Does organizational readiness matter in lean thinking practices? An agency perspective

Abstract

PurposeExtant research documents the importance of lean thinking for organizations, however, as prior research has largely focused on hard lean practices, but little is known about the effects or the significance of soft lean practices. This research attempts to address this issue by examining how soft lean practices enhance organizational lean readiness, and in turn increase the success of lean implementation.Design/methodology/approachThis research adopts a single case study design in a small-medium enterprise livestock feed manufacturing organization, and investigates the period from late 2011 through the end of 2019 covering two attempts at lean implementation – an initial failed attempt followed by a successful introduction of lean within the case organization. The research analyzes interviews with 29 managers and employees from all organizational levels and departments within the case organization. Secondary data including organizational documents and performance measures and metrics were also incorporated into the research design.FindingsDrawing on agency theory, the authors advance a principal-agent interaction perspective to conceptualize organizational lean readiness – specifically, the authors consider the “state or condition” of four agency factors (goal conflict, information asymmetry, risk aversion and length of relationship), and explore if these four agency factors can be utilized as proxies for organizational readiness for lean implementation. The authors identify the formation of a shared vision and identity within the organization as an effective mechanism through which soft lean practices enhance organizational lean readiness. Finally, the analysis offers an understanding of how the long-term success of lean implementation is improved by the introduction of soft lean practices as a prerequisite to create organizational readiness for the implementation of hard lean practices.Originality/valueThe study is unique in the sense that it empirically links agency theory and the role of soft lean practices in developing organizational lean readiness in a small-medium enterprise context by defining the ideal state of four agency factors as proxies for organizational readiness.

Assessing Lean 4.0 for Industry 4.0 Readiness Using PLS-SEM towards Sustainable Manufacturing Supply Chain

“…In the long term, operational performance is influenced by employee behavior, work environment, and the type of job [80]. An empirical study involving soft lean practices confirmed that they enhance organizational lean readiness for successful L4.0 in I4.0 [26]. I4.0 readiness may vary from sector to sector among the operational, managerial, and technological domains.…”

“…An empirical study of lean practices in SMEs dealing with livestock feed manufacturing organizations concluded that lean soft practices influence organizational readiness in I4.0 [26]. A study was conducted that illustrated how SMEs can benefit from information technology (IT) usage for L4.0 to sustain competitiveness in I4.0 [27].…”

Beyond efficiency: the role of lean practices and cultures in developing dynamic capabilities microfoundations

“…At the higher level of societal norms that influence culture, aggregated traits such as higher degrees of individualism, uncertainty avoidance and power distances are found to positively affect the adoption of lean practices adoption (Pakdil and Leonard, 2017). While the impacts of the broadly categorized traits of national culture do matter, our focus, in the present research, is on cultural traits at the organizational level that serve as the context for the implementation of lean practices (Akmal et al. , 2022).…”

“…To analyse the relationships between lean, DCs microfoundations and process innovation, we differentiate between lean operations and lean supply chain practices (Azadegan et al, 2013;Furlan et al, 2011;Hofer et al, 2012;Shah and Ward, 2007). In addition, we include the role of learning-and innovation-oriented lean cultures following previous research (Akmal et al, 2022;Bortolotti et al, 2015;Hardcopf et al, 2021;Onofrei et al, 2019;Yu et al, 2020). We hypothesize that process innovation is supported by lean practices implementation through DCs microfoundationssensing, seizing and transformingand strengthened by the presence of organizational learning-and innovation-oriented lean cultures.…”

“…, 2012; Shah and Ward, 2007). In addition, we include the role of learning- and innovation-oriented lean cultures following previous research (Akmal et al. , 2022; Bortolotti et al.…”