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1 – 10 of 467Gusman Nawanir, Kong Teong Lim, Siti Norezam Othman and A.Q. Adeleke
The purpose of this paper is to provide valid and reliable constructs for lean manufacturing (LM) for assessing its implementation level in order to target areas of improvement.
Abstract
Purpose
The purpose of this paper is to provide valid and reliable constructs for lean manufacturing (LM) for assessing its implementation level in order to target areas of improvement.
Design/methodology/approach
Based on an extensive review on LM literature and content validity assessment from practitioners and academicians, nine LM constructs were identified. Measurement items for each construct were developed to become a complete questionnaire. The questionnaire booklets were distributed to large and discrete manufacturing companies in Indonesia. Out of 1,000 survey questionnaires sent, 236 usable responses were returned giving response rate of 23.60 percent. Subsequently, an empirical assessment on the constructs was done by using structural equation modeling approach.
Findings
The study identified the valid and reliable LM constructs, consisting of nine LM constructs and 64 measurement items. The study found that all the constructs are complementary and mutually supportive with each other. Indeed, it suggests the holistic implementation of all the LM practices.
Research limitations/implications
Owing the time and resource constraint, this study only involved large and discrete process manufacturing industries in Indonesia. Hence, the generalization of the result is slightly limited. More studies in several different contexts are required.
Practical implications
This study provided a valuable tool for researchers for gaining deeper understanding regarding the LM and its implementation. For practitioners, it is useful to evaluate the degree of LM employment in their companies, to target area of improvement, as well as to take possible actions in attempting to enhance the organizational performance. More importantly, practitioners should adopt all the LM practices in a holistic manner.
Originality/value
This study is the first attempt to develop LM constructs for evaluating the LM implementation in Indonesia.
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Ambra Galeazzo, Andrea Furlan and Andrea Vinelli
Drawing on the theoretical concept of organisational fit, this paper questions the relevance of employees' participation in the link between continuous improvement (CI) and…
Abstract
Purpose
Drawing on the theoretical concept of organisational fit, this paper questions the relevance of employees' participation in the link between continuous improvement (CI) and operational performance. The literature has long emphasised that to be successful, CI implementation needs to rely on employees' involvement as soon as its inception. This paper argues that this approach is not generalisable.
Design/methodology/approach
Based on a database of 330 firms across 15 countries, regression analyses were used to hypothesise that the fit between CI and employee participation is positively associated with operational performance, and that the fit between CI and centralisation of authority is negatively associated with operational performance. The authors also ran a robustness check with polynomial regression analyses and the response surface methodology.
Findings
CI–employee participation fit is positively associated with operational performance, suggesting that there is less need for employees to be involved when a firm has scarcely developed CI. Employee participation becomes gradually more relevant as CI progresses. Moreover, the results demonstrate that the CI–centralisation of authority fit is negatively associated with operational performance, suggesting that a top-down management approach with centralised authority is preferable when CI is low, whereas a bottom-up management approach is helpful when a firm has extensively developed CI.
Originality/value
This research draws on the concept of organisational fit to explore the relationships between internal practices in the operations management literature. The authors suggest that managers should dynamically balance the practices of employee participation and centralisation of authority as CI improves. This study highlights that CI has different evolutionary levels that require different managerial approaches and practices.
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C. Forza and A. Vinelli
This paper offers a framework in order to examine the temporal sequences of the activities and decisions of the textile apparel chain and to present the prospects for improvement…
Abstract
This paper offers a framework in order to examine the temporal sequences of the activities and decisions of the textile apparel chain and to present the prospects for improvement initiatives throughout the various production and distribution chain phases, whether in terms of technology or of organisation and management. This paper focuses on the methods, techniques and approaches that could be adopted throughout the entire chain in order to obtain a set of coherent improvements to achieve quick response (QR). The fundamental improvement stages are considered to be: reduction of lead times in supplying fabric; reduction of lead times in producing a garment; and innovative relationships with the distributors. The structural and infrastructural changes required for a QR approach are also analysed, and the need for a systemic view of the chain is highlighted.
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Ville Hallavo, Markku Kuula and Antero Putkiranta
The purpose of this paper is to study the effects of lean in a longitudinal context. Lean is currently experiencing its second coming. In spite of this, the current body of…
Abstract
Purpose
The purpose of this paper is to study the effects of lean in a longitudinal context. Lean is currently experiencing its second coming. In spite of this, the current body of research on lean is especially lacking in longitudinal studies.
Design/methodology/approach
The methodology used in this study is a longitudinal case study. The authors combined elements of multiple-case study and survey research by analyzing interview data on the same 23 Finnish manufacturing firms at three distinct points in time (1993, 2004 and 2010) with a methodology called qualitative comparative analysis (QCA) that is novel to the field.
Findings
The “thick” results of our exploratory contingency theoretic analysis suggest that the holistic and adaptive use of lean bundles is effective. It seems that especially the firm status of ownership and the phase of the business cycle exert an impact on successful lean bundle use. There is also evidence that a certain maturation effect takes place within lean bundle use: lean is increasingly being used as a complete management philosophy.
Research limitations/implications
The authors hope that this research encourages researchers to use more QCA in their research, especially with small samples.
Originality/value
This is a unique longitudinal study on the same 23 manufacturing firms and their development. Furthermore, this study opens new avenues for lean theory development, introduces a new methodology to the field and helps decision makers to gain a better understanding of the long-term dynamics of lean.
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Fabiane Letícia Lizarelli, José Carlos de Toledo, Lillian Do Nascimento Gambi and Celso Luiz Gonçalves
This paper investigates whether adopting continuous improvement (CI) behaviors is related to better radical and incremental product and process innovation performance and…
Abstract
Purpose
This paper investigates whether adopting continuous improvement (CI) behaviors is related to better radical and incremental product and process innovation performance and identifies whether CI behaviors positively affect respondent perceptions on CI contributions to innovation performance.
Design/methodology/approach
Data were collected from 139 firms in Brazil, and cluster analysis was used to identify groups with different CI adoption levels. The nonparametric Wilcoxon–Mann–Whitney test was used to verify differences in innovation performance at companies via manager perceptions on CI and innovation.
Findings
Data show that more CI behavior implementation was associated with better product and process innovation performance. Furthermore, companies with more mature CI behavior levels innovate more, which may reinforce CI investments.
Practical implications
Organizational managers focused on innovation should dedicate time to evaluating and developing CI behaviors, and maturing CI philosophies to improve performance. This study can contribute to the literature by offering insights for developing public policies, especially for emerging economies, or for companies seeking to become more competitive, since CI can foster and promote a culture of long-term innovation.
Originality/value
Despite the fact that a relationship between CI and operational performance has already been established, there is still a lack of research that identifies the impacts of CI behavior on innovation. Focusing on CI behavior is important because it can be fostered by various programs and improvement initiatives, highlighting paths for managerial practices and academia. This study was conducted for an emerging economy.
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Andrea Furlan, Andrea Vinelli and Giorgia Dal Pont
The paper aims to test and validate the complementarity effects on operational performance of two of the main lean manufacturing bundles, just‐in‐time (JIT) and total quality…
Abstract
Purpose
The paper aims to test and validate the complementarity effects on operational performance of two of the main lean manufacturing bundles, just‐in‐time (JIT) and total quality management (TQM). The paper also explores the role played by the human resource management (HRM) bundle as an enhancer of the complementarity between JIT and TQM.
Design/methodology/approach
The paper is based on statistical analysis on the high performance manufacturing round III database, a survey that involves 266 plants in nine countries across three different industries (electronics, machinery and transportation components).
Findings
The paper proves the existence of complementarity between JIT and TQM and shows the enabling role of HRM on such complementarity.
Research limitations/implications
The paper provides analytical and empirical argumentations showing that JIT and TQM mutually reinforce each other's marginal returns on operational performance. The study also indicates that only those plants characterized by a significant implementation of HRM practices enjoy the complementarity effects of TQM and JIT on operational performance.
Practical implications
The research suggests a pattern of improvements where JIT and TQM have to be implemented hand‐in‐hand to take full advantage of their complementarity. HRM, the soft part of lean initiatives, provides the ground over which complementarity originates, spreading its benefits throughout the organization.
Originality/value
The study represents one of the few attempts trying to operationalize and empirically validate the concept of complementarity. The study also provides original suggestions to practitioners on how to make the most out of lean initiatives.
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Elena Bonel, Paolo Pellizzari and Elena Rocco
The concept of coopetition is founded on the complementarity‐based nature of this strategy. However, coopetition research has devoted relatively little attention to…
Abstract
The concept of coopetition is founded on the complementarity‐based nature of this strategy. However, coopetition research has devoted relatively little attention to complementarity issues and their impact on coopetition results. By bridging the coopetition and economics of complementarities research fields, we develop a model representing a classical optimization problem in complementarities as applied to coopetition in order to evaluate potential risks deriving at an operational level from implementing a coopetition strategy. The model we develop is a situated one and is based on empirical data from a longitudinal case study of coopetition in the mineral water and soft drinks industry. The results highlight a potential risk of coopetition strategies – namely, thresholds effects – as well as the associated risks a wrong understanding of complementarities in a coopetition setting may entail.
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Sven Januszek, Torbjørn H. Netland and Andrea Furlan
Do managers at different hierarchical levels in a firm perceive the effectiveness of a lean program differently, and does it matter for their commitment to it and the resulting…
Abstract
Purpose
Do managers at different hierarchical levels in a firm perceive the effectiveness of a lean program differently, and does it matter for their commitment to it and the resulting lean implementation? This study answers these questions by analyzing the perceptions and behaviors of top and middle managers in a manufacturer deploying a global lean program.
Design/methodology/approach
The authors hypothesize that managers at different levels perceive lean programs differently, which, in turn, should affect their commitment to lean and the resulting implementation. To test these relationships empirically, the authors collect survey data from a global manufacturer in the process industry and analyze them using hierarchical linear regression and structural equation modeling.
Findings
The findings show that middle managers perceive lean programs as more effective than top managers do. They further show that higher commitment from the top and middle managers to the lean program is positively related to building the organizational infrastructure needed for lean implementation.
Research limitations/implications
This research is conducted in one global company. Although the research setting implicitly controls for many possible confounding variables, such as the product and process complexity or organizational culture, future research can explore and test the findings in other organizational contexts.
Originality/value
This study is the first to empirically study the relations between perceptions of and commitment to lean programs across different hierarchical levels and what it means for program implementation. The paper contributes new plausible explanations for why many lean programs slow down.
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Arnaldo Camuffo and Alberto Poletto
The paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management…
Abstract
Purpose
The paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management systems and “S-curve” effects in lean implementation are used to ground the paper's hypotheses and interpret its findings.
Design/methodology/approach
Using the emerging view of lean as enterprise-wide management systems, this quasi-experimental study uses a difference-in-differences approach to estimate the abnormal profitability (ROIC) attributable to lean management system adoption. The paper leverages a unique data set of lean adopters nested in a panel data set (19 years) of 2,088 industrial firms matched by industry and firm size. It applies a variety of regression methods (two-way fixed effect panel estimator, propensity score matching, instrumental variable two-stage-least squares) to estimate the size of the abnormal profitability attributable to lean management systems, addressing endogeneity issues related to non-random sampling, omitted variable bias and reverse causation. It also analyzes the cross-firm variability of such abnormal profitability and how it accrues over time.
Findings
For the average non-adopter in the sample (44.3 million euro revenues), lean adoption generates abnormal ROIC ranging from 1.4% to 3.9%. These results come into effect approximately three years after starting lean adoption and peak after eight years. While the average abnormal profitability attributable to lean adoption is sizable, it varies significantly across firms and over time. This significant variation is compatible with firms' diverse ability to understand the complex inner workings of lean systems, and to design and implement them so that they improve profitability.
Research limitations/implications
The conceptualization of lean as enterprise-wide management system can be further refined to more effectively categorize the components of lean systems and investigate the nature of their relationships. Lean system adoption measurement can be fine-tuned to better capture cross-firm and longitudinal heterogeneity. Future work can explore other dependent variables of interest to different stakeholders including shareholders' value, employment and environmental and social sustainability.
Practical implications
The financial benefits of adopting lean can be reaped to the extent to which managers embrace lean as a philosophy and implement it pervasively in the organization. A firm can use the study's estimates as a basis for making calculations about the returns of investment in lean adoption. The paper also shows that “getting the lean system right” makes a significant difference in terms of abnormal profitability, which is twice as large for the best lean adopters..
Social implications
Compared with the promises of many lean proponents and supporters, the paper provides a more realistic view of what to expect from lean adoption in terms of profitability. Adopting lean as a comprehensive, enterprise-wide management system is not a universal panacea, but a complex endeavor, characterized by multiple complex decisions that require considerable capabilities, coordinated efforts and consistency of action.
Originality/value
Differently from extant research, this study does not study the correlation between the adoption of lean operation practices and financial performance but focuses on the abnormal profitability generated by the adoption of lean as a pervasive, enterprise-wide management system. Its research design allows to identify the differential profitability attributable to lean adoption and documents that it accrues non-linearly.
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