Lean and agile manufacturing: complementary or competing capabilities?

Lean (TQM and JIT) and agile manufacturing (AM) are viewed as strategic capabilities that can help firms to meet diverse set of market demands. However, the question whether lean manufacturing and AM are complementary or competing capabilities is still open to discussion. This research proposes an integrated research framework that draws on complementary theory, theory of systems, and concept of fit to examine this question regarding these two strategic capabilities.

Data are collected from 248 apparel exporting firms, and the proposed model is evaluated using structural equation modeling.

Results show that lean manufacturing, AM, and supporting management and infrastructural practices have positive and complementary effects on firm's performance. Further, results depict that lean manufacturing and AM complementarity is a complete organizational synergistic phenomenon, and piecemeal implementation of these initiatives may lead to suboptimal or unsatisfactory results. Results also indicate that there is no significant direct (correlated and uncorrelated) relationship of management, infrastructure, lean manufacturing, and AM practices with firm's performance and support that lean manufacturing and AM are not competing paradigms.

This research is based on cross-sectional data from one industry. Future research should collect data from diverse sectors in different countries.

This study provides a key insight for manufacturing managers that piecemeal implementation of lean manufacturing and AM does not yield optimal outcomes. In addition, study suggests that lean manufacturing and AM complementarity builds on strong foundation of strategic management and internal and external infrastructure. Therefore, managers should focus on development of skilled and empowered human resources, technological advancements, and learning and virtually integrated organizations for effective implementation of lean manufacturing and AM.

Proposed framework is one of the first, if not the first, that seeks to resolve the question: whether lean manufacturing and AM are complementary or competing capabilities. Complementary effects of lean manufacturing and AM along with management, internal infrastructure, and common external infrastructure practices have positive impact on performance. This study also segregated infrastructure practices into internal and common external infrastructure practices.