Lean manufacturing and business performance: testing the S-curve theory

Léony Luis Lopes Negrão, Ana Beatriz Lopes de Sousa Jabbour (), Hengky Latan, Moacir Godinho Filho, Charbel José Chiappetta Jabbour and Gilberto Miller Devós Ganga
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Ana Beatriz Lopes de Sousa Jabbour: Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School
Moacir Godinho Filho: Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School

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Abstract: This article makes a case for the importance of exploring patterns in the relationship between the adoption of lean manufacturing practices and business performance. This relationship has been described as ambiguous, because it has variously appeared to be positive, insignificant, and negative. Accordingly, this article tests this relationship for non-linearity and shows that it follows the S-Curve theory. A survey of manufacturing companies in an industrial cluster in Brazil was undertaken. This region faces infrastructural challenges, such as geographic distance between purchasers and suppliers and a shortage of skilled Labour. Despite the conditions, these companies have significantly improved their operational, financial, and environmental performance through the adoption of lean practices. Thus, this article contributes to the literature on lean manufacturing by: (a) furthering the debate on the relationship between lean practices and business performance, and testing its adherence to the S-curve theory by means of survey research; and (b) simultaneously testing operational, financial and environmental performance as a result of the adoption of lean manufacturing practices. As a consequence of the S-shaped relationship demonstrated, managers need to be aware of the presence of inertial and saturation points in the adoption of lean manufacturing practices, so they can correctly allocate resources for improving the adoption of lean practices.

Keywords: Lean manufacturing; Firm performance; Operations management; Emerging economies; Non-linear relationships. (search for similar items in EconPapers)
Date: 2019-11-05
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Published in Production Planning and Control, 2019, 31 (10), pp.771-785. ⟨10.1080/09537287.2019.1683775⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04326208

DOI: 10.1080/09537287.2019.1683775

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