The effect of environmental complexity and environmental dynamism on lean practices. Issue 4 (28th March 2013)

• Record Type: Journal Article
• Authors: Azadegan, Arash; Patel, Pankaj C.; Zangoueinezhad, Abouzar; Linderman, Kevin
• Is Part Of: Journal of operations management. Volume 31:Issue 4(2013)
• Page Start: 193
• Page End: 212
• Publication Date: 2013-03-28
• Subjects: Lean operations, Lean purchasing, Environmental uncertainty, Complexity, Dynamism; Production management -- Periodicals; Management -- Periodicals; 658.5
• DOI: 10.1016/j.jom.2013.03.002
• Languages: English
• ISSNs: 0272-6963

Abstract

Abstract: Increasingly manufacturers implement lean practices to improve operational performance. In addition, manufacturers operate in ever more complex and volatile environments. This research investigates the effects of environmental complexity and dynamism on lean operations and lean purchasing practices. It empirically examines these relationships using archival and survey data from 126 manufacturers. The results show that environmental complexity positively moderates the effects of lean operations and lean purchasing on performance. However, environmental dynamism reduces the benefits of lean operations on performance, but enhances the benefits of lean purchasing on performance. Robustness tests further confirm the contingent effects of complexity and dynamism on lean operations and lean purchasing. This research offers a more nuanced understanding of the effect of external environmental context on lean practices, and suggests that practitioners should carefully consider the external environment when implementing different types of lean practices.