Applying lean thinking in commercial management

Abstract

PurposeThe purpose of this paper is to develop two hypotheses explaining the role of commercial management in the lean business model: lean construction is a viable choice of commercial strategy; and lean commercial management is an integral part of lean construction system subordinate to the project delivery. This is completed as a part of conceptualisation of the lean commercial management discipline in construction on the abstract level and followed by deriving its main principles.Design/methodology/approachThe research is based on the direct observation of the companies pursuing lean strategy in construction as well as of those following non‐lean business models, review of case studies and literature.FindingsTraditional commercial arrangements do not comply with the lean construction requirements and may hamper the exploration of its full potential. Lean commercial management differs in the way that its primary role is to support the production process thus it is subordinated to it.Research limitations/implicationsThis research would benefit from links with the existent field of social and economic studies where deeper reasoning to substantiate the theory might be found. Experiments with lean companies in the construction sector are also necessary for theory validation.Practical implicationsThe approach offered in this paper vectors the way of dealing with the commercial decisions within lean enterprise. This potentially can further enhance benefits from lean construction.Originality/valueThe paper builds upon the related research and papers, further advancing the topic of lean construction.