The Impact of Lean Management Practices on Economic Sustainability in Services Sector

Abstract

Lean management is a significant weapon that can help firms within the fourth industrial revolution to find unique solutions to their own unique problems. On the other hand, there is a noticeable increase in the level of awareness of firms all over the world regarding their urgent need to achieve economic sustainability. This paper aims to build a model that best measures the impact of lean management practices on economic sustainability for service firms. For this purpose, a multiple case study is employed, exploratory and confirmatory factor analyses are utilized to develop valid and reliable measure of lean management, and Pearson’s correlation and regression analyses are employed to measure the impact of lean management on economic sustainability. The results provide evidence of the positive impact of lean management on economic sustainability. This paper contributes to the literature by developing a novel measure of lean management and by providing evidence of the positive impact of lean management on economic sustainability, as this relation is not well tested empirically, especially in emerging economies.