Abstract
Purpose: The objective of this study was to investigate the moderating role of environmental uncertainty (EU) on the relationship between lean practices (LP) and business performance (BP) in SMEs in Thailand. Design/methodology/approach: The 170 samples of middle management level persons who were aware of lean concepts or practices from 120 manufacturing companies of SMEs in Thailand. We analyzed the relationship between lean practices and business performance by multiple linear regression analysis (MLR). Findings: The results revealed that performance uncertainty and process uncertainty have a significant impact on lean practices with a direct and negative effect. For the key performance result, the results revealed that only Statistical Process Control (SPC) and employee involvement (EI) of lean practices have a significant impact on the key performance result with a direct and positive significantly impactful, the results revealed that only Just in Time or JIT and Statistical Process Control (SPC) have a significant impact on the customer result control direct and positive effect. For the employee result, the results revealed that four dimensions of Lean Practices including supplier development or SD, Setup Time Reduction (STR), employee involvement, and Total Productive Maintenance (TPM) have a significant impact on the employee result with direct and positive effect. Research, Practical & Social Implications: This study provides lean practices in SMEs in Thailand and their moderating role on environmental uncertainty on the relationship between lean practices and business performance which in contributes to economic Thailand. Further research should focus on specific industries. Originality/value: Research moderating role of environmental uncertainty (EU) on the relationship between lean practices (LP) and business performance (BP) in SMEs in Thailand are especially important in SMEs.
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