Impact of lean manufacturing: evidence from apparel industry in Bangladesh

Abstract

Purpose Many research findings demonstrate the benefits of lean manufacturing implementation. However, the impact of lean manufacturing on organizational performance in developing countries like Bangladesh remains unexplored. The purpose of this paper is to investigate the impact of lean manufacturing system (LMS) on the organizational performance of the apparel industry in Bangladesh. Design/methodology/approach Empirical data were collected from 227 apparel manufacturing firms using a close-ended structured questionnaire. The causal relationships between the independent and dependent variables are examined by structural equation modeling using AMOS 20.0 software. Findings The results reveal significant evidence that the implementation of LMS has a direct impact on organizational performance in terms of operational and business performance. Practical implications The findings of this study will create a substantial interest among the practitioners of the apparel industry to implement LMS. This study will also explore the opportunities to develop lean implementation framework and identify the benefits that will enhance the competitive advantages. Originality/value This paper explores the causal relationships and argues based on the empirical data in the context of the apparel industry in Bangladesh.