Lean bundles within Jordanian manufacturing SMEs and their effect on business performance

  • Received March 18, 2020;
    Accepted June 16, 2020;
    Published June 25, 2020
  • Author(s)
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  • Article Info
    Volume 18 2020, Issue #2, pp. 302-315
  • Cited by
    3 articles

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This work is licensed under a Creative Commons Attribution 4.0 International License

Maximizing customer value and minimizing waste have become the heart of the formulation of SMEs in the manufacturing sector of Jordan to survive in the new global marketplace. Therefore, lean manufacturing philosophy is used in SMEs to improve performance regarding quality, delivery, and costs to become efficiently competitive, thus accomplishing sustainable economic growth. The current study was designed to analyze the extent to which lean management bundles are adopted by SMEs manufacturing organizations in Jordan and the effect on their performance. Data were collected from 278 manufacturing SMEs in Jordan based on a structured questionnaire. The theoretical relationships were examined using structural equation modeling. The results show that Total Quality Management (TQM) and Human Resources Management (HRM) lean bundles are positively associated with manufacturing SMEs’ performance. The outcomes of this study may be considered as incentives for other practitioners and entrepreneurs of SMEs when implementing lean bundles by acknowledging the positive effect on their performance. Moreover, the findings of this study could be used in an internal checklist before and during the implementation of Lean Manufacturing (LM).

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    • Figure 1. Research framework
    • Figure 2. Hypotheses testing results
    • Table 1. Sample characteristics
    • Table 2. Measurement items, validity and reliability analysis
    • Table 3. Descriptive statistics and correlations
    • Table 4. Path analysis for the constructs of the study
    • Conceptualization
      Khalil Al-Hyari
    • Formal Analysis
      Khalil Al-Hyari
    • Investigation
      Khalil Al-Hyari
    • Methodology
      Khalil Al-Hyari
    • Project administration
      Khalil Al-Hyari
    • Resources
      Khalil Al-Hyari
    • Software
      Khalil Al-Hyari
    • Validation
      Khalil Al-Hyari
    • Writing – original draft
      Khalil Al-Hyari
    • Writing – review & editing
      Khalil Al-Hyari