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

Dr Emmanuel Mitaire Tarurhor and Dr Ochuko B. Emudainohwo

International Journal of Economics & Business Administration (IJEBA), 2020, vol. VIII, issue 4, 319-331

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.

Keywords: Empowerment; firm’s performance; LEAN manufacturing; product quality; training and development. (search for similar items in EconPapers)
JEL-codes: L21 N67 (search for similar items in EconPapers)
Date: 2020
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Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:4:p:319-331