Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329739 
Year of Publication: 
2024
Citation: 
[Journal:] Asian Journal of Shipping and Logistics (AJSL) [ISSN:] 2352-4871 [Volume:] 40 [Issue:] 2 [Year:] 2024 [Pages:] 109-117
Publisher: 
Elsevier, Amsterdam
Abstract: 
Lean strategy, aimed at optimizing resources, minimizing energy usage, and achieving zero waste in the production process, has been increasingly embraced to reduce systemwide costs in manufacturing. However, practitioners in small and medium-sized enterprises (SMEs) often lack the necessary expertize to implement lean strategies successfully. This study systematically examines the impact of lean strategy on the financial performance of Chinese SMEs. Specifically, we categorize lean strategy into two components: inventory leanness and operational leanness. We introduce a novel measure, the empirical production leanness indicator (EPLI), to quantify systematic production practices aimed at waste reduction. Drawing on a large sample of SMEs, our empirical findings suggest that both inventory leanness and operational leanness exhibit an inverted U-shaped relationship with an SME's financial performance. In conclusion, this study contributes to the lean literature and offers significant practical implications for SMEs seeking to benefit from adopting lean strategies.
Subjects: 
Lean strategy
Operational leanness
Inventory leanness
Inverted-U relationship
SMEs
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.