Mitigating the risk of failure in lean banking implementation: the role of knowledge codification

Abstract

This study investigates a novel potential barrier to lean implementation: the degree of knowledge codification. Building on extant literature which analyses what affects knowledge transfer effectiveness and efficiency in lean implementation, this study suggests that lean implementations are less likely to fail when they are characterised by the appropriate level of codification, which is contingent upon the following variables: the performance challenge to be addressed, the sense of urgency of the required improvements, the vertical and horizontal articulation of the target organisation, and the organisational units’ absorptive capabilities. The study adopts an abductive approach to case research, combining a process perspective with a quasi-experimental design. It investigates the back-office operations of a financial service provider and is based on data gathered over 15 months.