Business excellence via advanced manufacturing technology and lean-agile manufacturing

Abstract

Purpose The purpose of this paper is to contribute to the existing knowledge about the relationships between advanced manufacturing technology (AMT), lean manufacturing (LM), agile manufacturing (AM), and business performance. Design/methodology/approach A questionnaire-based survey was performed to collect data from 189 Iranian automobile part manufacturers. Statistical analysis of hypothesized relationships was conducted via partial least squares structural equation modeling. Findings AMT significantly contributes to the development of both LM and AM. These manufacturing systems can co-exist in one system, and LM is a precursor to AM. LM contributes to operational performance whereas AM improves marketing performance and financial performance. Research limitations/implications Relying on the cross-sectional data of this research, and lack of generalizability of findings are key limitations. An interesting direction for future research would be to empirically offer a hybrid lean-agile approach and further map the mechanism through which this hybrid approach can be achieved in practice. Practical implications Both LM and AM are information-intensive and highly supported by AMT. They contribute to different aspects of business performance. Pursuing both cost-leadership strategy and product mix flexibility is viable via hybridizing the lean and agile systems. Originality/value This study is among the first to address issues related to the lean-AM relationship among developing countries. This study is unique in the sense it shows the mechanism through which the value of AMT is truly transformed to performance improvement.