Evaluating and prioritizing factors affecting lean management in small and medium-sized enterprises (SMEs) within the digital entrepreneurship sector: a case study

Abstract

Lean management is increasingly recognized as a critical approach for small and medium-sized enterprises (SMEs) seeking efficiency, agility, and competitiveness. This study aimed to identify and prioritize lean management factors specific to digital entrepreneurship SMEs, integrating lean principles with digital and entrepreneurial characteristics in a context-sensitive manner. The study used a sequential mixed-methods design (see Graphical Abstract). Qualitative interviews contextualized lean practices within digital entrepreneurial settings and informed instrument development. Subsequently, a validated 34-item questionnaire was administered to 183 managers and employees across 37 purposively selected digital entrepreneurship SMEs from a population of 58 firms in Isfahan, Iran. Exploratory factor analysis was justified as appropriate for identifying underlying constructs in this emerging research domain, and reliability measures were reported. Quantitative prioritization techniques were then applied to determine the relative importance of factors, while procedural and statistical remedies were used to mitigate common method bias and ensure consistency in demographic reporting. The findings revealed a context-specific hierarchy of lean management factors. The core dimensions include customer-centricity, continuous improvement, data-driven decision-making, and leadership commitment, aligned with foundational lean concepts and digital opportunity exploitation. At the operational level, the most critical indicators are the speed of digital product or feature modification, optimal use of financial resources, and systematic implementation of employee improvement suggestions. By explicitly linking lean management to digital transformation and entrepreneurial dynamics, the research advances lean–digital integration theory and offers actionable guidance for SME managers and policymakers supporting sustainable digital entrepreneurship.