Lean manufacturing implementation and performance: the role of economic volatility in an emerging economy

Abstract

PurposeThe purpose of this study is to explore the mediation effect of volatile economic conditions on performance benefits of successful kean manufacturing implementation (LMI). The mediating factor of economic volatility (EV) is constructed based on four macroeconomic dimensions – supplier uncertainty, market demand fluctuations, governmental policy changes and peer competition.Design/methodology/approachAn attempt is made to build an exhaustive list of the internal operational manifests grouped into one human and three technical input factors. Similarly the benefits accrued are collated under two performance measures – customer satisfaction (CS) and organizational goal satisfaction (OGS). Based on data from the Indian manufacturing sector, structural equation modelling (SEM) and ordinary least square (OLS) analyses are carried out to validate the proposed model.FindingsResults of the structural model validate the first six hypotheses posited in the model. Results of OLS further reveal the mediation effect of EV having negative impact on LMI–CS and LMI–OGS nexus.Practical implicationsThis research offers a fair understanding of the internal operational lean factors and the effect of volatile macroeconomic conditions on lean benefits. The structural model will aid the academicians and lean implementers comprehend the dimensional structure underlying the lean practices and beliefs. This work further helps to understand the moderation effect of environmental complexity on the output measures of LMI in the Indian manufacturing sector.Originality/valueThis work is one of the very first empirical analyses of lean performance under contingent economic conditions. The paper presents a valuable recommendation to practitioners for considering the dynamism of external economic environment instead of simply adopting standalone internal lean parameters, if satisfactory levels of performance in terms of CS and OGS are to be achieved.

Green market orientation, green value-based innovation, green reputation and enterprise social performance of Ghanaian SMEs: the role of lean management

“…The work of Chavez et al (2020) undertaken in Chile supports the current result, in that, lean and social performance was found to be associated. The current result is further supported by the works of previous studies (Silva et al , 2019; Basu et al , 2020; Sony and Naik, 2020). This result implies that SMEs in emergent countries that effectively apply lean methods can achieve superior social gains and address social issues, such as improving the quality of life of community members, which may consequently enhance social performance.…”

Transforming product development and production to be lean for improving business performance

“…The survey response rate was 58%. The response rates for Shashi et al (2019), Basu et al (2020), andCentobelli et al (2021) were 56.3%, 57.92%, and 36.74%, respectively. Thus, a response rate of 58% was sufficient for further analysis in this study.…”

A state-of-the-art digital factory integrating digital twin for laser additive and subtractive manufacturing processes

“…With the addition of consistent mass-produced goods, the market begins to get saturated. To deal with increased competition and diverse consumer demand, the lean manufacturing (LM) and flexible manufacturing (FM) concept was introduced in the 1970s (Basu et al , 2020). LM aims to increase customer value while eliminating waste, and this concept was attained from the Toyota production system (Black, 2007; Ohno and Bodek, 2019).…”