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Operational leanness and retail firm performance since 1980

Author

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  • Kroes, James R.
  • Manikas, Andrew S.
  • Gattiker, Thomas F.

Abstract

Lean is one of the most pervasive and powerful paradigms in Operations and Supply Chain Management. As a theory, lean has been well tested in manufacturing. Lean in retail has received less attention. There is good reason to think that seminal constructs from lean, such as inventory slack reduction and capacity slack reduction, may explain a great deal of the variance in retail firm performance. Therefore this paper tests lean-based propositions pertaining to the relationships between inventory slack, capacity slack, market instability and firm market performance. Using retail firm data from a 35 year period, we find that lean thinking in its basic unadorned form helps explain retail performance remarkably well. From both a snapshot and quarterly difference perspective and regardless of whether we look at capacity slack or inventory slack, lean produces superior, lasting returns for retailers.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:proeco:v:197:y:2018:i:c:p:262-274
    DOI: 10.1016/j.ijpe.2018.01.006
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    3. Sohail Ahmad Javeed & Tze San Ong & Rashid Latief & Haslinah Muhamad & Wei Ni Soh, 2021. "Conceptualizing the Moderating Role of CEO Power and Ownership Concentration in the Relationship between Audit Committee and Firm Performance: Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 13(11), pages 1-26, June.
    4. Patel, Pankaj C. & Struckell, Elisabeth M. & Ojha, Divesh & Manikas, Andrew S., 2020. "Retail store churn and performance – The moderating role of sales amplitude and unpredictability," International Journal of Production Economics, Elsevier, vol. 222(C).
    5. Fournier, Pierre-Luc & Chênevert, Denis & Jobin, Marie-Hélène, 2021. "The antecedents of physicians’ behavioral support for lean in healthcare: The mediating role of commitment to organizational change," International Journal of Production Economics, Elsevier, vol. 232(C).

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