Implementation of lean production in multinational corporations: A case study of the transfer process from headquarters to subsidiaries

Several multinational corporations are launching multi-plant lean programmes to increase the coordination of dispersed and heterogeneous plants and promote the growth of the organisation as a whole. Such programmes represent an emerging field of research that seeks to understand the most important mechanisms to transfer lean concepts and practices successfully, given the different contextual conditions of a multi-plant network over time. Here we present an in-depth explorative case study to investigate this issue. An analysis of the programme of an Italian-based company to transfer lean to its Chinese and US subsidiaries over approximately four years was used to develop propositions. Proposition 1 indicates that, throughout a programme, headquarters should use international teamwork to perform training, sensegiving and adaptation in foreign subsidiaries. It also underlines the relevance of pressure via teamwork if a subsidiary resists. Proposition 2 suggests to deploy close and lasting teamwork to transfer lean to plants that are autonomous and new to lean. Close but brief teamwork can be used for subsidiaries that are integrated with headquarters and not new to lean. Proposition 3 argues that the presence of a stable group of managers in subsidiaries facilitates interactions with headquarters and knowledge transfer. Proposition 4 underlines that training, sensegiving, adaptation and pressure via secondary mechanisms throughout a programme are necessary to sustain actions via teamwork. The propositions serve as a basis for future research and empirical validation. They also serve as guidelines for managers in charge of multi-plant lean programmes.