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

• Main Authors: Damjan Maletič, Matjaž Maletič, Basim Al-Najjar, Boštjan Gomišček
• Format: Article
• Language: English
• Published: MDPI AG 2020-10-01
• Series: Sustainability
• Subjects: physical asset management; operational performance; ISO 55001; PLS-PM
• Online Access: https://www.mdpi.com/2071-1050/12/21/9097

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.