The Effect of Lean Manufacturing on the Financial Performance: Case of the Manufacturing Companies in South Lebanon

  1. Ahmed Bakri 1
  2. Hassan Alaaraj 1
  1. 1 Lebanese International University
    info

    Lebanese International University

    Beirut, Líbano

    ROR https://ror.org/034agrd14

Revista:
Journal of Business and Social Review in Emerging Economies

ISSN: 2519-089X,  2519-0326

Año de publicación: 2019

Volumen: 5

Número: 2

Páginas: 237-246

Tipo: Artículo

DOI: 10.26710/JBSEE.V5I2.794 GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Journal of Business and Social Review in Emerging Economies

Resumen

Businesses have been trying to implement new business initiatives such aslean manufacturing to stay alive in the latest competitive market place.Such initiative concentrates on cost reduction by removing the non-valueadded activities to achieve better financial performance. This studyexamined the effect of lean manufacturing on financial performance fromthe perspective of managers in the industrial sector in South Lebanon. Themethodology of this study was quantitative in which 152 self-administeredquestionnaires were distributed randomly among managers. The data wasanalyzed using SPSS software. Descriptive statistics were identified andproposed hypotheses were tested using Pearson correlation and regressionanalysis. The results showed that lean manufacturing has a significant andpositive effect on financial performance. Future studies are encouraged toexpand the research to other regions in Lebanon over a longer timehorizon and apply different quality improvement tools.

Referencias bibliográficas

  • Ataalah, A. et al., 2016. Relationship between lean manufacturing and business performance: a conceptual model based on Libyan manufacturing industries. ARPN Journal of Engineering and Applied Sciences, July.11, NO 14(1819-6608).
  • Abdullah, F., 2003. Lean manufactoring tools and techniques in the process industry with a focus on steel, s.l.: Graduate Faculty of School of Engineering.
  • AlManei, Salonitis, and Xu, (2017) 'Lean implementation frameworks: the challenges for SMEs'. ScienceDirect(2212-8271).
  • Ataalah, A., Hasnan, , Mohammad, , Ahmad, , and Alkalani, A. (2016) 'Relationship Between Lean Manufacturing And Business Performance: A Conceptual Model Based On Libyan Manufacturing Industries'. ARPN Journal of Engineering and Applied Sciences. 11, NO 14(1819-6608) July.
  • Baran, , Pastýr, And Baranová, D. (2016) 'Financial Analysis of a Selected Company'. Faculty Of Materials Science And Technology In Trnava. 24, N 37.
  • Callen, J., , Fader, C. and Krinsky, I. (2000) 'Just-in-time: A cross-sectional plant analysis'. International Journal of Production Economics. 63(3) January. pp. 277-301.
  • Camuffo, and Gerli, (2013) 'the Financial Impact of Lean Transformations: A Fuzzy-Set Analysis'. The Financial Impact of Lean Transformations.
  • Chaaban, J., Chalak, . A., Ismail, T. & Taha, H., 2018. Assessing EU–Mediterranean Policies in the Field of Industry from a Bottom-up Perspective: The Case of Lebanon, s.l.: MEDRESET.
  • Chami, . M. & Mikhael, M., 2017. Productivity setbacks impede Lebanon industry, s.l.: BLOMINVEST BANK.
  • Claycomb, , Germain, and Dröge, (1999) 'Total system JIT outcomes: inventory, organization and financial effects'. International Journal of Physical Distribution & Logistics Management. 29(10). pp. 612-630.
  • Dekier, Ł. (2012) 'The Origins and Evolution of Lean Management System'. Journal of International Studies. 5(1). pp. 46-51.
  • Demeter, and Matyusz , (2010) 'The impact of lean practices on inventory turnover'. Int. J. Production Economics. 133. pp. 154-163.
  • Durakovic, , Demir, , Abat, and Emek, (2018) 'Lean Manufacturing: Trends and Implementation Issues'. Periodicals of Engineering and Natural Sciences. 6(2303-4521) June. pp. 130-143.
  • Fullertona, , , Kennedy , , and Widener, S., (2014) 'Lean manufacturing and firm performance: The incremental contribution of lean management accounting practices'. Journal of Operations Management. 32. pp. 414– 428.
  • Fullerton, R. and McWatters, S. (2002) 'The role of performance measures and incentive systems in relation to the degree of JIT implementation.'. Accounting, Organizations and Society. 27(8) November. pp. 711-735.
  • Hadhri, , Arvanitis, and M‟Henni, (2016) 'Determinants of Innovation Activities in Small and Open Economies: The Lebanese Business Sector'. Journal of Innovation Economics & Managemen. 3 NO 21. pp. 77 - 107.
  • Harris, D. and Cassidy, J. (2014) 'The Adoption of Lean Operations and Lean Accounting on the Profitability and Cash Flows of Publicly Traded Companies'. Emerald Group Publishing. 22. pp. 71-96.
  • Hasan, M., , Asaad, M.N.M. and Iteng, (2017) 'Lean Manufacturing Practices and Manufacturing Performance: The Moderating Effect of Ethical Climates'. Journal of Global Business and Social Entrepreneurship (GBSE). 3(24621714). pp. 189–200.
  • Hayek, K.F. (2000) 'https://investinlebanon.gov.lb/en/sectors_in_focus/industry'. Journal of Economic Corporation(111-130).
  • Hofer, C., Eroglu, C. and Hofer, , (2012) 'The effect of lean production on financial performance: The mediating role of inventory leanness'. Int. J. Production Economics. 138. pp. 242–253.
  • Iranmanesh, M., Zailani , , Hyun , , , Ali, M., and Kim, K. (2019) 'Impact of Lean Manufacturing Practices on Firms‟ Sustainable Performance: Lean Culture as a Moderator'. Graduate School of Business.
  • Kemayel, L. (2015) 'Success Factors of Lebanese SMEs: an Empirical Study'. Social and Behavioral Sciences(1877-0428).
  • Khlat , , Harb, H. and Kassem , (2014) 'Lean Manufacturing: Implementation and assessment in the Lebanese Pharmaceutical Industry'. Int. Journal of Computing and Optimization. 1. pp. 47- 62.
  • King, A.A. and Lenox, M.J. (2001) 'Lean and Green ? An emperical examination of relationship between lean production and enviromental performance'. Production and Operation Management. 10 NO 3. p. 244.
  • Matar, A. and Eneizan, B. (2018) 'Determinants of Financial Performance in the Industrial Firms : Evidence from Jordan'. Asian Journal of Agriculture Extension, Economic & Sociology. 22, NO 1(2320 - 7027) January. pp. 1-10.
  • Mazanai, M. (2012) Impact of just-in-time (JIT) inventory system onefficiency, quality and flexibility among manufacturingsector, small and medium enterprise (SMEs) in SouthAfrica. African Journal of Business Management. [Online] Available at: https://www.academia.edu/2386219/Impact_of_just-intime_JIT_inventory_system_on_efficiency_quality_and_flexibility_among_manufacturing_sector_small_a nd_medium_enterprise_SMEs_in_South_.
  • Meade, D., Kumar, S. and White, B. (2010) 'Analysing the impact of the implementation of lean manufacturing strategies on profitability'. Journal of the OperationalResearch Society. 61(5). pp. 858-871.
  • Moori, , , Pescarmona, and Kimura, (2013) 'Lean Manufacturing and Business Performance in Brazilian Firms'. Journal of Operations and Supply Chain Management. 6 NO 1(1984-3046). pp. 91 - 105.
  • Moori, , , Pescarmona, and Kimura, (2013) 'Lean Manufacturing and Business Performance in Brazilian Firms'. Journal of Operations and Supply Chain Management. 6, NO 1( 1984-3046). pp. 91 - 105.
  • MUTUA, , Ngugi, and Otieno, O. (2018) 'Influence of Lean Production Practices on Performance of Large Manufacturing Firms in Kenya'. Journal of International Business, Innovation and Strategic Management. 1(8).
  • Mwelu, N., Rulangaranga, M., Watundu, and Tindiwensi, C.K. (2014) 'Lean Mnaufacturing and Profitability of Manufacturing Firms in Uganda'. European Journal of Business and Management. 6, NO 18(2222 - 2839).
  • Nallusamy, and M.A., A.A. (2017) 'Implementation of Lean Tools in an Automotive Industry for Productivity Enhancement - A Case Study'. nternational Journal of Engineering Research in Africa. 29(1663-4144). pp. 175-185.
  • Nawanir, G. (2010) 'The impact of lean manufacturing practices on operations performance: A study on Indonesian manufacturing companies'. College of Business, Universiti Utara Malaysia.
  • Nawanir, , Teong, T. and Othman, N. (2013) 'Impact of lean practices on operations performance and business performance: some evidence from Indonesian manufacturing companies'. Journal of Manufacturing TechnologyManagemen. 24 , NO 7. pp. 1019-1050.
  • Prananingrum, , , Muthalib, D., , Azis, M.I., Rohansyah, and Rosikah (2018) 'Effects of Return on Asset, Return On Equity, Earning Per Share on Corporate Value'. The International Journal of Engineering and Science (IJES). 7(3). pp. 23-19.
  • Sahoo, and Yadav, (2017) 'Effectiveness of Lean Manufacturing Technologies on Improving Business Performance: A Study of Indian Manufacturing Industries'. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering. 11, NO 2.
  • Salehi, , Alipour, and Ramazani, (2010) 'Impact Of JIT On Firms„ Financial Performance Some Iranian Evidence'. Global Journal of Management and Business Research. 10(4). p. 21.
  • Singh, G. and Ahuja, I.S. (2012) 'Just-in-time manufacturing : literature review and directions'. International Journal of Business Continuity and Risk Management. 3, NO 1 January. pp. 57- 98.
  • Singh, and Ahuja, , (2012) 'Just-in-time manufacturing: literature review and directions'. Int. J. Business Continuity and Risk Management. 3 NO 1. pp. 57 - 98.
  • Tabch, L. E., 2017. The Lebanese Economy in 2017, S.l.: Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon.
  • The World Bank, 2016. Lebanon Economic Monitor A Geo-Economy Of Risks And Reward, s.l.: Global Practice for Macroeconomics & Fiscal Management, GMFDR Middle East and North Africa Region.
  • UNDP, 2015. Private Sector Strategy Lebanon, s.l.: s.n.
  • UNDP, 2018. UN Lebanon Annual Report 2018, working together for a Secure, Stable and Prosperous Lebanon. Available at: http://www.lb.undp.org/content/lebanon/en/home/library/poverty/1274.html
  • UNHCR 2018. Lebanon Crisis Response Plan 2017- 2020 (2019 update), Government of Lebanon and the United Nations, January 2019. available on http://www.LCRP.gov.lb
  • Vilkas, , Koreckaja, , Katiliute, E. and Bagdoniene, D. (2015) 'Adoption of Lean production: preliminary evidence from Lithuania'. International Scientific Conference Economics and Management. 213 (1877-0428). pp. 884 – 889.
  • Yousef, , , Abd-Elrahman, , and Hendy, N.-E., (2015) 'Measuring the Potential Operational and Financial Improvements of Implementing Lean Manufacturing: Using Lean Accounting Tools-A Case Study'. ResearchGate September