Lean R&D practices and its impact on organizational performance: evidence from R&D-based manufacturers in Malaysia

Abstract

PurposeThe study aims to explore how lean research and development (R&D) tools and techniques (T&T: i.e. R&D hard practices) affect the relationship between lean R&D soft practices and organization performance within R&D-based manufacturing firms in Malaysia.Design/methodology/approachThe current study is a quantitative study that utilized an online survey questionnaire for data collection. Data were collected based on a cross-sectional survey of R&D managers from 102 R&D-based manufacturing firms in Malaysia. Structural equation modeling (SEM) was used to test the impact of lean R&D soft and hard practices on firms' performance.FindingsAs per the study findings, it was determined that T&T of lean R&D was significant mediator in the relationship between lean R&D soft practices (i.e. managerial practices, transformational leadership, financial capability and supplier involvement) and R&D firms' performance.Practical implicationsThe study delivers an important message to R&D companies that lean practices could be applied in R&D environments to drive organization performance.Originality/valueThe study extends the knowledge regarding lean principles and framework beyond the domains of production and services. The study offers new conceptual contribution in term of lean principles and framework in R&D environments by introducing the role of lean R&D tools and technique to enhance the effects of lean R&D practices on organization performance.