LEAN MANUFACTURING AND FINANCIAL PERFORMANCE: A CASE OF MALAYSIAN AUTOMOBILE INDUSTRY

Abstract

Purpose: It is not necessary that massive investment in automobile industry is beneficial for all the nations. Some countries like Malaysia are facing different issues regarding Financial Performance (FP) due to the intensity of worldwide competition. To address this issue, this study is being conducting to investigate the role of lean manufacturing in the FP of Malaysian automobile industry.

 Design/Methodology/Approach: This study followed quantitative research approach and survey was preferred to collect required data from managerial staff of Malaysian automobile company with the help of questionnaire. Total 500 questionnaires were used and distributed with the help of simple random sampling technique. Study utilized PLS-SEM to investigate end the impact of lean manufacturing on FP of Malaysian Automobile Industry.

Findings: Results of the study revealed a strong connection between lean manufacturing and FP. Lean manufacturing has positive impact on FP of Malaysian automobile industry. Moreover, quality management is important to sustain the link between lean manufacturing and FP.

Implications/Originality/Value: This study is contributed in the body of knowledge by highlighting the lean manufacturing practices to promote FP. As this study highlighted various lean manufacturing practices to enhance FP, therefore, it is significant for practitioners