The key success factors to adopting lean practices: the case of South American manufacturing firms

Abstract

PurposeThe purpose of this paper is to identify the factors that promote the successful adoption of lean practices in manufacturing firms operating in developing economies in South America.Design/methodology/approachBased on the results obtained from using structural equation modeling to analyze the collected data, the authors argue that manufacturing organizations need to identify the factors that assist in successfully adopting lean practices in manufacturing firms operating in developing economies in South America. A dataset of 1,809 responses, gathered from manufacturing firms as part of the World Management Survey, was used to find support for the proposed hypotheses.FindingsSeveral hypotheses were tested finding that lean practice success factors such as organizational targets proved to have a significant and positive relationship with the mediating factor, performance management. Likewise, performance management was also found to have a significant and positive relationship with lean practices adoption. Human capital management (HCM) has a significant but negative predictive relationship with lean practices.Research limitations/implicationsThe empirical results of this study provide valuable managerial insights. The results are therefore limited to the economies analyzed and to the variables surveyed as part of the World Manufacturing Survey research.Practical implicationsThe results of this research provide a starting point for researchers to continue studying the key lean practice factors and relationships in the achievement of improved performance management, thereby helping managers in developing strategies to improve the lean capabilities of their practices. This, in turn, will increase the organization's competitive advantage sustainably.Originality/valueThis paper identifies and tests the impact of key factors on successful lean practices adoption in South American organizations in the manufacturing sector.