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The purpose of the study is to develop knowledge on the implementation of Hoshin Kanri (HK) in small manufacturing companies. Two research questions are addressed: (1) what factors influence the implementation of HK in small manufacturing companies? (2) How do the factors influence the implementation of HK in small manufacturing companies?

The research presented in this paper is based on an extensive literature review and data from the implementation process in five small manufacturing companies. In the literature review, factors influencing the implementation of HK, lean production and total quality management (TQM) in small manufacturing firms are identified. Thereafter, five implementation cases are analyzed. Findings from the cases are then contrasted with the factors identified in the literature and further theorized.

Seven factors were found to either enable or hamper HK implementation in small manufacturing companies. Management involvement was identified as a critical factor. Management involvement can be typologized as collaborative or demanding, and the types of involvement is decisive in implementation processes within the small manufacturing company context.

In this paper, the authors focus on small manufacturing companies as the starting point and relate theoretical and practical results to the implementation processes in this defined target group. Conceptualizing implementation as a learning process, this research contributes to this emerging perspective on small firm development.