IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v160y2015icp157-171.html
   My bibliography  Save this article

Internal lean practices and performance: The role of technological turbulence

Author

Listed:
  • Chavez, Roberto
  • Yu, Wantao
  • Jacobs, Mark
  • Fynes, Brian
  • Wiengarten, Frank
  • Lecuna, Antonio

Abstract

Drawing upon resource dependence theory, this study investigates the linkages from supplier partnership and customer relationship to internal lean practices. Furthermore, this study investigates the linkages from internal lean practices (ILP) to operational performance and organizational performance, and assesses the contingency perspective of these relationships with respect to technological turbulence. The study is based on a questionnaire sent to 228 manufacturing companies in the Republic of Ireland, and the relationships proposed analyzed with structural equation modeling and OLS regression. The results reveal the importance of supply chain relationships, in particular through supplier partnership and customer relationship, in that they are positively associated with ILP. Further, the study finds that ILP are positively associated with both operational and organizational performance. This study also adds to the understanding of the circumstances under which ILP impact performance in that technological turbulence was found to negatively moderate the linkages between ILP and operational performance and ILP and organizational performance. While lean practices can stimulate improved operational and organizational performance, this relationship is not monotonic and is timely to consider the rate of technological change at the time of implementing lean manufacturing.

Suggested Citation

  • Chavez, Roberto & Yu, Wantao & Jacobs, Mark & Fynes, Brian & Wiengarten, Frank & Lecuna, Antonio, 2015. "Internal lean practices and performance: The role of technological turbulence," International Journal of Production Economics, Elsevier, vol. 160(C), pages 157-171.
    • Handle: RePEc:eee:proeco:v:160:y:2015:i:c:p:157-171
    DOI: 10.1016/j.ijpe.2014.10.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527314003193
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2014.10.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michael Song & Cornelia Droge & Sangphet Hanvanich & Roger Calantone, 2005. "Marketing and technology resource complementarity: an analysis of their interaction effect in two environmental contexts," Strategic Management Journal, Wiley Blackwell, vol. 26(3), pages 259-276, March.
    2. Trkman, Peter & McCormack, Kevin, 2009. "Supply chain risk in turbulent environments--A conceptual model for managing supply chain network risk," International Journal of Production Economics, Elsevier, vol. 119(2), pages 247-258, June.
    3. Richard E. White & John N. Pearson & Jeffrey R. Wilson, 1999. "JIT Manufacturing: A Survey of Implementations in Small and Large U.S. Manufacturers," Management Science, INFORMS, vol. 45(1), pages 1-15, January.
    4. Callen, Jeffrey L. & Fader, Chris & Krinsky, Itzhak, 2000. "Just-in-time: A cross-sectional plant analysis," International Journal of Production Economics, Elsevier, vol. 63(3), pages 277-301, January.
    5. Ben Naylor, J. & Naim, Mohamed M & Berry, Danny, 1999. "Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 107-118, May.
    6. Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
    7. Abdulmalek, Fawaz A. & Rajgopal, Jayant, 2007. "Analyzing the benefits of lean manufacturing and value stream mapping via simulation: A process sector case study," International Journal of Production Economics, Elsevier, vol. 107(1), pages 223-236, May.
    8. Danny Miller, 1987. "The structural and environmental correlates of business strategy," Strategic Management Journal, Wiley Blackwell, vol. 8(1), pages 55-76, January.
    9. Kannan, Vijay R. & Tan, Keah Choon, 2005. "Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance," Omega, Elsevier, vol. 33(2), pages 153-162, April.
    10. Donald Gerwin, 1993. "Manufacturing Flexibility: A Strategic Perspective," Management Science, INFORMS, vol. 39(4), pages 395-410, April.
    11. Gunasekaran, A. & Patel, C. & McGaughey, Ronald E., 2004. "A framework for supply chain performance measurement," International Journal of Production Economics, Elsevier, vol. 87(3), pages 333-347, February.
    12. Cannon, Alan R., 2008. "Inventory improvement and financial performance," International Journal of Production Economics, Elsevier, vol. 115(2), pages 581-593, October.
    13. Droge, Cornelia & Vickery, Shawnee K. & Jacobs, Mark A., 2012. "Does supply chain integration mediate the relationships between product/process strategy and service performance? An empirical study," International Journal of Production Economics, Elsevier, vol. 137(2), pages 250-262.
    14. Sadao Sakakibara & Barbara B. Flynn & Roger G. Schroeder & William T. Morris, 1997. "The Impact of Just-in-Time Manufacturing and Its Infrastructure on Manufacturing Performance," Management Science, INFORMS, vol. 43(9), pages 1246-1257, September.
    15. Yang, Ma Ga (Mark) & Hong, Paul & Modi, Sachin B., 2011. "Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms," International Journal of Production Economics, Elsevier, vol. 129(2), pages 251-261, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bendig, David & Brettel, Malte & Downar, Benedikt, 2018. "Inventory component volatility and its relation to returns," International Journal of Production Economics, Elsevier, vol. 200(C), pages 37-49.
    2. Bortolotti, Thomas & Romano, Pietro & Martínez-Jurado, Pedro José & Moyano-Fuentes, José, 2016. "Towards a theory for lean implementation in supply networks," International Journal of Production Economics, Elsevier, vol. 175(C), pages 182-196.
    3. Genc, Talat S. & De Giovanni, Pietro, 2020. "Closed-loop supply chain games with innovation-led lean programs and sustainability," International Journal of Production Economics, Elsevier, vol. 219(C), pages 440-456.
    4. Oskar P. Roemeling & Martin J. Land & Kees Ahaus & Jannes Slomp & Wouter van den Bijllaardt, 2017. "Impact of lean interventions on time buffer reduction in a hospital setting," International Journal of Production Research, Taylor & Francis Journals, vol. 55(16), pages 4802-4815, August.
    5. Li, Lixu & Zhu, Wenwen & Wei, Long & Yang, Shuili, 2022. "How can digital collaboration capability boost service innovation? Evidence from the information technology industry," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    6. Nina Shin & Sun Hyun Park & Sangwook Park, 2019. "Partnership-Based Supply Chain Collaboration: Impact on Commitment, Innovation, and Firm Performance," Sustainability, MDPI, vol. 11(2), pages 1-19, January.
    7. Fabiane Letícia Lizarelli & Jiju Antony & José Carlos Toledo, 2020. "Statistical thinking and its impact on operational performance in manufacturing companies: an empirical study," Annals of Operations Research, Springer, vol. 295(2), pages 923-950, December.
    8. Akmal, Adeel & Greatbanks, Richard & Foote, Jeff, 2020. "Lean thinking in healthcare – Findings from a systematic literature network and bibliometric analysis," Health Policy, Elsevier, vol. 124(6), pages 615-627.
    9. Jain, Vineet & Raj, Tilak, 2016. "Modeling and analysis of FMS performance variables by ISM, SEM and GTMA approach," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 84-96.
    10. Kenneth Ugochukwu NNADI & Augustine Egwu NDU OKO, 2021. "The impact of Lean Inventory Management Practices on Firm Performance: A Study of Selected Oil and Gas Companies in Rivers State, Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 8(3), pages 123-135, March.
    11. Catherine Maware & David M. Parsley, 2022. "The Challenges of Lean Transformation and Implementation in the Manufacturing Sector," Sustainability, MDPI, vol. 14(10), pages 1-24, May.
    12. da Silva, Agostinho & Almeida, Isabel, 2020. "Towards INDUSTRY 4.0 | a case STUDY in ornamental stone sector," Resources Policy, Elsevier, vol. 67(C).
    13. Godinho Filho, Moacir & Marchesini, Antonio Gilberto & Riezebos, Jan & Vandaele, Nico & Ganga, Gilberto Miller Devós, 2017. "The application of Quick Response Manufacturing practices in Brazil, Europe, and the USA: An exploratory study," International Journal of Production Economics, Elsevier, vol. 193(C), pages 437-448.
    14. Wanzhu Wang & Qazi Salman Khalid & Muhammad Abas & Hao Li & Shakir Azim & Abdur Rehman Babar & Waqas Saleem & Razaullah Khan, 2021. "Implementation of POLCA Integrated QRM Framework for Optimized Production Performance—A Case Study," Sustainability, MDPI, vol. 13(6), pages 1-22, March.
    15. Yang, Yefei & Lee, Peter K.C. & Cheng, T.C.E., 2016. "Continuous improvement competence, employee creativity, and new service development performance: A frontline employee perspective," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 275-288.
    16. Roberto Chavez & Wantao Yu & Muhammad Shakeel Sadiq Jajja & Antonio Lecuna & Brian Fynes, 2020. "Can entrepreneurial orientation improve sustainable development through leveraging internal lean practices?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2211-2225, September.
    17. Chan, Hing Kai & Yee, Rachel W.Y. & Dai, Jing & Lim, Ming K., 2016. "The moderating effect of environmental dynamism on green product innovation and performance," International Journal of Production Economics, Elsevier, vol. 181(PB), pages 384-391.
    18. Abreu-Ledón, René & Luján-García, Darkys E. & Garrido-Vega, Pedro & Escobar-Pérez, Bernabé, 2018. "A meta-analytic study of the impact of Lean Production on business performance," International Journal of Production Economics, Elsevier, vol. 200(C), pages 83-102.
    19. Cong Zhou & Weili Xia & Taiwen Feng & Jijiao Jiang & Qingsong He, 2020. "How environmental orientation influences firm performance: The missing link of green supply chain integration," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 685-696, July.
    20. Chao-chao Liu & Zhan-wen Niu & Pei-Chann Chang & Bo Zhang, 2017. "Assessment approach to stage of lean transformation cycle based on fuzzy nearness degree and TOPSIS," International Journal of Production Research, Taylor & Francis Journals, vol. 55(23), pages 7223-7235, December.
    21. Marodin, Giuliano & Frank, Alejandro Germán & Tortorella, Guilherme Luz & Netland, Torbjørn, 2018. "Lean product development and lean manufacturing: Testing moderation effects," International Journal of Production Economics, Elsevier, vol. 203(C), pages 301-310.
    22. Shashi, & Centobelli, Piera & Cerchione, Roberto & Singh, Rajwinder, 2019. "The impact of leanness and innovativeness on environmental and financial performance: Insights from Indian SMEs," International Journal of Production Economics, Elsevier, vol. 212(C), pages 111-124.
    23. Chavez, Roberto & Yu, Wantao & Jacobs, Mark A. & Feng, Mengying, 2017. "Manufacturing capability and organizational performance: The role of entrepreneurial orientation," International Journal of Production Economics, Elsevier, vol. 184(C), pages 33-46.
    24. Minshull, Lauren Kate & Dehe, Benjamin & Kotcharin, Suntichai, 2022. "Exploring the impact of a sequential lean implementation within a micro-firm – A socio-technical perspective," Journal of Business Research, Elsevier, vol. 151(C), pages 156-169.
    25. Potter, Antony & Paulraj, Antony, 2021. "Unravelling supplier-laboratory knowledge spillovers: Evidence from Toyota's central R&D laboratory and subsidiary R&D centers," Research Policy, Elsevier, vol. 50(4).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roberto Chavez, 2014. "Supplier Partnership and Customer Relationship: The Role of Lean Practices," Working Papers 56, Facultad de Economía y Empresa, Universidad Diego Portales.
    2. Bergenwall, Amy L. & Chen, Chialin & White, Richard E., 2012. "TPS's process design in American automotive plants and its effects on the triple bottom line and sustainability," International Journal of Production Economics, Elsevier, vol. 140(1), pages 374-384.
    3. Rohit Kumar Singh & Sachin Modgil, 2023. "Assessment of Lean Supply Chain Practices in Indian Automotive Industry," Global Business Review, International Management Institute, vol. 24(1), pages 68-105, February.
    4. Ahammad, Mohammad Faisal & Basu, Shubhabrata & Munjal, Surender & Clegg, Jeremy & Shoham, Ofra Bazel, 2021. "Strategic agility, environmental uncertainties and international performance: The perspective of Indian firms," Journal of World Business, Elsevier, vol. 56(4).
    5. Sreedevi, R. & Saranga, Haritha, 2017. "Uncertainty and supply chain risk: The moderating role of supply chain flexibility in risk mitigation," International Journal of Production Economics, Elsevier, vol. 193(C), pages 332-342.
    6. Shashi, & Centobelli, Piera & Cerchione, Roberto & Singh, Rajwinder, 2019. "The impact of leanness and innovativeness on environmental and financial performance: Insights from Indian SMEs," International Journal of Production Economics, Elsevier, vol. 212(C), pages 111-124.
    7. Yana Fajriah & Orfyanny S Themba & Pattarapanna, 2016. "Effect of Supply Chain Management: Just in Time for Competitiveness and Corporate Performance in Industrial Area Manufacturing Company in Makassar," Information Management and Business Review, AMH International, vol. 8(2), pages 20-25.
    8. Chavez, Roberto & Yu, Wantao & Jacobs, Mark A. & Feng, Mengying, 2017. "Manufacturing capability and organizational performance: The role of entrepreneurial orientation," International Journal of Production Economics, Elsevier, vol. 184(C), pages 33-46.
    9. Kull, Thomas J. & Yan, Tingting & Liu, Zhongzhi & Wacker, John G., 2014. "The moderation of lean manufacturing effectiveness by dimensions of national culture: Testing practice-culture congruence hypotheses," International Journal of Production Economics, Elsevier, vol. 153(C), pages 1-12.
    10. Jajja, Muhammad Shakeel Sadiq & Chatha, Kamran Ali & Farooq, Sami, 2018. "Impact of supply chain risk on agility performance: Mediating role of supply chain integration," International Journal of Production Economics, Elsevier, vol. 205(C), pages 118-138.
    11. Olhager, Jan & Prajogo, Daniel I., 2012. "The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms," Omega, Elsevier, vol. 40(2), pages 159-165, April.
    12. Shakun Preet Kaur & Jatinder Kumar & Rakesh Kumar, 2017. "The Relationship Between Flexibility of Manufacturing System Components, Competitiveness of SMEs and Business Performance: A Study of Manufacturing SMEs in Northern India," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(2), pages 123-137, June.
    13. Prajogo, Daniel & Toy, Jordan & Bhattacharya, Ananya & Oke, Adegoke & Cheng, T.C.E., 2018. "The relationships between information management, process management and operational performance: Internal and external contexts," International Journal of Production Economics, Elsevier, vol. 199(C), pages 95-103.
    14. Kroes, James R. & Manikas, Andrew S. & Gattiker, Thomas F., 2018. "Operational leanness and retail firm performance since 1980," International Journal of Production Economics, Elsevier, vol. 197(C), pages 262-274.
    15. Fei Li & Jin Chen & Ying Ying, 2019. "Innovation Search Scope, Technological Complexity, and Environmental Turbulence: A N-K Simulation," Sustainability, MDPI, vol. 11(16), pages 1-12, August.
    16. Jacobs, Mark A. & Yu, Wantao & Chavez, Roberto, 2016. "The effect of internal communication and employee satisfaction on supply chain integration," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 60-70.
    17. Naveen Virmani & Rajeev Saha & Rajeshwar Sahai, 2018. "Evaluating key performance indicators of leagile manufacturing using fuzzy TISM approach," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 9(2), pages 427-439, April.
    18. Ra’ed Masa’deh & Ismail Muheisen & Bader Obeidat & Ashraf Bany Mohammad, 2022. "The Impact of Supply Chain Integration on Operational Performance: An Empirical Study," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    19. Jin Li & Lulu Zhou & Xufan Zhang & Zhihong Chen & Feng Tian, 2018. "Technological Configuration Capability, Strategic Flexibility, and Organizational Performance in Chinese High-Tech Organizations," Sustainability, MDPI, vol. 10(5), pages 1-17, May.
    20. Maria Rosário Moreira & Rui Alves, 2006. "How far from Just-in-time are Portuguese firms? A survey of its progress and perception," FEP Working Papers 215, Universidade do Porto, Faculdade de Economia do Porto.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:160:y:2015:i:c:p:157-171. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.