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

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. Acco...

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Bibliographic Details
Published in:Production planning & control 2020-07, Vol.31 (10), p.771-785
Main Authors: Negrão, Léony Luis Lopes, Lopes de Sousa Jabbour, Ana Beatriz, Latan, Hengky, Godinho Filho, Moacir, Chiappetta Jabbour, Charbel José, Ganga, Gilberto Miller Devós
Format: Article
Language:English
Subjects:
Business
Business administration
emerging economies
Environmental management
firm performance
Humanities and Social Sciences
Lean manufacturing
Linearity
non-linear relationships
operations management
S curves
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Summary: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.
ISSN:0953-7287
1366-5871
DOI:10.1080/09537287.2019.1683775