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Abstract. This research paper provides an initial exploration of the factors influencing whether lower tier suppliers gain a competitive advantage through their implementation of Lean manufacturing, and highlights the implications for the aerospace industry and for the SMEs. The research findings indicated that the SMEs regarded Lean as a necessity to meet the growing demands of their customers and to remain profitable in an increasingly competitive environment. The study concludes that while Lean initiatives have lead to numerous benefits for the SMEs, the assumption can not be made that Lean initiatives directly provide sustainable competitive advantage, as this is dependent on a number of complex and interdependent issues.

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