Abstract: The Performance Excellence Model (PEM) presents a systematic management framework for organizations, and previous studies have extensively explored its effectiveness. However, whether the PEM positively impacts the operational management of manufacturing enterprises and how it improves the business performance of manufacturing enterprises require further exploration. This paper uses 299 manufacturing enterprises that have won government quality awards as the sample and conducts questionnaire survey and data collection through offline symposia. The data are analyzed using paired-samples t-test, structural equation modeling (SEM) and fuzzy-set qualitative comparative analysis (fsQCA). The results show that implementing the PEM can significantly improve the achievement of process activities and the business performance of manufacturing enterprises. Leadership has a significant direct effect on Strategy; Strategy has a significant direct effect on Customer and Market as well as Process Management; Customer and Market have a significant direct effect on Human Resources; Human Resources and Process Management have significant direct effects on Business Performance; Measurement, Analysis and Improvement has a significant direct effect on other process activities. In addition, high business performance of manufacturing enterprises cannot be achieved by any single process activity. We find that there are six different configurations of process activities that can make manufacturing enterprises achieve high business performance. In summary, this study not only validates the effectiveness of the PEM in the operational management of manufacturing enterprises, but also provides managerial insights for manufacturing enterprises to improve their business performance.

Key words: Performance Excellence Model (PEM), business performance, manufacturing enterprises, quality management, quality awards