Advancing an evaluation model: how do family SMEs select innovation scheme in lean management?

Compared with intellectualization, lean is what family small- and medium-sized enterprises (SMEs) should pay more attention to and complete. Lean management implementation (LMI) can lead to better performance, but can be detrimental to non-economic goals, such as socioemotional wealth (SEW) associated with family control. The contradiction between economic goals and non-economic goals makes LMI become a multi-criteria decision-making problem in family SMEs. To address this problem, we propose an evaluation model combining the Decision-Making Trial and Evaluation Laboratory (DEMATEL), DEMATEL-based Analytic Network Process (DANP), and Viekriterijumsko Kompromisno Rangiranje (VIKOR) method. The evaluation model can be used to evaluate and select the optimal lean management scheme that meets the SEW preferences and lean management preferences of family SMEs. Moreover, the evaluation model can also be used to provide targeted improvement suggestions for LMI to improve innovation performance. We construct an evaluation framework based on practical criteria from both lean tools and SEW carriers. These practical criteria can correspond to the activities and goals of the LMI, ensuring the usefulness of the evaluation model. In addition, taking a family SME as an example, we conducted case analysis and sensitivity analysis to verify the evaluation model. The study results provide an important reference for family SMEs to implement lean management.