Exploring organizational contexts on lean manufacturing and supply chain relationship

Abstract

Purpose The purpose of this paper is to explore the levels of lean manufacturing (LM) and supply chain relationships (SCR) in the manufacturing sector in Thailand, and analyze the differences across organizational characteristics (i.e. firm size, nationality of firms, manufacturing system, product brand, export level, nationality of customers, nationality of suppliers and existence of supply chain management (SCM) departments) on LM and SCR. Design/methodology/approach The measurement instruments of LM and SCR were developed and validated by experts, pilot test and various statistical techniques. Descriptive statistics were applied to investigate the levels of LM and SCR in the sample firms. Independent samples t-test and ANOVA were employed to examine the differences across organizational characteristics on overall LM and SCR, and their individual sub-construct. Findings It was found that the measurement instruments of LM and SCR were reliable and valid. Manufacturers in Thailand emphasized internal LM at the operational level much more extensively than external SCR. Overall, for LM, this study revealed significant differences across firm size, nationality of firms, manufacturing systems, export levels, nationality of customers and existence of SCM departments. For SCR, there were significant differences across export level, nationality of suppliers and existence of SCM departments. Differences across contexts of individual sub-construct of LM and SCR were analyzed and discussed. Originality/value This study is one of the first to present insights into the existence of LM and SCR and into the differences across organizational contexts on LM, SCR and their sub-constructs in the manufacturing sector in Thailand. The methodologies and findings are applicable to other developing countries.