The Impact of Applying Kaizen on Improving Product Quality: A Case Study in the General Company for Electrical Industries

This work is licensed under a Creative Commons Attribution 4.0 International License. The license permits unrestricted use, distribution, and reproduction in any medium, on the condition that users give exact credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if they made any changes. The Impact of Applying Kaizen on Improving Product Quality: A Case Study in the General Company for Electrical Industries Khawlah Radhi Athab  Al-Qadisiyah University, College of Administration and Economics, Iraq Abstract This research aims to analyze the impact of implementing the Kaizen philosophy on improving product quality in the General Company for Electrical Industries in Iraq, through a field study based on the descriptive-analytical approach. The study focused on measuring the impact of three main Kaizen dimensions: continuous improvement, standardization, and employee Involvement, on product quality as the dependent variable. Data was collected using a questionnaire distributed to a random sample of 192 employees. The validity and reliability were confirmed using Cronbach's alpha, KMO, and Bartlett's tests. Pearson analysis results showed a strong and statistically significant correlation between the Kaizen dimensions and product quality. Multiple regression results indicated that the model explained 84.2% of the variation in product quality, with employee engagement having the greatest impact. Diagnostic tests of the model demonstrated its statistical validity and freedom from issues such as autocorrelation and multicollinearity. The study concluded that the comprehensive adoption of Kaizen enhances product quality, reduces defects, and increases customer satisfaction and performance efficiency. The study recommended activating employee engagement, implementing daily improvements, updating standard operating procedures, and linking incentives to development initiatives. The results of this research contribute to supporting decision-makers within government industrial institutions in Iraq to adopt continuous improvement practices as a strategic tool for achieving quality and competitiveness. Keywords: Kaizen, continuous improvement, product quality, standardization, employee participation. JEL Classification codes: L15, O15. Suggested citation: Athab, K.R. (2025). The Impact of Applying Kaizen on Improving Product Quality: A Case Study in the General Company for Electrical Industries. European Journal of Management, Economics and Business, 2(5), 99-112. DOI: 10.59324/ejmeb.2025.2(5).08 Introduction Given the competitive challenges facing industrial organizations, the search for effective strategies to improve quality has become imperative. Among these strategies, the Kaizen philosophy has emerged, focusing on the continuous improvement of processes and procedures within the organization through employee engagement and adopting a culture of continuous gradual change (Berhe, 2022). Numerous studies have demonstrated the effectiveness of Kaizen implementation in improving product quality, reducing waste, and enhancing operational efficiency, as demonstrated by studies by Mwenda & Gasper, 2022; Suárez-Barraza et al., 2021. Tekin et al., 2019, confirm that the implementation of Kaizen in large organizations contributed to improved work EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 5 | 2025 100 performance and reduced defect rates, while Otsuka & Ben-Mazwi, 2022, indicated that intensive training in Kaizen techniques enhanced the performance of spare parts suppliers in South Africa. Similarly, a study by Alkababji, 2023, concluded that combining target costing with continuous improvement contributed to achieving a sustainable competitive advantage in Palestinian industrial companies. A study (Shojaei et al., 2019) shows that integrating kaizen into the production management cycle led to a significant improvement in production performance in the automotive sector. Accordingly, this research aims to analyze the impact of kaizen implementation at the General Company for Electrical Industries by measuring the impact of its key dimensions (continuous improvement, standardization, and employee Involvement) on product quality, building on the results of previous studies that confirm a positive relationship between kaizen practices and improved quality and productivity. Research Problem Despite numerous studies examining the application of the Kaizen philosophy in various industrial sectors, there is a lack of studies examining the practical impact of implementing Kaizen dimensions (such as continuous improvement, standardization, and employee Involvement) on product quality within an Iraqi industrial environment, particularly in public companies. The relationship between these dimensions and achieving actual improvement in product quality remains unclear, raising a real question about the effectiveness of Kaizen implementation in a realworld context plagued by organizational, human, and economic challenges. Hence, the need for a field study based on quantitative data to analyze the impact of Kaizen implementation in the General Company for Electrical Industries. This is intended to bridge this knowledge gap and provide reliable results for improving production quality within Iraqi industrial establishments. The main research question : What is the impact of implementing Kaizen dimensions (continuous improvement, standardization, and employee Involvement) on improving product quality in the General Company for Electrical Industries in Iraq? Hypothesis 1There is no statistically significant relationship between the implementation of the continuous improvement dimension and product quality at the General Company for Electrical Industries . 2There is no statistically significant relationship between the implementation of the standardization dimension and product quality at the General Company for Electrical Industries . 3There is no statistically significant relationship between the implementation of the employee Involvement dimension and product quality at the General Company for Electrical Industries . 4There is no statistically significant effect of the combined Kaizen dimensions (continuous improvement, standardization, and employee Involvement) on product quality at the General Company for Electrical Industries. Literature Review The Kaizen philosophy is one of the most prominent continuous improvement methodologies that has received widespread attention in management and industrial literature, due to its impact on enhancing product quality and improving performance efficiency. Numerous applied studies have shown that adopting Kaizen directly contributes to reducing defect rates and improving productivity, as in the study by Tekin et al., 2019, which applied the Kaizen methodology in a major EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 5 | 2025 101 industrial company and demonstrated significant improvement in operational performance. The results of the study by Suárez-Barraza et al., 2021, also highlighted the importance of integrating Kaizen Kata in improving operational processes in service organizations. Berhe's study, 2022, focused on applying the philosophy in the Ethiopian chemical industry, demonstrating its positive impact on overall organizational performance. In the Arab context, Alkababji's study (2023) showed that combining target costing and continuous improvement contributed to achieving a sustainable competitive advantage in Palestinian companies. While Mwenda and Gasper (2022) focused on the relationship between quality improvement through kaizen and financial impact, they asserted that continuous improvements lead to reduced costs and maximized returns. Otsuka and Ben-Mazwi (2022) also demonstrated that intensive training in kaizen techniques enhanced the performance of spare parts suppliers in South Africa. Other studies have addressed the organizational and field aspects of kaizen implementation, such as Shojaei et al. (2019), which demonstrated that integrating kaizen into the production management cycle led to improved production performance in the automotive sector. Suwanda (2023) focused on the implementation of kaizen in Indonesian manufacturing companies and demonstrated improvements in quality and efficiency. Crisóstomo and Jiménez (2021) confirmed that the implementation of lean manufacturing tools such as 5S and kaizen contributed to increased productivity in the adhesives department. On the other hand, a study by Sam et al. (2021) discussed the impact of lean manufacturing tools on reducing defect rates, while a study by Sundararajan and Terkar (2022) demonstrated the success of implementing Kaizen principles in improving productivity in metal tool factories. In the Jordanian insurance industry, a study by Omoush et al. (2020) analyzed the impact of Kaizen success metrics on improving service quality . Within the context of improving human capital, a study by Minh and Quyen (2022) examined the relationship between human resource quality and Kaizen practices, explaining that adopting this philosophy enhances the effectiveness of human resources within organizations. A study by Prayuda (2020) also demonstrated the importance of continuous improvement through Kaizen in the automotive industry in terms of improving processes and reducing waste. This literature demonstrates that the implementation of Kaizen in its various dimensions leads to tangible improvements in the quality of products and services. However, most of these studies were conducted in environments other than Iraq, highlighting the need for an applied study within the local industrial context to measure the effectiveness of Kaizen in improving product quality in Iraqi institutions. Spatial and Temporal Limits The spatial boundaries of the study were defined within the General Company for Electrical Industries in Iraq, a government-owned industrial company that represents a suitable model for applying the Kaizen philosophy, given the nature of its production processes and the diversity of its activities. The temporal boundaries extended throughout the first quarter of 2025, during which data was collected and analyzed in the field using approved research tools. This allowed for measuring the impact of implementing Kaizen dimensions on product quality under the realistic operational and administrative conditions experienced by the company during this phase. Methodology This study relied on the descriptive-analytical approach to measure and analyze the impact of implementing Kaizen dimensions (continuous improvement, standardization, and employee Involvement) on product quality at the General Company for Electrical Industries in Iraq. Data were collected using a closed-ended questionnaire designed according to a five-point Likert scale, EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 5 | 2025 102 which included axes measuring the three Kaizen dimensions and product quality as the dependent variable. The validity and reliability of the study tool were verified through: - Internal consistency testing using Cronbach's alpha coefficient, which showed high values for all dimensions exceeding 0.80 . - Kmo and Bartlett's test was used to verify the validity of the data for factor analysis, with the test results being statistically significant at a significance level of 0.000 . The statistical software SPSS version 29 was used to analyze the data. The analysis steps included the following : - Analysis of the demographic characteristics of the respondents . - Descriptive analysis to measure the levels of sample members' responses using arithmetic means and standard deviations. - Pearson correlation coefficients were calculated to test the relationship between kaizen dimensions and product quality . - Conducting multiple regression analysis to measure the impact of kaizen dimensions on product quality . - Application of diagnostic tests to verify the validity of the regression model (multicollinearity, independence, normal distribution, and homogeneity of variance). Population and Sample The study population consisted of employees of the General Company for Electrical Industries. A simple random sampling method was used to select a representative sample of 192 individuals Where the minimum sample size was reached 175. The sample size was calculated using the statistical sampling equation used in social research, with a margin of error of 5%: 𝑛 = 𝑁 1+𝑁(𝑒2) (1) n = Required sample size, N = Total population size, e = Margin of error (typically set at 5% or 0.05 for a 95% confidence level). 𝑛 = 350 1 + 350(0.052)=175.7 The Theoretical Concept of the Research This research focuses on analyzing the relationship between the application of Kaizen dimensions as the independent variable and product quality as the dependent variable, using a model that combines theory and practice within an Iraqi industrial environment. Kaizen represents one of the most important concepts of continuous improvement, relying on gradual change through employee engagement and standardization of procedures to increase efficiency and reduce waste EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 5 | 2025 103 (Berhe, 2022). The Kaizen philosophy is an integrated management framework that includes three main dimensions: continuous improvement, standardization, and employee participation. The continuous improvement dimension refers to the ongoing efforts to improve daily processes and procedures without the need for radical or costly changes. This dimension is the cornerstone of the Kaizen philosophy, contributing to reducing defect rates and improving productivity (Mwenda & Gasper, 2022). Standardization, on the other hand, refers to the unification of procedures and operational processes to ensure stable performance and reduce variation in product quality, facilitating the process of monitoring and improvement (Tekin et al., 2019). While employee engagement is related to the extent to which they are involved in decision-making, offer suggestions, and assume responsibilities, which positively impacts team performance and enhances the spirit of belonging and innovation (Otsuka & Ben-Mazwi, 2022) . In contrast, product quality represents the dependent variable in this research, reflecting the product's ability to meet technical requirements and international standards, reduce defects, and increase customer satisfaction. Product quality is a direct indicator of the efficiency of internal operations and contributes to building a competitive advantage for industrial enterprises (Alkababji, 2023) . The importance of this theoretical concept lies in providing a comprehensive explanatory framework that helps understand how kaizen practices affect product quality improvement. Linking these variables within an Iraqi industrial setting also fills a knowledge gap in the current literature, which often focuses on the application of kaizen in international settings, without sufficiently addressing the organizational and economic challenges facing public industrial enterprises in Iraq (Shojaei et al., 2019; Suárez-Barraza et al., 2021). Therefore, this research not only tests causal relationships, but also contributes to providing practical recommendations based on a clear theoretical framework supported by empirical evidence. Results and Discussion Study Tool The tool for this research was a standardized questionnaire specifically designed to collect data from employees of the General Company for Electrical Industries, with the aim of measuring the impact of implementing Kaizen principles on product quality. The questionnaire was formulated in a closed format and used a five-point Likert scale to measure the degree of agreement with each statement, with responses ranging from (1) strongly disagree to (5) strongly agree. The questionnaire included three main sections : - Section One: Demographic Information This section included four main variables: gender (male/female), age group (less than 30 years, 30– 39 years, 40–49 years, 50 years and older), number of years of experience in the company (less than 5 years, 5–10 years, more than 10 years), and job title (administrative, technical, supervisory, senior administrative). This section aims to describe the characteristics of the sample and examine the impact of personal factors on the studied variables. - Section Two: Independent Variable – Kaizen Implementation This section contains three main dimensions representing the components of Kaizen, with five statements for each dimension: ▪ Continuous Improvement: Includes statements measuring the encouragement of gradual change, employee participation in improvement, review and implementation of suggestions, a EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 5 | 2025 104 continuous feedback system, and the extent to which improvement is considered an organizational culture. ▪ Standardization: Measures the clarity of standard procedures, the extent of adherence to them, the role of standardization in reducing variation, the alignment of training with procedures, and the role of standardization in supporting improvement . ▪ Employee Involvement: Assesses employee participation in decision-making, the use of their opinions in problem-solving, regularity of meetings, opportunities for skill development, and a reward system for improvement . - Section Three: Dependent Variable – Product Quality Contains eight statements measuring the extent of improvement in product quality over the recent period, the reduction in defect rates, the reduction in customer complaints, compliance with international specifications, consistency of production quality, the application of control at all stages, the role of employee performance in supporting quality, and the direct impact of Kaizen on quality . The validity and reliability of the instrument were confirmed through validity and reliability tests. Cronbach's alpha test results showed a high level of internal consistency for all dimensions, while KMO and Bartlett's tests demonstrated the validity of the data for factor analysis. This instrument was used to collect accurate quantitative data and analyze it statistically using SPSS version 29. Validity and Reliability of the Questionnaire Table 1. Cronbach’s Alpha Reliability Results for the Questionnaire Dimensions Variable/Dimension Number of Items Cronbach’s Alpha Continuous Improvement 5 0.87 Standardization 5 0.81 Employee Involvement 5 0.85 Kaizen (Independent Variable) 15 0.91 Product Quality (Dependent Variable) 8 0.88 Overall Questionnaire 23 0.93 Source: Prepared by the researcher based on sample data and SPSS29 program. The results of the reliability test using Cronbach's alpha coefficient showed that all dimensions of the questionnaire enjoyed a high degree of internal consistency, with values exceeding the acceptable limit of 0.70. The reliability value for the Kaizen dimensions ranged between 0.81 and 0.87, while the dependent variable "product quality" recorded a value of 0.88. The overall value of the questionnaire (0.93) indicates a very high level of reliability in the research instrument. Table 2. KMO and Bartlett’s Test Results for the Questionnaire Dimensions Variable/Dimension KMO Measure Bartlett’s Test – ChiSquare df Sig. (pvalue) Continuous Improvement 0.84 276.45 10 0.000 Standardization 0.81 245.12 10 0.000 Employee Involvement 0.85 291.33 10 0.000 Kaizen (Independent Variable) 0.90 1255.77 105 0.000 Product Quality (Dependent Variable) 0.88 693.66 28 0.000 Overall Questionnaire 0.93 2253.42 253 0.000 Source: Prepared by the researcher based on sample data and SPSS29 program EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 5 | 2025 105 The results of the KMO test indicate that the values of all dimensions exceeded 0.80, indicating the adequacy of the sample for conducting factor analysis. The results of the Bartlett test also showed that all statistical values were significantly significant at the 0.000 level, confirming the suitability of the data for factor structure analysis. The results reflect the validity of the tool to accurately measure the variables under study. Table 3. Pearson Correlation Coefficients Between Each Dimension/Variable and the Total Questionnaire Score Variable/Dimension Pearson Correlation with Total Score Sig. (p-value) Continuous Improvement 0.79 0.000 Standardization 0.74 0.000 Employee Involvement 0.81 0.000 Kaizen (Independent Variable) 0.89 0.000 Product Quality (Dependent Variable) 0.87 0.000 Source: Prepared by the researcher based on sample data and SPSS29 program Pearson's correlation coefficients show a strong and statistically significant relationship between all dimensions and the total questionnaire score, with values ranging from 0.74 to 0.89 at the 0.000 significance level. This indicates the consistency of the items of each dimension with the overall scale and their substantial relationship to the questionnaire content. The results reflect the internal construct validity of the measurement tool and its efficient representation of variables. Demographic Information Analysis Table 4. Demographic Characteristics of Respondents (n = 192) Demographic Variable Category Frequency (n) Percentage (%) Gender Male 122 63.5% Female 70 36.5% Age Group Less than 30 years 48 25.0% 30–39 years 68 35.4% 40–49 years 52 27.1% 50 years and above 24 12.5% Years of Experience Less than 5 years 38 19.8% 5–10 years 72 37.5% More than 10 years 82 42.7% Job Position Administrative Staff 40 20.8% Technical Staff 76 39.6% Supervisory Staff 46 24.0% Managerial Level 30 15.6% Source: Prepared by the researcher based on sample data and SPSS29 programmer The results show that the majority of participants were male (63.5%), and the most represented age group was 30–39 years old (35.4%). In terms of experience, 42.7% of participants had more than 10 years of experience, reflecting the career maturity of the sample. Technicians also constituted the largest proportion of participants in their jobs (39.6%), strengthening the credibility of the practical assessment of kaizen and product quality Figure 1 shows the demographic distribution. EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 5 | 2025 106 Figure 1. Demographic Distribution Source: Prepared by the researcher based on sample data and SPSS29 program Descriptive Statistics and Graphical Analysis It includes analysis and classification of answers according to the following Table 5. Table 5. Classification of Relative Importance and Likert Scale Result Mean Range Likert Scale Result Relative Importance 1.00 – 1.80 Strongly Disagree Very Low 1.81 – 2.60 Disagree Low 2.61 – 3.40 Neutral Moderate 3.41 – 4.20 Agree High 4.21 – 5.00 Strongly Agree Very High Source: Prepared by the researcher based on sample data and SPSS29 program Table 6. Descriptive Statistics – Continuous Improvement Statement Mean Std. Dev. Relative Importance (%) Result The company encourages incremental improvements in daily tasks. 4.12 0.71 82.4% High Employees identify areas for process improvement. 4.05 0.76 81.0% High Improvement suggestions are implemented regularly. 3.88 0.79 77.6% High EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 5 | 2025 107 Continuous feedback is used to improve performance. 4.01 0.74 80.2% High Improvement is part of company culture. 4.10 0.68 82.0% High Continuous Improvement (Overall) 4.03 0.74 80.6% High Source: Prepared by the researcher based on sample data and SPSS29 program The results indicate that the average response rate for the continuous improvement dimension was 4.03, with a relative importance score of 80.6%, reflecting a high level of agreement. The highest values were for the phrases "encouraging daily improvements" and "considering improvement as part of the company culture," at over 82%. This indicates an organizational commitment to implementing a continuous improvement approach within daily operations. Table 7. Descriptive Statistics – Standardization Statement Mean Std. Dev. Relative Importance (%) Result Work procedures are clearly defined. 4.00 0.77 80.0% High Employees follow standardized methods. 3.85 0.81 77.0% High Standardization reduces product variation. 3.92 0.78 78.4% High Training aligns with standard procedures. 3.97 0.73 79.4% High Improvement is linked to standardization. 4.05 0.69 81.0% High Standardization (Overall) 3.96 0.76 79.2% High Source: Prepared by the researcher based on sample data and SPSS29 program The results of the statistical description of the standardization dimension showed an overall mean of 3.96 with a relative significance of 79.2%, indicating participants' agreement on the effectiveness of standardization in the workplace. The highest response rate was 81% for the phrase "improvement is linked to standardization," followed by 80% for "clarity of procedures." The results reflect the organization's adoption of standardized practices that support stability and quality in operations. Table 8. Descriptive Statistics – Employee Involvement Statement Mean Std. Dev. Relative Importance (%) Result Employees participate in decisions. 4.15 0.66 83.0% High Staff input is used in solving problems. 4.10 0.71 82.0% High Feedback meetings are held regularly. 3.90 0.82 78.0% High Employees have opportunities to grow. 4.00 0.75 80.0% High Staff are rewarded for improvement efforts. 3.95 0.80 79.0% High Employee Involvement (Overall) 4.02 0.75 80.4% High Source: Prepared by the researcher based on sample data and SPSS29 program The results of the employee engagement dimension showed an overall mean of 4.02, with a relative significance of 80.4%, indicating a high degree of employee engagement in the workplace. The highest values were for the phrases "employee participation in decision-making" and "using their opinions to solve problems," at 83% and 82%, respectively. These results reflect an organizational culture that supports professional interaction and appreciation.