The lean-performance relationship in services: a theoretical model

Abstract

Purpose-The extant literature on lean service reveals a noticeable lack of theoretical models establishing the core constructs of lean service, their interrelation and impact on organizational performance. The purpose of this paper is to address this gap by proposing a theoretical model in which lean constructs are identified and operationalized to establish their interrelation and impact on organizational performance. Design/methodology/approach-This paper synthesizes information drawing on a systematic review of the literature on lean service, other relevant academic literature to develop a theoretical model and a set of propositions. Drawing on the universal theory, socio-technical systems theory and contingency theory (CT), the paper highlights and clarifies the potential impact of lean service on operational and financial performance. Findings-This study identifies a comprehensive set of lean technical practices, lean supportive practices, inhibitors and expected outcome of lean service. Expected relationships among those constructs are established by developing a conceptual framework with several propositions based on the relevant literature and the socio-technical system theory, the universal perspective and the CT, when relevant. Moreover, six influential contextual variables on the lean-performance relation are identified based on a review of the management accounting literature, organizational strategy literature and diversification literature to overcome limitations of previous studies. Originality/value-This paper covers a gap in the literature by identifying and operationalizing lean service constructs and offering a theoretical model with several propositions that establish relationships between lean constructs and overcome limitations in previous studies by identifying six contextual variables that are important factors in the lean-performance associations.

Is lean service promising? A socio-technical perspective

“…The system's reputation in helping Japanese manufacturers outperform their Western counterparts has captured the attention of scholars and practitioners around the world (Hadid and Mansouri, 2014). This is evident from the increasing number of studies examining its effectiveness in improving the performance of nonJapanese contexts (e.g.…”

“…Despite the inconclusiveness surrounding the effectiveness of lean manufacturing practices, organisations in the service sector have been encouraged to use them, leading to the emergence of the lean service concept (Hadid and Mansouri, 2014). Lean service (the implementation of lean manufacturing practices in services) was formally introduced into the literature by Bowen…”

“…These arguments leave service managers unclear whether lean manufacturing practices can be equally as valid for service-based processes, and substantiate the need for further research on lean system in the service context (Hadid and Mansouri, 2014;Staats et al, 2011). In response, this study seeks to answer the following question: Do lean system practices have an additive and/or non-additive (interaction) impact on operational and/or financial performance of for-profit service firms?…”

“…Agarwal et al, 2013). This ignores the potential performance enhancing interaction between these components, and hence the full potential of the lean system (Hadid and Mansouri, 2014). Secondly, previous studies have tended to investigate improvement capability at the operational level (e.g.…”

“…Thirdly, most researchers have examined the lean-performance relationship in the manufacturing context (Arlbjørn and Freytag, 2013), with much less attention to its effectiveness in the service context, prompting calls for more research (e.g. Hadid and Mansouri, 2014;Malmbrandt and Åhlström, 2013).…”