Interrelationships among Lean HRM Practices and their Impact on Firm Performance: A Comparison between the Jordanian and German Models

Lean management is a contemporary management system that firms adopt to boost their performance. Lean management can be integrated with human resources management to develop a new concept of lean human resources management (LHRM). This entails the implementation of several practices. However, the LHRM-performance paradigm remains under-explored in the literature. Hence, this study aims to examine the interrelationships between LHRM practices and the impacts of those practices on firm performance (FP). Using two equal-sized samples (n = 250 each) of manufacturing firms in Jordan and Germany, the current study proposes two structural equation models (i.e., a Jordanian and a German model) depicting the interrelationships between LHRM practices and the impacts of those practices on FP. After testing these models, a comparison between them is conducted, producing findings with theoretical and practical implications.
The main findings indicate that the average implementation of LHRM practices among German manufacturing firms is at a higher level than the average implementation among Jordanian firms. The findings also support the proposed interrelationships between LHRM practices and the impact of those practices on FP for both the Jordanian and German models. This study is among the first to highlight the proposed relationships, both in general and in the context of comparing developed and developing countries. Its findings have important implications that can enable manufacturing managers to benefit from the implementation of LHRM practices to enhance firm performance in different contexts. These findings provide valuable insights for human resource managers and decision makers and open several avenues for future research.