Mediating Impact of Manufacturing Technology, Lean and Strategic Flexibility on Manufacturing Performance

Abstract

In respect of Malaysian lean manufacturer; there has been insufficient research on what are the winning formulae to overcome the mounting challenges from the business environment. In this study, three identified strategies i.e lean, manufacturing technology and strategic flexibility, that could positively improve manufacturing performances, are investigated in depth. The research approach used was quantitative with data analyzed using SmartPLS. Results from this study also emphasize several interesting quasi - paradoxical relationships which implied that Malaysian lean manufacturers prefer a cautious approach towards manufacturing technology implementation, preferring to incorporate technology in a more stable business environment and view strategic flexibility as unfavorable toward performance improvement. In conclusion, this study manages to produce a strong predictive strategy-performance model, which explains the mediation impact of manufacturing strategies on external environmental factors and manufacturing performance.