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LEAN Manufacturing and Firm Performance in the Palm-Oil Industries in Delta State, Nigeria

Author

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  • Dr Emmanuel Mitaire Tarurhor
  • Dr Ochuko B. Emudainohwo

Abstract

Purpose: The paper aims to examine the effects of LEAN manufacturing practices on a firm's performance, considering lean culture as a moderating variable in Delta state's palm oil industries. Design/Methodology/Approach: This study's sample was Palm oil industries located in Delta state and has been in existence for over ten years. Data were gathered through a survey of four hundred and thirty-three (433), and two hundred and four (204) were used to test the hypothesis. The study used the structural equation model to analyze the quantitative data generated from the four points Likert scale questionnaire. Findings: We found that lean manufacturing proxied by empowerment, training, and development has a positive and statistically significant effect on a firm's performance in terms of product quality. Results proved that the lean culture had a negative impact on a firm's performance. Practical Implications: Managers of organizations should consider the cultural background of the employees and where the organization is located to avert its negative impacts on the firm's performance. Originality: The novelty of testing lean culture as a moderating variable on the relationship between lean manufacturing and firm performance.

Suggested Citation

  • 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.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:4:p:319-331
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    References listed on IDEAS

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    1. Richard Fellows & Anita M.M. Liu, 2013. "Use and misuse of the concept of culture," Construction Management and Economics, Taylor & Francis Journals, vol. 31(5), pages 401-422, May.
    2. Dimitrios P. Koumanakos, 2008. "The effect of inventory management on firm performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 57(5), pages 355-369, June.
    3. 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.
    4. Mohammad Iranmanesh & Suhaiza Zailani & Sunghyup Sean Hyun & Mohd Helmi Ali & Kwangyong Kim, 2019. "Impact of Lean Manufacturing Practices on Firms’ Sustainable Performance: Lean Culture as a Moderator," Sustainability, MDPI, vol. 11(4), pages 1-20, February.
    5. 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.
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    More about this item

    Keywords

    Empowerment; firm’s performance; LEAN manufacturing; product quality; training and development.;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • N67 - Economic History - - Manufacturing and Construction - - - Africa; Oceania

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