Impact of Lean Manufacturing Practices on Firms’ Sustainable Performance: Lean Culture as a Moderator

Abstract

Nowadays, manufacturing firms are pressured by governments, non-governmental organizations and customers to operate in a sustainable manner. Although lean practices may provide environmental, social, and financial benefits to firms, their effect on sustainable performance is ambiguous. The aim of this study is to examine the effect of lean manufacturing practices on firms’ environmental performance by considering lean culture as a moderator. Data were gathered through a survey of 187 manufacturing firms in Malaysia and were analyzed using the partial least squares technique. The results indicate that process and equipment, product design, supplier relationships, and customer relationships have a positive and significant effect on sustainable performance. It is also interesting to observe that lean culture positively moderated the effects of process and equipment and supplier relationships on sustainable performance. These results have important implications for enhancing the sustainable performance of manufacturing firms through lean manufacturing practices.

The Effect of Lean Manufacturing on the Financial Performance: Case of the Manufacturing Companies in South Lebanon

“…Klassen and Corbet in their study about the impact of lean manufacturing on the firm"s sustainability showed better financial returns through gaining new customers, eliminating cost through reducing waste and competitive differentiation (Iranmanesh et al, 2019). According to Lenox and King (2001), in their study about lean manufacturing and environmental performance, discussed that lean practices contribute to financial performance by carrying down the managerial cost by lowering pollution, they agree that there is a positive relationship between financial performance and lean manufacturing (King and Lenox, 2001).…”

تأثیر ممارسة سلسة الإمداد الرشیق على أداء سلسة الإمداد فی قطاع التصنیع بمصر

“…Establishing long-term relationships with key suppliers can capture the benefits of building learning routines and ensures both parties' sets of capabilities that are aligned and stay useful for future joint projects (Echtelt et al, 2006;Nimeh et al, 2018). Supplier relationship refers to the extent of interaction with the supplier to direct quality regards and guarantee justin-time delivery through taking into consideration the suppliers number, long-term relationships, and involving the suppliers in the design of the product and in the process of development and by giving feedback on suppliers' performance (Iranmanesh, et al, 2019). This paper proposed SRM as one of the most important LSC practice which also could be aligned with the source process in SCOR model.…”

“…Also, (Shah & ward, 2007) indicated customer involvement as one measure for lean production construct which focuses on the organization's customers and their needs. (Khanchanapong et al, 2014;Iranmanesh et al, 2019) showed how early customers' involvement in the process of product development allows the improvement of product development in a way that meets the needs of the customers and leads to cost reduction. CRM includes customer involvement by frequently and timely exchange of information with customers about (e.g.…”

“…CRM includes customer involvement by frequently and timely exchange of information with customers about (e.g. inventory levels, demand, production schedules, current and future product offerings) Iranmanesh et al, 2019).…”

“…According to (Azevedoa et al, 2012) CRM is defined as existence of substantial relationships with customers to share information, the authors argued that SC processes should be aligned with the customer's needs obtain a successful relationship with the customer that would result in maintaining SC operations reliability, while boosting quality and customer satisfaction. Various paradigms and activities were discussed by (Boulding et al, 2005;Nimeh et al, 2018;Iranmanesh et al, 2019) in order to constitute customer relationship including building long-term relations with customers, boosting customer contacts, initiatives of integrated problem-solving, response effectively to customer complaints, and improving customer satisfaction.…”