Exploring the effects of lean practices and supply chain disruption on performance

Abstract

Lean practices have been a dominant approach in dealing with business and supply chain issues for the last few decades, but many studies suggest that the leaner the supply chain process, the more vulnerable the supply chain network amid supply chain disruptions. This study aims to explore the relationship between lean practices and supply chain disruption occurrences (SCDOs) and their impact on firm performance. In a large-scale survey of 198 companies in the USA, structural equation modelling was used to test the proposed hypotheses. The results of this study suggest that lean practices can promote a firm's operational performance directly, but they can conversely decrease a firm's operational performance through SCDOs. This study contributes to the literature of lean practices and supply chain risk management, and provides practical implications by extending our understanding of the positive as well as negative sides of the lean approach in operation and supply chain practices.