Improving of Organizational Performance Using Lean Supply Chain Management Practices: The Mediating Role of Supply Chain Collaboration

Abstract

Purpose - Surviving in the face of growing globalization, competition and rapid changes in consumer expectations would mean that, firms have to adopt modern business strategies that are flexible and capable of sustaining performance improvements among firms. The aim of this paper is to establish the effect of lean supply chain management (LSCM) approach on performance improvement among firms through the influence of supply chain collaboration (SCC).

Design/Approach/Methodology - This conceptual paper recommends an inclusive model that incorporate LSCM and SCC dimensions as well as organizational performance, underpinned by theories such as the Dynamic Capabilities (DCT) and Relational View (RV). The proposed model is to establish the direct and indirect effects of LSCM approach on firms’ performance through the influence of SCC (intra and inter firm) dimensions in the manufacturing context, as the main goal of LSCM implementation which will subsequently lead to improvements in organizational performance.

Originality: The study effectively combines the DCT and RV to develop a comprehensive model involving the three broad operations and supply chain management concepts. Though there may be similar studies on LSCM practices among manufacturing firms, limited studies have explored similar model or work has limited discussion especially on exploring the mediating roles of individual dimensions of SCC in the LSCM practices – organizational performance among manufacturing firms. This is a novelty as it provides deeper insights on the mediating effects of each dimension of SCC in the relationship between LSCM practices and organizational performance. The proposed theoretical model will serve as a potential blueprint for the successful implementation of LSCM practices.