Article2010

Lean production, market share and value creation in the agricultural machinery sector in Brazil

Paul Forrester · Ullisses Kazumi Shimizu · Horacio Soriano‐Meier · Jose Arturo Garza‐Reyes · Leonardo Fernando Cruz Basso

98 citations0/0 files storedJournal of Manufacturing Technology Management

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Quality and Supply Management Management and Optimization Techniques Digital Transformation in Industry

Abstract

Purpose The “resource‐based view” (RBV) of firms considers that major operational and organisational advantages are created in the internal environment of a firm. The implementation of lean manufacturing represents the potential for strategic advantage over competitors, especially in craft‐based industries in developing regions of the world. The purpose of this paper is to investigate the relationship between the adoption of lean manufacturing and market share and value creation of companies in the agricultural machinery and implements sector in Brazil. Design/methodology/approach The paper is based on data collected in a survey conducted across 37 firms in the agricultural machinery and implements industry in Brazil. The data were used within a model for assessing the degree of leanness to test three hypotheses using correlation, regression, analysis of variance and cluster statistical methods. Findings Brazilian firms and managers in this sector that have supported a transition towards the adoption (and adaptation) of lean manufacturing practices have shown a significant improvement in their business performance. Originality/value The paper presents an empirical study where lean manufacturing is investigated and tested from a “RBV” perspective. It demonstrates the application of an emergent model for measuring the degree of leanness and the extent of business improvement. The study and the model are applied to smaller, craft‐based industries and so is applicable in developing countries and regions, in comparison with most literature on lean production in advanced economies. It provides a useful perspective for firms to corroborate and understand the potential benefits that lean manufacturing can bring if adopted.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1991The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation 1991Organizational Learning: The Contributing Processes and the Literatures 1992The machine that changed the world 2004Learning to evolve 1992Learning Through Failure : The Strategy of Small Losses 1981The Contributions of Industrial Organization To Strategic Management,

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