The effect of lean management practices towards operational performance of semiconductor firms in Penang : A case of integrative mechanism
DOI:
https://doi.org/10.32890/gbmr2025.17.1.5Keywords:
Operational performance, Lean manufacturing concepts and frameworks, Lean tools & techniques, integrative mechanism, Lean activitiesAbstract
Introduction: The existing body of literature indicates that lean management is a comprehensive concept, originating from the Toyota Production System, and encompassing various typologies. This research subsumed all the lean typologies into a holistic model of lean management practices encompassing lean manufacturing concepts and frameworks, lean tools and techniques, and lean activities, as critical dimensions. Similarly, the literature showed that the effect of lean management practices on operational performance was investigated in isolation, with little focus on the impact of intervening variables in this research stream. Drawing supported by System Theory and Resource Based View (RBV), this research investigates the effect of lean management practices on operational performance, with integrative mechanisms as mediating variables, in an entirely new context (Semiconductor firms in Penang, Malaysia).
Objectives: The research aimed to empirically investigate the effect of Lean manufacturing concepts and frameworks, Lean tools and techniques, and Lean activities on operational performance. As well, the research aimed to empirically investigate the mediating effect of integrative mechanisms on the relationship between Lean manufacturing concepts and frameworks, Lean tools and techniques, Lean activities, and operational performance.
Methods: This study employs a quantitative approach based on a cross-sectional design, focusing on data collection from randomly selected employees of semiconductor firms in Penang through a systematic sampling technique. The primary objective is to examine cause-and-effect relationships between variables. Therefore, the population of the study is 100,000 employees and the sample size is 382 employees. While a well-structured questionnaire was used to collect responses and research data was analyzed using SPSS (statistical package for social sciences) and PLS-SEM (partial least squares-structural equation modeling).
Results: The research finding is quite fascinating, the effect of Lean management practices on operational performance and integrative mechanisms has been empirically established. Accordingly, the research finding provided statistical support for the indirect effect of lean management practices on operational performance, through integrative mechanisms. Hence, seven (7) direct and three (3) indirect hypothesized effects were statistically supported.
Conclusion: In conclusion, this research accentuated the efficacy of lean management practices as a significant driver of operational performance and integrative mechanisms within organizational settings. The implication is that firms can adopt lean as a tool to integrate internal work processes and achieve operational excellence.
Downloads
References
Afum, E., Li, Y., Han, P., & Sun, Z. (2022). Interplay between lean management and circular production system: implications for zero-waste performance, green value competitiveness, and social reputation. Journal of Manufacturing Technology Management, 33(7), 1213-1231.
Ahmed, A., Mathrani, S., & Jayamaha, N. (2024). An integrated lean and ISO 14001 framework for environmental performance: an assessment of New Zealand meat industry. International Journal of Lean Six Sigma, 15(3), 567-587.
Akanmu, M. D., & Nordin, N. (2022). Hybrid Lean Practices Integrated with IR 4.0 and Sustainability in Malaysia Food and Beverages Companies: Conceptual Framework and Hypothesis Development. Pertanika Journal of Science & Technology, 30(3).
Al-Dweiri, M., Ramadan, B., Rawshdeh, A., Nassoura, A., Al-Hamad, A., & Ahmad, A. (2024). The mediating role of lean operations on the relationship between supply chain integration and operational performance. Uncertain Supply Chain Management, 12(2), 1163-1174.
Ali, J.N., & Kuan, Y.W. (2023). Selection methods of lean management tools: A review. International Journal of Productivity and Performance Management, 72(4):1077-1110. http://eserv.uum.edu.my/scholarly-journals/selection-methods-lean-management-tools-review/docview/2790283471/se-2.
Antonio, B. T., & Kusumastuti, R. D. (2019). Lean operations implementation at an Indonesian shoe producer. The Southeast Asian Journal of Management, 13(1), 92-105.
Aquilani, B., Silvestri, C., Ruggieri, A. & Gatti, C. (2017). A systematic literature review on total quality management critical success factors and the identification of new avenues of research. The TQM Journal, 29(1), 184-213.
Arellano, M. C., Rebolledo, C., & Tao, Z. (2019). Improving operational plant performance in international manufacturing networks: the effects of integrative capabilities and plant roles. Production Planning & Control, 30(2-3), 112-130.
Ariadi, G., Surachman, Sumiati, & Rohman, F. (2021). The effect of lean and agile supply chain strategy on financial performance with mediating of strategic supplier integration & strategic customer Global Business Management Review: Vol. 17 Number 1 June 2025 integration: Evidence from bottled drinking-water industry in Indonesia. Cogent Business & Management, 8(1), 1930500.
Ball, P., & MacBryde, J. (2022). Developing a framework for adopting environmental manufacturing practices: learning from breweries. Production Planning & Control, 33(8), 758-773.
Bednarek, M., Luna, L.F.N. (2008). The Selected Problems of Lean Manufacturing Implementation in Mexican SMEs. In: Koch, T. (eds) Lean Business Systems and Beyond. IFIP – The International Federation for Information Processing, 257. Springer, Boston, MA.
Chin, W.W. (1998). The Partial Least Squares Approach to Structural Equation Modeling. Modern Methods for Business Research, 295, 295-336.
Fokalie, C., & Siagian, H. (2021). The Impact of Lean Manufacturing on Operational Performance Through Vendor-Managed Inventory and Supply Chain Practices (Doctoral dissertation, Petra Christian University).
Graham, S., Cadden, T., & Treacy, R. (2023). Examining the influence of employee engagement in supporting the implementation of green supply chain management practices: A green human resource management perspective. Business Strategy and the Environment, 32(7), 4750-4766.
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Los Angeles: USA: SAGE Publications Inc.
Hernandez-Matias, J., Ocampo, J. R., Hidalgo, A., & Vizan, A. (2020). Lean manufacturing and operational performance: Interrelationships between human-related lean practices. [LM and operational performance] Journal of Manufacturing Technology Management, 31(2), 217-235.
Kamble, S.S. & Gunasekaran, A. (2021). Analysing the role of Industry 4.0 technologies and circular economy practices in improving sustainable performance in Indian manufacturing organizations. Production, Planning and Control, 1-15.
Kline, R.B. (2011). Principles and Practice of Structural Equation Modeling. Guilford Press, New York.
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607-610.
Kumar, K. S., Babu, R. V., & Paranitharan, K. P. (2022a). Application of integrated Lean Six Sigma quality healthcare system practice in Indian healthcare. International Journal of Value Chain Management, 13(1), 112-139.
Kumar, R., Singh, K., & Jain, S. K. (2022b). An empirical investigation of the relationship among agile manufacturing practices and business performance: A pilot study. Journal of Science and Technology Policy Management, 13(2), 428-455.
Mahajan, M., Chistopher, K.B., Harshan & Shiva, P.H.C. (2019). Implementation of lean techniques for Sustainable workflow process in Indian motor manufacturing unit. Procedia Manufacturing, 35,1196-204.
Maldonado-Guzmán, G., Pinzón-Castro, S. Y., & Garza-Reyes, J. A. (2023). Does the integration of lean production and Industry 4.0 in green supply chains generate a better operational performance? Journal of Manufacturing Technology Management (ahead-of-print).
Mathiyazhagan, K., Agarwal, V., Appolloni, A., Saikouk, T., & Gnanavelbabu, A. (2021). Integrating lean and agile practices for achieving global sustainability goals in Indian manufacturing industries. Technological Forecasting and Social Change, 171, 120982.
Maware, C., & Parsley, D.M. (2022). The Challenges of Lean Transformation and Implementation in the Manufacturing Sector. Sustainability 14(10), 6287. https://doi.org/10.3390/su14106287 Global Business Management Review: Vol. 17 Number 1 June 2025
Melnyk, S.A., Stewart, D.M. & Swink, M. (2004). Metrics and performance measurement in operations management: dealing with the metrics maze. Journal of Operations Management, 22 (3), 209-218.
Mostafa, Sherif & Lee, Sang-Heon & Dumrak, Jantanee & Chileshe, Nicholas & Soltan, Hassan. (2015). Lean thinking for a maintenance process. Production & Manufacturing Research: An Open Access Journal. 3. 236-272.
Moyano-Fuentes, J., Maqueira-Marin, J. M., Martinez-Jurado, P. J., & Sacristan-Diaz, M. (2021). Extending lean management along the supply chain: impact on efficiency. Journal of Manufacturing Technology Management, 32(1), 63-84.
Naeem, M., Ahmad, N., Hussain, S., Nafees, B., & Hamid, A. (2021). Impact of lean manufacturing on the operational performance: evidence from textile industry. Humanities & Social Sciences Reviews, 9(3), 951-961.
Nawanir, G., Fernando, Y., & Lim, K. T. (2021). The complementarity of lean manufacturing practices with importance-performance analysis: how does it leverage inventory performance? International Journal of Services and Operations Management, 39(2), 212-234.
Oliveira, J.A.D., Devos Ganga, G.M., Godinho Filho, M., Silva, D.A.L., dos Santos, M.P., Aldaya Garde, I.A., Penchel, R.A., Esposto, K.F. & Ometto, A.R. (2022). Environmental and operational performance is not always achieved when combined with cleaner production and lean production: an overview for emerging economies. Journal of Environmental Planning and Management, 65 (8), 1-30.
Onofrei, G., Prester, J., Fynes, B., Humphreys, P., & Wiengarten, F. (2019). The relationship between investments in lean practices and operational performance: exploring the moderating effects of operational intellectual capital. International Journal of Operations & Production Management, 39(3), 406-428.
Panigrahi, S., Al Ghafri, K. K., Al Alyani, W. R., Ali Khan, M. W., Al Madhagy, T., & Khan, A. (2023). Lean manufacturing practices for operational and business performance: A PLS-SEM modeling analysis. International Journal of Engineering Business Management, 15, 18479790221147864.
Pearce, D., Dora, M., Wesana, J., & Gellynck, X. (2021). Toward sustainable primary production through the application of lean management in South African fruit horticulture. Journal of Cleaner Production, 313, 127815.
Reynders, P., Kumar, M., & Found, P. (2022). ‘Lean on me’: An integrative literature review on the middle management role in lean. Total quality management & business excellence, 33(3-4), 318-354.
Romana, F. A. (2021). Lean Management Implementation in Small and Medium Sized Companies–A Success Case Study in a Manufacturing Process. Journal of Intercultural Management, 13(1), 88-121.
Secchi, Raffaele & Camuffo, Arnaldo. (2016). Rolling out lean production systems: a knowledge-based perspective. International Journal of Operations & Production Management. 36. 61-85. 10.1108/IJOPM-04-2014-0194.
Sekaran, U., & Bougie, R. (2013). Research Methods for Business: A Skill Building Approach. John Wiley & Sons.
Shah, R. & Ward, P.T. (2003). Lean manufacturing: context, practice bundles and performance. Journal of Operations Management, 21, 129-49.
Shah, R. & Ward, P.T. (2007). Defining and developing measures of lean production. Journal of Operations Management, 25, 785-805. Global Business Management Review: Vol. 17 Number 1 June 2025
Singh, R. K., Kumar Mangla, S., Bhatia, M. S., & Luthra, S. (2022). Integration of green and lean practices for sustainable business management. Business Strategy and the Environment, 31(1), 353-370.
Sinnicks, M. (2005). Ensuring a successful Six Sigma implementation.
Tabachnick, B.G. & Fidell, L.S. (2001). Using Multivariate Statistics. 4th Edition. Allyn and Bacon, Boston.
Tapping, D. (2006). The Lean Pocket Guide XL – Tools for the Elimination of Waste. Kindle ed., Kindle Book, New York, NY.
Tortorella, G. Castro, D. d. F., Frank, A., & Marodin, G. (2018). Lean manufacturing implementation: leadership styles and contextual variables. International Journal of Operations & Production Management, 38(5), 1205-1227.
Unzueta, G., Esnaola, A., & Eguren, J. A. (2020). Framework to Evaluate Continuous Improvement Process Efficacy: A Case Study of a Capital Goods Company. Quality Innovation Prosperity, 1745, 93–119.
Published
Issue
Section
License
Copyright (c) 2025 Global Business Management Review (GBMR)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Disclaimer
Global Business Management Review (GBMR) has taken all reasonable measures to ensure that material contained in this website is the original work of the author(s). However, the Journal gives no warranty and accepts no responsibility for the accuracy or the completeness of the material; no reliance should be made by any user on the material. The user should check with the authors for confirmation.
Articles published in the Global Business Management Review (GBMR) do not represent the views held by the editors and members of the editorial board. Authors are responsible for all aspects of their articles except the editorial screen design.
Submission of an article is done with the understanding that the article has not been published before (except in the form of an abstract or as part of a published lecture, or thesis) that it is not under consideration for publication somewhere else; that if and when the article is accepted for publication, the author's consent to automatic transfer of the copyright to the publisher.
