Volume 3 number 1 (05)

Original research

ASSESS THE IMPACT OF LEAN MANAGEMENT PRACTICES ON ORGANISATIONAL PERFORMANCE

Pages 41-62

DOI 10.61552/JIBI.2025.01.005

ORCID Ajit Pal Singh, ORCID Birhane Desta Atsegeba, ORCID Moti Melkamu


Abstract: The purpose of this study is to investigate the impact of lean management practices in Horizon Addis Tire Manufacturing PLC. In addition, the mediating effect of operational performance is tested. This survey-based study was cross cross-sectional study. A self-administered survey five-point Likert scale questionnaire was used for primary data collection. Factor analysis, correlation, multiple regression analyses, and fuzzy set qualitative comparative analyses were used to test the study’s four hypotheses. The predictive tests on fuzzy set qualitative comparative analysis for all the models indicate that the five highly coherent models for the sub-sample have high predictive ability for the holdout sample and vice versa. Finally, comparing the predictive power assessments from multiple regression model lean management practices to organizational performance measure, and fuzzy set qualitative comparative analysis also suggests that the five predictive power assessments are consistent, thereby confirming that the models have high predictive power. This study contributes to the lean management body of knowledge by identifying the relationships between lean management practices, operational performance, and organizational performance. The present study provides the notion of the integral and holistic practices of lean practices, operational performance, and organizational performance. The study adds to the knowledge and theories on how lean management practices can affect organizational performance, at the operations level. This study provides the notion of integral and holistic practices of lean management and a comprehensive approach to performance measurement. Understanding these relationships will help practitioners make better decisions in manufacturing organizations as well as enable the application of the concepts in this study to other contexts such as service organizations.

Keywords: Lean, Management, Operational, Performance, Tire, Manufacturing, Organisation.

Recieved: 12.01.2024. Revised: 11.04.2024. Accepted: 29.05.2024.