Information Technology Resources, the Organizational Capability of Lean-Agile Manufacturing, and Business Performance

Abstract

This article drew on the resource-based view of the firm and assessed how manufacturing firms—particularly in developing countries—can leverage their IT resources in support of lean manufacturing and agile manufacturing. The data collection was conducted via a survey of Iranian automobile manufacturers that supply international automobile makers. The result showed that IT resources are crucial to the development of lean manufacturing and agile manufacturing. The value of IT is truly transformed to performance improvement when IT resources are effectively leveraged in support of these manufacturing systems. Lean and agile manufacturing are two manufacturing strategies that can co-exist in one system and agile manufacturing may flourish under lean manufacturing circumstances. Complementarities exist among different practices of lean manufacturing as well as different dimensions of agile manufacturing. The authors' findings offer theoretical insights regarding the values of IT-enabled lean manufacturing and agile manufacturing at operation and strategic levels.