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The impact of lean practices on operational performance in the banking sector: an empirical investigation

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  • Jamal Ahmed Al-Doori

Abstract

Banking is considered as the backbone of any country even due to the unfavourable condition like war and internal disputes banking sector in the Middle East is in operations. However, to make these operations sustainable, continuous improvement is essential. It has been proved in the literature that lean approaches enhance the performance for not only manufacturing sector but also service sectors. The aim of this study is to explore the potential benefits of lean approaches in the banking sector of Jordan. Three most effective approaches are total quality management (TQM), 5S services and kaizen have been adopted and applied. A questionnaire has been developed and distributed by convenience sampling in all banks of Jordan. A total of 232 responses have been considered and SPSS 23 has been used for data analysis. The results revealed that all three approaches positively and significantly enhance the operational performance of banking sector. This study will help the managers of banks to make their operations more efficient and productive. For further studies, there is need to test more approaches and especially qualitative investigation to more explore the lean concept.

Suggested Citation

  • Jamal Ahmed Al-Doori, 2020. "The impact of lean practices on operational performance in the banking sector: an empirical investigation," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 37(1), pages 27-39.
    • Handle: RePEc:ids:ijsoma:v:37:y:2020:i:1:p:27-39
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