Abstract
Maximizing customer value and minimizing waste have become the heart of the formulation of SMEs in the manufacturing sector of Jordan to survive in the new global marketplace. Therefore, lean manufacturing philosophy is used in SMEs to improve performance regarding quality, delivery, and costs to become efficiently competitive, thus accomplishing sustainable economic growth. The current study was designed to analyze the extent to which lean management bundles are adopted by SMEs manufacturing organizations in Jordan and the effect on their performance. Data were collected from 278 manufacturing SMEs in Jordan based on a structured questionnaire. The theoretical relationships were examined using structural equation modeling. The results show that Total Quality Management (TQM) and Human Resources Management (HRM) lean bundles are positively associated with manufacturing SMEs’ performance. The outcomes of this study may be considered as incentives for other practitioners and entrepreneurs of SMEs when implementing lean bundles by acknowledging the positive effect on their performance. Moreover, the findings of this study could be used in an internal checklist before and during the implementation of Lean Manufacturing (LM).
Highlights
As a response to the rapid technological development in the world, and to the market demands, firms of different sizes and from various sectors need to improve their product quality, provide faster delivery, and lower the costs to improve the efficiency of performance (Mohammad & Oduoza, 2019; Shokri, Waring, & Nabhani, 2016)
The results show that Total Quality Management (TQM) and Human Resources Management (HRM) lean bundles are positively associated with manufacturing SMEs’ performance
The coefficient findings of this study suggest that the majority of for this path is significant (β =.273, p < 0.05). manufacturing SMEs must have TQM capabilities, This supports Hypothesis H1
Summary
As a response to the rapid technological development in the world, and to the market demands, firms of different sizes and from various sectors need to improve their product quality, provide faster delivery, and lower the costs to improve the efficiency of performance (Mohammad & Oduoza, 2019; Shokri, Waring, & Nabhani, 2016). Lean philosophy may just be the solution to this problem (Psomas, Antony, & Bouranta, 2018). Looking at it from a globalization standpoint, most studies have noted that SMEs are a source for improving competitiveness and contributors to increasing economic wealth (Prasanna & Vinodh, 2013; Hu, Mason, Williams, & Found, 2015). Productivity, quality, customer satisfaction, and delivery are problems, which plague SMEs these days. To overcome these problems, SMEs have to tackle waste to meet quality requirements and delivery times, among other things, which can be achieved through the main characteristics of lean philosophy (Thanki & Thakkar, 2019)
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