Performance effects of multiple control forms in a Lean organization: A quantitative case study in a systems fit approach

Abstract

The primary objective of this paper is to research and test how control forms function and perform in a Lean organization. In the present quantitative case study, we provide statistical support that Lean is a set of multiple control forms (output, behavioral, and social controls) that complement each other to enhance performance, i.e., it is a control package. Therefore, performance is increased if the average level of control forms is increased, and performance is further increased if the control forms are balanced at the same level representing a complementary effect between them. Moreover, we provide a refinement to the statistical approach in testing systems fit models like ours by supplementing the Euclidian distance with the city-block distance. In this way, we are able to show that the control forms in Lean have a balanced complementary effect on performance, which is distinct from a solely additive effect or no effect. The refined understanding of complementary effect between control forms, the notion of balance, in a Lean organization can be utilized in understanding and testing more general control package theory in other contexts. Our data are archival data spanning multiple years in a dedicated Lean organization. This Scandinavian organization has around 2,000 employees and produces small electronic components that are sold to business customers.

Performance management practices in lean manufacturing organizations: a systematic review of research evidence

“…Taken together, these contributions partially counter Kennedy and Widener's (2008), Fullerton, Kennedy, and Widener's (2013) and Kristensen and Israelsen's (2014) emphasis on accounting control and provide a more sophisticated and a more operations-centred view of how PM is structured and used in LMOs. In other words, our findings suggest that PM practices that have the most prominent relevance in an LMO may be those that are located closest to the actions on the shop floor and that explicitly address operational realities.…”

“…In the MCS literature, Kristensen and Israelsen (2014) approximate this effect statistically, but stop short of identifying the actual mechanisms underlying the effect of control systems on performance. In the OM literature, Pavlov and Bourne (2011) make a step towards explaining this, but do so only conceptually.…”

Controlling lean manufacturing in multidivisional organisations

“…For example, benchmarking could be used to share information about best practices and stimulate cooperation in improvement trajectories. Hence, where Kristensen and Israelsen (2014) showed that a balanced use of lean controls has a complementary effect on performance, the outcomes of this study suggest that there should also be a balance between these lean controls and the accounting-based controls that are important to HQ.…”

Social Network Analysis on Lean Production and World Class Manufacturing: how are associated in the literature?

“…• Group B -has 6 articles divided into two small groups of common themes, formed by Articles (DEMETER; MATYUSZ, 2011;KRISTENSEN;ISRAELSEN, 2014;PAIVA, 2010;WIENGARTEN;PAGELL, 2012;BORTOLOTTI;BOSCARI;DANESE, 2015;GONZALEZ;MARTINS, 2014). …”