Extending Lean Management Along The Supply Chain: Impact On Efficiency

Purpose The purpose of this paper is to investigate the contribution to improving the efficiency of the focal firm made by lean management at the internal and supply chain levels. Design/methodology/approach An empirical study was conducted of 285 Spanish focal companies from industrial sectors that occupy an intermediate position in the supply chain. The data gathering method consisted of a telephone survey using computer-assisted telephone interviewing. A structural equation was used to test the hypotheses. Findings The results indicate that there is an improvement in efficiency of the focal firm when lean management extends throughout the supply chain, in line with the resource-based theory and integrated supply chain management. In addition, lean management at the internal level is observed to impact positively on the focal firm's efficiency only when it contributes to enhancing the implementation of lean supply chain management. Practical implications To achieve the best operational performance derived from lean management, managers should pay attention to the transfer to their supply chain members of knowledge, competencies and cultural change linked to the level of internal lean implementation of the focal firm. Moreover, this paper provides a way to assess the operational aspects of lean supply chain strategy implementation and lean supply chain planning. Originality/value This study uses a holistic focus on lean supply chain management, to which it applies a validated instrument. It underlines that lean on the internal level should be complemented with lean on the supply chain level to provide a better understanding of the drivers of the efficiency of the focal firm.