Lean supply chains and the competitiveness of emerging market firms

Abstract

This paper addresses the issue of whether the type of supply chain can have a significant effect on the pace and tenor of economic development of a country. It is argued that the spread of lean production systems such as the Toyota Production System and its derivatives can improve technology transfer to an economy and diffuse it more widely than traditional forms of production systems and supply chains. The result is faster economic development through a more rapid transition to higher value-added manufacturing and more export-competitive industries in terms of price, quality, and flexibility. The mechanisms for technology transfer in lean production are the emphasis on soft technology (that is, process and management skills) and the fuller development of human resources in firms. The spread of these capabilities through the supply chain hastens the economic growth and development effects. Several case studies are used to illustrate these effects.