The impact of lean manufacturing practices on operational and financial performance: the mediating role of agile manufacturing

Abstract

PurposeThis empirical study aims to explore the link between lean manufacturing practices (total quality management, just-in-time production, just-in-time purchasing, total productive/preventive maintenance), agile manufacturing, and operational and financial performance.Design/methodology/approachData were collected from 205 Tunisian manufacturing firms, and the results were analyzed using structural equation modeling.FindingsThe results indicate that (1) lean manufacturing practices have a direct positive relationship with agile manufacturing except for just-in-time production, (2) agile manufacturing has a positive impact on operational performance and (3) lean manufacturing practices did not seem to contribute directly to operational performance. However, this relationship is significant when it is mediated through agile manufacturing.Research limitations/implicationsThis paper shows practitioners the importance of lean manufacturing practices to support agile manufacturing and the key role of agile manufacturing to ensure operational performance.Originality/valueThis paper presents an innovative approach since it studies simultaneously the three dimensions of lean manufacturing and their relationship with agile manufacturing and organizational performance.