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The main objective of this paper is to investigate the degree to which lean manufacturing (LM) practices are being implemented within Brazilian small and medium enterprises (SMEs), by defining what LM means, in the view of SMEs in Brazil. In addition, the paper investigates the relationship between LM implementation and performance of such companies. The research method used in this paper comprised of an exploratory survey using the partial least-square method with the structural equation modelling technique (PLS-SEM). The results show that the companies studied used practices in a fragmented manner, without a holistic view of LM, which is considered to be one of the most important parts of this approach. Only the constructs of statistical process control, total productive maintenance and employee involvement are being implemented as an integrated approach for Brazilian SMEs. These companies do not take other important constructs such as customer involvement, continuous flow, pull production, set-up time reduction, supplier development and supplier feedback into consideration as part of LM systems, despite using some practices in a dispersed manner. Concerning performance, the present study shows that even in a fragmented way, the implementation of these LM practices help these companies to achieve improvement in operational performance.

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Purpose This study aims to examine the impact of the servitization on the performance of small and medium enterprises (SMEs) in Brazil. Design/methodology/approach The study uses data from Brazilian SMEs and applies partial least squares structural equation modeling (PLS-SEM) to test the research hypotheses. Findings The findings suggest a positive relationship between servitization and SME performance. It is found that the strategy of offering base services does impact SME performance. Furthermore, servitization aims to promote a fit between environmental pressures and SME performance. Practical implications SMEs can use servitization to increase their performance in spite of their resources restrictions, size limitation and low level of service revenue. However, the adoption of servitization should be accompanied by managerial adjustments in servitization practices. Originality/value This paper is dedicated to investigating the servitization-performance relationship in the context of SMEs, which is not a usual research publication. Moreover, it adds to the servitization theory by demonstrating that it is not necessary to reach a critical mass of services to be profitable and base services may be also a source of revenues and profits.

This article makes a case for the importance of exploring patterns in the relationship between the adoption of lean manufacturing practices and business performance. This relationship has been described as ambiguous, because it has variously appeared to be positive, insignificant, and negative. Accordingly, this article tests this relationship for non-linearity and shows that it follows the S-Curve theory. A survey of manufacturing companies in an industrial cluster in Brazil was undertaken. This region faces infrastructural challenges, such as geographic distance between purchasers and suppliers and a shortage of skilled labor. Despite the conditions, these companies have significantly improved their operational, financial, and environmental performance through the adoption of lean practices. Thus, this article contributes to the literature on lean manufacturing by: (a) furthering the debate on the relationship between lean practices and business performance, and testing its adherence to the S-curve theory (Netland et al., 2015;Netland and Ferdows, 2016) by means of survey research; and (b) simultaneously testing operational, financial and environmental performance as a result of the adoption of lean manufacturing practices. As a consequence of the S-shaped relationship demonstrated, managers need to be aware of the presence of inertial and saturation points in the adoption of lean manufacturing practices, so they can correctly allocate resources for improving the adoption of lean practices.

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