Performance effect of Lean: a complete implementation matters

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

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

Citer dette

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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.",
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Performance effect of Lean : a complete implementation matters. / Kristensen, Thomas Borup; Israelsen, Poul.

I: Danish Journal of Management & Business, Bind 80, Nr. 1, 2016, s. 91-110.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

TY - JOUR

T1 - Performance effect of Lean

T2 - a complete implementation matters

AU - Kristensen, Thomas Borup

AU - Israelsen, Poul

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AB - 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.

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