IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v200y2018icp83-102.html
   My bibliography  Save this article

A meta-analytic study of the impact of Lean Production on business performance

Author

Listed:
  • Abreu-Ledón, René
  • Luján-García, Darkys E.
  • Garrido-Vega, Pedro
  • Escobar-Pérez, Bernabé

Abstract

Lean Production (LP) is one of the most common initiatives in Operations Management that firms adopt to boost their competitiveness. The purpose of this paper is to examine the extant research on the relationship between LP and business performance (BP). The study analyses the data from 30 articles published from 2000 to 2016 that meet two targeted criteria, that they have: (i) empirically analysed the relationship between LP, or any measure of LP, and at least one measure of BP, and (ii) reported the effect size of the relationship between LP and BP measured with Pearson's correlation coefficients or related methods. Distinctions are made between two different performance outcomes (financial and market) and six LP practices. Using the Hunter and Schmidt (2004) meta-analysis based correlations approach, the obtained results show that a positive and moderate relationship exists between aggregate level LP and aggregate level business performance (r ̅´ = 0.31). There is also a positive relationship with market performance, but not with financial performance. Only three individual practices are statistically related to business performance (Process Control and Improvement, Workforce Development, and Customer Focus). The country's level of economic development is also found to act as a moderating variable in several of the studied relationships and to have a greater effect in Emerging Economies than in Advanced Economies.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:proeco:v:200:y:2018:i:c:p:83-102
    DOI: 10.1016/j.ijpe.2018.03.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527318301403
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2018.03.015?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. Rakesh Kumar & Vikas Kumar, 2016. "Effect of lean manufacturing on organisational performance of Indian industry: a survey," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 17(3), pages 380-393.
    2. Ataseven, Cigdem & Nair, Anand, 2017. "Assessment of supply chain integration and performance relationships: A meta-analytic investigation of the literature," International Journal of Production Economics, Elsevier, vol. 185(C), pages 252-265.
    3. Donald Gerwin & Nicholas J. Barrowman, 2002. "An Evaluation of Research on Integrated Product Development," Management Science, INFORMS, vol. 48(7), pages 938-953, July.
    4. Hong, Paul & Roh, James, 2009. "Internationalization, product development and performance outcomes: A comparative study of 10 countries," Research in International Business and Finance, Elsevier, vol. 23(2), pages 169-180, June.
    5. Mar Fuentes-Fuentes, M. & Albacete-Sáez, Carlos A. & Lloréns-Montes, F. Javier, 2004. "The impact of environmental characteristics on TQM principles and organizational performance," Omega, Elsevier, vol. 32(6), pages 425-442, December.
    6. Robert G. Orwin, 1983. "A Fail-SafeN for Effect Size in Meta-Analysis," Journal of Educational and Behavioral Statistics, , vol. 8(2), pages 157-159, June.
    7. Larry J. Menor & M. Murat Kristal & Eve D. Rosenzweig, 2007. "Examining the Influence of Operational Intellectual Capital on Capabilities and Performance," Manufacturing & Service Operations Management, INFORMS, vol. 9(4), pages 559-578, May.
    8. 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.
    9. Khanchanapong, Teerasak & Prajogo, Daniel & Sohal, Amrik S. & Cooper, Brian K. & Yeung, Andy C.L. & Cheng, T.C.E., 2014. "The unique and complementary effects of manufacturing technologies and lean practices on manufacturing operational performance," International Journal of Production Economics, Elsevier, vol. 153(C), pages 191-203.
    10. Abdel-Maksoud, Ahmed & Dugdale, David & Luther, Robert, 2005. "Non-financial performance measurement in manufacturing companies," The British Accounting Review, Elsevier, vol. 37(3), pages 261-297.
    11. Jeffrey L. Callen & Mindy Morel & Christina Fader, 2005. "Productivity Measurement and the Relationship between Plant Performance and JIT Intensity," Contemporary Accounting Research, John Wiley & Sons, vol. 22(2), pages 271-309, June.
    12. 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.
    13. Furlan, Andrea & Dal Pont, Giorgia & Vinelli, Andrea, 2011. "On the complementarity between internal and external just-in-time bundles to build and sustain high performance manufacturing," International Journal of Production Economics, Elsevier, vol. 133(2), pages 489-495, October.
    14. Lin, Chinho & Chow, Wing S. & Madu, Christian N. & Kuei, Chu-Hua & Pei Yu, Pei, 2005. "A structural equation model of supply chain quality management and organizational performance," International Journal of Production Economics, Elsevier, vol. 96(3), pages 355-365, June.
    15. Klingenberg, Beate & Timberlake, Rachel & Geurts, Tom G. & Brown, Roger J., 2013. "The relationship of operational innovation and financial performance—A critical perspective," International Journal of Production Economics, Elsevier, vol. 142(2), pages 317-323.
    16. 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.
    17. Geng, Ruoqi & Mansouri, S. Afshin & Aktas, Emel, 2017. "The relationship between green supply chain management and performance: A meta-analysis of empirical evidences in Asian emerging economies," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 245-258.
    18. Chan, Kam C. & Chan, Kam C. & Seow, Gim S. & Tam, Kinsun, 2009. "Ranking accounting journals using dissertation citation analysis: A research note," Accounting, Organizations and Society, Elsevier, vol. 34(6-7), pages 875-885, August.
    19. Moori, Roberto Giro & Pescarmona, Adriano & Kimura, Herbert, 2013. "Lean Manufacturing and Business Performance in Brazilian Firms," Journal of Operations and Supply Chain Management (JOSCM), Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo (FGV EAESP), vol. 6(1), June.
    20. Hsieh, Pao-Nuan & Chang, Pao-Long, 2009. "An assessment of world-wide research productivity in production and operations management," International Journal of Production Economics, Elsevier, vol. 120(2), pages 540-551, August.
    21. Konecny, Philipp A. & Thun, Jörn-Henrik, 2011. "Do it separately or simultaneously--An empirical analysis of a conjoint implementation of TQM and TPM on plant performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 496-507, October.
    22. Yu, Kangkang & Cadeaux, Jack & Luo, Ben Nanfeng, 2015. "Operational flexibility: Review and meta-analysis," International Journal of Production Economics, Elsevier, vol. 169(C), pages 190-202.
    23. Chang, Woojung & Ellinger, Alexander E. & Kim, Kyoungmi (Kate) & Franke, George R., 2016. "Supply chain integration and firm financial performance: A meta-analysis of positional advantage mediation and moderating factors," European Management Journal, Elsevier, vol. 34(3), pages 282-295.
    24. 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. Seiler, A. & Papanagnou, C. & Scarf, P., 2020. "On the relationship between financial performance and position of businesses in supply chain networks," International Journal of Production Economics, Elsevier, vol. 227(C).
    2. Costa, Luana Bonome Message & Godinho Filho, Moacir & Fredendall, Lawrence D. & Devós Ganga, Gilberto Miller, 2021. "Lean six sigma in the food industry: Construct development and measurement validation," International Journal of Production Economics, Elsevier, vol. 231(C).
    3. Julia Naranjo-Valencia & Ricardo Vidal-Patiño & Gregorio Calderón-Hernández, 2019. "Characterization of Innovation Research Published in Latin American Journals Indexed in WoS," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(07), pages 1-38, November.
    4. Iftikhar, Anas & Purvis, Laura & Giannoccaro, Ilaria, 2021. "A meta-analytical review of antecedents and outcomes of firm resilience," Journal of Business Research, Elsevier, vol. 135(C), pages 408-425.
    5. Kleber F. Barcia & Lizzi Garcia-Castro & Jorge Abad-Moran, 2022. "Lean Six Sigma Impact Analysis on Sustainability Using Partial Least Squares Structural Equation Modeling (PLS-SEM): A Literature Review," Sustainability, MDPI, vol. 14(5), pages 1-26, March.
    6. Chen, Lujie & Jia, Fu & Li, Taiyu & Zhang, Tianyu, 2021. "Supply chain leadership and firm performance: A meta-analysis," International Journal of Production Economics, Elsevier, vol. 235(C).
    7. Liliya B. Sungatullina* & Diana V. Neizvestnaya & Ekaterina I. Kadochnikova, 2018. "The Efficiency Analysis of Measures to Improve the Labor Productivity," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 4, pages 260-266, 11-2018.

    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. Hung M. Nguyen & George Onofrei & Dothang Truong & Simon Lockrey, 2020. "Customer green orientation and process innovation alignment: A configuration approach in the global manufacturing industry," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2498-2513, September.
    2. Gusman Nawanir & Yudi Fernando & Lim Kong Teong, 2018. "A Second-order Model of Lean Manufacturing Implementation to Leverage Production Line Productivity with the Importance-Performance Map Analysis," Global Business Review, International Management Institute, vol. 19(3_suppl), pages 114-129, June.
    3. Luay Jum’a & Dominik Zimon & Muhammad Ikram, 2021. "A Relationship between Supply Chain Practices, Environmental Sustainability and Financial Performance: Evidence from Manufacturing Companies in Jordan," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    4. 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.
    5. 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.
    6. Singh, Vedant & Kumar, Akshay & Singh, Tej, 2018. "Impact of TQM on organisational performance: The case of Indian manufacturing and service industry," Operations Research Perspectives, Elsevier, vol. 5(C), pages 199-217.
    7. Huo, Baofeng & Ye, Yuxiao & Zhao, Xiande & Zhu, Kaihang, 2019. "Supply chain quality integration: A taxonomy perspective," International Journal of Production Economics, Elsevier, vol. 207(C), pages 236-246.
    8. Ortega Jimenez, Cesar H. & Machuca, Jose A.D. & Garrido-Vega, Pedro & Filippini, Roberto, 2015. "The pursuit of responsiveness in production environments: From flexibility to reconfigurability," International Journal of Production Economics, Elsevier, vol. 163(C), pages 157-172.
    9. Lee, DonHee & Rho, Boo-Ho & Yoon, Seong No, 2015. "Effect of investments in manufacturing practices on process efficiency and organizational performance," International Journal of Production Economics, Elsevier, vol. 162(C), pages 45-54.
    10. Zhao, Xiaofei & Wang, Ping & Pal, Raktim, 2021. "The effects of agro-food supply chain integration on product quality and financial performance: Evidence from Chinese agro-food processing business," International Journal of Production Economics, Elsevier, vol. 231(C).
    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. Hoyoung Lee, 2020. "The Role of Environmental Uncertainty, Green HRM and Green SCM in Influencing Organization s Energy Efficacy and Environmental Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 332-339.
    13. Dr Emmanuel Mitaire Tarurhor & Dr Ochuko B. Emudainohwo, 2020. "LEAN Manufacturing and Firm Performance in the Palm-Oil Industries in Delta State, Nigeria," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 319-331.
    14. V.Yu. Chernova & Z.G. Golodova & E.A. Degtereva & A.M. Zobov & V.S. Starostin, 2018. "Russian Industry in Global Value-Added Chains," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 165-178.
    15. Changchun Zhu & Jianguo Du & Fakhar Shahzad & Muhammad Umair Wattoo, 2022. "Environment Sustainability Is a Corporate Social Responsibility: Measuring the Nexus between Sustainable Supply Chain Management, Big Data Analytics Capabilities, and Organizational Performance," Sustainability, MDPI, vol. 14(6), pages 1-20, March.
    16. 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.
    17. Lin Wu & Nachiappan Subramanian & Angappa Gunasekaran & Muhammad Dan‐Asabe Abdulrahman & Kulwant Singh Pawar & Des Doran, 2018. "A two‐dimensional, two‐level framework for achieving corporate sustainable development: Assessing the return on sustainability initiatives," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1117-1130, December.
    18. 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.
    19. 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.
    20. Chavez, Roberto & Malik, Mohsin & Ghaderi, Hadi & Yu, Wantao, 2021. "Environmental orientation, external environmental information exchange and environmental performance: Examining mediation and moderation effects," International Journal of Production Economics, Elsevier, vol. 240(C).

    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:200:y:2018:i:c:p:83-102. 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.