How can a buying company develop a Toyota-style supplier network while its lean capabilities are still evolving?

Abstract

PurposeToyota had mature lean capabilities when developing its supplier network. This paper aims to explore how companies can develop a Toyota-style supplier network (TSN) while their lean capabilities are still evolving.Design/methodology/approachTheoretically, this paper relies on the literature on lean maturity levels and lean supplier network development. Empirically, the paper portrays a Toyota-style initiative, detailing the buyer’s efforts to develop internal lean capabilities concurrently with developing lean in its supplier network. It compares the Network for supplier innovation (NSI) initiative with TSN development regarding activities, organizations and knowledge-sharing routines.FindingsUnlike the sequential development in the case of Toyota, NSI improved performance and capabilities in the buyer’s supplier network by implementing lean in the firm and its supplier network concurrently. Third-party involvement was the key to the initiative’s success.Research limitations/implicationsThe findings are based on an in-depth single-case study which allows theoretical generalization but not statistical generalization. Furthermore, the case study concerns an initiative with Norwegian firms during a financial recession. Future studies should consider these limitations on how firms with evolving lean capabilities can develop a TSN-style supplier network and the importance of involving third parties operating in the role of lean master.Practical implicationsThis study suggests what buying firms should consider when designing a TSN initiative, enrolling suppliers and engaging third parties that can take on the role of lean master.Originality/valuePrevious research has focused on how mature lean firms develop lean suppliers and networks. This paper extends this to firms whose lean capabilities are still evolving.