raffo, F., & Ramos-Palomino, E. (2019). Applying Lean Manufacturing Principles to reduce waste and improve process in a manufacturer: A research study in Peru. In IOP Conference Series: Materials science and engineering (Vol. 689, pp. 012020). IOP Publishing. https://doi.org/10.1088/1757-899X/689/1/012020
Kato, T. (2021). Functional value vs emotional value: A comparative study of the values that contribute to a preference for a corporate brand. International Journal of Information Management Data Insights, 1(2), 100024. https://doi.org/10.1016/j.jjimei.2021.100024
Khalili, Y., Ahmadi, M., & Keshavarz Moraveji, M. (2026). Predictive Maintenance for ESPs: Enhancing Reliability, Efficiency, and Sustainability in Oil & Gas Professionals. International Journal of Reliability, Risk and Safety: Theory and Application, 9(1), 9-28. https://doi.org/10.22034/IJRRS.2026.9.1.2
Kong, T., & Feng, T. (2025). Enhancing supply chain resilience: the role of big data analytics capability and organizational ambidexterity. Industrial management & data systems, 125(7), 2348-2370. https://doi.org/10.1108/IMDS-07-2024-0674
Lassen, A. H., & Larsen, M. S. S. (2025). Manufacturing innovation for Industry 4.0: an innovation capability perspective. Journal of Manufacturing Technology Management, 36(9), 19-44. https://doi.org/10.1108/JMTM-09-2023-0414
López, E. J., Ruiz, J. E. P., Chávez, O. L., Muñoz, F., Velásquez, L. A. G., & Lugo, J. G. C. (2026). The Evolution of Mechatronics Engineering and Its Relationship with Industry 3.0, 4.0, and 5.0. Technologies, 14(2), 81. https://doi.org/10.3390/technologies14020081
Mashudi, Sulistiowati, R., Handoyo, S., Mulyandari, E., & Hamzah, N. (2023). Innovative Strategies and Technologies in Waste Management in the Modern Era Integration of Sustainable Principles, Resource Efficiency, and Environmental Impact. International Journal of Science and Society, 5(4), 87-100. https://ijsoc.goacademica.com/index.php/ijsoc/article/view/767
Micheli, P. (2026). Operations & supply chain management: principles and practice. International Journal of Production Research, 64(1), 330-513. https://wrap.warwick.ac.uk/190737/
Nagy, M., Figura, M., Valaskova, K., & Lăzăroiu, G. (2025). Predictive maintenance algorithms, artificial intelligence digital twin technologies, and internet of robotic things in big data-driven industry 4.0 manufacturing systems. Mathematics, 13(6), 981. https://doi.org/10.3390/math13060981
O'Higgins, D. (2023). Impacts of business architecture in the context of digital transformation: An empirical study using PLS-SEM approach. arXiv preprint arXiv:2307.11895. https://doi.org/10.48550/arXiv.2307.11895
Olodu, D. D., Ihenyen, O. I., & Erameh, A. (2026). Advancements and Emerging Trends in Mechanical Engineering Design and Manufacturing Processes: A Comprehensive Review. Bilge International Journal of Science and Technology Research, 10(1), 161-198. https://doi.org/10.30516/bilgesci.1608837
Otioma, C. (2023a). Information and communications technology capabilities, innovation and economic performance in Africa: The role of framework conditions, entrepreneurial activity and firm learning. https://doi.org/10.26481/dis.20230302co
Otioma, C. (2023b). IT capability, organisational learning and innovation performance of firms in Kenya. Journal of the knowledge economy, 14(3), 3489-3517. https://doi.org/10.1007/s13132-021-00886-8
Pires, P. B., Prisco, M., Delgado, C., & Santos, J. D. (2024). A conceptual approach to understanding the customer experience in e-commerce: An empirical study. Journal of theoretical and applied electronic commerce research, 19(3), 1943-1983. https://doi.org/10.3390/jtaer19030096
Quesado, P., Marques, S., Silva, R., & Ribeiro, A. (2022). The balanced scorecard as a strategic management tool in the textile sector. Administrative Sciences, 12(1), 38. https://doi.org/10.3390/admsci12010038
Rashed, M., Uddin, M. K., Islam, M. F., Faisal-E-Alam, M., Tushar, H., & Ahmed, M. E. (2025). Building resilient organizations: The role of technological capability, innovation leadership, and sustainability. Global Journal of Flexible Systems Management, 26(4), 963-995. https://doi.org/10.1007/s40171-025-00471-x
Reichert, F. M., Janissek-Muniz, R., Heinze, M., Cainelli, A. d. S., & Zawislak, P. A. (2020). Innovation Capabilities and the role of Strategic Intelligence. https://aisel.aisnet.org/confirm2020/13
Sathiri, M. (2026). Predictive Maintenance Models for Smart Manufacturing Systems. IJARCCE, 11(12). https://short-url.cc/1wij3
Seraj, A. H. A., & Sundram, V. P. K. (2026). Optimization of Mechanical Companies Production Performance through the Operations Management Models: Moderating Role of Technology Capability. Reports in Mechanical Engineering, 7(1), 152-168. https://doi.org/10.31181/rme569
Setiyo, M., & Rochman, M. L. (2023). The role of mechanical engineering in the era of industry 4.0 and society 5.0. Mechanical Engineering for Society and Industry, 3(2), 54-56. https://doi.org/10.31603/mesi.10786
Sharabati, A.-A. A., Ali, A. A. A., Allahham, M. I., Hussein, A. A., Alheet, A. F., & Mohammad, A. S. (2024). The impact of digital marketing on the performance of SMEs: An analytical study in light of modern digital transformations. Sustainability, 16(19), 8667. https://doi.org/10.3390/su16198667
Stojanović, J., & Milovanović, G. (2020). The importance of lean manufacturing and six sigma concept for quality management of supply chain business processes. Facta Universitatis, Series: Economics and Organization, 285-297. https://doi.org/10.22190/FUEO200118021S
Valamede, L. S., & Akkari, A. C. S. (2020). Lean 4.0: A new holistic approach for the integration of lean manufacturing tools and digital technologies. https://doi.org/10.33889/IJMEMS.2020.5.5.066
Vărzaru, A. A., & Bocean, C. G. (2024). Digital transformation and innovation: The influence of digital technologies on turnover from innovation activities and types of innovation. Systems, 12(9), 359. https://doi.org/10.3390/systems12090359
Veile, J. W., Kiel, D., Müller, J. M., & Voigt, K.-I. (2020). Lessons learned from Industry 4.0 implementation in the German manufacturing industry. Journal of Manufacturing Technology Management, 31(5), 977-997. https://doi.org/10.1108/JMTM-08-2018-0270
Wang, K., Xu, X., Mao, P., Deng, X., & Cao, D. (2026). Digital transformation and organizational readiness: evidence from Chinese construction SMEs with a dynamic managerial capabilities lens. Engineering, Construction and Architectural Management, 33(7), 5783-5819. https://doi.org/10.1108/ECAM-01-2025-0069
Wichitsathian, S., & Ekkaphol, S. (2025). The mediating role of sustainable competitive advantage: A comparative study of disaggregated vs. holistic models in green hotels. Sustainability, 17(19), 8954. https://doi.org/10.3390/su17198954
Zainurossalamia, S. Z., Martiyanti, D., NoorlitariaAchmad, G., Lesmana, D., & Yudaruddin, R. (2022). Impact of operational activities on customer satisfaction in cafes and restaurants: A mediating role of infrastructural elements. Innovative Marketing, 18(4), 13-24. https://doi.org/10.21511/im.18(4).2022.02
Zehir, C., Allaham, M. V., & Mamedov, Z. (2024). A bibliometric study on Turkey-Azerbaijan economic relations. Yönetim ve Ekonomi Dergisi, 31(2), 227-246. https://tinyurl.com/3z8k9f8k
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Reports in Mechanical Engineering
This work is licensed under a Creative Commons Attribution 4.0 International License.