Lean bundles within Jordanian manufacturing SMEs and their effect on business performance
-
DOIhttp://dx.doi.org/10.21511/ppm.18(2).2020.25
-
Article InfoVolume 18 2020, Issue #2, pp. 302-315
- Cited by
- 810 Views
-
334 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Maximizing customer value and minimizing waste have become the heart of the formulation of SMEs in the manufacturing sector of Jordan to survive in the new global marketplace. Therefore, lean manufacturing philosophy is used in SMEs to improve performance regarding quality, delivery, and costs to become efficiently competitive, thus accomplishing sustainable economic growth. The current study was designed to analyze the extent to which lean management bundles are adopted by SMEs manufacturing organizations in Jordan and the effect on their performance. Data were collected from 278 manufacturing SMEs in Jordan based on a structured questionnaire. The theoretical relationships were examined using structural equation modeling. The results show that Total Quality Management (TQM) and Human Resources Management (HRM) lean bundles are positively associated with manufacturing SMEs’ performance. The outcomes of this study may be considered as incentives for other practitioners and entrepreneurs of SMEs when implementing lean bundles by acknowledging the positive effect on their performance. Moreover, the findings of this study could be used in an internal checklist before and during the implementation of Lean Manufacturing (LM).
- Keywords
-
JEL Classification (Paper profile tab)O14, L60
-
References46
-
Tables4
-
Figures2
-
- Figure 1. Research framework
- Figure 2. Hypotheses testing results
-
- Table 1. Sample characteristics
- Table 2. Measurement items, validity and reliability analysis
- Table 3. Descriptive statistics and correlations
- Table 4. Path analysis for the constructs of the study
-
- Alaskari, O., Ahmad, M., & Pinedo-Cuenca, R. (2016). Development of a Methodology to Assist Manufacturing SMEs in the Selection of Appropriate Lean Tools. International Journal of Lean Six Sigma, 7(1), 62-84.
- Albliwi, S., Antony, J., Arshed, N., & Ghadge, A. (2017). Implementation of Lean Six Sigma in Saudi Arabian organisations: Findings from a survey. International Journal of Quality & Reliability Management, 34(4), 508-529.
- Alexander, P., Antony, J., & Rodgers, B. (2019). Lean Six Sigma for Small- and Medium-Sized Manufacturing Enterprises: A Systematic Review. International Journal of Quality & Reliability Management, 36(3), 378-397.
- Al-Hyari, K., Abu Hammour, S., Abu Zaid, M., & Haffar, M. (2016). The Impact of Lean Bundles on Hospital Performance: Does Size Matter. International Journal of Health Care Quality Assurance, 29(8), 877-894.
- Al-Hyari, K., Abu Zaid, M., Arabeyyat, O., Al-Qwasmeh, L., & Haffar, M. (2019). The Applications of Kaizen Methods in Project Settings: Applied Study in Jordan. The TQM Journal, 31(5), 831-849.
- AL-Najem, M., Dhakal, H., Labib, A., & Bennett, N. (2013). Lean Readiness Level within Kuwaiti Manufacturing Industries. International Journal of Lean Six Sigma, 4(3), 280-320.
- Alsmadi, M., Almani, A., & Jerisat, R. (2012). A Comparative Analysis of Lean Practices and Performance in the UK Manufacturing and Service Sector Firms. Total Quality Management & Business Excellence, 23(3-4), 381-396.
- Basu, R., & Bhola, P. (2016). Impact of Quality Management Practices on Performance Stimulating Growth: Empirical Evidence from Indian IT Enabled Service SMEs. International Journal of Quality & Reliability Management, 33(8), 1179-1201.
- Belekoukias, I., Garza-Reyes, J. A., & Kumar, V. (2014). The Impact of Lean Methods and Tools on the Operational Performance of Manufacturing Organizations. International Journal of Production Research, 52(18), 5346-5366.
- Bortolotti, T., Danese, P., & Romano, P. (2013). Assessing the Impact of Just-in-Time on Operational Performance at Varying Degrees of Repetitiveness. International Journal of Production Research, 51(4), 1117-1130.
- Dal Pont, G., Furlan, A., & Vinelli, A. (2008). Interrelationships among Lean bundles and their effects on Operational Performance. Operations Management Research, 1(2), 150-158.
- Demirbag, M., Tatoglu, E., Tekinkus, M., & Zaim, S. (2006). An analysis of the relationship between TQM implementation and organizational performance: Evidence from Turkish SMEs. Journal of Manufacturing Technology Management, 17(6), 829-847.
- Department of Statistics. (2020). Jordan in Figures 2017.
- Dresch, A., Veit, D., Lima, P., Lacerda, D., & Collatto, D. (2019). Inducing Brazilian Manufacturing SMEs Productivity with Lean Tools. International Journal of Productivity and Performance Management, 68(1), 69-87.
- Filho, M. G., Ganga, G. M. D., & Gunasekaran, A. (2016). Lean Manufacturing in Brazilian Small and Medium Enterprises: Implementation and effect on Performance. International Journal of Production Research, 54(24), 7523-7545.
- Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50.
- Furlan, A., Vinelli, A., & Dal Pont, G. (2011). Complementarity and Lean Manufacturing Bundles: An Empirical Analysis. International Journal of Operations & Production Management, 31(8), 835-850.
- Gandhi, S., Sachdeva, A., & Gupta, A. (2019). Impact of Service Quality on Satisfaction and Loyalty at Manufacturer-Distributor Dyad: Insights from Indian SMEs. Journal of Advances in Management Research, 16(1), 91-122.
- Gefen, D., Straub, D., & Boudreau, M. C. (2000). Structural Equation Modeling and Regression: Guidelines for Research Practice. Communications of the Association for Information Systems, 4(7), 1-77.
- Hu, L., & Bentler, M. (1999). Cutoff Criteria for fit Indexes in Covariance Structure Analysis: Conventional Criteria Versus New Alternatives. Structural Equation Modelling, 6(1), 1-55.
- Hu, Q., Mason, R., Williams, S., & Found, P. (2015). Lean Implementation within SMEs: A Literature Review. Journal of Manufacturing Technology Management, 26(7), 980-1012.
- Imran, M., Abdul Hamid, S., & Azizb, A. (2018). The Influence of TQM on Export Performance of SMEs: Empirical evidence from Manufacturing Sector in Pakistan using PLS-SEM. Management Science Letters, 8, 483-496.
- Jordanian Young Economists Society. (2017). Challenges facing SMEs and what is needed to empower SMEs sector in Jordan (online).
- Knol, W., Slomp, J., Schouteten, R., & Lauche, K. (2019). The Relative Importance of Improvement Routines for Implementing Lean Practices. International Journal of Operations & Production Management, 39(2), 214-237.
- Krafcik, J. (1988). The triumph of lean production. Sloan Management Review, 30(1), 41-52.
- Martínez-Jurado, P., Moyano-Fuentes, J., & Gómez, P. (2013). HR Management During Lean Production Adoption. Management Decision, 51(4), 742-760.
- Mohammad, I., & Oduoza, C. (2019). Lean-Excellence Business Management for Manufacturing SMEs Focusing on KRI. International Journal of Productivity and Performance Management, 69(3), 519-539.
- Moya, C., Galvez, D., Muller, L., & Camargo, M. (2019). A new Framework to Support Lean Six Sigma Deployment in SMEs. International Journal of Lean Six Sigma, 10(1), 58-80.
- Muchaendepi, W., Mbohwa, C., Hamandishe, T., & Kanyepe, J. (2019). Inventory Management and Performance of SMEs in the Manufacturing Sector of Harare. Procedia Manufacturing, 33, 454-461.
- Prasanna, M., & Vinodh, S. (2013). Lean Six Sigma in SMEs: An Exploration through Literature Review. Journal of Engineering, Design and Technology, 11(3), 224-250.
- Psomas, E., Antony, J., & Bouranta, N. (2018). Assessing Lean Adoption in Food SMEs: Evidence from Greece. International Journal of Quality & Reliability Management, 35(1), 64-81.
- Rahman, S., Laosirihongthong, T., & Sohal, A. (2010). Impact of Lean Strategy on Operational Performance: A Study of Thai Manufacturing Companies. Journal of Manufacturing Technology Management, 21(7), 839-852.
- Ramadas, T., & Satish, K. P. (2018). Identification and Modeling of Process Barriers: Implementing Lean Manufacturing in Small-and Medium-Size Enterprises. International Journal of Lean Six Sigma, Vol. ahead-of-print No. ahead-of-print.
- Rua, O., França, A., & Ortiz, R. (2018). Key Drivers of SMEs Export Performance: The Mediating effect of Competitive Advantage. Journal of Knowledge Management, 22(2), 257-279.
- Sahoo, S., & Yadav, S. (2018). Lean Implementation in Small- and Medium-Sized Enterprises: An Empirical Study of Indian Manufacturing Firms. Benchmarking: An International Journal, 25(4), 1121-1147.
- Sajan, M. P., Shalij, P. R., Ramesh, A., & Biju, B. (2017). Lean Manufacturing Bractice in Indian Manufacturing SMEs and their effect on Sustainability Performance. Journal of Manufacturing Technology Management, 28(6), 772-793.
- Sekaran, U., & Bougie, R. J. (2016). Research Methods for Business: A Skill Building Approach (Vol. 7). John Wiley and Sons.
- Shah, R., & Ward, P. T. (2003). Lean Manufacturing: Context, Bractice Bundles, and Performance. Journal of Operations Management, 21(2), 129-149.
- Shah, R., & Ward, T. (2007). Defining and Developing Measures of Lean Production. Journal of Operations Management, 25(4), 785-805.
- Shokri, A., Waring, T., & Nabhani, F. (2016). Investigating the Readiness of People in Manufacturing SMEs to Embark on Lean Six Sigma Projects: An Empirical Study in the German Manufacturing Sector. International Journal of Operations & Production Management, 36(8), 850-878.
- Shrafat, F., & Ismail, M. (2019). Structural Equation Modeling of Lean Manufacturing Practices in a Developing Country Context. Journal of Manufacturing Technology Management, 30(1), 122-145.
- Thanki, S., & Thakkar, J. (2019). An Investigation on Lean–Green Performance of Indian Manufacturing SMEs. International Journal of Productivity and Performance Management, 69(3), 489-517.
- Valente, C., Sousa, P., & Moreira, M. (2019). Assessment of the Lean effect on Business Performance: The Case of Manufacturing SMEs. Journal of Manufacturing Technology Management, 31(3), 501-523.
- Wickramasinghe, D., & Wickramasinghe, V. (2011). Perceived Organisational Support, Job Involvement and Turnover Intention in Lean Production in Srilanka. International Journal of Advanced Manufacturing Technology, 55(5-8), 817-830.
- Yadav, V., Jain, R., Mittal, M., Panwar, A., & Sharma, M. (2019a). An Appraisal on Barriers to Implement Lean in SMEs. Journal of Manufacturing Technology Management, 30(1), 195-212.
- Yadav, V., Jain, R., Mittal, M., Panwar, A., & Lyons, A. (2019b). The impact of lean Practices on the Operational Performance of SMEs in India. Industrial Management & Data Systems, 119(2), 317-330.