Performance effect of Lean: a complete implementation matters

Thomas Borup Kristensen, Poul Israelsen

    Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

    Abstract

    To understand how the practices of Lean affect performance, we tested and validated a system-wide approach using mediating relationships in a structural equation model. We used a cross-sectional survey of 200 Danish companies that indicated that they used Lean. Thus, this study is especially relevant to Denmark, but the approach is empirically more generalizable. We show that the effect of Lean standardized flow production practices on performance is mediated by analytical continuous improvement empowerment practices and by delegation of decision rights practices. Thus, standardized flow practices do not have direct effects on performance. Instead, standardized flow provided that foundation for companies to implement continuous improvement, which, in turn, directly affect performance positively. Another cause, in addition to flow practices, of continuous improvement was the delegation of decision rights. The paper provides evidence that supports the view that middle managers’ actions further enhance performance in Lean companies. The right Lean behavior by middle managers increases the level of analytical continuous improvement empowerment. In total, high-performing Lean companies implement a complete package of Lean practices.
    OriginalsprogEngelsk
    TidsskriftDanish Journal of Management & Business
    Vol/bind80
    Udgave nummer1
    Sider (fra-til)91-110
    ISSN2246-3887
    StatusUdgivet - 2016

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