Degree of leanness and lean maturity: exploring the effects on financial performance

Abstract

Past literature has investigated the relationship between lean production and financial performance with mixed results. Most studies focused on subsets of lean practices to measure lean production, thus failing to consider it as a managerial system that combines a large number of practices. To overcome this issue, the present research assessed lean production as a function of a firm’s degree of leanness based on the leanness methods research. Moreover, though lean production accrues benefits from a sustainable implementation over time, past literature has scarcely investigated the role of lean maturity. The present research hypothesises that lean maturity positively affects financial performance as well as it moderates the degree of leanness-financial performance relationship. Findings indicate that degree of leanness is not associated with financial performance whereas lean maturity positively influences financial performance. Moreover, lean maturity positively moderates the relationship between degree of leanness and financial performance.

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