The relationship between investments in lean practices and operational performance: exploring the moderating effects of operational intellectual capital

Journal article


Onofrei, George, Fynes, Brian, Wiengarten, Frank, Humphreys, Paul and Prester, Jazna 2019. The relationship between investments in lean practices and operational performance: exploring the moderating effects of operational intellectual capital. International Journal of Operations & Production Management. https://doi.org/10.1108/IJOPM-04-2018-0201
AuthorsOnofrei, George, Fynes, Brian, Wiengarten, Frank, Humphreys, Paul and Prester, Jazna
Abstract

Prior research has shown that operational intellectual capital (OIC) and investments in lean practices (ILP) lead to better operational performance. However, there has been no empirical studies on the synergetic effects between OIC components and ILP. More specifically, the question: can the efficacy of ILP be increased through OIC has not been studied. Accordingly, the purpose of this study is to report the empirical results of potential synergetic effects between operational intellectual capital (OIC), as a knowledge-based resource, and ILP. The empirical data used for this study was drawn from the fifth round of the Global Manufacturing Research Group (GMRG) survey project (with data collected from 528 manufacturing plants). The hypotheses are empirically tested using three ordinary least square (OLS) models. Our findings highlight the importance of leveraging a system of complementary knowledge based resources (OIC dimensions) and addresses the need for the reformulation of lean theory in terms of the emergent knowledge-based view (KBV) of the firm. The results facilitate greater understanding of the complex relationship between ILP and operational performance. Building on the contribution of Menor et al. (2007), we argue that OIC represents a strategic knowledge based resource that is valuable, hard to imitate or substitute and when leveraged effectively, generates superior operational and competitive advantage.From a managerial standpoint, this study provides guidelines for managers on how to leverage OIC to enhance the efficacy of ILP. We argue that firms consider investing in OIC to increase the return from ILP, which in turn will enhance their operational performance and provide competitive advantage. Our findings provide strong evidence of the importance of human, social and structural capital to enhance the efficacy of ILP. This is the first research paper that extends the application of intellectual capital theory in lean literature, and argues that the operational intellectual capital contributes to the efficacy of ILP. The analysis facilitates greater understanding of the complex relationship between OIC dimensions, ILP and operational performance.

KeywordsLean; Performance
Year2019
JournalInternational Journal of Operations & Production Management
PublisherEmerald
ISSN01443577
Digital Object Identifier (DOI)https://doi.org/10.1108/IJOPM-04-2018-0201
Web address (URL)http://hdl.handle.net/10545/623691
hdl:10545/623691
Publication dates03 May 2019
Publication process dates
Deposited25 Apr 2019, 13:47
Accepted22 Nov 2018
ContributorsUniversity College Dublin
File
File Access Level
Open
File
File Access Level
Open
Permalink -

https://repository.derby.ac.uk/item/9414x/the-relationship-between-investments-in-lean-practices-and-operational-performance-exploring-the-moderating-effects-of-operational-intellectual-capital

Download files

  • 32
    total views
  • 5
    total downloads
  • 0
    views this month
  • 0
    downloads this month

Export as

Related outputs

A case study for merging supply chain and blockchain in Australian manufacturer
Daniel, Jay, Maroun, E and Fynes, B 2021. A case study for merging supply chain and blockchain in Australian manufacturer.
Green human resource management and environmental cooperation: An ability-motivation-opportunity and contingency perspective
Yu, Wantao, Chavez, Roberto, Feng, Mengying, Wong, Chee Yew and Fynes, Brian 2019. Green human resource management and environmental cooperation: An ability-motivation-opportunity and contingency perspective. International Journal of Production Economics. 219, pp. 224-235. https://doi.org/10.1016/j.ijpe.2019.06.013
The tension between worker safety and organization survival
Pagell, Mark, Parkinson, Mary, Veltri, Anthony, Gray, John, Louis, Michail, Wiengarten, Frank and Fynes, Brian 2020. The tension between worker safety and organization survival. Management Science. https://doi.org/10.1287/mnsc.2020.3589
Re-evaluating supply chain integration and firm performance: linking operations strategy to supply chain strategy
Wiengarten, Frank, Li, Huashan, Singh, Prakash J. and Fynes, Brian 2019. Re-evaluating supply chain integration and firm performance: linking operations strategy to supply chain strategy. Supply Chain Management: An International Journal. 24 (4), pp. 540-559. https://doi.org/10.1108/scm-05-2018-0189
Adoption of blockchain technology in supply chain transparency: Australian manufacturer case study
Maroun, Elias A., Daniel, Jay and Fynes, Brian 2019. Adoption of blockchain technology in supply chain transparency: Australian manufacturer case study. Proceedings of the 10th European Decision Sciences Institute (EDSI).
Building routines for non-routine events: Supply chain resilience learning mechanisms and their antecedents.
Scholten, Kirstin, Sharkey Scott, Pamela and Fynes, Brian 2019. Building routines for non-routine events: Supply chain resilience learning mechanisms and their antecedents. Supply Chain Management: An International Journal. https://doi.org/10.1108/SCM-05-2018-0186
Internal lean practices and performance: The role of technological turbulence.
Chavez, Roberto, Yu, Wantao, Jacobs, Mark, Wiengarten, Frank, Lecuna, Antonio and Fynes, Brian 2014. Internal lean practices and performance: The role of technological turbulence. International Journal of Production Economics. https://doi.org/10.1016/j.ijpe.2014.10.005
Exploring the importance of cultural collectivism on the efficacy of lean practices: Taking an organisational and national perspective.
Wiengarten, Frank, Gimenez, Cristina, Fynes, Brian and Ferdows, Kasra 2015. Exploring the importance of cultural collectivism on the efficacy of lean practices: Taking an organisational and national perspective. International Journal of Operations & Production Management. https://doi.org/10.1108/IJOPM-09-2012-0357
Resource allocation in multi-class dynamic PERT networks with finite capacity
Yaghoubi, Saeed, Noori, Siamak, Azaron, Amir and Fynes, Brian 2015. Resource allocation in multi-class dynamic PERT networks with finite capacity. European Journal of Operational Research. https://doi.org/10.1016/j.ejor.2015.06.038
The adoption of multiple certification standards: perceived performance implications of quality, environmental and health & safety certifications
Wiengarten, Frank, Humphreys, Paul, Onofrei, George, Fynes, Brian and wiengarten 2016. The adoption of multiple certification standards: perceived performance implications of quality, environmental and health & safety certifications. Production Planning & Control. https://doi.org/10.1080/09537287.2016.1239847
Customer integration and operational performance: The mediating role of information quality
Chavez, Roberto, Yu, Wantao, Gimenez, Cristina, Fynes, Brian and Wiengarten, Frank 2015. Customer integration and operational performance: The mediating role of information quality. Decision Support Systems. https://doi.org/10.1016/j.dss.2015.10.001
Mitigation processes – antecedents for building supply chain resilience.
Scholten, Kirstin, Sharkey Scott, Pamela and Fynes, Brian 2014. Mitigation processes – antecedents for building supply chain resilience. Supply Chain Management: An International Journal. https://doi.org/10.1108/SCM-06-2013-0191
Complexity and the triple bottom line: an information-processing perspective.
Wiengarten, Frank, Ahmed, Muhammad Usman, Longoni, Annachiara, Pagell, Mark and Fynes, Brian 2017. Complexity and the triple bottom line: an information-processing perspective. International Journal of Operations & Production Management. https://doi.org/10.1108/IJOPM-06-2016-0292
The development of an outsourcing process model
Marshall, Donna, Lamming, Richard, Fynes, Brian and De Búrca, Seán 2005. The development of an outsourcing process model. International Journal of Logistics Research and Applications. https://doi.org/10.1080/13675560500407135
Communication media selection in buyer-supplier relationships
Ambrose, Eamonn, Marshall, Donna, Fynes, Brian and Lynch, Daniel F. 2008. Communication media selection in buyer-supplier relationships. International Journal of Operations & Production Management. https://doi.org/10.1108/01443570810861561