The influence of lean manufacturing on firm performance through mediation of supply chain practices

Abstract

This research study aims to explore and confirm the impact of lean manufacturing practices on specifically the Supply Performance and generally the overall firm performance through the mediating role of supply chain practices among different partner entities associated with accomplishing a combined goal to generate profit, primarily focusing on minimizing wastes and reducing cost so that they can attain improved performance and competitive advantage. This study used a quantitative method to explore and confirm the developed and hypothesized model using a deductive approach. They were examined for the reliability, validity and structural equation modelling for analyzing the Path using Smart PLS 4. The obtained results not only suggested that there is a positive and direct impact of implementing LM Practices on SCRs and SP and SP influenced by improved SCRs among supply chains, but the indirect effect also confirmed the mediation of SCR between Lean practices and the SP, which consequently enhances overall firm performance in SME's sector in Pakistan.