Improving operational performance of manufacturing SMEs: the interactive effect of technical and human lean practices

Abstract

PurposeAlthough understanding how different resources are interconnected within firms is important, there are few studies that have focused on this area. This study aims to explore the unique and interactive effects of technical lean practices (TLPs) and human lean practices (TLPs) on the operational performance (OP) of manufacturing SMEs in Yemen, a less developed country (LDC).Design/methodology/approachDepending on data collected from 318 manufacturing SMEs in Yemen, the relationships in the proposed model were tested using hierarchical regression analysis via PROCESS Macro V. 3.5 in SPSS.FindingsThe results show that both TLPs and HLPs have unique effects on OP of SMEs. More importantly, both TLPs and HLPs have synergistic effects on OP.Practical implicationsThe study would be of interest to Lean practitioners, as the results of this study can be used in firms to put a focus on how TLPs and HLPs have to interact when it comes to the successful implementation of lean manufacturing (LM).Originality/valueAlthough research interest in LM is increasing, the interactive effects of TLPs and HLPs remain to be understood. This study provides an initial empirical evidence for performance outcomes from the interaction between TLPs and HLPs of SMEs in LDCs such as Yemen. Most of the previous studies on lean practices have focused on SMEs in developed countries, which may not fully apply to LDCs such as Yemen. This is helpful for SMEs' managers in the context of LDCs to understand how TLPs can further improve OP when interacting with HLPs.