Mediating Effect of Supplier Relations on Organizational Culture and Customer Relations in Measuring Lean Readiness Amongst SMEs: An Importance- Performance -Map Analysis (IPMA)

Abstract

The study aims to examine the mediating effect of supplier relations on the relationship between organizational culture and customer relations in lean readiness assessment within manufacturing small and medium-scale enterprises in Nigeria. A questionnaire was administered to managers of manufacturing SMEs. Retrieved and usable responses were analyzed using SMART PLS 4 for measurement model, structural model, path coefficient, and Importance-performance map analysis. The study's findings reveal that positive and significant relationship exists between organizational culture and supplier relations. The relationship between supplier relations and customer relations was also positive and significant. Also, supplier relations mediate the relationship between organizational culture and customer relations. The importance-performance map analysis revealed that supplier relations is fundamental regarding lean readiness evaluation before full deployment. The study implies that culture match and alignment between supplier relations and customer relations are sacrosanct for practical lean readiness assessment and effective deployment within manufacturing SMEs. It further emphasizes the importance of supplier relations in achieving full lean readiness. Hence, the study contributes theoretically by examining the indirect role of supplier relations on organizational culture and customer relations. The study also offers insight to small and medium-sized business managers to make effective decisions on lean readiness before full implementation, minimizing the chances of unsuccessful lean deployment.