Lean management and innovation performance Evidence from international manufacturing companies

Purpose The purpose of this paper is to explore the effects of innovation orientation (IO) on both the implementation levels of soft and hard lean management (LM), as well as innovation performance. It also aims at exploring the effects of soft and hard LM on innovation performance. Design/methodology/approach The study analyzes survey data collected as a part of a high-performance manufacturing (HPM) project from 238 international manufacturing companies in eight countries and three industries. Exploratory factor analysis and confirmatory factor analysis were applied to assess construct validity. The study hypotheses were tested using structural equation modeling. Findings The results demonstrated that innovation-oriented companies tend to adopt aspects of both soft and hard LM. However, the results revealed an insignificant effect of soft and hard LM on innovation performance. The study also showed that innovation performance is positively influenced by an IO. These results indicate that having an IO is vital for enhancing both LM as well as innovation performance. They also evidently suggest that LM is more related to continuous improvement (incremental innovation) rather than (radical) innovation and, as such, is not important for firm's intent on enhancing their innovation performance.